DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Concession Agreement for a Brown Bag Sandwich Shop at Stinson Municipal Airport
SUMMARY:
This Ordinance authorizes a concession agreement with The Brown Bag Sandwich Shop, Inc. to operate a caf? at Stinson Municipal Airport. The initial term is one year with the options of four one-year renewals. The City will waive the guaranteed rent for the first year but the caf? will pay 2.7% of gross sales after the first $5,000 in monthly gross sales.
The caf? will operate under the name "Brown Bag Touch 'N Go Sandwich Shop" and serve sandwiches from 11 a.m. to 2 p.m. on Mondays through Saturdays. They will also provide catering services.
BACKGROUND INFORMATION:
The Brown Bag Sandwich Shop currently operates a sandwich shop at 11035 Wetmore Road and is interested in opening a second location at Stinson Municipal Airport.
Customers will be able to purchase sandwiches, chips and drinks from 11 a.m. to 2 p.m. on Monday through Saturday. The caf? will also provide catering services for Stinson airport-based businesses.
This concession contract is subject to the San Antonio Airport System's Airport Concessionaire Disadvantage Business Enterprise Program.
ISSUE:
Approval of this Ordinance is consistent with City Council policy to generate revenue through the leasing of City-owned property.
ALTERNATIVES:
City Council may elect not to approve this agreement, resulting in the development of a new solicitation for food and beverage services at Stinson Municipal Airport. This action would result in a delay of revenue to the City.
FISCAL IMPACT:
The agreement is for a term of one year with four one-year renewals. The Minimum Annual Guarantee (MAG) will be $0.00 for the initial one-year term. If the term is extended, the concessionaire will pay the City a minimal guaranteed rent in the total amount of $1,200.00. ...
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