CLT Airport Lease Draft Promises $2.1b Investment, Leaves Worker Rights Unchanged
A draft airport lease agreement presented to the Charlotte City Council on Monday would lock in a 10.5-year deal with the airport’s five biggest airlines and commit billions of dollars to capital improvements.
A majority of the council was skeptical, however, about whether it could do more to support safety training and better workplace conditions without breaking state law.
The lease would take effect Jan. 1 for American, Delta, Frontier, Southwest and United airlines and would generate an estimated $3 billion in rent payments over its lifespan.
The tentative agreement would launch the $2.1 billion “CLT Beyond” program for renovations including a Concourse C expansion with a new passenger tunnel, renovations to the international arrivals area, airfield upgrades and planning for future expansions to the international gate facilities and the terminal atrium.
CLT Beyond is four times greater than the capital program negotiated in the 2016 lease agreement, said Ted Kaplan, chief business and innovation officer at Charlotte Douglas International Airport.
The city hasn’t yet determined how it will pay for the program, according to spokesperson Jack VanderToll.
Charlotte made some concessions, said airport CFO Michael Hill. The airport’s revenue share would drop from 60% to 55%, with the five airlines splitting the remaining 45% of revenue. Hill called this a “nominal shift” in exchange for the rent rate and minimum financial protections in the event of a qualifying disruptive event such as a pandemic. Airlines would help absorb some of those revenue drops.
“That was a big win for the city,” Hill said.
The deal did not address worker rights, a sore point for contracted airport workers and council members alike. The city cannot regulate wages or benefits under state law, according to city staff.
Mayor Robert Harrington referred the worker conditions issue to a council committee for more discussion on what Charlotte can do within the bounds of the law.
Former Mayor Vi Lyles vetoed a similar proposal last year.
“(The committee) will explore the legal framework currently in place on procurement policies and/or initiatives that the City of Charlotte can use to encourage and prioritize businesses that provide sustainable climate for their employees,” Harrington said.
Several council members referenced the recent death of Colleen Coates, a cabin cleaner who died while on the job in September. Some suggested the city look into community benefit investments and consider what it can require for safety training.
“Without a doubt the airport is the economic engine of our community, and that’s great, but at the same time I think the success of our airport“ must also be measured by how we treat our employees,” said at-large Councilwoman Dimple Ajmera. “We’re talking about human lives. This is more than just a lease agreement.”
The council hasn’t yet reviewed the agreement in full and will receive copies on Tuesday. The city is still trying to determine how and when it will release the document to the public because “it is very difficult to send,” according to Aviation Director Haley Gentry.
The timeline for when the council will vote on a contract is unclear. Monday’s meeting was only a discussion.
Ajmera made a motion to require a six-week public review period for the contract. The council narrowly supported the motion in a 6-5 vote, but Harrington overrode it with a veto.
“My veto was not because I necessarily disagreed with the date that was selected but was due to a lack of clarity and time to consider the impact of the timeline during the discussion of the motion,” Harrington shared in a written statement after the meeting. “I believe that we should have a clearly prescribed process and timeline to discuss and ultimately decide this item, and I will work with my colleagues on council in the coming days to establish that process and timeline, which will be shared publicly so that everyone clearly understands how this decision will be made.”
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