Council OKs Airline, Rental Car Help as Turner Weighs Extension of Hobby Concession Contracts
Mayor Sylvester Turner said Wednesday he is considering extending Hobby Airport’s concession contracts, which are set to expire in late May.
The mayor said the bidding process for new concession contracts at the airport are “kind of on hold,” like many other items, amid the COVID-19 pandemic.
“Whether or not they will be extended, I haven’t decided yet,” he said.
The lucrative deals decide which restaurants and other retailers get space inside the airport.
Councilman Robert Gallegos asked about the expiring contracts as council unanimously approved a deal to let airlines, concessionaires and rental car companies defer three months of fees they pay the city. The businesses are experiencing stark drops in revenue amid the COVID-19 pandemic.
As it stands now, the city would recoup the money, about $75.5 million, beginning next year. There is potential, though, that the city’s airport system could use $200 million it is receiving from the federal stimulus package to turn those deferrals into full waivers. It will depend on whether the Federal Aviation Administration allows the money to be used in that manner.
The deal was less generous than the initial proposal, which would have deferred six months of payments, or about $180 million.
Turner first floated a proposal to help the companies last month, asking the council to give him the authority to strike such a deal. Council approved his request, but on the condition that the mayor bring the deal back to council for approval.
The agreement approved Wednesday also waives minimum revenue guarantees for concession and rental car vendors through 2021.
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