Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Concessions topic
No spam. Unsubscribe anytime.
Airport seeks retroactive lease amendments to ease losses during Boarding Area E renovation
Summary
Airport staff asked the Budget & Finance Committee to approve retroactive amendments to six concession leases to partially waive minimum guarantees and fees while Boarding Area E is renovated; staff estimate revenue loss of about $470,000 but said losses likely to be recouped elsewhere in the airport.
The San Francisco Airport asked the Budget and Finance Committee on July 12 to approve two resolutions to retroactively amend six concession leases after temporary closure of boarding area E.
Kathy Widener, representing the airport, said renovation work will upgrade facilities, allow seismic retrofit and expand concession space but requires closing most of the pier. She said most affected tenants can continue operating with substantially reduced passenger traffic; Mission Bar and Grill must close entirely behind construction walls. Widener told supervisors the airport and budget analysts estimate the partial waivers — reductions in minimum annual guarantees and concession fees — will reduce airport revenue by roughly $470,000 during the renovation period but that the airport expects to recoup much of that revenue as passenger flows shift to other areas.
Budget analyst Mr. Rose told the committee the airport estimates foregoing about $469,548 in annual revenues if the resolutions are approved, but that the airport’s breakeven policy means the reduction would not directly impact the airport’s budget this year; any shortfall would be reflected in next year’s rates and charges. The analyst recommended approval.
Supervisor Carmen Chu asked whether the budget set at the start of the year already contemplated the renovation-related loss; Widener said the airport budget anticipates known capital work and shortfalls are typically made up through rate-setting the following year.
There was no public comment on the items. The committee voted to forward both resolutions to the full Board of Supervisors with a recommendation for approval.
