Title
Phoenix Deer Valley Airport Restaurant Revenue Contract Solicitation
Description
This report requests the Transportation, Infrastructure and Innovation Subcommittee recommend City Council approval of the issuance of a Revenue Contract Solicitation (RCS) to develop, remodel, and operate a full-service restaurant at Phoenix Deer Valley Airport (DVT).
THIS ITEM IS FOR CONSENT ACTION.
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 seeks to procure a new operator that will remodel the facility 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 process 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 of 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
- Amount of 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 set at a MAG of $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 by the Phoenix Aviation Advisory Board on Aug. 20, 2020.
Location
Phoenix Deer Valley Airport, 702 E. Deer Valley Road
Council Districts: 1
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.