Title
Phoenix Deer Valley Airport Restaurant Revenue Contract Solicitation
Description
Request to authorize the City Manager, or his designee, to issue a revenue contract solicitation (RCS) to develop, remodel, and operate a full-service restaurant at Phoenix Deer Valley Airport (DVT).
Report
Summary
The terminal building at DVT has a vacant restaurant space suitable for the operation of a full-service restaurant. The previous restaurant operator vacated DVT at the end of the lease term on May 31, 2020. The RCS will procure a new operator that will remodel the space and operate a restaurant concept suitable for DVT and its patrons. The current restaurant layout includes a lounge and patio dining space.
Respondents will also be offered the opportunity to develop and operate a separate retail space in the terminal building.
Procurement Information
The Aviation Department will conduct an RCS to select the most suitable respondent.
Responsive and responsible respondents will:
- Submit a restaurant concept suitable for the general aviation airport environment.
- Provide evidence of at least three years of experience in the last five years owning or operating a full-service restaurant.
- Demonstrate the financial wherewithal to implement the approved concept.
- Demonstrate the ability to procure a license for the sale of alcoholic beverages.
- Propose a minimum annual guarantee (MAG) of revenue to DVT that exceeds $92,000 for the first year of operation.
Responsive and responsible respondents will be evaluated according to the following evaluation criteria:
- Suitability of the proposed restaurant concept and design for the existing space and for DVT.
- Amount of remodel investment.
- Quality and suitability of menu items.
- Proposed MAG.
- Qualification and experience of ownership and management team.
Contract Term
The term of the lease will be seven years and include one, three-year option to extend the term that may be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent will be a MAG, no less than $92,000, or a percentage of gross sales, whichever is greater. MAG for subsequent years will be the minimum of the first year MAG or 85 percent of gross sales for the previous year.
Concurrence/Previous Council Action
This item was recommended for approval at the Transportation, Infrastructure and Innovation Subcommittee meeting on Sept. 2, 2020, by a vote of 4-0.
Location
Phoenix Deer Valley Airport, 702 E. Deer Valley Road
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.