Title
Airport American Express Sidecar Lounge Lease
Action
Action:
A. Approve a lease with American Express Travel Related Services Company, Inc. at the Airport for a term of five years, and
B. Authorize the City Manager to renew the lease for one, five-year term consistent with the purpose for which the lease was approved.
Body
Staff Resource(s):
Haley Gentry, Aviation
Theodore Kaplan, Aviation
Explanation
§ Upon completion of the Airport’s Concourse A Expansion Phase 2 project in 2024, the Airport gained additional leasable space available for commercial use.
§ On September 23, 2024, the Airport issued a Request for Proposals (RFP) for a Commercial Lease Opportunity of 4,641 leasable square feet in Concourse A; two responses were received.
§ American Express Travel Related Services Company, Inc. best meets the city’s needs in terms of qualifications, experience, cost, responsiveness to RFP requirements, and conceptual design.
§ Terms of the lease include:
- Lease term of five years with one, five-year renewal option,
- Annual lease rate of $200 per square foot, to be increased 2.50 percent annually,
- Lessee must contribute a minimum capital investment of $7.15 million, and
- Airport receives a percentage fee equal to 25 percent of gross revenues generated at the space.
Airport Concessions Disadvantaged Business Enterprise (ACDBE)
In accordance with the USDOT Interim Final Rule, at this time, ACDBE goals cannot be established on contracts executed after October 3, 2025.
Fiscal Note
Funding: Aviation Operating Budget