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Committee forwards airport lease and concession items; some larger contract items continued for BLA review
Summary
The committee forwarded a retroactive FBI lease modification and three Terminal 1 concession leases to the full Board, continued larger Terminal 3 modernization and Icelandair lease items to the call of the chair for Budget Analyst reports, and sought follow‑up on questions about federal shutdown impacts.
The committee reviewed a package of airport leases and concession items and moved most to the full Board with positive recommendations while continuing two larger contract modifications for additional Budget Analyst review.
Kathy Weidner of San Francisco International Airport presented multiple items. Item 5 is modification No. 1 to an existing FBI lease for 2,396 square feet in the international terminal; Weidner said the modification extends the term up to three years with a two‑year firm term and sets annual rent at $615,385, producing about $1.8 million in total rent and operating revenue over the three‑year period. Weidner said the modification is retroactive to Jan. 4, 2019 because required signatures were delayed. Supervisor Walton asked how a partial federal shutdown affects rent collection; Weidner said the lease is currently month‑to‑month and that she would confirm implications and follow up in writing.
The Budget Analyst’s Office reviewed the FBI lease and called it a successor extension consistent with airport rates and charges; the office recommended approval. The committee moved the item to the full Board with a positive recommendation.
Items 7–9 are three Terminal 1 retail concession leases (newsstand, bath & beauty, specialty sunglasses) resulting from an RFP; the leases have seven‑year terms with two one‑year extension options and minimum annual guarantees of $135,000, $220,000 and $126,000, respectively. The airport expects the tenants to pay percentage rent when sales support it and will phase openings as Terminal 1 renovations continue. The Budget Analyst recommended approval and the committee moved these items to the full Board with a positive recommendation.
By contrast, item 4 (a proposed $36 million increase to a WCME contract for Terminal 3 West modernization to a total not to exceed $50 million) and item 6 (Icelandair lease modification) were continued to the call of the chair so the Budget Analyst report can be available when the items are heard.
The Committee sought written follow‑up from airport staff on whether federal shutdown conditions could affect FBI operations or rent collection at the airport. All items moved to the Board will be considered at the next Board meeting.
