This resolution seeks to extend the lease for a food and beverage kiosk at Terminal 1 Boarding Area C by two years, moving the end date from August 31, 2033, to August 31, 2035. It is currently pending action by a committee.
Resolution approving Amendment No. 3 to the Terminal 1 Boarding Area C Food and Beverage Kiosk Lease, A Small Business Enterprise Set-Aside, Lease No. 19-0244, between Park Café Group, Inc., 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, 2033, for a total term of April 10, 2020, through August 31, 2035.
How it got here
This legislation originated from the need to extend the lease term for Park Café Group, Inc. at San Francisco International Airport due to financial pressures from increased development costs.
The Airport Commission awarded the Terminal 1 Boarding Area C Food and Beverage Kiosk Lease to Park Café Group, Inc. with a base term of 10 years.
The Board of Supervisors voted to approve the lease awarded to Park Café Group, Inc.
The Commission authorized a lease extension of one year and seven months due to COVID-19 impacts, changing the expiration date to August 31, 2033.
The Board approved Amendment No. 1 to the lease, which included the COVID-19 lease extension.
The Commission authorized Amendment No. 2, which adjusted the Minimum Annual Guarantee for the lease.
The Board approved Amendment No. 2 to the lease, which modified the annual methodology for MAG adjustments.
The Commission approved Amendment No. 3 to extend the lease term by two years to August 31, 2035, to improve financial health.
The resolution for Amendment No. 3 is currently pending committee action in the Board of Supervisors.
Reconstructed from attached documents & the official record
This resolution allows the San Francisco International Airport to reduce the minimum annual payments and percentage rent for certain food and beverage concession tenants. It also changes how the annual minimum guarantees are adjusted for all food and beverage leases at the airport.