This resolution approves a two-year extension of the food and beverage concession lease at Terminal 1, allowing Lady Luck Gourmet, LLC to operate until August 31, 2035. It is currently pending committee action.
Resolution approving Amendment No. 4 to the Terminal 1 Food and Beverage Concession Lease 7, Lease No. 18-0215, between Lady Luck Gourmet, 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, 2033, for a total term of April 5, 2019, through August 31, 2035.
How it got here
The legislation originated from the need to extend the lease term for Lady Luck Gourmet, LLC at San Francisco International Airport due to financial pressures from development costs exceeding projections.
The Airport Commission awarded the Terminal 1 Food and Beverage Concession Lease 7 to Lady Luck Gourmet, LLC with a base term of 10 years and one two-year option to extend.
The Commission authorized a program to waive certain rents and fees due to the pandemic, which was memorialized in Amendment No. 1 to the Lease.
The Commission authorized a lease extension program for tenants affected by COVID-19, resulting in Amendment No. 2 extending the lease expiration date to August 31, 2033.
The Commission approved Amendment No. 4 to extend the lease term by two years to August 31, 2035, to improve financial health by allowing longer amortization of development costs.
The resolution for Amendment No. 4 was received from the Airport Commission and is pending further action.
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.