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Committee approves amendment to airport news-and-gift concession tied to terminal redevelopment
Summary
The Transportation & Commerce Committee voted to send a first amendment to the HG Saint Louis news-and-gift concession agreement out of committee with a due-pass recommendation; the amendment extends the term to Jan. 31, 2031, requires about $3.5 million in tenant construction and reduces the minimum annual guarantee if concourse premises close.
The St. Louis City Transportation & Commerce Committee on Dec. 16 voted to send a first amendment to the news-and-gift and specialty retail concession agreement with HG Saint Louis joint venture out of committee with a due-pass recommendation.
Robert Solerano, airport properties division manager, told the committee the amendment is linked to the airport’s proposed terminal redevelopment. He said HG Saint Louis — described in the presentation as a joint venture including the Hudson Group of New York, local partners OHM Concession Group and Final Phase Marketing, and an ACDBE partner — would invest about $3,500,000 to build and refurbish retail premises, including an "Evolve" marketplace in Terminal 2 modeled on The Grove and a Lafayette Square marketplace. "We respectfully request your approval of this first amendment to the news gift and specialty retail concession agreement with HG St. Louis joint venture," Solerano said.
Solerano said the current minimum annual guarantee (MAG) for the news-and-gift agreement is $4,000,000. Under the amendment, if the airport proceeds with terminal redevelopment and certain concourse premises are closed, the MAG would be reduced to $3,000,000 upon closure of the concessionaire’s C and D concourse premises. The agreement’s original term began Feb. 1, 2013; the amendment would extend the term through Jan. 31, 2031.
Committee members asked for visual renderings and clarification of the financial exhibits. Alderwoman Schweitzer said she would like to see the illustrations and asked staff to email renderings; Solerano agreed to provide them. Alderwoman Cox (as recorded) expressed support for highlighting the Lafayette Square concept as an 8th Ward feature.
A motion to pass board bill 116 with a due-pass recommendation was made by an aldermember said to represent the 1st Ward and seconded by an aldermember said to represent the 4th Ward; the clerk recorded four aye votes and the committee announced the bill passed out of committee with a due-pass recommendation.
The item will advance to the full Board for further consideration; committee members asked staff to circulate the design renderings to committee members before that next step.
