STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: December 8, 2021
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize an amendment to the concession contract with Air Star Concessions LTD., a Dallas Love Field food and beverage concessionaire to (1) exercise both one-year renewal terms for Dallas Cowboys Club; and (2) add two extension years to the contract - Estimated Annual Revenue: Aviation Fund $90,000.00
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BACKGROUND
Air Star Concessions Ltd (formerly Dallas Love Field Joint Venture), pursuant to council Resolution No. 12-0706 was awarded a food and beverage concession contract for the construction, management and operation of Whataburger, Campisi’s and Cantina Laredo. The 2nd Amendment to the Contract approved by council on November 6, 2018 by Resolution No. 18-1483, added space #C2086 for the purpose of constructing a branded sports bar, the Dallas Cowboys Club. By City Manager’s approval on November 18, 2020, the contract was partially assigned (space #C2086) to Team Joint Venture, LLC. Based on the concession’s excellent operation during the Primary Term, but especially during the COVID-19 pandemic when airline traffic was reduced, with drastic staffing reductions and sales lost, concessionaire continued operations to service passengers in a very trying climate, the Department of Aviation seeks to exercise both one year renewal terms; and add two extension years to the contract, allowing concessionaire to recover and re-establish a profitable position at Dallas Love Field.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, City Council authorized the food and beverage contract with Air Star Concession Ltd (formerly Dallas Love Field Joint Venture Ltd.) by Resolution No. 12-0706.
On August 12, 2015, City Council authorized an amendment to allow street plus 10% pricing, $10.37 per hour minimum wage rate and waived the shared costs provision for food court cleaning, third party inspection and deliveries and trash removal by Resolution No. 15-1335.
On November 6, 2018, City Council authorized an amendment to correct amendment numbers, an agreement of compromise of disputed claims and added space C2086 (bar with limited food service) and a non-contiguous patio to space #C2596 to the Assigned Premises by Resolution No. 18-1483.
FISCAL INFORMATION
Estimated Annual Revenue: Aviation Fund $90,000.00
OWNER
Air Star Concessions LTD.
Gilbert Aranza, President of the Managing Partner