This resolution seeks to extend the lease for food and beverage concessions at the International Terminal by two years, moving the end date from July 31, 2030, to July 31, 2032. It is currently pending committee action.
Resolution approving Amendment No. 4 to the International Terminal Food and Beverage Concession Lease 1, Lease No. 16-0012, between Andalé Management 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 July 31, 2030, for a total term of August 10, 2016, through July 31, 2032.
How it got here
The legislation originated from the need to extend the lease term for Andalé Management Group, Inc. due to financial pressures related to development costs.
The Airport Commission awarded the International Terminal Food and Beverage Concession Lease 1 to Andalé Management Group, Inc. with a base term of 10 years and two one-year options.
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 Commission authorized a lease extension program for tenants affected by COVID-19, resulting in a three-year and six-month extension for Andalé Management Group, Inc.
The Commission approved Amendment No. 4 to extend the lease term by two years to improve financial health and allow for longer amortization of development costs.
The proposed resolution for Amendment No. 4 was received from the Airport Commission for consideration by the Board of Supervisors.
The resolution approving Amendment No. 4 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.