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Committee forwards three SFO concession leases including small‑business set‑asides
Summary
Budget and Finance moved three SFO concession leases (Harvey Milk Terminal 1 and Terminal 3) to the Board with positive recommendation; two were small‑business set‑asides and the airport expects at least some percentage rent above minimum guarantees.
The committee advanced three concession leases at San Francisco International Airport (SFO): a food and beverage kiosk in Harvey Milk Terminal 1 with Park Cafe Group (doing business as Dolores Park Cafe); a kiosk in Terminal 3 with Sidewalk Juice (a small‑business set‑aside); and a Terminal 3 grab‑and‑go market with Elevate Gourmet (Pronto Market). Kathy Weidner (SFO) said the leases resulted from a competitive RFP process and that the two kiosk opportunities were small‑business set‑asides requiring proposers with gross revenues below $7.5 million in prior years.
The leases are 10‑year terms with no options to extend, and tenants would pay the greater of the minimum annual guarantee or a percentage of gross revenues. The minimum annual guarantees cited were $250,000 for Dolores Park Cafe, $136,000 for Sidewalk Juice, and $250,000 for Pronto Market; the airport estimated minimum guaranteed revenues over the initial 10‑year terms of roughly $6.2 million. The Budget Analyst reviewed the leases and recommended approval. The committee moved Items 7–9 to the Board with a positive recommendation.
