Committee backs amended AmEx lounge lease; airport projects $1.13 million more annually

Chair Matt Haney opened the committee’s review of a proposed amendment to the common‑use American Express lounge lease at San Francisco International Airport. Airport speaker Kathy Widener said the expanded, concession‑style lounge should not be treated as a traditional airline‑run lounge and that a blended rent of roughly $211 per square foot is appropriate given tenant improvements and the portion of the expansion not marketable to other concessions.

"After the proposed expansion, Amex will pay a total blended square foot rate of $211," Widener said, and staff estimated the amendment would increase net airport revenue by $1,134,000 per year. Budget Analyst Sevin Campbell asked that the resolution be amended to clarify an estimated tenant‑improvement cost of $1,200 per square foot and noted that extending the lease seven years beyond the advertised 10‑year term raises a policy issue for the Board to consider.

Committee members asked no additional substantive questions. Vice Chair Asha Safaei thanked airport staff for revising and better explaining the pricing rationale. On a roll call, the committee approved the amendment and then voted to forward the item to the full Board with a positive recommendation (three ayes: Vice Chair Asha Safaei; Member Gordon Marr; Chair Matt Haney).

The item will be considered by the full Board at a later meeting; the committee record and Budget Analyst clarification about tenant‑improvement costs will accompany the referral.