Title
Rental Car Center Lobby Food, Beverage, and Retail Concession Award Recommendation to TMG Services LLC dba Phoenix Magazine Cafe and Market (Ordinance S-48795)
Description
Request to authorize the City Manager, or his designee, to enter into a lease with TMG Services LLC dba Phoenix Magazine Cafe and Market for the design, renovation, maintenance, and operation of a food, beverage, and retail concession in the Rental Car Center lobby at Phoenix Sky Harbor International Airport. If approved, the lease term will be seven years with one three-year option to extend the term. Further request to authorize the City Treasurer accept all funds related to this item.
Report
Summary
The Food, Beverage, and Retail Concession Revenue Contract Solicitation (RCS) was published on Nov. 19, 2021 to select a qualified small business respondent to operate one food, beverage, and retail concession in the Rental Car Center lobby to meet the needs of customers and employees. The solicitation process resulted in the following three responsive proposals:
- TMG Services LLC dba Phoenix Magazine Cafe and Market
- CASA Unlimited Enterprises, Inc. dba Twisted Market PHX, LLC
- JMJ-LLC dba Cafe on the Way
The evaluation panel met on March 28, 2022 and conducted a preliminary consensus scoring of the three respondents' proposals. Interviews were scheduled on April 14, 2022 for the selection of the successful respondent by consensus of the evaluation panel, which posted its award recommendation on April 21, 2022. TMG Services LLC dba Phoenix Magazine Cafe and Market was recommended for award of the food, beverage, and retail concession lease.
Procurement Information
Aviation issued the RCS to select a small business for the lease on Nov. 19, 2021 with responses due on Feb. 8, 2022. Three responses were received that met the minimum qualifications. The evaluation panel met for the initial consensus meeting on March 28, 2022 and respondent interviews were held on April 14, 2022. The panel's award recommendation was posted to the City's public award website on April 21, 2022.
The evaluation criteria included:
- Proposed concept
- Design and quality of tenant improvements
- Management, marketing, and operations plan
- Experience and qualifications
- Proposed business plan
The panel consensus scoring and ranking for each respondent was:
- TMG Services LLC dba Phoenix Magazine Cafe and Market 915 Points
- CASA Unlimited Enterprises, Inc. dba Twisted Market PHX LLC 845 Points
- JMJ-LLC dba Cafe on the Way 800 Points
Contract Term
If approved, the term of the lease will be seven years with one three-year option to extend the term that may be exercised at the discretion of the Director of Aviation Services.
Financial Impact
The TMG Services LLC will pay the City a minimum annual guarantee (MAG) or 10 percent of gross sales, whichever is greater. MAG is set at $40,000 for the first lease year. There will be a minimum capital investment of $50 per square foot for the initial term and $25 per square foot for the mid-term. MAG will be adjusted annually thereafter at 85 percent of the prior year's annual rent or 100 percent of the MAG for the first Lease year, whichever is greater.
Concurrence/Previous Council Action
The City Council approved to issue the RCS on March 21, 2018.
Public Outreach
This solicitation process included all standard and required outreach efforts and conduct targeted outreach efforts to attract interest for this contracting opportunity.
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 Mario Paniagua and the Aviation Department.