This resolution seeks to extend the lease for the Terminal 3 Boarding Area F Café by two years, moving the end date from August 31, 2033, to August 31, 2035. It involves a small business enterprise set-aside and is currently pending committee action.
Resolution approving Amendment No. 4 to the Terminal 3 Boarding Area F Café Lease, A Small Business Enterprise Set-Aside, Lease No. 19-0054, between Rylo Management, 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 August 28, 2019, through August 31, 2035.
How it got here
The legislation originated from the need to extend the lease term for Rylo Management, LLC's café at San Francisco International Airport due to financial pressures from high development costs.
The Airport Commission awarded the Terminal 3 Boarding Area F Café Lease, a Small Business Enterprise Set-Aside, to Rylo Management, LLC with a base term of 10 years.
The Commission authorized a rent relief program due to the financial impacts of COVID-19, which was memorialized in Amendment No. 1 to the Lease.
The Board approved Amendment No. 1 to the Lease, which included provisions for the COVID-19 Emergency Rent Relief Program.
The Commission authorized a lease extension program for tenants affected by COVID-19, leading to a two-year and four-month extension for Rylo Management, memorialized in Amendment No. 2.
The Board approved Amendment No. 2 to the Lease, extending the expiration date to August 31, 2033.
The Commission authorized Amendment No. 3 to lower the Minimum Annual Guarantee and adjust the methodology for future adjustments.
The Board approved Amendment No. 3, which adjusted the financial terms of the Lease.
The Commission approved Amendment No. 4 to extend the base operating term of the Lease by two years to August 31, 2035, to improve financial health.
Reconstructed from attached documents & the official record
This resolution approves a lease extension for Farley’s Community Café at San Francisco International Airport, allowing the café to continue operating for an additional two years and four months. The extension is part of a program designed to support small businesses affected by COVID-19.
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.