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HomeMy WebLinkAbout9/5/2007 - STAFF REPORTS - 2.K. U.�00 I'l CITY COUNCIL STAFF REPORT DATE: September 5, 2007 CONSENT CALENDAR SUBJECT: AIRPORT CONCESSION AMENDMENT NO. 1 TO AGREEMENT NO. 4159 WITH THE PARADIES SHOPS, LLC. FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY Airport staff recommends City Council approval of Amendment No. 1 to the Airport retail concession agreement with Paradies Shops. This amendment would replace concession locations that are no longer utilized and/or available. This exchange of concession space will better serve the traveling public and generate additional revenue for the Airport. RECOMMENDATION: 1. Approve Amendment No. 1 to Agreement No. 4159 with Paradies Shops, LLC to replace Airport retail concession locations that are not utilized and/or available. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The Paradies Shops currently has a retail concession lease agreement for various locations at Palm Springs International Airport. Amendment No. 1 will replace two unutilized Paradies locations with one prime location in the new concourse. One of the old locations Store No. 18 will not exist when the old Holdrooms A&B are demolished in Fall 2007. Paradies is willing to accept less square footage in return for a location in the new concourse. Per Amendment No. 1 Paradies will construct a temporary kiosk within the new concourse to open when the new concourse becomes operational. This temporary kiosk will be replaced with a permanent kiosk no later than August 1, 2008. The design and case work of the permanent kiosk shall be architecturally compatible with the new ITEM, NO. a City Council Staff Report September 5, 2007 -- Page 2 Paradies Amendment No. 1 concourse. The Airport Commission at their July 11, 2007 meeting recommended City Council approval of this action. FISCAL IMPACT: Finance Director Review: The exchange of concession space will generate increased revenue to the Concessionaire and ultimately to the City via the percentage payments fees incorporated into the current concession agreement. Thomas Nolan, A.A.E. David H. Ready, Executive Director—Airport City Manager Attachments: Amendment No. 1 000062 I ' I AMENDMENT NO, 1 TO LEASE AGREEMENT NO. 4159 FOR CONCESSIONS AT PALM SPRINGS INTERNATIONAL AIRPORT I THIS FIRST AMENDMENT, made and entered into as of the day of 2007. by and between the CITY OF PALM SPRINGS, a municipal corporation ("City"), and PARADIES SHOPS, LLC, a Georgia limited liability company a subsidiary of THE PARADIES SHOPS, a Georgia Corporation ("Tenant"). RECITALS A. City is the owner of the Palm Springs International Airport, ("Airport"), and operates thereon the' Palm Springs Airport Terminal building ('Terminal"). B. City is expanding the Terminal by adding a new concourse and demolishing the old Terminal Temporary Hold-rooms A & B. C. This modification to the Terminal will result in the loss of allocated but not utilized space to Tenant (Store No. 1 -- 580 square feet and Store No. 18 — 400 square feet) and Tenant and the City are desirous of providing and utilizing replacement space-(Store No. 19 --420 square feet) be made available in the new concourse expected to open on or about September 3, 2007. I AGREEMENT NOW, THEREFORE, in consideration of the promises of the parties hereto and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Tenant agree as follows: 1. Section 1-1.1 is hereby amended to read as follows: "1.1.1 The areas designated as Store Nos. 9, 14 and 19 shown on Exhibit A and Exhibit A-1 shall be utilized for the operation of News/Books Shops" Exhibit B, Page 1-6, Store No. 18 is hereby replaced with Exhibit B, Page 1-B, Store No. 19. 2. Section 1.1.2 is hereby amended to reads as follows: "1.1.2 The areas designated as Store Nos. 7, 8, 9, 14, and 19 shown on Exhibit A and Exhibit A-1 shall be utilized for the operation of Gift Shops" I I Paradies Amendment No, 1 to Agreement 4159 1 Palm Springs International Airport O D Exhibit B; Page 1-8, Store No. 18 is hereby replaced with Exhibit B, Page 1-13, Store No. 19. 3. A new Section 8.0.1 is hereby added to read as follows: "8.0.1 Expanded Facilities. Tenant shall design and cause to be constructed a free standing kiosk(Store No. 19)to service the airline passengers in the new concourse. The design and casework shall be architecturally compatible with the new concourse and its casework. If the display cases face out Tenant must allow a three (3) foot buffer zone within allotted space along perimter for customer traffic flow." Tenant agrees to provide a temporary kiosk (Store No. 19) at Tenant's sole cost and expense no later than September 1, 2007. Tenant agrees to provide a permanent kiosk (Store No. 19) at Tenant's sole cast and expense no later than August 1, 2008. All improvements constructed by Tenant within _ the Lease Area shall be in strict compliance with detailed plans and specifications approved by the Contract Officer. 4, Full Force and Effect. Except as expressly modified herein all other provisions of the Concession Lease Agreement shall remain unmodified and in full force and effect. 5. Corporate Authority. The persons 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 part, (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. (Signatures on following page) I Paradies Amendment No, 1 to Agreement 4159 2 Palm Springs International Airport 0 O I IN WITNESS WHEREOF,the parties have executed and entered into this Agreement as of the date first written above. ATTEST: C17Y OF PALM SPRING a municipal corporation By: By: City Clerk City Manager APPROVED AS TO FORM: By: City Attorney CONTRACTOR: Check one: IndividualPartnership—_ Corporation Corporations require two notarized signatures: One from each of the following: A. Chairman of Board, President,or any Vice President:AND B. Secretary,Assistant Secretary,Treasurer,Assistant Troasurer,Or Chief Financial Officer, By: By: Signature(notarized) Signature(notarized) Name: Name: Title: Tille: I State of State of County of County of On before me, On before me, personally appeared personally appeared I personally known to me(or proved to me an personally known to me(or proved to me On the basis of satisfactory evidence)to be the the basis of satisfactory evidence)to he the person(s)whose name(s)Is/are subscribed person(s)whose name(s)is/are subscribed to the within Instrument and acknowledged to the within instrument and acknowledged to me that he/shelthey executed the same to me that he/she/they executed the same In his/herAheir authorized capacity(ies),and In his/her/their authorized capaclty(es),and that by bis/her/their signatures(s)on the that by his/her/their signatures(s)an the Instrument the person(s),or entity upon instrument the person(s),or entity upon behalf of which the person(s)acted, behalf of which the person(s)acted, executed the instrument. executed the instrument. WITNESS my hand and official soal. WITNESS my hand and official seal. Notary Signature: Notary Signature: Notary Seal: Notary Seal: i I i Paradies Amendment No. 1 to Agreement 4159 3 Palm Springs International Airport 000005 II it EXHIBIT"A' (See Attached) I I I i i I I i Paradies Amendment No. 1 to Agreement 4159 4 Palm Springs International Airport . 9 G11E11 6] Gill 10 . 1 ' WED �1 °° "„ GQ��-4� 1Q RESEAURAT!M(1,900 Sf) ( COCHTAIL LOUNGE(450 SO ® RUIN SEATING 000 SO (1) TUEE SERVICE RESTAURANT(3,137 Sf) 1Q COFfEE CART(154 so Q SPECIALTY MI(66 Sf1 (1� HEWS I BM1 SURRIES W5 Sf1 U10 = • • _c) id!€a 5 SPECIALTY CARE OUT) 11 BUMIESS CENTER(461 SO to or G OUTSIDE MIN RD SO COFFEE 510(400 5E) aATEs ko ! e€ idlE4 7 5PEWITYOf1(850 So AWLAGIE , ® RESORI WEAR I COIF SROP 0,60 SO Q HIM L.BUM 1—SUR HIM(40H50 ` QO MAIIABEE I4OU so g 1 7 1 GATE 3 l 1 GATE GAigium WE}t GAfF3i1A 817a GdlEi . ESA S&Yl�d[NEiXP[H4f 1 O Ep �7 EXHIBIT"A-1" (see attached) i i I i j Paradies Amendment No. 1 to Agreement 4159 5 Palm Springs International Airport i6 a Ow. ........ ....... fill I rA i I Exhibit "B, Page 1-B, Store No 19 (see attached) I I i �I i i j �I I Paradies Amendment No. 1 to Agreement 4159 6 Palm Springs International Airport QQQQ�Q _ ao•-0• � av-c 04 � u 05 Ofi �S�Y PF1Rf9'Dl�s -----------------{ --------- __--.__ _ ___ _______________-- i i � I 57T�G.�. NO,llj zF oisai-iYs R�Ac C- otir -----1----- --- -----=---� _ _----- ----'----•-___-_ --- G OA BB I I I I I I M. + D � I I Awl I I 1 I m y i •--•--- --------- -------- -- ----- _ '� I PDImr I of spy I I I I f I I i i _. :. I f I , � 1 1 I I f i - 7�z 8DH s ------------• --- ------------------- ---------------=---1