STRATEGIC PRIORITY: Sustainable
AGENDA DATE: April 23, 2025
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Dev Rastogi
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SUBJECT
Title
Authorize a mutual termination of lease agreement with Creative Bar Concepts, LLC to terminate the lease of restaurant space at Dallas Executive Airport - Estimated Revenue Forgone: Aviation Fund $157,337.00, over approximately a four-year period
Body
BACKGROUND
On April 24, 2023, the City of Dallas (City) entered into a five-year lease agreement of restaurant space in the terminal building at Dallas Executive Airport with Creative Bar Concepts, LLC (CBC), with two five-year renewal options, for approximately 2,533 square feet of restaurant space.
The City and CBC now desire to enter into a mutual termination agreement to terminate the lease. As a term of the lease, the City agreed to reimburse CBC up to $200,000.00 for the initial purchase and installation of furniture and equipment for the restaurant space. To date, the City has reimbursed CBC $95,317.58, with a remaining balance of $104,682.42 that will not be reimbursed. The City will retain ownership of all the furniture and equipment for which a reimbursement payment was made.
As part of the early termination of the lease, the City will waive rent owed by CBC in the amount of $3,125.00 for the period December 1, 2024 (the date CBC vacated the lease premises), to April 23, 2025 (the intended effective date of the mutual termination of lease agreement). As a result of the early termination of the lease, the City will additionally forgo an estimated amount of $154,212.00 of future revenue from CBC over approximately a four-year period.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 12, 2023, the City Council authorized a lease agreement of restaurant space and facilities in the terminal building at Dallas Executive Airport by Resolution No. 23-0438.
FISCAL INFOR...
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