This resolution seeks approval for a modification to an existing lease agreement with United Airlines, allowing for a rental reduction of up to $7,175,000 to support construction improvements at the airport. The resolution is currently awaiting action from the committee.
Resolution approving Modification No. 2 of Lease and Use Agreement No. 23-0046 between United Airlines, Inc. and the City and County of San Francisco, acting by and through its Airport Commission, to provide United Airlines, Inc. a rental abatement in an amount not to exceed $7,175,000 for the construction of base building improvements.
How it got here
This legislation originated from the need to modify an existing lease agreement between United Airlines and the City to facilitate significant improvements at San Francisco International Airport.
The Airport Commission awarded Lease and Use Agreement No. 23-0046 to United Airlines, allowing them to operate at San Francisco International Airport for a ten-year term.
The Board of Supervisors approved the Lease and Use Agreement No. 23-0046, which formalized United Airlines' operational rights at the airport.
The Airport Commission approved Modification No. 2 to the Lease, which provides for a rental abatement of up to $7,175,000 to United Airlines for base building improvements related to a new lounge in Terminal 2.
The proposed resolution for Modification No. 2 was received from the Airport Commission and forwarded to the Board of Supervisors for further action.
The resolution for Modification No. 2 was assigned to a committee for review and further action by the Board of Supervisors.
Reconstructed from attached documents & the official record