REPORT TO THE CITY COUNCIL
FROM: HENRY THOMPSON, Director of Aviation
Airports Department
BY: MELISSA GARZA-PERRY, Airports Properties Manager
Airports Department
SUBJECT
Title
Actions related to the News & Convenience Concession Agreement with HG Fresno Concessionaires JV, at Fresno Yosemite International Airport (FAT). (Council District 4)
1. Adopt a finding of Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act Guidelines; and
2. Approve a News & Convenience Concessions Agreement (Agreement) with HG Fresno Concessionaires JV, for News & Convenience Concessions at Fresno Yosemite International Airport for the term of fifteen (15) years. The amount of potential revenue generated by this Agreement is $623,437 annually, this includes $461,617 from percentage sales and $161,820 from space rent. Total anticipated revenue during the full term of the Agreement is approximately $9,351,555 plus annual CPI adjustments for space rent.
Body
RECOMMENDATION
Staff recommends that City Council (Council) award a fifteen-year term Agreement to HG Fresno Concessionaires JV (Hudson) for News & Convenience Concessions. The amount of potential revenue generated by this Agreement is $623,437 annually, this includes $461,617 from percentage sales and $161,820 from space rent. Total anticipated revenue during the full term of the Agreement is approximately $9,351,555 plus annual CPI adjustments for space rent. This Agreement is in connection to the award by Council on April 27, 2023, for RFP bid file 12300507.
EXECUTIVE SUMMARY
The City of Fresno Airports Department (Airports), solicited proposals through the Request for Proposals (RFP) competitive bid process for both Food & Beverage (F&B) and News & Convenience (N&C) concessions at FAT's terminal. The current concessions programs at FAT have been in place for more than 20 years. Since the introduction of the current programs, passenger traffic has grown e...
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