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Committee approves forwarding Terminal 2 retail lease with MRG San Francisco LLC (Hello Carl)
Summary
The committee recommended that the Board approve a seven‑year specialty retail lease for Terminal 2 with MRG San Francisco LLC, featuring a themed local‑artisan shop called 'Hello Carl' and a first‑year minimum annual guarantee of $225,000; BLA recommended approval and noted at least $1,575,000 in total guaranteed rent over the seven‑year term.
The Budget & Finance Committee on Oct. 16 recommended the Board approve a Terminal 2 specialty retail concession lease between the airport and MRG San Francisco LLC. Airport staff described the seven‑year lease term and a minimum annual guarantee of $225,000 for the first year (with CPI escalation). The tenant concept, described as a themed gift store called "Hello Carl," will feature goods from local artisans including Gooren Brothers and Charles Chocolates.
The Budget and Legislative Analyst reviewed the proposed lease and recommended approval, estimating the airport would receive at least $1,575,000 over the seven‑year term under the minimum annual guarantee. Committee members questioned why there was only one responsive bidder; airport staff said specialty retail leases have been harder to bid for and described outreach steps to broaden interest. The committee moved the item to the full Board with a positive recommendation without objection.
Next steps: The item will be transmitted to the Board; airport staff will continue outreach to increase future competition for specialty retail concessions.
