Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-001229

 

MEETING DATE:

12/10/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

2

SUBMITTING Agency/Department:

John Wayne Airport   (Approved)

Department contact person(s):

Barry A. Rondinella (949) 252-5183 

 

 

Dave Pfeiffer (949) 252-5291

 

 

Subject:  Approve Amendment Number One to Concession Leases

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

4/5 Vote

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: Airport Operating Fund 280:100%

County Audit in last 3 years: No

 

 

    Prior Board Action: 08/27/2019 #20

 

RECOMMENDED ACTION(S):

 

Approve and execute Amendment Number One to Concession Leases with Mission Yogurt, Inc.; Greenleaf, JWA; Bambuza South Waterfront LLC, dba Bambuza OC ventures LLC/The Coffee Bean & Tea Leaf; California Coast Food & Beverage, LLC; and DHDE Orange County, LLC dba La Boutique, to adjust the Tenant Infrastructure Fee.

 

 

 

SUMMARY:

 

Approval of Amendment Number One to the Concession Leases will update the Tenant Infrastructure Fee to accurately reflect the cost recovery and long-term amortization of airport concession infrastructure improvements.

 

 

 

BACKGROUND INFORMATION:

 

On August 27, 2019, the Board of Supervisors (Board) selected concessionaires and approved leases with Mission, Yogurt Inc.; Greenleaf, JWA; Bambuza South Waterfront LLC, dba Bambuza OC ventures LLC/The Coffee Bean & Tea Leaf; California Coast Food & Beverage, LLC; and DHDE Orange County, LLC dba La Boutique for the Phase I Concession Development Program at John Wayne Airport (JWA). The Phase I Concession Development Program includes two Casual Dining & Bar locations, two Specialty Retail locations, four Specialty Coffee and one Quick-Serve Restaurant location. The purpose of the program is to bring new local and regional businesses to JWA and to improve the guest experience.

 

As a result of an inadvertent error, the existing terms of the Concession Leases and in the underlying Request for Proposal, the tenants are required to pay a Tenant Infrastructure Fee, due upon the Rent Commencement Date, of $8.00 per square foot per month throughout the term of the lease. This rate should be $8.00 per square foot per year, payable monthly in pro-rata installments throughout the term of the lease. JWA would like to adjust the Tenant Infrastructure Fee to accurately reflect the cost recovery and amortization of the tenant infrastructure improvements to $8.00 per square foot per year, payable in monthly pro-rata installments throughout the term of the lease. This charge covers the amortized cost of utility infrastructure improvements that the Airport is providing to the new concessions.

 

All other terms and conditions of the Concession Leases will remain unchanged.

 

Compliance with CEQA: The proposed project was previously determined to be Categorically Exempt from the California Environmental Quality Act pursuant to Section 15301 (Class1) of the CEQA Guidelines which provides for the exemption for lease of existing public facilities involving negligible or no expansion of existing use on August 27, 2019, when it was originally approved.

 

 

FINANCIAL IMPACT:

 

There is no financial impact associated with the recommended actions of this Agenda Staff Report.

 

The Concession Leases contain language which allows the County to terminate the lease for cause upon 60 days' written notice.

 

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Amendment Number One to Concession Lease with Mission Yogurt, Inc.
Attachment B – Amendment Number One to Concession Lease with Greenleaf, JWA
Attachment C – Amendment Number One to Concession Lease with Bambuza South Waterfront LLC, dba Bambuza OC ventures LLC/The Coffee Bean & Tea Leaf
Attachment D – Amendment Number One to Concession Lease with California Coast Food & Beverage, LLC
Attachment E – Amendment Number One to Concession Lease with DHDE Orange County, LLC dba La Boutique
Attachment F – Amendment Number One to Concession Lease with DHDE Orange County, LLC dba La Boutique