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Committees clear airport items: FAA reimbursable agreement for GBAS and duty‑free rent amendment
Summary
The committee recommended that the Board approve an exemption enabling SFO to execute the FAA's reimbursable agreement for a ground‑based augmentation system and separately approved a temporary rent‑relief amendment for the international duty‑free lease with DFS Group LP through 2023.
Budget and Finance recommended two airport items to the full Board on Jan. 27: (1) an ordinance authorizing the airport to enter the FAA’s reimbursable agreement to commission a ground‑based augmentation system (GBAS), and (2) Amendment No. 2 to the international terminal duty‑free lease with DFS Group LP that continues a temporary modified percentage rent structure.
Deanna Quizon from the airport explained that the Federal Aviation Administration requires execution of its standard reimbursable agreement to provide technical oversight, flight inspections and commissioning for GBAS. Because the FAA will not allow modifications to its form, the airport sought a waiver from certain city administrative and environmental code requirements; the Budget Analyst Office reviewed the request and recommended approval.
On the DFS lease, Quizon said the amendment continues a temporary rent structure of 33% of sales through Dec. 31, 2023 or until a $42 million minimum annual guarantee is reinstated. The BLA estimated the change could reduce airport receipts by $62.8 million through lease year four and reduce estimated general‑fund service payments by about $1 million annually, but recommended approval as consistent with prior Board actions given COVID impacts on international traffic.
Supervisor Safaei expressed frustration with FAA inflexibility on other issues but supported the GBAS waiver because it should improve landing efficiency and reduce noise impacts. Both items were forwarded to the full Board with positive recommendations.
