Title
Consent to Assignment and Assumption of Lease from AC Holdings, Inc. to Travel Content, LLC dba ReachTV (Ordinance S-47521)
Description
Request to authorize the City Manager, or his designee, to consent to the assignment and assumption of Network Entertainment Broadcast System Concession Lease Agreement 152675 from AC Holdings, Inc. to Travel Content LLC dba ReachTV. All terms and conditions of the Lease Agreement and amendments will remain the same.
Report
Summary
The Lease Agreement with AC Holdings, Inc. (ACH) was executed on July 17, 2020 for the installation, management, operation and maintenance of a Network Entertainment Broadcast System (NEBS) services. On Feb. 9, 2021, ACH notified the City that ACH would discontinue the NEBS services on March 31, 2021. On March 1, 2021, Travel Content LLC dba ReachTV (ReachTV) notified the Aviation Department that it would step in to fulfill ACH’s obligations under the Lease Agreement.
The Aviation Department desires to continue the NEBS services and therefore requests authorization to consent to the assignment and assumption of the Lease Agreement for ReachTV to continue to provide the NEBS services effective March 31, 2021.
Contract Term
There will be no change to the term of the agreement. The term of the initial Lease Agreement was five years with one, two-year renewal option to be exercised at the sole discretion of the Aviation Director.
Financial Impact
There is no change in the financial terms. The Lease Agreement is set at the greater of the minimum annual guarantee of $150,000 or Revenue Share Rent.
Concurrence/Previous Council Action
The City Council approved NEBS Services Concession Lease Agreement 152675 (Ordinance S-46381) on Feb. 19, 2020.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.