HomeMy WebLinkAbout11166City Clerk's Office Item # S25
COUNCIL MEETING DATE: April 27, 2026
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Clyde Bishop, City Clerk
FROM: Greg Pedroza, Director Aviation
SUBJECT,- AN ORDINANCE APPROVING A RESTAURANT LEASE AGREEMENT
BETWEEN THE CITY OF PUEBLO, COLORADO, A COLORADO
MUNICIPAL CORPORATION, AND SOCO FRONTIER ENTERPRISES
LLC FOR RESTAURANT OPERATIONS AT PUEBLO MEMORIAL
AIRPORT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME
SUMMARY:
The attached Ordinance approves a Restaurant Lease Agreement (the "Agreement")
between the City of Pueblo, Colorado, and SoCo Frontier Enterprises LLC, a Colorado
limited liability company, for the operation of a restaurant and food service
establishment in the Pueblo Memorial Airport terminal building. The Agreement
provides for a three-year initial term commencing May 1, 2026, and expiring April 30,
2029. Base rent escalates from $500.00 per month for the first six months, to $800.00
per month for months seven through twelve, to $1,000.00 per month for the remainder
of the initial term. SoCo Frontier Enterprises LLC will pay all telephone, internet,
television streaming service, electric and natural gas utility charges, and trash removal
costs attributable to the restaurant; the City will continue to pay water and sewer.
PREVIOUS COUNCIL ACTION:
From time to time, the City has entered into lease agreement with outside entities for
the operation of a restaurant in the Pueblo Memorial Airport terminal building. The
restaurant premises are currently vacant.
BACKGROUND:
Inside the Pueblo Memorial Airport terminal building is an area approximately 4,000-
square-foot which includes a restaurant and kitchen space. Providing food and
beverage service to travelers, Airport employees, and the general public at the terminal
is consistent with the Airport's obligation to maintain a functional, public -serving facility.
Section 3-1-2(c), P.M.C., requires that any commercial operation at the Airport be
conducted under a written contract, lease, or permit with the City.
The City solicited proposals for a restaurant operator and received two submissions. A
five -person selection panel, comprising the Director of Aviation, a representative of the
Pueblo Chamber of Commerce, an Airport fueling station operator, a general aviation
representative, and an Airport Advisory Committee representative, conducted
interviews with both proposers. The panel unanimously selected SoCo Frontier
Enterprises LLC. SoCo Frontier Enterprises LLC submitted a business -oriented
proposal consistent with the Airport's vision for the space.
The key terms of the Agreement are as follows: (a) the leased premises consist of
approximately 4,000 square feet, including approximately 2,600 square feet of indoor
and outdoor dining area and approximately 1,400 square feet of kitchen space, in the
terminal building, accepted by the lessee in its current as -is condition; (b) the initial term
is three years, commencing May 1, 2026, with up to two additional three-year renewal
periods available by mutual written agreement; (c) base rent is $500.00 per month for
months one through six, $800.00 per month for months seven through twelve, and
$1,000.00 per month for month thirteen and thereafter through the end of the initial
term; (d) the lessee pays telephone, internet, television streaming service, electric and
natural gas utilities, and trash removal; and (e) the lessee must operate a minimum of
seven days per week, no fewer than eight hours per day.
FINANCIAL IMPLICATIONS:
The Agreement will generate rental revenue to the City as follows: $3,000.00 for
months one through six (6 months at $500.00); $4,800.00 for months seven through
twelve (6 months at $800.00); and $24,000.00 for months thirteen through thirty-six (24
months at $1,000.00), for a total of $31,800.00 over the three-year initial term. In
addition, SoCo Frontier Enterprises LLC will pay a $2,000.00 security deposit upon
execution, returnable at the end of the Agreement less any amounts applied to unpaid
rent or damages. The Lessee's assumption of telephone, internet, streaming service,
electric and natural gas utility costs, and trash removal will relieve the City of those
charges for the duration of the Agreement. There are no expenditures required of the
City to implement this Agreement.
BOARD/COMMISSION RECOMMENDATION:
A five -person selection panel unanimously recommended SoCo Frontier Enterprises
LLC following a competitive proposal process and panel interviews.
STAKEHOLDER PROCESS:
The City solicited proposals for the Airport restaurant operation and received two
submissions. Both proposers were invited to present before the selection panel.
ALTERNATIVES:
If this Ordinance is not approved, the Agreement will not be executed, the restaurant
space will remain vacant, and the City will forgo rental revenue of up to $31,800.00 over
the three-year initial term. Travelers, Airport employees, and the general public will
continue to be without food and beverage service in the Airport terminal.
RECOMMENDATION:
Approve the Ordinance.
ATTACHMENTS:
Restaurant 2026 05 01 LEASE AGREEMENT
ORDINANCE NO.11166
AN ORDINANCE APPROVING A RESTAURANT LEASE
AGREEMENT BETWEEN THE CITY OF PUEBLO, COLORADO,
A COLORADO MUNICIPAL CORPORATION, AND SOCO
FRONTIER ENTERPRISES LLC FOR RESTAURANT
OPERATIONS AT PUEBLO MEMORIAL AIRPORT, AND
AUTHORIZING THE MAYOR TO EXECUTE SAME
WHEREAS, the City of Pueblo is a home rule municipality organized and existing under
Article XX of the Colorado Constitution, which vests in home rule municipalities plenary
authority over matters of local concern, including the ownership, operation, and regulation of
municipal airports; and
WHEREAS, the City owns and operates Pueblo Memorial Airport, located at 31201
Bryan Circle, Pueblo, Colorado; and
WHEREAS, Section 3-1-2(c) of the Pueblo Municipal Code requires that all commercial
operations at the Airport be conducted pursuant to a written contract, lease, or permit with the
City; and
WHEREAS, the City conducted a competitive proposal process for the operation of a
restaurant in the Airport terminal building, and following a panel interview process unanimously
selected SoCo Frontier Enterprises LLC as the restaurant operator; and
WHEREAS, the City desires to approve the Restaurant Lease Agreement with SoCo
Frontier Enterprises LLC to provide food and beverage service to travelers, Airport employees,
and the general public at the Airport terminal; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Restaurant Lease Agreement (the "Agreement") between the City of Pueblo,
Colorado, and SoCo Frontier Enterprises LLC, a Colorado limited liability company, for the
operation of a restaurant at Pueblo Memorial Airport, a copy of which is attached hereto, having
been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The Mayor is authorized to execute the Agreement in the name of the City, and the City
Clerk is directed to affix the seal of the City thereto and attest same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and to implement the policies and procedures described therein.
SECTION 4.
This Ordinance shall become effective immediately after final action by the Mayor.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on April 13, 2026.
Final adoption of Ordinance by City Council on April 27, 2026.
Approved on ��3 d'Z e
❑ Disapproved on
Vice President/oaf City
based on the following objections.
Mayo
❑ Council did not act to override the Mayor's veto.
❑ Ordinance re -adopted on a vote of on
❑ Council action on failed to override the Mayor's veto.
President of City Council
ATTE T
City Clerk