STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: September 22, 2021
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
______________________________________________________________________
SUBJECT
title
Authorize a Third Amendment to the HG Multiplex Regali Dallas JV Retail Concession Contract at Dallas Love Field, approved as to form by the City Attorney, in order to add a two extension years to the contract - Estimated Revenue: Aviation Fund $1,632,971.00
body
BACKGROUND
HG Multiplex Regali Dallas JV, pursuant to council was awarded a retail concession contract for the construction, management and operation of six newsstand and specialty retail units. The Contract’s Primary Term commenced November 1, 2014 for all units, with a Contract Primary Term expiration of October 31, 2021 by Resolution No.12-0707.
On August 12, 2015, City Council authorized the First Amendment to the contract by to allow street plus ten percent 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. 15-1336.
On October 24, 2018, City Council authorized the Second Amendment to the contract to exercise both one-year Renewal Terms, reallocated the minimum annual guarantee between two Hudson contracts and surrendered one retail unit to the City by Resolution No. 18-1485.
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. The Department of Aviation seeks to 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 retail contract with HG Multiplex Regali Dallas JV by Resolution No. 12-0707.
On August 12, 2015, City Council authorized the First Amendment to the Contract to allow street plus ten percent 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. 15-1336.
On October 24, 2018, City Council authorized the Second Amendment to the Contract by to exercise both one-year Renewal Terms, reallocated the minimum annual guarantee between two Hudson contracts and surrendered one retail unit to the City by Resolution No. 18-1485.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $1,632,971.00
OWNER
HG Multiplex Regali Dallas JV
Ms. Courtney Thornton Executive Vice-President