...Title
Approval to Provide Financial Relief to Non-Aeronautical Concessionaires and Rental Car Concessions at SJC.
...Recommendations
Adopt a resolution authorizing the City Manager to negotiate and execute amendments to various Airport concession agreements to provide additional financial relief to non-aeronautical concessionaires and rental car concessions from January 1, 2021 through June 30, 2021, to address the continuing impacts of the COVID-19 pandemic. Financial relief for Airport concessionaires could include:
(a) Suspend Minimum Annual Guaranteed (MAG) rent payments and charge only percentage rent from January 1, 2021-June 30, 2021.
(b) Suspend, defer or modify the terms of the Annual Concession Fee Reconciliation (True Up) as a result of any negotiated adjustments to the MAG amount.
(c) Increase the percentage rent as consideration for any further MAG suspension or negotiate flat fee rents.
(d) Provide Airport concessionaires the ability to charge higher prices by allowing a higher percentage markup over street prices to allow for an increased pass through of costs.
CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. (Airport)