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File #: 15-13042    Version: 1 Name:
Type: Consent Item Status: Agenda Ready
File created: 3/10/2020 In control: City Council Business Meeting
On agenda: 7/27/2020 Final action:
Title: Airport Passenger Common-Use Lounge Lease
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideoAudio
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Title

Airport Passenger Common-Use Lounge Lease

 

Action

Action:

A.                     Approve a 10-year lease with ALD Development Corp. (dba Airport Dimensions) at Charlotte Douglas International Airport, and

 

B.                     Authorize the City Manager to renew the lease for up to two additional, five-year terms consistent with the purpose for which the lease was approved.

 

Body

Staff Resource(s):

Brent Cagle, Aviation

Haley Gentry, Aviation

 

Explanation

§                     Upon completion of the Airport Concourse A Expansion project in 2018, the Airport gained additional leasable space available for use.  

§                     On October 29, 2019, the Airport issued a Request for Proposals for a Common-Use Passenger Lounge; four responses were received.

§                     ALD Development Corp. (dba Airport Dimensions) best meets the city’s needs in terms of experience, design concept, and cost.

§                     Annual rent is based on the greater of the minimum annual guarantee of $1,600,000 or 28 percent of the gross revenues.

§                     The total 10-year estimated lease value is $16,000,000.

 

Airport Concessions Disadvantaged Business Enterprise

The Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation goal is established at 25.00% and based on the total eligible expenses for goods and services. ALD Development Corp. (dba Airport Dimensions) has agreed to utilize certified ACDBE firms in order to meet or exceed the goal established for the duration of this contract. The obligations of both the city and ALD Development Corp. (dba Airport Dimensions) under this contract shall be subject to the provision of all federal regulations relating to the ACDBE program.

 

Fiscal Note

Funding:  Revenue will be deposited into Aviation’s Operating Fund