STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: October 13, 2021
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Majed Al-Ghafry
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SUBJECT
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Authorize a Third Amendment to the concession contract with Pop Four Love Field JV, LLC, a Dallas Love Field food and beverage concessionaire to add two-year extension to the contract - Estimated Revenue: Aviation Fund $80,408.01
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BACKGROUND
On March 7, 2021, City Council authorized a concession contract with Pop Four Love Field JV, LLC, for a food and beverage concession contract for the construction, management, and operation of Cru Wine Bar (C2261) and Bruegger’s Bagels (L1045) by Resolution No. 12-0706. The Contract’s Primary Term commenced November 1, 2014 for both units, with a Contract Primary Term expiration of October 31, 2023. 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 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 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. 15-1335.
On June 26, 2019, City Council authorized an amendment to exercise both one-year renewal terms by Resolution No. 19-0978.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $80,408.01
OWNER
Pop Four Love Field JV, LLC
Luis Ibarguengoytia, President/Chief Executive Officer