This resolution seeks to extend the lease for retail concessions in Boarding Area C at the airport by two years, moving the end date from August 31, 2030, to August 31, 2032. It is currently pending action by the committee.
Resolution approving Amendment No. 3 to the Boarding Area C Retail Concession Lease 2, Lease No. 18-0368, between The Marshall Retail Group, LLC, and the City and County of San Francisco, acting by and through its Airport Commission, to extend the base operating term of the Lease by two years from August 31, 3020, for a total term of May 9, 2019, through August 31, 2032.
How it got here
The legislation originated from the need to extend the lease term for The Marshall Retail Group, LLC due to financial pressures from increased development costs.
The Airport Commission awarded the Boarding Area C Retail Concession Lease 2 to The Marshall Retail Group, LLC with a base term of seven years and two one-year options.
The Commission authorized a rent relief program due to the financial impacts of COVID-19, which was memorialized in Amendment No. 1 to the Lease.
The Board approved Amendment No. 1 to the Lease, which provided for rent relief during the pandemic.
The Commission authorized a lease extension program for tenants affected by COVID-19, leading to Amendment No. 2, which extended the lease by two years and nine months.
The Board approved Amendment No. 2 to the Lease, extending the expiration date to August 31, 2030.
The Commission approved Amendment No. 3 to extend the lease by two years to improve financial health, allowing for a longer amortization period for development costs.
The resolution for Amendment No. 3 is pending committee action after being received from the Airport Commission.
Reconstructed from attached documents & the official record