STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: December 13, 2023
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize an amendment to the concession contract with Hudson Dallas Love Field Concessionaires, LLC, a food, and beverage concession service at Dallas Love Field Airport to exercise an eight-year renewal term to the contract and to increase the street pricing from 10% to 15% for all retail units and from 10% to 17% for quick serve and fast casual food and beverage units - Estimated Revenue: Aviation Fund $7,927,863.00
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BACKGROUND
On March 7, 2021, the City Council authorized a concession contract with HG Multiplex Regali Dallas, JV for a food and beverage concession contract for the construction, management, and operation of several food and beverages units by Resolution No. 12-0706 and retail contracts with HG Multiplex Regali Dallas, JV, Hudson Retail Dallas JV and Host International, Inc. (as assigned to World Duty-Free Group) by Resolution No. 12-0707.
The contract's primary term commenced on November 1, 2014, for all units, with a contract primary term expiration of October 31, 2021. All four of the above-mentioned contracts have been assigned to Hudson Dallas Love Field Concessionaires, LLC.
In addition, 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, 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, hiring costs, merchandise and food costs have all increased, along with delivery costs and all aspects of operations at the airport. The increases have raised the costs of thos...
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