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Committee recommends three SFO concession leases after budget-analyst review
Summary
The committee recommended forwarding three San Francisco International Airport concession leases — automated retail (New Zoom LLC), a Terminal 2 spa (XpresSpa International LLC), and an expedited-travel service (All Clear LLC) — after receiving a Budget Analyst Office report explaining proposal evaluations and projected minimum guaranteed rent totals.
Clerk read Items 7–9, which would approve concession leases at San Francisco International Airport: New Zoom LLC (automated retail/vending; initial term 5 years; $150,000 minimum annual guarantee in year one), XpresSpa International LLC (Terminal 2 spa; initial term 7 years; $145,000 MAG year one), and All Clear LLC (expedited traveler services; initial term 5 years; $1,500,000 MAG year one).
Kathy Weidner, representing San Francisco International Airport, said the three leases will yield at least $9,265,000 in minimum guaranteed rent over the initial terms and that tenants will pay the greater of the MAG or percentage rent based on gross revenues. Chair Cohen questioned how the airport determined the value of the All Clear lease, noting that All Clear is the only private vendor currently providing expedited-traveler checkpoint access. Weidner explained the airport compared rates at other airports and prior agreements; she said All Clear has operated at other airports and that TSA certifies the All Clear service.
The Chair briefly moved to approve but then rescinded that action to allow the Budget Analyst Office (BLA) to present its report. Dan Goncher of the BLA explained that panels reviewed proposals, that All Clear was the only proposer for expedited travel services, and that the combined minimum annual guaranteed rent for the three leases would be roughly $1,800,000 in the first year and at least $9,265,000 over the initial terms, with a total of $12,565,000 if renewal options are exercised. The BLA recommended approval. After the BLA presentation the committee moved to forward Items 7–9 to the full Board with a positive recommendation.
No public speakers spoke on these items during the committee meeting.
