Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Concessions topic
No spam. Unsubscribe anytime.
Subcommittee forwards seven‑year Terminal 3 concession lease with Hudson Group
Summary
The Budget & Finance Subcommittee forwarded a resolution approving a seven‑year Terminal 3 lease with Hudson Group Retail LLC for three concession locations totaling 2,574 sq ft; airport staff estimate percentage rent of about $774,000 annually versus a $711,000 minimum guarantee.
The San Francisco County Budget & Finance Subcommittee on an unspecified March 2012 date moved forward a resolution approving a seven‑year Terminal 3 lease between the airport and Hudson Group Retail LLC.
Kathy Widener of San Francisco Airport told the committee the lease covers two new newsstand stands and one specialty store totaling 2,574 square feet. The concession resulted from a competitive request for proposals with six bidders; Hudson Group was selected as the highest‑ranking responsive and responsible proposer. The lease sets a minimum annual guarantee of $711,000; airport revenue staff project Hudson would pay percentage rent of about $774,000 per year based on projected gross sales, roughly $63,000 above the minimum guarantee.
Budget analyst Harvey Rose noted the lease requires a one‑time minimum tenant investment of $350 per square foot (about $900,900 total) and a promotional fee of $2,574 annually; based on estimated gross revenues staff estimated annual percentage rent of $774,002.33. Rose recommended approval of the resolution.
There was no public comment and the committee moved the item forward with recommendation without objection. The resolution will appear on the Board of Supervisors agenda as noted by the clerk.
The matter was procedural and limited to approving the negotiated concession terms; the committee did not take a recorded roll‑call vote at the subcommittee hearing.
