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Committee approves amended Burger King lease for Terminal 3 with corrected minimum guarantee
Summary
The committee approved an amendment to the Burger King lease at Terminal 3 that relocates Gate 74 into renovated space, includes a roughly $70,000 reimbursement for unamortized tenant costs, projects first-year gross sales near $1.78 million, and corrects the minimum annual guarantee to $40,032.
The Budget and Finance Committee approved an amendment to the airport’s food-and-beverage lease for a Burger King franchise at Gate 74 in Terminal 3 and forwarded the item to the Board with recommended technical corrections.
Kathy Widener of the San Francisco Airport said the lease amendment would relocate the Burger King into roughly 8,334 square feet in the renovated food court of boarding area F, provide the tenant approximately $70,000 in reimbursement for unamortized costs, and set the rent to either a percentage of gross revenues or a minimum annual guarantee (whichever is greater). Airport staff projected first-year gross revenues at about $1,777,722 and estimated percentage rent of about $174,327 for the first year; budget analyst Mr. Rose recommended amending the resolution to correct the minimum annual guarantee to $40,032.
Supervisor Marr asked airport staff for a list of food options at the airport and about the city’s sustainable-food policy. Widener said the airport includes sustainable-food components in leases and will provide a comparison list of options to the supervisor.
The committee approved technical amendments recommended by the budget analyst and moved the revised lease amendment forward without objection.
