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Committee forwards Terminal 2 concession leases and United contribution for ground power project

Budget and Finance Committee, San Francisco County · October 18, 2018
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Summary

The committee recommended approval of two Terminal 2 concession leases (retail and dining) and a $6.25M United Airlines contribution toward a $25M ground power and preconditioned air project at SFO, supplemented by FAA grant funds and airport revenue bonds.

Airport staff presented three items to the committee: two concession leases for Terminal 2 — one retail (Canonica/Chocolate Market) and one casual dining (SSP America/Sweet Maple) — and a contribution agreement from United Airlines of $6.25 million toward a project to install 400Hz ground power units and preconditioned air to reduce aircraft emissions during overnight stays.

Kathy Weidner of San Francisco International Airport said the concession leases were awarded through competitive RFPs and include minimum annual guarantees that net to at least about $4.075 million over the terms; she said airport staff expect actual payments will be based on percentage rent exceeding the guarantees. Regarding item 12, the airport described a $25 million project budget that includes an FAA Airport Improvement Program grant (about $10.58 million), United’s $6.25 million contribution and approximately $8.17 million from airport revenue bond proceeds.

Budget analyst review recommended approval of the leases and of the United contribution agreement. There was no public comment; the committee forwarded items 10–12 to the full Board with a positive recommendation.

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