This resolution seeks to extend the lease for retail concessions at Terminal 1 of the airport by two years, moving the end date from August 31, 2037, to August 31, 2039. It is currently pending action by the committee.
Resolution approving Amendment No. 3 to the Terminal 1 Retail Concession Lease 5, Lease No. 18-0206, 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, 2037, for a total term of February 27, 2019, through August 31, 2039.
How it got here
The legislation originated from the need to extend the lease term for The Marshall Retail Group, LLC at San Francisco International Airport due to financial pressures from high development costs.
The Airport Commission awarded the Terminal 1 Retail Concession Lease 5 to The Marshall Retail Group, LLC with a base term of 10 years.
The Commission authorized a rent relief program to assist concessionaires affected by the pandemic, which was memorialized in Amendment No. 1 to the Lease.
The Board approved Amendment No. 1 to the Lease, implementing the COVID-19 Emergency Rent Relief Program.
The Commission authorized a lease extension program for tenants affected by COVID-19, leading to Amendment No. 2, which extended the lease by three years and two months.
The Board approved Amendment No. 2 to the Lease, extending the expiration date to August 31, 2037.
The Commission approved Amendment No. 3 to extend the lease by two years to improve financial health, allowing for longer amortization of development costs.
The resolution for Amendment No. 3 is currently pending committee action in the Board of Supervisors.
Reconstructed from attached documents & the official record