This resolution seeks to extend the lease for food and beverage concessions at the International Terminal of San Francisco International Airport by two years, moving the end date from January 31, 2031, to January 31, 2033. It is currently pending committee action.
Resolution approving Amendment No. 4 to the International Terminal Food and Beverage Concession Lease 2, Lease No. 16-0013, between High Flying Foods SFO, 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 January 31, 2031, for a total term of August 11, 2016, through January 31, 2033.
How it got here
The legislation originated from the need to extend the lease term for High Flying Foods SFO, LLC due to financial pressures from increased development costs.
The Airport Commission awarded the International Terminal Food and Beverage Concession Lease 2 to High Flying Foods SFO, LLC with a base term of 10 years and two one-year options.
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, leading to Amendment No. 2, extending the lease to January 31, 2031.
The Commission approved Amendment No. 4 to extend the lease term by two years to January 31, 2033, to improve financial health by allowing longer amortization of development costs.
The proposed resolution for Amendment No. 4 was received from the Airport Commission for Board of Supervisors' approval.
The resolution was received and assigned to the appropriate committee for 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.