Committee approves SFO lease extensions and a $20.4M contract increase for airport project management
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Summary
The committee forwarded two airport items: a COVID-19 lease extension program offering up to 3.5 years to 88 eligible concession leases, and a $20.4 million increase (to $45.4M) plus a two‑year term extension to a PGH Wong & Partners contract for the Courtyard 3 connector and airport integrated operations center project.
The Budget and Finance Committee on March 27 forwarded two airport resolutions to the Board: a COVID‑19 lease extension program for eligible concessionaires and a contract modification for project management services.
Diana Volek of San Francisco International Airport described the COVID lease extension program, which would offer extension terms (up to 3.5 years) to 88 concession leases that were operating during SFO’s defined COVID period (March 2020–August 2023). Eligible tenants that operated at the start of the pandemic would receive the full extension; those that came into operation later would receive an extension proportional to months active during the pandemic window. Airport staff said extensions help concessionaires amortize investments and recover business losses.
On the second item, SFO requested modification number 11 to a project management support contract with PGH Wong & Partners for the Courtyard 3 connector/AIOC project, increasing the not‑to‑exceed amount by $20,400,000 to $45,400,000 and extending the term through January 2027. The contract covers construction management, quality assurance, code compliance oversight, project controls and technology commissioning for the new integrated operations center. BLA and airport staff reported recent performance evaluations indicated the contractor met expectations. The committee amended the term language and forwarded both items to the full Board with a positive recommendation.
