City of San Antonio - File #: 19-2246

• File #: 19-2246
• Type: Real Property Lease
• In control: City Council A Session
• On agenda: 3/21/2019
• Posting Language: Ordinance approving a Food, Beverage and Retail Prime Concession Agreement with Paradies Lagardère @ SAT, LLC for over 10,000 square feet in Terminal A at the San Antonio International Airport with a minimum annual guarantee of $2,165,000.00. The initial term is seven years with three, one-year extensions. [Carlos Contreras, Assistant City Manager; Russell Handy, Director, Aviation]
• Indexes: Aviation Concessions

Date	Ver.	Action By	Action	Result
3/21/2019	1	City Council A Session	Motion to Cont/Post	Fail

DEPARTMENT: Aviation


DEPARTMENT HEAD: Russell J. Handy


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Award of Food, Beverage and Retail Prime Concessionaire in Terminal A at San Antonio International Airport


SUMMARY:

This ordinance authorizes a Food, Beverage and Retail Prime Concession Agreement with Paradies Lagard?re @ SAT, LLC for 10 concepts in over 10,000 square feet in Terminal A at the San Antonio International Airport. Within the post-security concourse, the concessionaire will develop and operate the following food and beverage concepts: The Luxury, Smoke Shack BBQ, Local Coffee, Boss Bagels & Coffee and Chick-fil-A; as well as the following retail concepts: Spurs, IStore and Adina's Market. For locations pre-security, Paradies will develop and operate a Sip Brew Bar and Market (ticketing level) and Sip kiosk (baggage claim level).

The initial term of the agreement is seven years with three, one-year extension options. The opening of the different concepts will be phased with all concepts set to open within 12 months of approval of the agreement by City Council. The minimum annual guarantee (MAG) for first lease year is $2,165,000 and over the course of the potential 10 years of the agreement, the agreement will generate at least $21,650,000.00 for the Aviation Operating and Maintenance Fund.


BACKGROUND INFORMATION:

The San Antonio Airport System sought proposals for an experienced and qualified food, beverage and retail prime concessionaire for more than 10,000 square feet in Terminal A.

In 2012, the City Council awarded the first prime concessionaire to bring a mix of local and national concepts to the San Antonio International Airport in order to provide passengers with a better representation of the culinary offerings in the San Antonio area along with familiar national brands. This process was well-received in the community. In 2017, the airport system developed a new solicitation for a prime concessionaire that included retai...