CLARK COUNTY BOARD OF COMMISSIONERS
AGENDA ITEM
|
Petitioner: |
Rosemary A. Vassiliadis, Director of Aviation |
Recommendation:
title
Approve and authorize the Director of Aviation to sign the Airport Lounge Operator Concession Lease Agreement between Clark County and Plaza Premium Lounges Las Vegas LLC (Jonathan Song, Global Business Development Director) for the operation of a common use Airport Lounge Operator Concession at Harry Reid International Airport (Airport); or take other action as appropriate. (For possible action)
body
FISCAL IMPACT:
|
Fund #: |
5201.701 |
Fund Name: |
LAS Unrestricted Operations |
|
Fund Center: |
2200400050 |
Funded PGM/Grant: |
N/A |
|
Amount: |
County will receive monthly rent equal to 20% of Gross Revenues up to $10,000,000.00, 22% of Gross Revenues exceeding $10,000,000.00 derived from and related to the services Company provides under this Agreement, or a Minimum Annual Guarantee (MAG) of $2,135,708.00, whichever is greater. |
|
Description: |
Airport Lounge Operator Concession Lease Agreement |
|
Additional Comments: |
N/A |
BACKGROUND:
Plaza Premium Lounges Las Vegas, LLC (Company) and the Clark County Department of Aviation have conducted direct negotiations for an Airport Lounge Operator Concession Lease Agreement (Agreement) for the operation of a common use airport lounge at Airport.
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 monthly rent to County equal to 20% of Gross Revenues up to $10,000,000.00, 22% of
Gross Revenues exceeding $10,000,000.00 derived from and related to the services Company provides
under this Agreement, or a MAG of $2,135,708.00, whichever is greater
• Company, through its brand (Capital One) partner will enter into an agreement with the Airport’s
advertising vendor for in-airport advertising of $1,000,000.00 per year for the first 2 years after lounge
opening
• Company has entered a Consultancy Agreement with Day One Group, a local ACDBE, to operate
the 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.