Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 11-27-2023
Requesting Agency: Denver International Airport
Division:
Subject Matter Expert Name: Pamela Dechant
Email Address: Pamela.Dechant@flydenver.com <mailto:Pamela.Dechant@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 Agreement between the City and County of Denver and Mission Yogurt, LLC to design, build, and operate a Beefsteak concession at Denver International Airport.
Approves a concession agreement with Mission Yogurt, LLC., doing business as Beefsteak, for $382,500 Minimum Annual Guarantee (MAG) or percentage fee of 15% and for a term of 7 years to design, build, and lease on Concourse A in the A-East Subcore 1, in Council District 11. (PLANE-201952020). The last regularly scheduled Council meeting within the 30-day review period is on 1-2-2024. The Committee approved filing this item at its meeting on 11-29-2023.
body
Affected Council District(s) or citywide?
Council District 11
Contract Control Number:
PLANE-201952020
DEN Conducted outreach events on November 21, 2019, totaling 126 attendees for all events. After submittal and evaluation of responsive proposals, the independent evaluation panel recommended that Mission Yogurt, LLC dba Beefsteak be selected for direct negotiations. Due to COVID this was never activated.
Vendor/Contractor Name (including any “DBA”):
Mission Yogurt, LLC., doing business as Beefsteak
Type and Scope of services to be performed:
Mission Yogurt, LLC will design, build, manage, and lease a Beefsteak on Concourse A in the A-East-Subcore 1. Mission Yogurt, LLC has committed to investing a minimum of $800,000.00 to design and build this space. To amortize Mission Yogurt, LLC’s capital investment, they will receive a contract term of 7 years. Denver International Airport (DEN) will receive the greater of either a guaranteed rent/Minimum Annual guarantee (MAG) of $382,500.00 or a percentage rent of gross sales. The percentage fee will be 15% for Food & Beverage. The terms outlined above were submitted by Mission Yogurt, LLC., as part of their proposal to the Request for Proposal (RFP) and were awarded on that information. Minimum Annual Guarantee (MAG) is the initial calculation based on the projected gross sales by the concessionaires for the space multiplied by the proposed percentage fee listed above. MAG is recalculated each contract year and will be equal to the greater of the initial MAG or eighty-five (85%) of the total Privilege fees payable in the prior Contract Year.
Location (if applicable):
Denver International Airport
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
WMBE
Are WBE/MBE/DBE goals met (if applicable)?
33% ACDBE / 25% M/WBE
The ACDBE partner for this opportunity is The AVE Group, LLC. (33%). M/WBE firms will be selected by the concessionaire's selected General Contractor, after the execution of the concession agreement and the construction contract. The M/WBE firms are reviewed and approved by DSBO prior to DEN's issuance of Notice to Proceed with construction for the concession location. A Notice to Proceed is provided by DEN to the concessionaire after all applicable documents, such as Bonds, Insurance, Permits, and DSBO approval, have been provided by the concessionaire, and their selected general contractor to begin construction of the concession location. M/WBE has not been determined.
Is the contract new/a renewal/extension or amendment?
New
Was this contractor selected by competitive process or sole source?
Yes
For New contracts
Term of initial contract:
7 years
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term:
$382,500 Minimum Annual Guarantee (MAG) or percentage fee of 15%
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
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.)