HomeMy WebLinkAbout032226 ORD - 09/29/2020 Ordinance authorizing the City Manager to execute an amendment of
the lease with Tailwind CRP, LLC, to provide space for the operation
of a news and gift concession at Corpus Christi International Airport
in exchange for payment of a percentage of gross revenues or a
minimum annual guarantee, whichever is greater; extending the
lease expiration date to August 14, 2022; and providing for
severance.
WHEREAS, pursuant to Ordinance No. 025091, Host International, Inc.,
[predecessor-in-interest to World Duty Free Group ("WDFG"), now owned by Dufry AG
and managed by The Hudson Group ("Hudson Group"), a wholly owned subsidiary of
Dufry AG] entered into an eight-year lease agreement for use of space for a news and
gift concession at the Corpus Christi International Airport, which lease commenced
November 17, 2002;
WHEREAS, subsequent lease amendments and extensions with WDFG
continued the lease agreement through August 14, 2018, and which lease thereafter
continued on a month-to-month basis until terminated by Hudson Group on July 14,
2020, with move-out occurring on August 21, 2020, and occupancy of the space
terminating at midnight on September 14, 2020; and
WHEREAS, Tailwind CRP, LLC ("Tailwind"), desires to execute an amendment
to Tailwind's existing lease in order to provide a news and gift concession in the space
vacated by WDFG/Hudson Group and to extend their lease term until August 14, 2022.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. The City Council authorizes the City Manager, or his designee, to execute
a lease amendment with Tailwind CRP, LLC ("Tailwind"), to include additional space at
the Corpus Christi International Airport for the operation of a news and gift concession,
with the lease payment based on either a percentage of gross revenues or a minimum
annual guarantee, whichever is greater, as set out in Tailwind's current lease.
Furthermore, the term of the lease is extended through August 14, 2022. A copy of the
lease amendment is attached to this ordinance as Exhibit A and incorporated by
reference into this ordinance as if set out here in its entirety.
SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause,
phrase, word or provision hereof be given full force and effect for its purpose.
03226
SCANNED
The foreoin ordinance was read for the first time and passed to its second reading on
this the day of p.4 rhrW 2020, by the following vote:
Joe McComb Michael Hunter
Roland Barrera Ben Molina !`
Rudy Garza Everett Roy
Paulette M. Guajardo Greg Smith
Gil Hernandez
The foregoing ordinance was read for the second time and passed finally on this the
J-�':�r'day of_gip 2020, by the following vote:
Joe McComb Michael Hunter AI
Roland Barrera Ben Molina
Rudy Garza Everett Roy
Paulette M. Guajardo 2 Greg Smith
Gil Hernandez
PASSED AND APPROVED, this the day of 1 2020.
ATTEST: CITY OF CORPUS CHRISTI
RILL�� . VW _
Rebecca Huerta Joe c omb
City Secretary May r
03224' (-
FIRST AMENDMENT TO THE LEASE
BETWEEN THE
CITY AND TAILWIND CRP, LLC
STATE OF TEXAS §
COUNTY OF NUECES §
This first amendment ("First Amendment")to the Airport Facilities Lease and Concession Lease
("Lease") by and between the City of Corpus Christi ("City") and Tailwind CRP, LLC ("Lessee").
WHEREAS,City and Lessee executed the Lease for the Lessee's operation of a restaurant and a
coffee shop concession (occupying two distinct spaces) at the Airport effective August 15, 2013, for a
term of five years with one three-year renewal,with expiration of the Lease to occur August 14,2021;and
WHEREAS, City and Lessee desire to amend the Lease to include the operation of a news and
gift shop concession by Lessee in additional leased space at the Airport.
NOW, THEREFORE, in consideration of the mutual covenants contained in the Lease and this
First Amendment, and subject to Lessee's compliance with the terms and conditions expressed below,
City and Lessee agree as follows:
Section 1. The preamble provisions stated above are incorporated by reference into this First
Amendment. All capitalized terms and phrases not defined in this First Amendment have the definitions
stated in the Lease.
Section 2. Lessee, by execution of this First Amendment, is granted by a non-exclusive news and gift
shop retail concession to be conducted in 999 square feet of space located post-security (referred to as
the "Gift Shop") as shown in Exhibit A-1, which exhibit is attached to this First Amendment and
incorporated by reference into the Lease and this First Amendment as if set out here in its entirety. The
Lease term for the Gift Shop is effective on and after October 1, 2020.
Section 3. Lessee shall provide, at Lessee's sole cost and expense and subject to the Director of
Aviation's advance approval consistent with the language in the existing Lease, all necessary
improvements, equipment, furniture, and trade fixtures to make the Gift Shop compatible with Lessee's
other leased space in the Terminal at the Airport.
Section 4. Section 3.5 of the Lease is modified to add an additional indented paragraph to read as
follows:
"Gift Shop: open one hour prior to the first scheduled aircraft departure and
remain open until the last scheduled aircraft departure"
Section 6. Section 5.2.1 is added to the Lease to read as follows:
"5.2.1. Notwithstanding the beginning date of the Lease and First Amendment and the term length
of the renewal option that was exercised, the Lease terminates at midnight on September 30, 2021."
Section 6. Lessee shall remit a monthly Lease payment in accordance with Section 3.1.1. equal to 12%
of the Gross Revenue derived by Lessee from the sale of all retail items in the Gift Shop. The Lease
payment for the Gift Shop is in conjunction with the Lease payment due from Lessee of the greater of
MAG or percentage of Gross Revenue for the Premises as stated in the Lease.
Section 7. All other terms and conditions of the Lease not modified by this First Amendment remain in
full force and effect.
Page 1 of 2
EXECUTED IN TRIPLICATE ORIGINALS as of the dates set forth below:
CITY OF CORPUS CHRISTI
By:
Name:
Title:
Date:
Approved as to legal form:
Elizabeth Hundley
Assistant City Attorney
on behalf of Miles Risley, City Attorney
LESSEE/LESSEE: TAILWIND CRP, LLC
By:
Name:
Title:
Date:
Attached and Incorporated:
Exhibit A-1 Gift Shop Leased Space
Page 2 of 2
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