Title
Rental Car Center Food and Beverage Concession - Request to Issue Revenue Contract Solicitation (Ordinance S-44352)
Description
Request to authorize the City Manager, or his designee, to issue a Revenue Contract Solicitation for a Food and Beverage Concession at the Rental Car Center. Rent will be either the Minimum Annual Guarantee (MAG), which will be set initially at $40,000, or 10 percent of gross sales, whichever is greater.
Report
Summary
The Phoenix Sky Harbor International Airport Rental Car Center (RCC) is in the process of a reconfiguration and tenant relocation project that impacts the entire facility. This includes construction in the lobby area where the RCC food and beverage concession is located. The existing food and beverage lease was extended until Dec. 31, 2018, to accommodate this disruption.
The 1,094-square-foot space provides a unique concession opportunity located in the Rental Car Center lobby. In addition to providing food and beverage offerings, the successful respondent will provide beverage vending machines in predetermined locations, and will have the opportunity to expand concession offerings to include retail items traditionally found in an airport newsstand. Aviation expects that this concession will meet customer demand for food, beverage, and retail at the RCC. However, due to limited cooking capabilities within the space (venting, gas, etc.), the menu will be limited and will feature prepackaged snacks, meals, gourmet coffee, and beverages.
Procurement Information
With approval, the Aviation Department will conduct a Revenue Contract Solicitation to select an operator for this contract. Responsive and Responsible Respondents will be evaluated according to the following evaluation criteria:
- Qualifications and Experience of Respondent (0-300 points).
- Concessions Concept and Menu (0-300 points).
- Management, Marketing, and Operations Plan (0-250 points).
- Financial Capability and Revenues to the City (0-150 points).
The highest ranked Respondent will be recommended for the concessions lease award.
Contract Term
This lease will have a primary term of seven years, with one, three-year renewal option to be exercised at the sole discretion of the Aviation Director.
Financial Impact
Rent will be either the Minimum Annual Guarantee (MAG), which will be set initially at $40,000, or 10 percent of gross sales, whichever is greater.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee recommended approval of this item on March 13, 2018 by a vote of 4-0.
Location
Phoenix Sky Harbor International Airport Rental Car Center, 1805 E. Sky Harbor Circle South.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.