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Airport lease amendment would close one Terminal 1 Pete’s Coffee kiosk; MAG reduced
Summary
The subcommittee advanced an amendment reducing Gotham Enterprises’ leased space and minimum annual guarantee to close one Terminal 1 kiosk; the budget analyst said percentage rent historically exceeded the guarantee so airport revenue is not expected to be affected.
Kathy Weidner of the San Francisco International Airport asked the committee to approve an amendment to the airport’s lease with Gotham Enterprises LLC (doing business as Pete’s Coffee and Tea) to allow the tenant to close one underperforming Terminal 1 kiosk.
Weidner said the Terminal 1 location experienced a roughly 47% decline in sales after demolition of a boarding area reduced foot traffic. The amended lease would reduce Gotham’s total leased square footage (from three kiosks to two in Terminal 3) and reduce the minimum annual guarantee by $15,928, from about $53,000 to $37,000.
The budget analyst told the committee that Gotham paid the airport $230,875 in percentage rent in 2012—$179,336 more than the then‑minimum annual guarantee—so the analyst concluded the proposed reduction in the MAG should not adversely affect airport revenues under the airport’s percentage‑rent policy. The budget analyst recommended approval.
There was no public comment. Committee members moved the item forward without objection.
