CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
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Petitioner: |
Rosemary A. Vassiliadis, Director of Aviation |
Recommendation:
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Approve and authorize the Director of Aviation to sign the Airport Lounge Operator Concession Lease Agreement between Clark County and AD Partnership, LLC (Nancy J. Knipp, President) for the operation of a common use Airport Lounge at Harry Reid International Airport (Airport); or take other action as appropriate. (For possible action)
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FISCAL IMPACT:
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Fund #: |
5201.701 |
Fund Name: |
LAS Unrestricted Operations |
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Fund Center: |
2200400050 |
Funded PGM/Grant: |
N/A |
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Amount: |
County will receive monthly rent of 33% of gross revenue or a Minimum Annual Guarantee (MAG) of $2,400,000 with an annual increase of 3% each contract year or $8.00 per customer, whichever is greater. |
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Description: |
Airport Lounge Operator Concession Lease Agreement |
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Additional Comments: |
N/A |
BACKGROUND:
On March 15, 2022, the Board of County Commissioners approved the Director of Aviation to negotiate the Airport Lounge Operator Concession Lease Agreement (Agreement) with AD Partnership, LLC (Company). The Company ranked the highest score for Request for Qualifications 27-21, Airport Lounge Operator - C-Gates at Airport that was released on October 7, 2021. Therefore, staff has negotiated a new Agreement with Company.
The pertinent provisions are as follows:
• Term shall be for a period of 10 years, plus one (1) additional five-year option
• Company will pay the County 33% gross revenue or a MAG of $2,400,000
with an annual increase of 3% each contract year or $8.00 per customer, whichever is greater
• The lounge will be branded Chase Sapphire Lounge
The Agreement has been approved as to form by the District Attorney's Office. Advertising, in accordance with NRS 496.090, has been completed. Company currently holds a Clark County Business License.