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Airport items advance: SFO seeks expanded project management contract, adds airline and concession leases
Summary
The Budget & Finance Committee forwarded three San Francisco International Airport items — a sixth modification to the WCME JV Terminal 3 West project‑management contract (adding $36M and extending the term), an Icelandair addition to the 2011 lease and use agreement, and an Elevate Gourmet concession lease — to the full board with positive recommendations.
The Budget & Finance Committee forwarded three San Francisco International Airport agenda items to the full Board with positive recommendations.
Kathy Weidner of the San Francisco International Airport presented the items. The first, Modification No. 6 to an existing WCME joint‑venture contract for project management services for the Terminal 3 West modernization, would extend the contract through Oct. 4, 2023 and increase the contract by $36,000,000 for a new not‑to‑exceed total of $50,000,000. Weidner described the Terminal 3 West scope to include seismic upgrades, expanded concessions, a secure connector, building system replacement and expanded gate capacity. Sevin Campbell of the Budget and Legislative Analyst Office said the $50 million total was consistent with the original project budget and recommended approval. The committee moved the item forward without objection.
The committee then considered adding Icelandair to the airport's 2011 lease and use agreement to cover joint‑use terminal space and landing fees for the remainder of the lease term (through June 30, 2021). Weidner said Icelandair began operations in February and would not have exclusive use space; the BLA recommended approval.
Finally, the committee reviewed a proposed 8‑year coffee and quick‑serve concession lease with Elevate Gourmet Brands for two Terminal 3 locations (1,991 square feet combined) with a first‑year minimum annual guarantee of $375,000 and percentage rent features. The lease resulted from an RFP process in which Elevate Gourmet was the highest‑ranked proposer; the BLA noted expected revenues of roughly $3M over the first eight years (about $3.7M if extensions are exercised). The committee voted to forward the item to the full board with a positive recommendation.
All three items were presented as consistent with airport commission approvals and were recommended by the Budget and Legislative Analyst Office. None drew public comment at the committee hearing.
