TITLE
Consider a memorandum/resolution approving termination of concession lease agreement with Crystal and Richard Sullivan dba Green Beans Coffee at Killeen-Fort Hood Regional Airport.
SUMMARY
DATE: October 17, 2017
TO: Ronald L. Olson, City Manager
FROM: Matthew Van Valkenburgh A.A.E., Executive Director of Aviation
SUBJECT: CRYSTAL AND RICHARD SULLIVAN CONCESSION LEASE TERMINATION
BACKGROUND AND FINDINGS:
On July 27, 2010, Council approved a concession lease agreement with Green Beans Company, Inc. for facilities at Killeen-Fort Hood Regional Airport. The lease included authorizing the tenant to engage in the business activities of a bar, coffee shop, and food service concession. On August 25, 2015, Council approved extending the term of the lease by five years to September 30, 2020.
In October of 2016, Green Beans Company, Inc. requested the authority to assign the lease to Crystal and Richard Sullivan, a General Partnership dba Green Beans Coffee. That assignment was approved by the Interim City Manager, effective November 1, 2016.
This tenant has become delinquent on rent and fee payments owed the City. Several informal attempts to collect past due rents and fees have been unsuccessful. On July 31, 2017, a certified letter of demand was sent to the tenant demanding payment of past due rents and fees. A small payment was received on September 11, 2017, but the tenant remained significantly behind on rents and fees owed.
On September 18, 2017, staff received notice from Mrs. Sullivan that the business would be closing due to financial difficulties.
Staff became aware on September 20, 2017, the Tax Compliance Division of the Texas Comptroller served notice of seizure on the business for failure to remit sales tax receipts to the state. That action removed the legal authority for the continuation of the business.
Staff has determined it is no longer prudent to continue this lease agreement and recommends ...
Click here for full text