Atlanta Business News 5:48 p.m. Wednesday, October 28, 2009

City council may seek changes in Delta lease

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The Atlanta Journal-Constitution

An Atlanta City Council member may seek a shorter lease term for Hartsfield-Jackson International Airport's proposed lease with Delta Air Lines.

The seven-year proposed lease, which is an extension of the airport's current 30-year lease to expire next year, is under consideration by the City Council's Transportation Committee.

Council member C.T. Martin said he wants to change the term, but did not explain why.He said he is awaiting more information and has not yet determined the specifics -- such as whether it should be six years or five years.

The council can't unilaterally change the agreement between the city and Delta, but Martin said it can submit a report to the mayor's office with any proposed changes it wants the mayor to negotiate.

City officials have said the seven-year lease term, already less than one-third the current lease's duration, allows the city adequate flexibility to renegotiate terms in the future.

If the lease is shorter, the airport could seek higher fees and more control over gates and major projects sooner.

The proposed lease holds Delta's costs about the same. Mayor Shirley Franklin's administration wants the extension in part so the city can proceed with financing for the new international terminal.

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