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Airport seeks to expand international terminal duty-free space; committee recommends lease amendment
Summary
Airport staff asked the committee to approve Amendment No. 6 to a DFS duty-free lease to add about 3,066 sq ft and increase the minimum annual guarantee by $300,000; budget analyst recommended approval after reviewing per-square-foot returns and comparisons to other airports.
Airport staff told the Budget and Finance Committee they are seeking approval of Amendment No. 6 to the post-security master retail duty-free concession lease with DFS Group LP for the new international terminal (lease No. 99-0035).
Cathy Weidner of the Airport said the amendment would increase the leased square footage by 3,066 square feet and raise the tenant's minimum annual guarantee by $300,000. She also said the amendment would permanently release DFS from a prior obligation to operate an off-airport store.
Supervisors questioned whether the airport had explored alternative tenants to achieve higher revenue per square foot. Weidner said staff conducted a market comparison with other airports and concluded the expanded DFS arrangement was the best fit for the terminal configuration. The budget analyst concurred and recommended approval.
The committee moved the item forward to the full board with recommendation.
Ending: The committee forwarded the lease amendment for full-board consideration; budget staff recommended approval based on comparative analysis.
