Title
Amend Food and Beverage Concession Lease with Kind Hospitality, Inc. (Ordinance S-52115) - District 1
Description
Request to authorize the City Manager, or his designee, to amend Food and Beverage Concession Lease 157069 (Lease) with Kind Hospitality, Inc., dba Barrio Brewing (Barrio) to apply rent credits in the amount of $13,500 for replacement of a ventilation system at Phoenix Deer Valley Airport (DVT).
Report
Summary
Barrio operates a restaurant in the DVT terminal building under the Lease, which allocates maintenance responsibilities to both parties. Barrio is responsible for the maintenance and replacement of restaurant fixtures, while the City maintains air conditioning and ventilation systems. The existing commercial restaurant kitchen exhaust system has reached the end of its useful life and needs replacement. The restaurant kitchen exhaust system is integrated with a return air ventilation system that replaces air removed from the kitchen during the restaurant operations. After evaluation, Barrio and the City have determined that the exhaust system components constitute restaurant fixture under Barrio's responsibility and that the integrated ventilation systems fall under the City's maintenance obligations of DVT terminal building's overall heat, ventilation, and air conditioning (HVAC) infrastructure.
Contract Term
This amendment will not impact the existing term of this Lease.
Financial Impact
The total estimated project cost is $27,000. Barrio will select a contractor to complete the exhaust system replacement and any associated repairs to the Terminal building HVAC infrastructure in compliance with Title 34. Due to shared responsibility of the integrated systems, the cost will be split equally between the parties. The City's portion of costs will not exceed $13,500, which will be reimbursed to Barrio through rent credits upon project completion.
Concurrence/Previous Council Action
The Food and Beverage Concession Lease 157069 was authorized by City Ordinance S-48472 on April 6, 2022.
Location
Phoenix Deer Valley Airport, 702 W. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.