STRATEGIC PRIORITY: Economic Development
AGENDA DATE: April 12, 2023
COUNCIL DISTRICT(S): 3
DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize a Lease of Restaurant Space and Facilities in the Terminal Building at Dallas Executive Airport with Creative Bar Concepts, LLC for a term of five years, with two five-year renewal options and a reimbursement for the initial purchase and installation of equipment and furniture - Not to exceed $200,000.00 - Financing: Aviation Fund; Estimated Revenue: Aviation Fund $209,000.00 (over the five-year primary term)
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BACKGROUND
On June 25, 2008, the Dallas City Council authorized a five-year lease with a five-year renewal option with MD Promenade, Inc. to operate the restaurant in the terminal building at Dallas Executive Airport (“Airport”). The lease commenced in September 2010 upon the lessee’s beneficial occupancy of the improvements constructed by the City of Dallas (“City”). Upon expiration of the lease in August 2020, the City continued to retain the lessee as a holdover month-to-month tenant during the COVID-19 pandemic.
In July 2022, the City’s Department of Aviation issued a Solicitation for Lease of Restaurant Space at the Airport. The City received three submittals that were reviewed and scored by an evaluation committee. The evaluation committee determined that none of the three submittals were in the best interest of the City to pursue, and all three companies were notified in October 2022.
In November 2022, the Department of Aviation issued a second Solicitation for Lease of Restaurant Space at the Airport to all the existing food and beverage operators at Dallas Love Field Airport. The City received one submittal that was reviewed and scored by the same evaluation committee and was ultimately determined to be in the best interest of the City.
This agenda item is for authorization to enter a new five-year lease with two five-year renewal options with Creative Bar Concepts, LLC to operate a full-service restaurant in the existing restaurant space in the terminal building at the Airport. The City will reimburse the costs associated with the initial purchase and installation of equipment and furniture for the restaurant space in an amount not to exceed $200,000.00. All reimbursed items will become property of the City. In addition to paying the City a fixed monthly rental payment, the lessee will also pay the City a percentage of monthly gross receipts starting at ten percent in the first year and escalating to fourteen percent by the fifth year of the lease.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
|
Fund |
FY 2023 |
FY 2024 |
Future Years |
|
Aviation Fund |
$200,000.00 |
$0.00 |
$0.00 |
Estimated Net Revenue: Aviation Fund $209,000.00 (during the five-year primary term)
OWNER
Creative Bar Concepts, LLC
Charles Bush, President/Chief Executive Officer
MAP
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