Hartsfield-Jackson International Airport plans to give concessionaires three months rent-free in its new international terminal, after construction of their spaces was delayed amid challenges to the concessions contracts.
The airport has not yet said how much that free rent amounts to in dollars for the concessionaires, which include restaurants, shops, duty-free retail and business and entertainment services.
City officials said in the past the city would lose about $2 million per month in concessions revenue if the terminal opening was delayed.
The new terminal and gate complex is set to open May 16.
Concessions contracting was delayed last year when the city decided to throw out all of the first round of proposals it received and restart the process in the fall. The city council approved the selected contractors in January.
Operators weren’t able to begin construction of new locations until March, however, because losing bidders challenged the contract awards and unsuccessfully sought an injunction to block contracts.
Airport officials will seek city council approval for the three months’ free rent, starting with a resolution to be heard bythe transportation committee on Wednesday. Rent payments would start Aug. 16.
The airport originally planned to give a period of free rent as an incentive to concessionaires that finished construction early, but now many of the concessions won’t be finished until after the opening date. The airport plans to give the incentive to all concessionaires in the international terminal and Concourse F, whether or not they are open for business on the terminal’s opening day.
The city prevailed in one challenge to the concessions contracts when an appeals hearing officer denied an administrative appeal. But an appeal of another concessions contract continues and there is potential for future lawsuits -- particularly after the Federal Aviation Administration last week said some of the disadvantaged businesses in contracts should not have been certified as such.
