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Subcommittee approves retroactive bookstore lease amendment to accommodate TSA security reconfiguration
Summary
The committee approved a retroactive amendment reducing Pacific Gateway Concessions' bookstore footprint at Terminal 1 by about 3,183 sq ft, lowering the minimum annual guarantee from $220,000 to roughly $69,960 and reimbursing $59,047 in unamortized tenant improvements to accommodate TSA security lane changes.
San Francisco Airport staff presented a retroactive first amendment to Pacific Gateway Concessions LLC’s bookstore lease to reclaim approximately 3,183 square feet at Terminal 1 to accommodate Transportation Security Administration (TSA) security lane reconfiguration. Kathy Widener said the amendment reduces the bookstore footprint and would lower Pacific Gateway’s minimum annual guarantee from $220,000 to about $69,960 per year and reimburse the tenant $59,047 in unamortized tenant improvement costs.
Staff acknowledged the amendment is retroactive and apologized for the timing; the change was required to accommodate the boarding area reconfiguration tied to security. The budget analyst recommended amending the lease language to use the All Urban Consumers (San Francisco‑Oakland‑San Jose) CPI index for any exercised extension option and recommended the resolution be amended to make the first amendment retroactive to February and ultimately the committee agreed to a retroactivity date of 10/01/2011 as moved on the floor.
No members of the public spoke on the item. The subcommittee approved sending the amended resolution forward with recommendation and without recorded roll call at the subcommittee meeting.
