City Council urges LAX commission to extend rent relief for airport concessionaires; directs further review of federal funds

The Los Angeles City Council on Dec. 14 adopted a substitute motion asking the city nd the Board of Airport Commissioners to continue reviewing rent-relief options for airport concessionaires through the winter and to report back on available federal funds and case-by-case adjustments.

Councilmembers and dozens of concessionaires, union representatives and small-business operators told the council the relief the airport commission adopted for October through December is a helpful first step but does not go far enough because passenger and sales levels at Los Angeles International Airport (LAX) remain well below pre-September 11 levels.

The substitute motion, which incorporated recommendations from the City Administrative Officer and Chief Legislative Analyst, directs airport staff to review each concession contract individually, continue pursuing federal monies for airport security and operating costs, and return to the Commerce Committee in January with further proposals for how to help affected businesses and rehire laid-off employees.

Concessionaires described steep revenue drops. "Our sales are running 21 to 23 percent below last year" for weeks, WH Smith representative Joe Davis told the council, and duty-free sales were down far more. DFS vice president Joe Lyons said duty-free was running about 60 percent below last year for October and November. ICE Currency Services vice president Coco Sukari said sales at her currency-exchange locations were down more than 35 percent and warned that returning to contract minimums on Jan. 1 would force many small businesses to close or lay off employees.

Union representatives urged a longer relief period. Tom Walsh, president of Hotel Employees and Restaurant Employees Local 814, said one-third of his union—hapter's airport members were not working, and asked that rent relief extend past December so employees could return to work. Community groups and workforce advocates also urged the council to press the airport for rehiring plans tied to relief.

Airport staff told the council the three-month package adopted by the airport commission would cost roughly $9.5 million over the October ecember period and cautioned that indefinite extension would strain airport finances unless matched by outside aid. CAO and CLA advisers told the council that substantial federal assistance had been authorized for airports nationally and urged the city to pursue any available federal security funds. They also recommended airport management examine concessions individually rather than applying a single formula for every tenant.

Councilmembers debated legal and fiscal limits. Councilmember Jack Galanter (listed in the meeting record as Miss Galanter) moved the substitute motion incorporating the CAO/CLA recommendations; the substitute was adopted by council roll call. Councilmember Dennis Zine and others stressed that any long-term relief must avoid creating an unlawful gift of public funds and noted the need to balance airport and city financial health.

The council ction asks the CAO and CLA to report back on (1) whether federal security and airport-assistance monies can and should be used to offset concession relief, (2) a framework for case-by-case contract adjustments to preserve airport viability while helping workers return to jobs, and (3) the feasibility of rehiring agreements with contractors that receive rent relief.

Council debate included appeals for quicker action from concessionaires and for careful legal review from city attorneys. Several small-business operators and DBE (disadvantaged business enterprise) partners described daily cash shortfalls and said the January 1 deadline in the airport commission package left them no runway to survive.

The council id not change airport contracts directly; rather, it voted to send the request back to the airport commission and to require CAO/CLA reporting so the city and commission can coordinate on federal funds and targeted relief. The substitute motion passed on the council floor after public testimony and staff presentations.

Council and staff said they would monitor implementation and return in January for further action.

Ending: The council ecision does not itself extend the minimum-rent relief past Dec. 31; it directs additional study and a coordinated push for federal and airport resources and asks airport management to consider individual contract adjustments and rehiring plans in the weeks ahead. Several concessionaires said they would remain at risk unless additional relief is approved or outside aid arrives.