Memorandum 15-073 Airport Lease Flying Whale Coffee

Memorandum 15-073

TO:                       MAYOR WYTHE AND HOMER CITY COUNCIL
FROM:                 KATIE KOESTER, CITY MANAGER
DATE:                  MAY 20, 2015
SUBJECT:         NEW AIRPORT LEASE APPROVAL / FLYING WHALE COFFEE STAND

The City recently issued a Request for Proposals (RFP) for airport terminal concessions.

Flying Whale Coffee submitted a proposal for a five-year lease. 

Five years is the maximum term permitted by the State Department of Transportation.  (Leases within the airport terminal are subleases. The City leases the land the terminal sits on from the State).
 

The proposal submitted by Flying Whale Coffee is complete and fully responsive to the RFP. The proposal is included for your information.   The credit report and the financial statement have been removed in order to protect the privacy of the owners and proprietary business information.

Lease proposals for space within City-owned buildings have not been reviewed by the Lease Committee in the past. These were always handled administratively. There are good reasons for that, especially at the airport terminal. The lease policies and the code are designed to address land leases and are not particularly well suited for leased space within buildings.  However, this lease proposal was taken to the Lease Committee, which recommended approving a five-year lease.

RECOMMENDATION: Approve a five-year general concession lease at the Homer Airport Terminal for Flying Whale Coffee, and authorize the City Manager to execute the appropriate documents.