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File #: 23-1544    Version: 1
Type: Resolution Status: Adopted
File created: 10/17/2023 In control: City Council
On agenda: 11/13/2023 Final action: 11/13/2023
Title: A resolution approving a proposed Agreement between the City and County of Denver and Trugoy, Inc. to design, build, and operate a Starbucks Coffee concession at Denver International Airport. Approves a premium value concession contract with Trugoy, Inc., operating as Starbucks Coffee for a minimum annual guarantee of $529,125 and a term of 7 years to design, build, manage, and lease Starbucks Coffee on the B concourse of the airport, in Council District 11. 202369779. The last regularly scheduled Council meeting within the 30-day review period is on 11-27-2023. The Committee approved filing this item at its meeting on 10-25-2023. Councilmember Parady called out this item, en bloc, at the 11-06-2023 meeting for a one-week postponement to 11-13-2023.
Indexes: Melissa Mata
Attachments: 1. RR23-1544_DEN_Resolution Request_Trugoy, Inc., dba Starbucks, 2. 23-1544 Contract_Trugoy, Inc. - 202369779, 3. 23-1544 Filed Resolution_Trugoy Inc. -202369779, 4. 23-1544 Filed Resolution_Trugoy Inc., 5. 23-1544_signed

Contract Request Template (Contracts; IGAs; Leases)

 

Date Submitted: 10-23-2023

 

Requesting Agency: DEN

                               Division:

 

Subject Matter Expert Name: Rita Aguilar
Email Address:
Rita.aguilar@flydenver.com <mailto:Rita.aguilar@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 Trugoy, Inc. to design, build, and operate a Starbucks Coffee concession at Denver International Airport.

Approves a premium value concession contract with Trugoy, Inc., operating as Starbucks Coffee for a minimum annual guarantee of $529,125 and a term of 7 years to design, build, manage, and lease Starbucks Coffee on the B concourse of the airport, in Council District 11. 202369779. The last regularly scheduled Council meeting within the 30-day review period is on 11-27-2023. The Committee approved filing this item at its meeting on 10-25-2023. Councilmember Parady called out this item, en bloc, at the 11-06-2023 meeting for a one-week postponement to 11-13-2023.

body

 

Affected Council District(s) or citywide?

Council District 11

Contract Control Number:

202369779

Vendor/Contractor Name (including any “DBA”):

Trugoy, Inc. bda Starbucks Coffee

Type and Scope of services to be performed:

Trugoy, Inc., will design, build, manage, and lease Starbucks Coffee on Concourse B, Center Core northwest quadrant. Trugoy, Inc., has committed to investing a minimum of $1,402,500.00 to design and build this space. To amortize Trugoy, Inc. 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 $529,125.00 or a percentage rent of gross sales at 16.5%. 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):

 

WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):

 

Are WBE/MBE/DBE goals met (if applicable)?

 

Is the contract new/a renewal/extension or amendment?

 

Was this contractor selected by competitive process or sole source?

                     

For New contracts

Term of initial contract:

 

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:

 

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.)