This resolution seeks to extend the lease for retail operations at Terminal 1 by two years, moving the end date from October 31, 2027, to October 31, 2029. It is currently pending action by the committee.
Resolution approving Amendment No. 3 to the Terminal 1 Retail Concession Lease 4, Lease No. 18-0205, between L’Occitane Airport Venture, 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 October 31, 2027, for a total term of February 26, 2019, through October 31, 2029.
How it got here
The legislation originated from the need to extend the operating term of a retail concession lease at San Francisco International Airport due to financial pressures faced by the tenant.
The Airport Commission awarded the Terminal 1 Retail Concession Lease 4 to L’Occitane Airport Venture, LLC with a base term of seven years and two one-year options.
The Commission authorized the COVID-19 Emergency Rent Relief Program, which was memorialized in Amendment No. 1 to the Lease.
The Board approved Amendment No. 1 to the Lease, which provided rent relief due to the pandemic.
The Commission authorized Amendment No. 2 to the Lease, which adjusted the Minimum Annual Guarantee and its adjustment methodology.
The Board approved Amendment No. 2 to the Lease, which aimed to improve the financial viability of the concession.
The Commission approved Amendment No. 3 to extend the base operating term of the Lease by two years to improve financial health.
The proposed resolution for Amendment No. 3 was received from the Airport Commission for further action.
The resolution for Amendment No. 3 is currently pending committee action in the Board of Supervisors.
Reconstructed from attached documents & the official record