Committee opens debate on airport rental rules after Turo agreement and industry objections; no vote taken

The Transportation and Commerce Committee on Oct. 11 reviewed a committee substitute to Board Bill 25, an ordinance that would change how rental activity — including peer-to-peer car sharing — is regulated on St. Louis Lambert International Airport property. The committee did not vote; the item will return for further consideration.

Committee members heard three positions: airport staff raised operational concerns and asked for further review; peer-to-peer car-sharing representatives urged flexibility and argued their model differs from traditional rental companies; and incumbent rental industry representatives asked the committee to extend existing airport rules to all rental activity so the city can collect consistent fees and enforce safety and operational standards.

Rob Salerno, airport property manager, and Antonio Strohond, deputy director of finance and administration, told the committee the airport is reviewing the committee substitute and that several provisions merit more discussion. Salerno flagged a proposed fee-schedule provision that would require new operators to pay fees “no less than the proportional fees and charges paid by other rental car concessionaires,” and said that could conflict with existing concession agreements and minimum-guarantee protections in on-airport concession contracts and with off-airport ground-transportation agreements.

“We don’t understand how this could really benefit the airport,” Strohond said, urging more time for airport staff to submit detailed comments.

Representatives of the peer-to-peer car-sharing company Turo opposed provisions that would treat their service the same as legacy rental companies. Aaron Barraza, Turo’s senior airport partnerships manager, and James Bankser, senior counsel for Turo, told the committee that Turo’s business model does not require a rental counter, long-term vehicle storage or regular on-site employees — so many of the traditional rental-car requirements are not operationally relevant. Barraza said Turo has negotiated airport permits at more than 150 U.S. airports and that Lambert staff and Turo have been negotiating a permit for years; he asked the committee to allow the airport discretion to negotiate terms that reflect operational differences.

Industry groups representing traditional rental businesses, including the American Car Rental Association and Enterprise Mobility, said the committee substitute levels the playing field by ensuring that any business conducting rentals on airport property pays comparable fees and follows the same operating rules. Don Lefebvre, executive director of the American Car Rental Association, told the committee that Board Bill 25 is “balanced, fair, and fiscally responsible” and that it ensures all rental operators serving airport patrons meet consistent requirements.

Several technical issues were raised in public testimony and by airport staff: the committee substitute would require collection of vehicle details (model, color, VIN) that airport staff said are unnecessary for regular oversight; a proposed placard requirement for peer-to-peer cars was criticized on safety and liability grounds (the airport and traditional industry representatives said placards help enforcement); and airport staff said changes could affect minimum guarantees in current concession contracts and the structure of ground-transportation agreements.

Chair Cone said the substitute is before the committee so the public, airport staff and stakeholders can comment; the committee will hold a follow-up hearing next week (schedules permitting) and the airport director has committed to submit written feedback. No vote was taken at the session.

What’s next: Committee members expect further written input from airport staff and follow-up testimony from Turo and rental-car interests before the committee considers a vote. The airport director has agreed to provide comments; the committee chair said he plans another meeting in the coming days or early next week to continue the discussion.