Item 3 Passedunofficial
In plain language — from the agenda backup
This item authorizes a lease with Southwest Airlines for roughly 18,601 square feet of building space and 13,418 square feet of cargo handling space at Austin-Bergstrom International Airport to support the airline's provisioning operations. The lease runs five years after beneficial occupancy, with an option for one additional five-year term. It's projected to bring in $3,038.16 in revenue for the FY2025-2026 Austin Aviation operating budget — two months' ground rent during construction — with the full rental rate starting in FY2026-2027 once construction wraps up.
The official agenda language
Authorize negotiation and execution of a lease with Southwest Airlines Co. for certain premises consisting of approximately 18,601 square feet of building space, 13,418 square feet of cargo handling space, and related improvements for its provisioning operations at Austin-Bergstrom International Airport, for a term of five years, commencing after the date of beneficial occupancy, and with a renewal option for one additional five-year term. Funding: This item is projected to result in $3,038.16 of revenue for the Fiscal Year 2025-2026 Operating Budget of Austin Aviation, which is two months’ ground rent during the construction of tenant improvements. The full rental rate will begin in Fiscal Year 2026-2027 after construction is complete.
"Without objection, the consent agenda is adopted" — meeting transcript (unofficial)