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Committee recommends new airport leases for American Airlines and American Express club
Summary
The Budget & Finance Committee recommended two San Francisco Airport lease resolutions: a three‑year lease with American Airlines for hangar and parking space that raises annual rent roughly 12.5%, and a 10‑year Terminal 3 common‑use club lease with American Express with an amendment excluding a $600,000 elevator/stairwell cost from minimum tenant investment.
The committee recommended two airport lease packages to the full Board. Airport staff described a proposed three‑year lease with American Airlines for hangar, shop and parking space that would bring first‑year rent to about $4.36 million (roughly a 12.5% increase over 2012–13). Budget staff supported approval and recommended the committee move the resolution forward.
Separately, Airport staff presented a proposed 10‑year lease with American Express Related Services to operate a Terminal 3 common‑use club. The lease carries an estimated $1.5 million annual rent and requires both tenant improvements and some airport-funded permanent infrastructure. The budget analyst recommended an amendment excluding the $600,000 elevator/stairwell cost from American Express’ $2.9 million minimum tenant improvement obligation; airport staff agreed to revise the resolution to reflect that amendment. The committee approved the items as amended and recommended both to the full Board without opposition.
What happens next: The Board will consider the leases and the hospital analyst’s proposed amendment. If approved, the airport will execute the leases and proceed with required tenant improvements and reimbursements as previously described.
