STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: December 13, 2023
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize a Fourth Amendment to the concession contract with Air Star-Bush-LTS Marquis DAL, LLC (Maggiano’s), for food and beverage concession services at Dallas Love Field Airport to exercise a seven-year renewal term to the contract - Estimated Revenue: Aviation Fund $425,056.32
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BACKGROUND
Air Star-Bush-LTS Marquis DAL, LLC, pursuant to Resolution No. 18-1706 was awarded a food and beverage concession contract for the construction, management, and operation of Maggiano’s Little Italy (Space No. C2031A). Based on the concession’s excellent operation throughout the primary term, but especially during the COVID-19 pandemic when airline traffic was significantly reduced, with drastic staffing reductions and sales lost, the concessionaire continued operations to service passengers and airport employees in a very trying climate, Post-COVID recovery progresses but at a significantly higher cost. Wages and hiring costs, merchandise and food costs have increased, and delivery costs and all aspects of operations at the airport have increased the costs of those operations. As enplanements continue to rise, throughput at the food & and beverage outlets must be improved. To Air Star-Bush-LTS Marquis DAL, LLC projects to spend $450,000.00 on capital improvements and rebranding of some units. The Department of Aviation seeks City Council approval to exercise a seven-year renewal term to the Air Star-Bush-LTS Marquis DAL, LLC (Maggiano’s) contract.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, the City Council authorized a seven-year and nine-year concessions contract, with two one-year renewal options, for food and beverage services with Air Star Concession, LTD (formerly Dallas Love Field Joint Venture) at Dallas Love Field Airport by Resolution No. 12-0706.
On August 12, 2015, the City Council Authorized the City Manager, to execute the First Amendment to the contract that allowed product pricing at street pricing plus 10 percent, established a minimum wage of $10.37, and removed the shared cost provision of the contract by Resolution No. 15-1335.
On November 28, 2018, the City Council authorized the food and beverage contract with Air Star-Bush-LTS Marquis DAL, LLC for Maggiano’s Little Italy, (Space No. C2031A), by Resolution No. 18-1706.
On January 12, 2022, the City Council authorized the First Amendment to the Air Star-Bush-LTS Marquis DAL, LLC food and beverage concession contract at Dallas Love Field, approved as to form by the City Attorney, in order to (1) exercise both one-year renewal terms; and (2) add two extension years to the contract by Resolution No. 22-0120.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $425,056.32
OWNER
Air Star-Bush-LTS Marquis DAL, LLC (Maggiano’s)
Gilbert Aranza, President of the Managing Partner