Committee advances airport package: HNTB architect contract, SFMOMA lease and Terminal 2 promotional fund

The Budget and Finance Committee on Jan. 12 advanced a set of airport items to the Board of Supervisors: a master architect services agreement with HNTB for replacement of the air traffic control tower and Terminal 1 redevelopment (item 6), a 10-year lease with the San Francisco Museum of Modern Art for retail space in the International Terminal (item 7), and an ordinance to establish a Terminal 2 promotional fund for opening events (item 8).

Cathy Weidner of the San Francisco International Airport said the tower project is expected to be 100% federally reimbursable while impacts to Terminal 1 are the airport’s responsibility. The HNTB contract was presented as a lump-sum amount of $11,704,955 with a contingency of $1,626,412 to cover FAA-requested changes. The budget analyst, Mr. Rose, said the airport's original RFP estimate was $9 million, and that the additional ~$2.7 million shown in the materials reflected an underestimation of scope; he recommended amending the resolution to state the agreement term precisely as 1,095 days (about three years) rather than language that could be read as up to 10 years.

On item 7, Weidner said SFMOMA was the sole proposer for the 2,282-square-foot retail space; the RFP set a minimum annual guarantee of $125,000 and airport staff estimated percentage rent of about $131,000 for year one. On item 8, Weidner described the proposed promotional fund, which seeks roughly $600,000 in private donations and anticipates using about $400,000 in airport marketing funds; the ordinance requires bimonthly revenue and expenditure reports to the board.

The committee amended the HNTB item to specify a 1,095-day term and moved items 6–8 forward with recommendation without recorded objection.