Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 3/23/23
Requesting Agency: Denver International Airport
Division:
Subject Matter Expert Name: Carolina Flores
Email Address: Carolina.flores@flydenver.com
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Ground Lease Agreement between the City and County of Denver and Aaravya Investments, LLC to develop and operate a gas and convenience facility with other amenities at Denver International Airport.
Approves a lease agreement with Aaravya Investments LLC for $6,413,864 and 20 years, with four 5-year options to extend, to develop and operate a gas and convenience facility with other amenities at Denver International Airport’s West Approach Commercial District, located at 75th Street and Gun Club Road in Council District 11 (PLANE-202161181). The last regularly scheduled Council meeting within the 30-day review period is on 5-8-2023. The Committee approved filing this item at its meeting on 4-5-2023.
body
Affected Council District(s) or citywide? District 11
Contract Control Number: PLANE-202161181
Vendor/Contractor Name (including any “DBA”): Aaravya Investments LLC
Type and Scope of services to be performed:
Denver International Airport (DEN) released a call for offers at the beginning of 2022 for commercial development at ’DENs West Approach district. <http://www.thedistrictsatden.com/> Proposals were requested for site-specific or master-planned hospitality and retail development on any or all of the district’s 26 acres. Two responsive offers were received, both for gas and convenience store operations on the southwest corner of 75th Avenue and Gun Club Road.
Aaravya Investments LLC was selected as the apparent best proposer. Aaravya is a minority-owned business/operator that actively engages with underutilized businesses as part of its company values. More than 75% of Aaravya’s workforce identify as either women or minorities. They are committed to meeting the Minority/Women Business Enterprise (MWBE) goal set by Denver’s Division of Small Business Opportunity (DSBO) and creating an Equity, Diversity and Inclusion (EDI) plan for approval as well as meeting Airline Concessions Disadvantaged Business Enterprise (ACDBE) goals as required by the Federal Aviation Administration (FAA).
Lease for the construction and operation of a gas and convenience store at 75th and Gun Club Rd in DEN’s West Approach Commercial District. In addition to gas and convenience amenities, the development also features fresh food options, curated local offerings, solar panel canopies, electrical vehicle (EV) charging stations, efficient water systems, and an elevated building design with a roof deck for airplane and mountain viewing.
Location (if applicable): West Approach - 75th and Gun Club
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts): M/WBE & ACDBE goals
Are WBE/MBE/DBE goals met (if applicable)? Yes
Is the contract new/a renewal/extension or amendment? New
Was this contractor selected by competitive process or sole source? Competitive RFP
For New contracts
Term of initial contract: 20 years + renewal options - 40 years if all exercised
Options for Renewal: Yes
How many renewals (i.e. up to 2 renewals)? 4
Term of any renewals (i.e. 1 year each): 5 years each
Cost of initial contract term: $6,413,864
Cost of any renewals:
Total contract value council is approving if all renewals exercised: $6,413,864
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)