I would too. It would be in the government's interest to chose an operator and lease out space, but only if it were done in the most fair manner possible. I have no clue about such matters, I confess, but I would not want to see the idea politicized; as in only certain people can apply, or preferences given to certain classes. Perhaps a little contentious in the short run, but in the long term it would be better.
And yes, alas, if it's Starbucks that has the best deal, then so be it. In fact, playing devil's advocate, what IF Starbucks said we'll give you 100% of our profits from this location on the sale of beverages?
Probably best that the library gets the money from leasing the space, and let's the local operator earn whatever they can.