Budget and Finance Committee forwards airport leases, concession amendments to full Board
May 22, 2024 | San Francisco County, California
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San Francisco County's Budget and Finance Committee on May 22 unanimously forwarded several airport-related lease and concession resolutions to the full Board of Supervisors with positive recommendations.
The committee moved two property lease resolutions for Trinity Center LLC that would provide space to the Law Library and the Health Service System. The clerk described Item 1 as a 15-year lease with a 15-year option and a base rent of $599,000 per year with 3% annual increases; Item 2 was described as a 10-year lease for a portion of the property with a 15-year extension option at roughly $589,000 per year with 3% annual increases. With no public comment, Chair Supervisor Connie Chan moved both items to the Board and the roll call recorded Vice Chair Rafael Mendelmann, Member Melgar and Chair Chan voting in the affirmative.
Separately, the committee considered a concession lease at San Francisco International Airport's Harvey Milk Terminal 1. Airport staff said Love From USA Group Inc. — the sole responsive proposer — was awarded a seven-year concession (with two one-year extension options) and will guarantee a minimum of $205,000 in the first year. The airport said the store will feature merchandise from Bay Area museums, including the Asian Art Museum and the California Academy of Sciences. There were no public speakers and the committee voted to forward the item to the Board with a positive recommendation.
The committee also reviewed Amendment No. 3 to a Terminal 3 concession lease with Elevate Gourmet Brands SFO Group, which removes the planned SF Mac and Cheese Kitchen from the premises, reimburses approximately $279,000 in tenant improvement costs and reduces the minimum annual guarantee from $375,000 to $185,000. The Budget Analyst’s report described an estimated $1.3 million revenue loss to the airport over the remaining lease term, partially offset by increased rent from United Airlines. The BLA recommended approval, and the committee voted unanimously to forward the amendment to the full Board.
The items will return to the Board of Supervisors for final actions on the Board agenda.
The committee moved two property lease resolutions for Trinity Center LLC that would provide space to the Law Library and the Health Service System. The clerk described Item 1 as a 15-year lease with a 15-year option and a base rent of $599,000 per year with 3% annual increases; Item 2 was described as a 10-year lease for a portion of the property with a 15-year extension option at roughly $589,000 per year with 3% annual increases. With no public comment, Chair Supervisor Connie Chan moved both items to the Board and the roll call recorded Vice Chair Rafael Mendelmann, Member Melgar and Chair Chan voting in the affirmative.
Separately, the committee considered a concession lease at San Francisco International Airport's Harvey Milk Terminal 1. Airport staff said Love From USA Group Inc. — the sole responsive proposer — was awarded a seven-year concession (with two one-year extension options) and will guarantee a minimum of $205,000 in the first year. The airport said the store will feature merchandise from Bay Area museums, including the Asian Art Museum and the California Academy of Sciences. There were no public speakers and the committee voted to forward the item to the Board with a positive recommendation.
The committee also reviewed Amendment No. 3 to a Terminal 3 concession lease with Elevate Gourmet Brands SFO Group, which removes the planned SF Mac and Cheese Kitchen from the premises, reimburses approximately $279,000 in tenant improvement costs and reduces the minimum annual guarantee from $375,000 to $185,000. The Budget Analyst’s report described an estimated $1.3 million revenue loss to the airport over the remaining lease term, partially offset by increased rent from United Airlines. The BLA recommended approval, and the committee voted unanimously to forward the amendment to the full Board.
The items will return to the Board of Supervisors for final actions on the Board agenda.
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