TITLE
Consider a memorandum/resolution approving an airport gift shop concession lease agreement with Tailwinds Concessions, Inc. at Killeen Fort Hood Regional Airport.
SUMMARY
DATE: January 19, 2021
TO: Kent Cagle, City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: APPROVAL OF AIRPORT GIFT SHOP CONCESSION LEASE AGREEMENT FOR KILLEEN FORT HOOD REGIONAL AIRPORT
BACKGROUND AND FINDINGS:
The current Airport Gift Shop operator notified airport staff that she did not intend to extend the current lease when it expired on September 30, 2019, but would continue to operate in a month to month status until a new concessionaire could be found. An RFQ was issued in September 2019 to solicit offers to operate the Airport Gift Shop, but there were no responses. Airport staff continued for several months to attempt to recruit interested parties with no success. Finally, in September 2020, staff reached out to a very experienced national concession company, Tailwinds Concessions. Tailwinds Concessions has locations in twenty-five airports in the U.S., primarily in smaller Regional Airports, and have been in business since 2001. Tailwinds indicated an interest, and several meetings and site visits were held.
Staff has negotiated a lease agreement with Tailwinds to operate gift shop concessions at the Killeen-Fort Hood Regional Airport. The term of the lease agreement is for two (2) years, (11) months beginning March 1, 2021 and ending January 1, 2024. The agreement will authorize the tenant to sell authorized products: accessories, apparel, electronics, food-gifts, medicine, media magazines and books, souvenirs, toys, travel items, tobacco, and other products associated with an airport gift shop operation. Tailwinds Concessions, Inc. supports the Federal Aviation Administration-Airport Concessions/Disadvantaged Business Enterprise (ACDBE) program through sub-vendor opportunities for purchases of goods and servi...
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