HomeMy WebLinkAbout12/17/2003 - STAFF REPORTS (27) DATE: December 17, 2003
TO: City Council
FROM: Executive Director-Airports
TERMINAL COUNTER PROMOTIONAL SPACE TENANT IMPROVEMENT AND RENT REDUCTION
RECOMMENDATION:
It is recommended that the City Council approve tenant improvements for a terminal counter promotional
space and to offer a rent reduction to the Marriott Vacation Corporation International in an amount not to
exceed $12,000 over the next three years of the lease term to help offset the tenant's development cost.
SUMMARY:
This rent reduction will allow the Marriott Vacation Corporation International to upgrade and revise their
current terminal counter promotional space at a cost of $14,200 which will be consistent with the other
promotional customer service counters in the airport.
BACKGROUND:
The Marriott has had a promotional counter space in the airport for over the last nine (9) years. As a tenant
in good standing, the Marriott would like to continue to have a presence in the terminal to encourage time
share sales in the Desert Resort Communities.
Due to increased competition in the terminal and because of the economic downturn experienced from the
effects of 911, the Marriott has had difficulty in justifying a continued presence at the Airport due to sales
strategy changes in their corporate offices. In order to develop a more prominent display and to help
increase revenue sales generated from the Airport space, they would like to invest $14,200 into a new
display area. In the past the Airport has used various incentive methods to help facilitate tenant
improvements. The Marriott's annual lease payment is $22,000 on a five (5) year term agreement. They
have requested that the Airport offer a rent reduction of$4,000 a year over the next three years in order to
pay this upgrade and modernize our promotional areas in the airport.
The current lease agreement is scheduled to expire on 9/30/06 and the Marriott Corporation has intentions
to participate in future terminal counter promotional space opportunities at the Palm Springs International
Airport. The Airport Commission recommended City Council approval at its December 3, 2003 meeting.
Attached is a sketch of the proposed display area.
`BARRYGgl49FIT 'J' ' ALE F. SMOOT, A.A.E.
Assistant Director of Aviation Executive Director-Airports
APPROVtIJ: �����' f` '
City Manager
Attachment: (1) Minute Order REVIEWED BY DEPT. OF FINANCE
(1) Marriott Display Area
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AMENDMENT No.1
Agreement No. 4405
THIS FIRST AMENDMENT to Agreement No.4405 for tenant improvements for a terminal
counter promotional space and to offer a rent reduction (herein "Agreement'), between
CITY OF PALM SPRINGS (herein "City') and Marriott Vacation Corporation International
(herein "Lessee") is hereby amended effective , 2003, as follows:
1. Tenant improvements for Terminal Counter Promotional Space in an amount equal
to $14,200 consistent in quality of construction with current airport promotional
displays.
2. Rent reduction in the current agreement in an amount not-to-exceed $4,000 per
year off current minimum annual guarantee amount of $22,000 to facilitate
upgrades.
Except as specifically worded herein, all terms and conditions of the Agreement shall
remain in full force and effect and performance of services under the Agreement shall be
governed by the provisions of the Agreement.
IN WITNESS WHEREOF, the parties have executed and entered into this
Amendment as of the date stated above.
ATTEST: CITY OF PALM SPRINGS, a California
municipal corporation
By:
City Clerk City Manager
APPROVED AS TO FORM:
City Attorney Marriott Vacation International
9000 Shadow Ridge Road
Palm Desert, California 92260
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MINUTE ORDER NO.
APPROVING TENANT IMPROVEMENTS
FOR A TERMINAL COUNTER
PROMOTIONAL SPACE AND TO OFFER A
RENT REDUCTION TO THE MARRIOTT
VACATION CORPORATION
INTERNATIONAL IN AN AMOUNT NOT-TO-
EXCEED$12,000 OVER THE NEXT THREE
(3) YEARS OF THE LEASE TERM TO HELP
OFFSET THE TENANT'S DEVELOPMENT
COST.
- - - - - - - - - - - - - - - -
I HEREBY CERTIFY that this Minute Order approving tenant improvements
for terminal counter promotional space and to offer a rent reduction to the
Marriott Vacation Corporation International in an amount not-to-exceed
$12,000 over the next three (3) years of the lease term to help offset the
tenant's development cost, was adopted by City Council of the City of Palm
Springs, California in a meeting thereof held on the 17th day of December,
2003.
PATRICIA A. SANDERS
City Clerk
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