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 Swire Infrastructure, Inc., to construct and operate a manufacturing, bottling, and distribution facility at Denver International Airport.
Approves a lease agreement with Swire Infrastructure Inc, a subsidiary of Swire Coca-Cola USA, for $270,746,841 and 75 years, plus three 8-year options to extend, to construct and operate a manufacturing, bottling, and distribution facility on approximately 97 acres, with a Right of First Refusal for 30 additional acres, at Denver International Airport’s Second Creek Campus commercial district, located near Tower Road and Pena Boulevard in Council District 11 (PLANE-202367353). 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-202367353
Vendor/Contractor Name (including any “DBA”): Swire Infrastructure Inc, a subsidiary of Swire Coca-Cola USA
Type and Scope of services to be performed:
Swire will lease 97 acres east of Tower Rd and north of Peña Blvd in DEN's Second Creek Campus District to build and operate a manufacturing and distribution facility. The campus at DEN will replace an existing production center on York Street and a sales center on East 40th Ave with 1,120,000 square feet of new construction. Swire anticipates investing $350-500 million dollars in the project and adding up to 200 new jobs to the current 700 FTEs across existing facilities. The Tenant and DEN will build out infrastructure to enable the development of the land, with DEN contributing up to $10,000,000 for enabling infrastructure work at DEN’s 2nd Creek Campus District. DEN will also grant Swire a right of first refusal (ROFR) to lease approximately 30 acres further east. Swire and DEN will build out infrastructure to enable the development of the land.
Swire is a franchisee of Coca-Cola operating 6 production facilities and 45 sales centers across 13 states in the western USA. In Colorado, Swire operates 8 facilities that employ 1,250 people. Corporate practices emphasize diversity, equity and inclusion, women’s empowerment, and youth development. Swire sustainability initiatives have clear metrics for climate protection, sustainable packaging and recovery, and water stewardship.
Location (if applicable): Second Creek Campus commercial district, located near Tower Road and Pena Boulevard
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts): W/MBE
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? Competitve
For New contracts
Term of initial contract: 99 years total - 75 years, plus extension options
Options for Renewal: Yes
How many renewals (i.e. up to 2 renewals)? 3
Term of any renewals (i.e. 1 year each): 8 years each
Cost of initial contract term: $270,746,841
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.)