ADD-ON LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
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ADD-ON: PENSACOLA INTERNATIONAL AIRPORT - AIRPORT CORONAVIRUS RESPONSE GRANT PROGRAM (ACRGP) CONCESSIONS ADDENDUM GRANT OFFER, GRANT NO. 3-12-0063-048-2021
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RECOMMENDATION:
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That City Council approve and authorize the Mayor to execute the acceptance of the 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 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 finalization 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 ACRGP, has provided economic support to all U.S. airports. Each airport has been allocated funding to help offset the reduced concessionaire revenues as a result of the diminished activity from COVID-19. This funding may be used over a period of four (4) years for concession relief.
The Pensacola International Airport was previously awarded $4,502,199 under ACRGP. This Addendum creates additional funding in the amount of $235,353 to issue rental credits to our concession partners. During the health emergency, the Airport was unable to waive or defer rental payments.
PRIOR ACTION:
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.
FUNDING:
Budget: $ 0
Actual: $ 235,353
FINANCIAL IMPACT:
A supplemental budget resolution will be submitted to appropriate the funds. Funds will be provided from the FAA on a reimbursable basis for concession relief.
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STAFF CONTACT:
Keith Wilkins, City Administrator
Amy Miller, Deputy City Administrator - Administration and Finance
Matthew F. Coughlin, Airport Director
ATTACHMENTS:
1) Grant Agreement No. 3-12-0063-048-2021
PRESENTATION: No end