HomeMy WebLinkAbout12/4/2013 - STAFF REPORTS - 2.J. ,PALM S,b
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Cq<1FOR�,P CITY COUNCIL STAFF REPORT
DATE: December 4, 2013 CONSENT AGENDA
SUBJECT: LEASE AMENDMENT NO. 3 TO ANTON AIRFOOD INC. FOR
EXPANDED CONCESSIONS AT AIRPORT
FROM: David H. Ready, City Manager
BY: AIRPORT
SUMMARY
The City Council will consider approval of a contract amendment with the Palm Springs
International Airport concessionaire Palm Springs AAI Inc., (d.b.a. HMS Host) for the
purpose of expanding food and beverage services.
RECOMMENDATION:
1. Approve lease amendment No. 3 to Agreement No. A4158 with Palm Springs
Anton Airfood, Inc. (d.b.a. HMS Host.)
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS
In August of 2008, Council approved the Airport's food and beverage concession
modernization and upgrade program which included the addition of three new national
brands, Starbucks, Zia, and LaBrea Bakery. This program not only improved the
repertoire of choices for PSP travelers, it also provided about fifty percent more total
square feet of dedicated concession space to comfortably address increased numbers
of passengers during peak season/peak hour periods.
A notable improvement to the 2008 improvement program was the introduction of a new
freestanding building located in the post-security courtyard to house a Starbucks. This
renowned brand has been successful to a level that HMS Host desires to open a
second Starbucks concession in the pre-security area of the Airport lobby. The location
is adjacent to the other full service HMS Host restaurant, Celebrity Bistro, and therefore
provides ready access to utilities.
ITEM NO._ J
City Council Staff Report
December 4, 2013 - Page 2
AAI Inc. A4158-Amendment 3
Staff recommends that City Council approve the amended HMS Host License
Agreement to include the new Starbucks concession. The contract term for all
concessions expires Oct. 31, 2019.
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FISCAL IMPACT
HMS Host will be responsible for all capital expenditures affiliated with completing the
build-out and ongoing maintenance. Additionally, the Airport will receive revenue equal
to seven percent of gross sales generated from the new Starbucks - consistent with
obligations contained in the base lease agreement - estimated to be in the range
$40,000 to $50,000 annually. Currently, the Airport receives no revenue from this
location.
Thomas Nolan,
Executive Director, Airport
David H. Ready, Ci Hager
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AMENDMENT NO. 3 TO LEASE AGREEMENT FOR CONCESSIONS AT THE PALM
SPRINGS INTERNATIONAL AIRPORT AGREEMENT NO. A4158
THIS AMENDMENT NO. 3 TO LEASE NO. A4158 ("Amendment") is made and
entered into this fourth day of December 2013, by and between the CITY OF PALM
SPRINGS, a charter city and California municipal corporation ("Lessor"), and the Palm
Springs Anton Airfood Inc. (tenant).
RECITALS
WHEREAS, Lessor and Lessee entered into Lease Agreement No. A4158
("Agreement"), effective November 1, 1999; and
WHEREAS, the parties wish to amend the Agreement pursuant to the terms of
Amendment No. 3 as follows;
WHEREAS, Lessor owns and operates an airport known as the Palm Springs
International Airport, located in the City of Palm Springs, County of Riverside, State of
California ("Airport"); and
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WHEREAS, to further its food and beverage concession Lessee is desirous of
leasing certain real property consisting of 508 square feet in the airport terminal. The
attached Exhibit 1 identifying the 508 square foot, attached hereto and incorporated herein;
and
WHEREAS, Lessor is desirous of leasing the area to Lessee and granting Lessee
certain rights to access the Airport to allow Lessee to design, construct and operate a
second Starbucks Coffee facility and perform its business thereon.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and
for other good and valuable considerations, Lessor does hereby lease to Lessee, and
Lessee does lease from Lessor, the parcel within the airport terminal building containing
the 508 square feet of area identified as attached hereto and incorporated herein; for all
purposes, together with those rights and privileges stated elsewhere in this agreement
upon the following terms and conditions, to become effective December 4, 2013:
AGREEMENT
Section 1. The ending date of the term of this Amendment No. 3 shall be the same as that
described in Agreement No. A4158, October 31, 2019.
Section 2 Tenant shall pay a percentage of rent of all gross sales as defined in
Amendment No. 2, Section 2.2 remaining unchanged and in full force and
effect.
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IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first
written above.
ATTEST: CITY OF PALM SPRING
a municipal corporation
By: By:
City Clerk City Manager
APPRO E TO FORM:
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By:
Ciy Attorney
CONTRACTOR: Check one: _Individual —Partnership_Corporation
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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 Treasurer, or
Chief Financial Officer.
By: By:
Signature(notarized) Signature(notarized)
Name: Name:
Title: Title:
State of State of
County of County of
On before me, On before me,
personally appeared personally appeared
who proved to me on the basis of satisfactory who proved to me on basis of satisfactory
evidence to be the person(s)whose name(s) evidence to be the person(s)whose name(s)
istare subscribed to the within instrument stare subscribed to the within instrument
and acknowledged to me that he/she/they and acknowledged to me that helshe/they
executed the same in his/herttheir authorized executed the same in hislher/their authorized
capacity(les), and that by his/herAheir capacity(ies), and that by his/her/their
signature(s)on the instrument the person(s), signatures(s)on the instrument the person(s)
or the entity upon behalf of which the or the entity upon behalf of which the
person(s)acted, executed the instrument. person(s)acted, executed the instrument.
I certify under PENALTY OF PERJURY I certify under PENALTY OF PERJURY
under the laws of the State of California that under the laws of the State of California that
the foregoing paragraph is true and correct. the foregoing paragraph is true and correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
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