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Committee advances BART lease modification and Terminal 2 concessions agreement; airport to end free shuttle if approved
Summary
The committee advanced a lease modification for the BART station at SFO and a Terminal 2 Host International concessions lease; staff said negotiations restored the $1.50 premium fare for airport employees, the airport will discontinue a temporary free shuttle within 30 days of approval, and budget staff described modest lost interest income and savings from ending the shuttle.
The Budget and Finance Committee advanced to the full Board a lease modification for the BART station and related facilities at San Francisco International Airport and a 10‑year concessions lease with Host International for five Terminal 2 retail locations.
Kathy Weidner of San Francisco International Airport said negotiations with BART followed a fare increase that raised the airport premium from $1.50 to $4. The airport negotiated a compromise that would restore a $1.50 premium for airport employees; while the airport temporarily ran a free shuttle from Millbrae BART to the international terminal, Weidner said the shuttle would be discontinued within 30 days of Board approval and that airport staff had communicated with unions and riders about the temporary measure.
Budget analyst Mr. Rose reported the financial implications: under the existing agreement BART paid $2.5 million a year in advance for airport debt service and the airport earned modest interest on that advance; the proposed change to monthly payments would reduce that interest income (Mr. Rose estimated roughly $17,000 annually) and the airport would receive no portion of advertising revenues from BART stations under the new arrangement. On the other hand, the airport would eliminate the free shuttle that had been costing the airport over $500,000 per year.
On the Terminal 2 concessions lease, Weidner described a 10‑year agreement with Host International covering five sites (a pre‑security coffee shop, newsstand and specialty retail) with a minimum annual guarantee of $1,126,000 and an estimated first‑year rent of about $1,320,000 on a percentage‑rent basis; staff said Host was selected through a competitive RFP and recommended approval.
Public comment on the items was brief. The committee voted to advance both items to the full Board with recommendation.
