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Committee advances 10‑year Host International lease at SFO with $733,176 minimum guarantee
Summary
The subcommittee advanced a 10-year lease with Host International for three newsstands and one newsstand café at SFO, with a minimum annual guarantee of about $733,176; the budget analyst said first-year percentage rent is estimated at about $814,800 and recommended approval.
The Budget & Finance Subcommittee advanced a proposed 10-year lease between the Airport and Host International for three newsstand locations and one newsstand café at San Francisco International Airport. Kathy Weidner (San Francisco Airport) said the locations total roughly 5,617 square feet across the International Terminal piers and Terminal 3; three locations are currently operational and the Terminal 3 site will be accessible after construction is complete.
The lease proposes a minimum annual guarantee (MAG) of $733,176, with the tenant to pay either the MAG or a percentage of gross receipts, whichever is greater. Weidner said rent will be prorated until all four locations are open and that the tenant will pay full MAG once the final space is available. The lease is the result of a competitive RFP process with four proposals; Host International scored highest.
The budget analyst reported an estimated first-year percentage rent of $814,800, which exceeds the MAG by roughly $81,600 based on the analyst's figures in the report, and recommended approval of the lease. Chair Farrell opened public comment; no substantive public testimony was recorded. The committee moved the lease forward with recommendation and the transcript records no opposition in the hearing record.
If approved by the full Board, the lease will commence once the Terminal 3 location becomes available and will be administered by the Airport Commission per lease terms.
