Private public partnership cargo facility RFP

The Metropolitan Airports Commission (MAC) is soliciting proposals for a Private Public Partnership (PPP) to design, construct, own, and operate a cargo facility at Minneapolis-Saint Paul International Airport (MSP) in Hennepin County, Minnesota. The project involves developing a modern on-airport cargo complex on a 21.5-acre site with 100,000-120,000 square feet of cargo handling space featuring direct apron access to serve two primary third-party cargo handlers and support the region's international air trade in medical technology and advanced manufacturing. The selected proposer will be responsible for all site preparation, utility extensions, construction, operations, maintenance, property taxes, and regulatory compliance, with the facility required to achieve LEED Silver certification (preferably Gold or higher) and participate in the ENERGY STAR program with a minimum score of 75 by year three. Key evaluation criteria include technical design quality, financial viability, construction feasibility, and operational capability, with the award decision based on a weighted scoring methodology totaling 2,000 points established by the Review Team. A mandatory pre-proposal conference is scheduled for June 2, 2026, with the deadline for submitting questions set for June 16, 2026, and proposals due by July 30, 2026, at 4:00 PM CST; evaluations will be conducted from July 31 through August 21, 2026, with Commission approval targeted for October 19, 2026. The ground lease term will not exceed 50 years, with ownership of improvements reverting to MAC upon lease expiration, and the lessee must execute the agreement within a timeframe determined by MAC.

Proposers must demonstrate commitment to small business participation goals to be established by MAC's Office of Civil Rights and Small Business Development, with the Small Business Goal Worksheet requiring documentation of good faith efforts in dividing project work, soliciting small business involvement, and assisting small businesses with bonding, financing, equipment, and supplies. The financial structure includes ground rent of $0.53 per square foot (current period 2026-2030) with 10 percent increases every five years, indirect cost recovery of $0.47 per square foot increasing 2.5 percent annually, and participation rent as a percentage of gross receipts, with proposers required to submit their proposed percentage and calculation methodology as part of their financial offer. Construction must comply with prevailing wage requirements, and comprehensive insurance requirements apply during both development and operational phases, including general liability coverage of $10,000,000 during construction and $50,000,000 during operations. Ramp fees for aircraft parking increase annually by three percent with tiered pricing based on aircraft type and parking frequency, and construction progress deadlines are outlined with liquidated damages capping at $25,000 in cumulative damages if milestones are not achieved. MAC retains the right to terminate the agreement if the facility does not achieve Date of Beneficial Occupancy by the Commercial Operations Date and the lessee fails to submit or comply with an approved remedial action plan within sixty days. The specific award value is not disclosed in the RFP documents; however, the proforma establishes the financial framework with ground rent beginning at $250,160 annually for the 472,000 square-foot leased premises, plus indirect cost recovery charges of $221,840 annually and additional participation rent based on facility operations.