NVF:JAC:DJF
2/21/25
T-47842 / 2185304 1
Council Agenda: 03-11-2025
Item No.: 5.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING THE CITY MANAGER OR
DESIGNEE TO : (A) NEGOTIATE AND EXECUTE
CONCESSION AGREEMENTS (AGREEMENTS)
BETWEEN CITY OF SAN JOSE AND THE FOLLOWING
ENTITIES, EFFECTIVE FROM THE DATE OF EXECUTION
BY THE CITY MANAGER THROUGH JUNE 30, 203 7, ( I)
HG SJC RETAIL CONCESSIONAIRES, LLC FOR THE
DESIGN, CONSTRUCTION, AND OPERATION OF RETAIL
CONCESSIONS AT THE SAN JOSE MINETA AIRPORT
LISTED AS PACKAGE I OF THE RETAIL CONCESSION
REQUEST FOR PROPOSALS; (II) PARADIES
LAGARDERE @SJC RETAIL, LLC FOR THE DESIGN,
CONSTRUCTION, AND OPERATION OF RETAIL
CONCESSIONS AT THE AIRPORT LISTED AS PACKAGE
II OF THE RETAIL CONCESSION REQUEST FOR
PROPOSALS; (B) NEGOTIATE AND MODIFY THE
CONCEPT TYPES, CONCEPT LOCATIONS, AND/OR
CONCEPT DESIGNS WITH THE ENTITIES ABOVE, AS
NEEDED, TO ALIGN THE CONCEPTS WITH THE
AIRPORT’S NEEDS ; (C) TERMINATE NEGOTIATIONS
WITH ANY OF THE RECOMMENDED PROPOSERS FOR
PACKAGE I AND II IF THE CITY AND THE
RECOMMENDED PRO POSERS CANNOT AGREE UPON
THE TERMS OF THE CONCESSION AGREEMENT, AND
NEGOTIATE AND EXECUTE CONCESSION
AGREEMENTS WITH THE NEXT HIGHEST RANKED
PROPOSER(S) IN ACCORDANCE WITH THE
REQUIREMENTS OF THE REQUEST FOR PROPOSAL, IN
ORDER OF THEIR RANKI NG FOR EACH PACKAGE,
UNTIL AN AGREEMENT HAS BEEN REACHED WITH AN
OPERATOR; (D) EXERCISE THE OPTION TO EXTEND
THE TERM OF THE AGREEMENT(S) THROUGH JUNE
30, 2039, SHOULD THE AIRPORT MOVE DELIVERY
OPERATIONS TO A CENTRAL RECEIVING
DISTRIBUTION CE NTER; AND (E) NEGOTIATE AND
EXECUTE OFFICE AND SUPPORT SPACE LEASE
AGREEMENTS THROUGH JUNE 30, 2037, OR THROUGH
JUNE 30, 2039 (IF THE TWO -YEAR OPTION IS
EXERCISED), TO ALIGN LEASE AGREEMENTS WITH
THE CONCESSION AGREEMENTS
NVF:JAC:DJF
2/21/25
T-47842 / 2185304 2
Council Agenda: 03-11-2025
Item No.: 5.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the City of San José (“City”) owns and operates the San José Mineta International Airport; and
WHEREAS, on August 15, 2025, City released a Request for Proposal for Retail Concession Opportunities at the Airport (“RFP”); and
WHEREAS, the RFP was structured into two “Packages” for specific retail concessions; and
WHEREAS, concurrent with the action contemplated herein, Council approved the selection of the top-ranking proposers for the RFP’s Packages I and II; and
WHEREAS, Council desires to authorize the City Manager or designee to:
1. Negotiate and execute Concession Agreement s (“Agreements”) between City and certain entities, effective from the date of execution by City Manager through June 30, 2037; and
2. Negotiate and modify the concept types, concept locations, and/or concept designs with the entities above, as needed, to align the concepts with the needs of the Airport; and
3. Terminate negotiations with any of the recommended proposers for Package I and II if the City and the recommended proposer (s) cannot agree upon the terms of the Agreement, and negotiate and execute Agreements with the next highest ranked proposers, in order of their ranking for each package, until an Agreement has been reached with an operator; and
NVF:JAC:DJF
2/21/25
T-47842 / 2185304 3
Council Agenda: 03-11-2025
Item No.: 5.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
4. Exercise the option to extend the term of the agreement(s) through June 30, 2039, should the Airport move delivery operations to a centr al receiving distribution center; and
5. Negotiate and execute office and support space lease agreements through June 30, 2037, or through June 30, 2039 (if the two- year option is exercised), to align lease agreements with the concession agreements;
NOW, TH EREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The City Manager or designee is hereby authorized to:
1. Negotiate and execute Agreements between City and the following entities, effective from the date of execution by the City Manager through June 30, 2037:
a. HG SJC Retail Concessionaires, LLC for the design, construction, and operation of retail concessions at the Airport listed as Package I of the RFP; and
b. Paradies Lagardére @SJC Retail, LLC for the design, construction, and operation of retail concessions at the Airport listed as Package II of the retail concession RFP.
2. Negotiate and modify the concept type, concept locations, and/or concept designs with the entities above, as needed, to align the concepts with the needs of the Airport.
3. Terminate negotiations with any of the recommended proposers for Package I or II in the event that City and the recommended proposer (s) cannot agree upon the terms of the Agreement (s) and negotiate and execute Agreements with the next NVF:JAC:DJF
2/21/25
T-47842 / 2185304 4
Council Agenda: 03-11-2025
Item No.: 5.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
highest ranked proposer s in order of their ranking for each package, until an Agreement has been reached with an operator.
6. Exercise the option to extend the term of the agreement(s) through June 30, 2039, should the Airport move delivery operations to a central receiving distribution center.
7. Negotiate and execute office and support space lease agreements through June 30, 2037, or through June 30, 2039 (if the two -year option is exercised), to align lease agreements with the concession agreements.
ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
City Clerk