EXECUTIVE SUMMARY: Staff request approval of a Lease and Concession Agreement with Mitchell Management of Florida, Inc.

NARRATIVE: Mitchell Management of Florida, Inc. (Mitchell Management), located in Osprey, Florida is an experienced Franchisee in the Restaurant Industry. Nationally, Mitchell Management has over 900 employees, 48 locations, and the company's President, Mark Mitchell, is an involved Operator who lives in Osprey and has offices near SRQ.

Due to the significant increases in passenger traffic at the Airport, Staff wishes to provide additional food and beverage selections in the Terminal to serve the needs of the traveling public. Jimmy John's is known for fast service and all natural and fresh food selections. We propose to grant Mitchell Management the non-exclusive right to construct and operate a Jimmy John's concession at the Airport.

The proposed premises includes approximately four hundred ninety-seven (497) square feet of space on the second floor of the Terminal for retail operations, and approximately two hundred (200) square feet of space on the first floor of the Terminal for dry and cold storage. It is proposed that Mitchell Management will prepare the rough-in condition of the premises and extend all utilities to the premises in an amount not to exceed $31,000, which amount will be refunded by the Authority to Mitchell Management in credits against Mitchell Management's Percentage Payments. The proposed minimum investment required by Mitchell Management for the concession includes an initial investment in the amount of $290,205, and a mid-term investment for refurbishment in an additional amount of $20,000.

The proposed term of the agreement is scheduled to commence on October 1, 2021, and continue through August 31, 2023, with three (3) one-year renewal terms, through August 31, 2026. As consideration for the use of the premises and the privilege of doing business at the Airport, an annual Concession Fee equivalent to the greater of a Minimum Annual Guarantee (MAG) of 85% of prior year Gross Receipts, or a Percentage Payment of 12% of Gross Receipts for the sale of food and beverages and 15% for the sale of merchandise is proposed, consistent with all other food and beverage concessions at the Airport.

The President, CEO recommends approval of the Lease and Concession Agreement with Mitchell Management of Florida, Inc.

RECOMMENDATION: It is hereby recommended that the Sarasota Manatee Airport Authority Board approve a Lease and Concession Agreement, with Mitchell Management of Florida, Inc. for the construction and operation of a Jimmy John's concession at the Airport consistent with the terms presented.

ATTACHMENT: Lease and Concession Agreement with Mitchell Management of Florida, Inc.

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