Aug. 29--The Fort Smith Airport Commission approved amended concession agreements with both tenant and nontenant auto rental agencies at a monthly meeting Tuesday.
The agreement with the tenant agencies replaces a 10-year agreement dating to the opening of the airport terminal. Airport Director John Parker said certain provisions of the pact -- including its 10-year term -- were included to favor the agencies, who had funded the parking lot and related facilities at the new terminal, to enable them to recover their investment.
Parker said the situation was now different, and the contract was redrafted to recognize that. Under the new agreement, which has a five-year term, the rental agencies will pay the airport the greater amount of 10 percent of their gross revenue or agreed-upon minimal annual guarantee payments. For the Avis-Budget operation, the minmimal annual payment is $90,000; for Hertz Rent-A-Car $48,000 and for Enterprise-National $70,051.
The companies will also be assessed a monthly $10 per parking space fee for the number of spaces their vehicles occupy on the 150-car lot.
The agreements will take effect Oct. 1.
Parker said a second agreement for nontenant rental car companies, Enterprise Rent-A-Car and Hertz Local Edition, was also proposed to address the rental of other vehicles used at the airport. He said the companies, which do not have rental facilities at the airport, furnish vehicles to travelers flying through general aviation facilities. Under terms of the agreement, the operators will be charged 10 percent of gross revenues. HLE's agreement takes effect immediately, while Enterprise will begin paying the fee Oct. 1.
Also at Tuesday's meeting, the commission adopted a resolution closing out a passenger facility charge program at the airport and authorizing a new one. At year's end, the current program will have collected $1.3 million, which has been used to fund boarding bridges, airport security expansion and a flight information display system.
Beginning Jan. 1, 2013, fees will be collected under the new program. Among proposed improvements are runway, taxiway and drainage improvements, wildlife mitigation programs, vehicles and security upgrades. The program proposes the collection of $2.4 million by its expiration on Dec. 1, 2019.
The fee is collected at a rate of $4.50 per boarding passenger.
The resolution will be forwarded to the Federal Aviation Administration for review and approval.
Commission members also heard a report from Parker and from commission chairman Wayne Haver on the Defending the Defenders listening session held Tuesday at the Fort Smith Convention Center. Haver said more than 1,000 people attended the event, which was organized in support of the continued mission of the Arkansas Air National Guard 188th Fighter Wing.
Haver said at the event it was reported proposed Defense Department cuts -- leaving a single National Guard operation in each state -- would cost the U.S. 2.8 million positions among active service men and women as well as another 5.2 million civilian jobs.
Parker also told commission members the FAA last week conducted a thorough certification inspection of the airport. He said the inspectors' reported "they found nothing wrong or out of tolerance," an achievement Parker said was "a testament" to the service and operation of the entire airport staff.
Copyright 2012 - Times Record, Fort Smith, Ark.
