Committee forwards amendment to consolidate Klein’s Deli at SFO; rent doubled during expansion

The Budget and Finance Committee on May 18 advanced a resolution to amend J. Avery Enterprises’ lease at San Francisco International Airport (operating as Klein’s Deli) to consolidate two affected locations into a single expanded concession in Terminal 3.

Kathy Weidner of the airport explained the change is driven by boarding‑area construction and airline realignments. The amendment would create a new 10‑year term permitting a permanent relocation and expansion of the deli, a temporary suspension of rent during construction, and reimbursement for unamortized tenant improvements the business placed in its current spaces.

The airport and the budget analyst quantified the proposal: the minimum annual guarantee would increase approximately 100% from $56,003.41 to $112,007.31 to reflect the increased square footage, and reimbursement for unamortized improvements was identified at about $390,773. The budget analyst recommended approval and noted the adjustment would not directly affect the city general fund because the airport operates under its own financial policies.

There was no public comment on the item. Chair Carmen Chu asked whether members could accept the budget analyst’s recommendations; the committee approved and moved the item forward with recommendation without objection.

Next steps: The committee forwarded the amended resolution to the full Board of Supervisors for consideration on the Board’s agenda, per the committee’s practice.

Sources: Presentation by Kathy Weidner, San Francisco Airport; budget analyst report (Mr. Rose).