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HomeMy WebLinkAbout9/5/2001 - STAFF REPORTS (8) �a DATE: September 5, 2001 TO: City Council FROM: Deputy Director of Aviation-Administration via Interim Director of Aviation ANTON AIRFOOD INC., CONCESSIONS LEASE AGREEMENT RECOMMENDATION: It is recommended that the City Council approve Amendment No. 1 to the concessions lease agreement between the City of Palm Springs and Anton Airfood, Inc. for the addition of Space 10 for the Pahn Springs Coffee Company. SUMMARY: Anton Airfood continues to improve food concessions at Palm Springs International Airport and the addition of Palm Springs Coffee Company within Space 10 will further offer the traveling public a level of service they expect. The Airport Commission approved the addition of Space 10 at their last regularly scheduled meeting on August 1, 2001. BACKGROUND: Airport management has been in discussions with the Anton Airfood principals for several months and has now come to terms acceptable to both parties. Anton Airfood is the food concessionaire at Palm Springs International Airport resulting from a bid completed in 1999. Currently,Anton offers full service facilities at the Celebrity Bistro and the Desert Classic Grille. 100, 11 �✓ APPROVED: yl� RICHARD STRICKLAND" L N F. SMOO A.A.E. Deputy Director of Aviation-Administration Interim Director of Aviation APP EVOR D: City Manager Attachments: 1. Minute Order 2. Agreement 7)9 AMENDMENT NO. 1 TO LEASE AGREEMENT FOR CONCESSIONS AT THE PALM SPRINGS INTERNATIONAL AIRPORT, AGREEMENT NO 4158 This AMENDMENT NO. 1 TO LEASE AGREEMENT FOR CONCESSIONS AT THE PALM SPRINGS INTERNATIONAL AIRPORT, AGREEMENT NO. 4158 ("Amendment") is made and entered into this 5th day of September, 2001, by and between the CITY OF PALM SPRINGS ("City")and PALM SPRINGS AAI,INC., a wholly owned subsidiary of Anton Airfood ("Tenant"). RECITALS WHEREAS, on October 20, 1999, the City and Tenant entered into that certain Lease Agreement for Concessions at the Palm Springs International Airport, Agreement No. 4158 ("Lease"),which became effective December 1, 1999 for Tenant's lease and provision of food and beverage concession services at the Palm Springs International Airport("Airport"); WHEREAS, Tenant desires to lease additional concession space known as"Space No. 10" encompassing approximately 400 square feet within the Airport; and WHEREAS, City desires to lease to Tenant Space No. 10 under the terms of this Amendment. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,City and Tenant agree as follows: I. Subsection 1.1.1 in the Lease shall be amended in its entirety to read as follows, with all other provisions of section 1.1 remaining unchanged and in full force and effect.: 1.1.1 The areas designated as Store Nos. 2, 3, 10, 11, 13 and 16 in Exhibit "B" shall be utilized for the operation of Food and Beverage Facilities." 2. Section 2.2 Entitled"Percentage Rent"of the Lease shall be amended to add the following, which language shall be added between the rows entitled"Celebrity Bistro Space No.3 and Desert Classic Grill Space No.11,with all other provisions of Section 2.2 remaining unchanged and in full force and effect: Business Percentage Percentage (0-800,000 Enplanements) (800,000 Enplanements and above) Space No. 10 5% 7.5%" 1 744*a 3. Section 8, Entitled "INITIAL CONSTURCTION BY TENANT" in the Lease shall be amended to add a new subsection 8.7 entitled "Completion of Construction - Space No. 10" immediately following Subsection 8.6 therein,which section 8.7 shall read as follows,with all other provisions of Section 8 remaining unchanged and in full force and effect: "8.7 Completion of Construction — Space No 10. Tenant shall complete construction of Space No. 10 pursuant to all terms of this Lease, except that all times described at Section 8.6 for submission of documents by Tenant to City shall be measured from the date of completion of improvements to Space No. 10,rather than completion of the Lease Area,as referenced therein. Tenant shall complete all improvements by no later than November 30, 2001. Tenant's operation and use of Space No. 10 shall be subject to all temps and obligations of this Lease. 4. Exhibit`B"of the Lease shall be amended to add Page 3-A, depicting Store No. 10,which Page 3-A shall be added at the end of all pages comprising Exhibit `B" in the Lease. A copy of Page 3-A is attached hereto as Attachment 1, with all other pages of Exhibit `B" remaining unchanged and in full force and effect. 5. Due Execution. The person(s) executing this Amendment on behalf of the parties hereto warrant that(i)such party is duly organized and existing,(ii)they are duly authorized to execute and deliver this Amendment on behalf of said party,(iii)by so executing this Amendment,such party is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said party is bound. 13. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment, the terms of the Lease shall remain unchanged and in full force and effect. (signatures on following page) 743 IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the day of 12001. ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk City Manager REVIEWED AND APPROVED: City Attorney PALM SPRINGS AAI,INC.,a wholly owned subsidiary of Anton Airfood Name: Title: Name: Title: -3- ATTACHMENT I (SEE ATTACHED PAGE 3-A, OF EXHBIT`B") 7Ar -4- EXHIBIT "B" Page 3-A ._ "—_ Store 10 10 0 0 n � og o °❑ O O r AVAILABLE—400SQ.FT MINUTE ORDER NO. 6919 APPROVING AMENDMENT NO. 1 TO CONCESSIONS LEASE AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND ANTON AIRFOOD, INC., FOR THE ADDITION OF SPACE 10 FOR PALM SPRINGS COFFEE COMPANY. ------------------ I HEREBY CERTIFY that this Minute Order, approving Amendment No. 1 to Concessions Lease Agreement between the City of Palm Springs and Anton Airfood, Inc., for the addition of Space 10 for Palm Springs Coffee Company, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 51h day of September, 2001. PATRICIA A. SANDERS City Clerk F