...Title
Actions Related to Temporary Financial Relief and Amendments to Agreements for Aeronautical and Non-Aeronautical Tenants at the Norman Y. Mineta San José International Airport.
...Recommendations
Adopt a resolution to:
(a) Authorize the City Manager or designee to negotiate and execute amendments to concessionaires, airlines, tenant leases, and permits at the Norman Y. Mineta San José International Airport to provide continued financial relief to the Airport’s aeronautical and non-aeronautical tenants due to the ongoing impacts of the COVID-19 pandemic using Coronavirus Response and Relief Supplemental Appropriation Act and American Rescue Plan Act Grant Funds or other grants or Airport funds through December 31, 2023, as deemed necessary. Use of funds and delegated authority may include but is not limited to:
(1) Amend Minimum Annual Guarantee Abatement language;
(2) Continued suspension of Minimum Annual Guarantee Rent, and charge only percentage rent;
(3) Modify the Pricing Policies;
(4) Offset invoices for tenants that are unable to pay rents and fees due to tenant operations that were suspended at SJC due to COVID;
(5) Deferral of fixed rents; and
(6) Adjust tenant improvement construction schedules.
(b) Authorize the City Manager or designee to extend non-aeronautical tenant agreements by up to four years to offset revenue losses due to low enplanements, and increased labor and construction costs as a result of the COVID-19 pandemic.
CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. (Airport)