Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Concession and Lease Agreement with Creative Hospitality Solutions, LLC for Airport Terminal Food and Beverage Concessions at McKinney National Airport
Summary
COUNCIL GOAL: Maximize the Development Potential of McKinney National Airport
• 3.1: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service.
MEETING DATE: October 5, 2026
DEPARTMENT: Airport
CONTACT: Kenneth Carley, A.A.E. - Airport Director
Porter Burns, C.M. - Airport Financial & Operations Analyst
Mindy Smith - Assistant Procurement Services Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends City Council approve the Resolution
ITEM SUMMARY:
• This Resolution authorizes the City Manager to execute a Concession and Lease Agreement with Creative Hospitality Solutions, LLC for food and beverage concessions in the McKinney National Airport commercial terminal. This is a revenue-generating agreement under which the City will receive Percentage Rent based on the concessionaire’s gross sales.
BACKGROUND INFORMATION:
• The scope of the project is to select a qualified operator to provide food and beverage concessions in the new McKinney National Airport commercial terminal, including coffee and specialty coffees, teas, baked goods, packaged snacks, cold beverages, prepared food items for easy travel consumption, and a limited-service bar (where approved).
• The City issued a Request for Proposals (26-68RFP) to solicit responses from qualified vendors for Airport Terminal Food and Beverage Concessions.
o Advertised in the McKinney Courier Gazette and Celina Record
o Posted on McKinney TV
o 333 matching supplier notifications
• Out of 333 supplier notifications, eight (8) proposals were received and opened by Procurement Services on Thursday, August 6, 2026.
• An evaluation team comprised of staff from the Airport and City Manager’s Office reviewed the proposals based on the following criteria:
o 25 Points: Concept quality, menu, and traveler fit
o 25 Points: Operations plan, staffing, and opening speed
o 15 Points: Experience and references
o 10 Points: Design, signage, and guest experience upgrades
o 25 Points: Financial evaluation
• The proposed concept is a quick-service program built around a full coffee and specialty beverage bar and fresh bakery for the morning departure banks, freshly made sandwiches, salads, and hot items throughout the day, and a self-service “Mobile Market” grab-and-go with tap-to-pay checkout that remains open between departure banks. The proposal includes a North Texas coffee roaster (Armor Coffee Company), a “McKinney Made” shelf of local goods, and beer and wine service subject to TABC licensure and City approval.
• The Concession and Lease Agreement will provide for the City to receive flat category Percentage Rent on gross sales from the Commencement Date, with separate rates for Food and Non-Alcoholic Beverage, Alcohol, and Other.
• The agreement is proposed for a three-year base term with up to two one-year renewal options at the City’s sole discretion. A Minimum Monthly Guarantee applies only after annual enplanements at the Airport exceed 500,000. The concessionaire will also provide a security deposit equal to three months’ estimated Percentage Rent.
• The evaluation team is recommending award of a contract to the highest ranked respondent, Creative Hospitality Solutions, LLC.
FINANCIAL SUMMARY:
• This is a revenue-generating agreement. No City funds will be expended under this agreement; the City will receive Percentage Rent based on the concessionaire’s gross receipts.
• Based on the City’s published enplanement forecast, the proposal projects the following annual Percentage Rent payable to the City:
o Lease Year 1 (approximately 130k enplanements) = $100k
o Lease Year 2 (approximately 242k enplanements) = $200k
o Lease Year 3 (approximately 450k enplanements) = $400k
• These figures are projections only; actual rent will vary with passenger activity and concession sales. The proposal anticipates annual rent to the City will roughly quadruple from Lease Year 1 to Lease Year 3.
BOARD OR COMMISSION RECOMMENDATION:
• N/A