City Hall
1 Dr. Carlton B. Goodlett
Place
San Francisco, CA 94102-
4689
City and County of San Francisco
Legislation Details
File #:
Version:
1
231153
Name:
Lease Amendment - DFS Group, L.P. - The
International Terminal Duty Free and Luxury Lease -
Modify and Extend a Reduced Percentage Rent
Structure to December 31, 2026 - Establish a
Temporarily Reduced Minimum Annual Guarantee -
$30,000,000
Status:
Type:
Resolution
Passed
File created:
In control:
11/14/2023
Clerk of the Board
On agenda:
Final action:
11/14/2023
4/26/2024
Enactment date:
4/26/2024
180-24
Enactment #:
Title:
Resolution approving Amendment No. 4 to the International Terminal Duty Free and Luxury Store
Lease No. 17-0303 between DFS Group, L.P. and the City and County of San Francisco, acting by
and through its Airport Commission, which continues the temporary reduced Percentage Rent
structure, but increases the percentage amount to 36% of gross revenues, commencing with Lease
Year 5 (2024) and continuing through Lease Year 7 (2026), and establishing a temporarily reduced
Minimum Annual Guarantee of $30,000,000 for Lease Year 5, adjusting annually in accordance with
the Lease through Lease Year 7, with the original Base Rent structure recommencing in Lease Year 8
(2027), with each such rent accommodation being conditioned upon Tenant’s timely completion of the
construction of its remaining facilities in Harvey Milk Terminal 1 no later than December 31, 2024, with
no change to the 14-year term, to be effective upon approval of this Resolution.
Sponsors:
Attachments:
1. Leg Ver1, 2. DRAFT Amend No. 4, 3. Original Lease 120517, 4. Amend No. 1 071320, 5. Amend
No. 2 020221, 6. Amend No. 3 030921, 7. AC Reso No. 23-0256 101723, 8. AIR Memo 101723, 9.
AIR Ltr 110223, 10. Form 126, 11. BLA Rpt 040324, 12. Cmte Pkt 040324, 13. Board Pkt 041624, 14.
Form 126 Final, 15. Leg Final, 16. Amend No. 4 052824
Action By
Date
Action
Result
Ver.
RECEIVED FROM DEPARTMENT
Clerk of the Board
11/2/2023
1
RECEIVED AND ASSIGNED
President
11/14/2023
1
RECOMMENDED
Budget and Finance Committee
4/3/2024
1
Pass
ADOPTED
Board of Supervisors
4/16/2024
1
Pass
APPROVED
Mayor
4/26/2024
1
RECEIVED FROM DEPARTMENT
Clerk of the Board
6/5/2024
1