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Advisory board approves RS&H contract, selects sole concessions bidder and asks staff to renegotiate long-term lease
Summary
At its Feb. 18 advisory meeting, the Laredo International Airport Advisory Board approved a $175,140 professional services contract with RS&H, endorsed negotiating a concessions agreement with the sole responsive proposer, and voted to ask staff to seek higher lease terms for a long-term tenant.
The Laredo International Airport Advisory Board on Feb. 18 approved three formal items: a professional-services contract with RS&H Inc., selected a sole responsive bidder for the airport concessions solicitation and recommended renegotiation of a proposed five-year lease for a large warehouse tenant.
The trio of actions touches capital planning and near-term airport operations: the RS&H contract creates an on-call engineering and planning resource, the concessions selection starts negotiations for three concessions locations in the terminal, and the board asked staff to press the city manager to renegotiate a lease the board characterized as below market.
Votes at a glance
- RS&H professional services contract: The board approved awarding RS&H Inc. (San Antonio) a professional services contract for on-call engineering/planning support for Laredo International Airport for an amount not to exceed $175,140. Funding is from the airport construction plan. Virginia, assistant director, described the contract as a way to “retain their services” for design and small projects. The board motion passed on a voice vote (recorded as “Aye”).
- Airport concessions selection (FY24-117): The board considered the selection of Elwin Hospitality Inc. (doing business as Tailwinds, cited in the packet) as the sole responsible, responsive bidder to develop, manage and operate three concessions locations at Laredo International Airport and authorized staff to enter negotiations for a terminal concessions agreement. Virginia noted that “Tailwinds was the only one that submitted.” The selection advances negotiations; the selection/authorization carried on a voice vote.
- Lease for property at 2015 Papas (ADEX Treating): The board reviewed a proposed five-year lease (commencing Jan. 1, 2025, with four renewal options) for approximately 97,183 square feet of land and about 28,366 square feet of building space (identified in the packet as Building 1315) with a proposed starting monthly rent of $6,973 indexed to CPI. Board members contested the appraisal-based rate and moved to ask airport staff to renegotiate the lease using comparable warehouse rates (the board cited comparable rates around $0.49 per square foot). The board’s amended recommendation — that airport staff seek higher terms or renegotiate with the tenant before the city executes the lease — was recorded and sent forward for the city manager/city council to consider.
What the board said and next steps
Virginia (assistant director) told the board the RS&H contract would let the airport avoid repetitive small procurements and speed project delivery for items such as siting a future fuel farm. On concessions, staff noted the RFP (request for qualifications) was heavily advertised and that the airport often sees limited responses because of the cost of operating in a smaller airport.
On the lease item, board members said the proposed rent appeared well below market and asked staff to provide the appraisal and to ask the city manager to attempt renegotiation before final council action. Virginia said the appraisal came from an outside firm and that the proposed increase represented a substantial rise from historical rent levels for that tenant; she also said the airport must generally charge at least fair market value per FAA guidance.
Formal actions recorded in the minutes
- Motion to award RS&H Inc. contract (amount not to exceed $175,140): carried (voice vote). Note: funding source listed as airport construction plan.
- Motion to approve selection of Elwin Hospitality Inc. / Tailwinds as sole responsive bidder and to authorize staff to enter negotiations for a terminal concessions agreement (FY24-117): carried (voice vote); staff to proceed with negotiations.
- Motion to recommend that airport staff renegotiate the proposed lease for Building 1315 (2015 Papas) using the comparables presented (approximately $0.49 per sq. ft. cited by members) and to forward that recommendation to the city manager/city council: motion carried (voice vote). The city council retains final authority to approve or table the lease.
The advisory board’s recommendations will be part of the materials the city manager and city council consider at the next city council meeting. The board also asked staff to provide the appraisal and comparable analyses to clarify the valuation before council action.
