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SOUTH BEND, Ind. – Court filings in the lawsuit over the South Bend International Airport concessions contract offer the clearest public look yet at why airport officials selected South Dakota-based Sky Dine over longtime operator South Bend Chocolate Co.
A redacted copy of the 100-page proposal submitted by Sky Dine to the St. Joseph County Airport Authority was filed Tuesday as an exhibit in ongoing litigation brought by South Bend Chocolate Co. founder Mark Tarner. The filings allow for the first direct comparison between the competing bids.
Sky Dine, owned by brothers Marlin and Dustin Sejnoha of Sioux Falls, South Dakota, operates concession contracts at four regional airports across South Dakota, North Dakota, Montana and Colorado. Its longest-running airport partnership dates to 2009 at Sioux Falls Regional Airport.
In a response filed Tuesday, the airport authority said the procurement process was “formal, fair and transparent” and argued Sky Dine scored higher than South Bend Chocolate Co. in nearly every evaluation category among four proposals. The authority also said South Bend Chocolate Co. received the lowest overall score.
South Bend Chocolate Co. sued the airport authority in late March after losing the contract. The company also filed a motion for preliminary injunction seeking to block the transition before its current lease expires May 31.
Sky Dine’s proposal outlined an anticipated startup budget of $4.43 million. A separate concept-level capital investment table included in the same filing listed individual buildout costs totaling approximately $5.75 million. The proposal did not explain the discrepancy and the airport authority did not address it in Tuesday’s filings.
The company’s largest planned investment, according to the concept table, was a $1.73 million full-service restaurant and bar based on The Lauber in downtown South Bend. A letter of intent included in the filing stated the restaurant would provide menu consultation, brand standards and training if Sky Dine secured the contract.
Other proposed concepts included two Dunkin’ locations, a Jimmy John’s franchise, a pre-security bar and retail concept called Bend Market and Brews, a grab-and-go market called SBN Market, a pizza and sandwich shop called Slices and Sammies, a River Bend Gift Shop and an upgraded vending area.
The proposal also emphasized operational systems and technology. Sky Dine proposed robotic food delivery from a centralized pre-security kitchen to Bend Market and Brews, along with mobile ordering, self-service kiosks and a phased construction plan intended to maintain continuous food, beverage and retail service during renovations.
The company projected all post-security units would be operational before the start of the University of Notre Dame football season, with full airport service coverage in place by June 1, 2026.
Sky Dine proposed a 16% concession rate on food and beverage sales, an 18% rate on retail sales, a 25% rate on vending and a $600,000 minimum annual guarantee during the first year of the contract. The company also proposed a 20-year contract term.
The filings show a sharply different proposal from South Bend Chocolate Co., which has operated at the airport for 12 years but has no airport experience outside South Bend.
The South Bend company’s December proposal outlined approximately $2 million in renovations and new concepts. That figure does not include roughly $1.6 million in leasehold improvements and equipment the company said it would forfeit if required to vacate the terminal.
The company’s largest proposed project was a $500,000 Notre Dame-themed sports apparel store called The Four Horsemen, planned for the post-security concourse in collaboration with the University of Notre Dame licensing office. South Bend Chocolate Co. described itself in the filing as Notre Dame’s oldest licensee and projected $1 million in first-year sales from the concept.
Another $500,000 investment centered on Legendary Traditions, a rebranded pre-security gift shop modeled after the named gates at Notre Dame Stadium. Additional concepts included a remodel of the existing Barfly restaurant, a farm-to-table concept called South Bend Farms and a wine and spirits bar called South Bend Reserve.
South Bend Chocolate Co. proposed an 18% concession rate on food and beverage sales and projected airport revenue growth from $4.3 million to $12.9 million during a requested 10-year contract term.
The airport authority also responded to Tarner’s criticism that the RFP process favored outside operators. According to the filing, the authority could have imposed minimum requirements that would have disqualified South bend Chocolate Co. at the outset, including thresholds for airport experience, annual revenue or number of airport locations operated. Instead, the authority argued it intentionally avoided those restrictions to provide local businesses a full opportunity to compete.
Sky Dine’s proposal also identified local partnerships with Ali on the Boulevard, Jaworski’s Market and J2K Capraio. The filing shows that Sky Dine’s proposal included the logos of South Bend Chocolate Co. and South Bend Farms, which Tarner said were used without permission.
The case has been assigned to St. Joseph County Superior Court Judge Jenny Pitts Manier. The airport authority has asked the court to deny the injunction request, require South Bend Chocolate Co. to comply with its lease agreement and prevent the company from removing fixtures or leasehold improvements from the airport.
A hearing on the preliminary injunction has not yet been scheduled.
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