DEPARTMENT: Aviation Department
DEPARTMENT HEAD: Noel T. Jones
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Lease and Concession Agreement with Northwest Petroleum, LP at the San Antonio International Airport
SUMMARY:
This Ordinance authorizes a lease and concession agreement with Northwest Petroleum, LP for a Phillips 66 Gas Station which will include a Q Mart Convenience Store and Burger King Restaurant at the San Antonio International Airport. The new facilities will provide the public with a gas station, restaurant and convenience store on Airport property at the northeast corner of the intersection of Airport Blvd. and Loop 410. Northwest Petroleum, LP will design and construct the building, which is expected to take 18 months. Construction will commence within 100 days of approval of the agreement.
The term of the agreement is 20 years with the option to extend for two additional 10 year terms, with guaranteed revenue of $50,000.00 annually. In addition, the concessionaire will lease 81,889 square feet from the airport which will generate $81,889.00 annually during the first five lease years of the term. As per 49 Code of Federal Regulations (CFR) 23, the Federal Aviation Administration (FAA) has approved the long-term, exclusive concession agreement.
BACKGROUND INFORMATION:
Improving the customer service experience for passengers at the San Antonio International Airport is one of the San Antonio Airport System's top priorities. In 2013 the Aviation Department identified property that could be developed as a gas station that would be available to the public and customers who would like to fuel their rental vehicles before returning to their rental car companies. In addition, the Airport will relocate the existing cell phone lot next to the gas station in order to provide customers with the ability to purchase gas or items at the convenience store or Burger King. The Airport System will also receive non-airline r...
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