LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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PENSACOLA INTERNATIONAL AIRPORT - CONCESSIONS RENT RELIEF AIRPORT RESCUE GRANT NO. 3-12-0063-050-2022
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RECOMMENDATION:
recommendation
That City Council approve the acceptance of the Concessions Rent Relief Airport Rescue Grant 3-12-0063-050-2022 in the amount of $941,414 to provide for relief from rent and minimum annual guarantees to in-terminal airport concessions at the Pensacola International Airport as a result of the COVID-19 Public Health Emergency. Further, that City Council authorize the Mayor to take all actions necessary relating to the acceptance and execution of the grant. Finally, that City Council adopt a Supplemental Budget Resolution to appropriate the grant funds.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The operation of the Pensacola International Airport is funded through the fees assessed to the various users of the facility. The airlines, rental car concessionaires, terminal concessionaires, airfield tenants, and other tenants all remit payments designed to offset the overall facility’s ongoing maintenance and operating expenses.
The bulk of the annual revenue is generated through the passenger activity occurring at the main terminal building. Parking, rental car activity, food and beverage, news and gifts, and other terminal non-airline tenants make up approximately eighty-eight percent of all non-airline revenue. The airlines themselves, through their agreements, allow the Airport to maintain full financial self-sufficiency.
The COVID-19 health emergency has significantly impacted air transportation worldwide. The Federal Government, under the American Rescue Plan Act, has provided economic support to all U.S. airports. Each airport has been allocated funding to help offset the reduced revenues as a result of the diminished activity from COVID-19. This funding may be used over a period of three (3) years for relief from rent and minimum annual guarantees to in-terminal airport concessions.
The Pensacola International Airport was previously awarded $11,081,566 under CARES, $4,502,199 under Airport Coronavirus Relief Grant Program (ACRGP), $235,353 under Airport Coronavirus Relief Grant Program (ACRGP) Concessions Relief, and $9,544,946 under the American Rescue Plan Act. This Grant creates additional funding in the amount of $941,414 to use towards concessions relief.
PRIOR ACTION:
May 28, 2020 - City Council approved CARES Act Grant 3-12-0063-045-2020 in the amount of $11,081,566 to help offset declining revenue at the Pensacola International Airport.
April 22, 2021 - City Council approved Airport Coronavirus Relief Grant Program (ACRGP) 3-12-0063-047-2021 in the amount of $4,502,199 to help offset declining revenue at the Pensacola International Airport.
August 12, 2021 - City Council approved Airport Coronavirus Response Grant Program (ACRGP) Concessions Addendum Grant 3-12-0063-048-2021 in the amount of $235,353 to help offset reduced concessionaire revenue at the Pensacola International Airport.
December 16, 2021 - City council approved Airport Rescue Grant 3-12-0063-049-2022 in the amount of $9,544,946 to help offset reduced revenue at the Pensacola International Airport.
FUNDING:
N/A
FINANCIAL IMPACT:
Adoption of a supplemental budget resolution will appropriate the grant funds. Funds will be provided from the FAA on a reimbursable basis.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
1/3/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator - Administration and Finance
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) Grant Agreement No. 3-12-0063-050-2022
2) Supplement Budget Resolution No. 2022-002
3) Supplement Budget Explanation No. 2022-002
PRESENTATION: No end