Airport set to debate concessions contract

AIRPORT DISTRICT — Executives at Bob Hope Airport are calling on commissioners to extend a long-term lease with its concessionaire, citing a potential drop in revenue among their reasons not to take new bids.

Executive Director Dan Feger maintained that Paradies Shops, which has operated gift shops at the airport since 1994, has “done a very good job of providing concessions,” and that the Burbank-Glendale-Pasadena Airport Authority has “a good deal right now.”

He added that entering into a contract with at least one competing firm posed a possible conflict of interest.

The recommendation comes as the commission prepares to hear arguments Monday from the Hudson Group, which called on executives to open the bidding process before presenting an offer that “increased basically every lever of economics,” said Mike Blakely, vice president of business development.

Blakely met with the commission’s finance committee Jan. 19 and presented a “standing offer” that would increase returns to the authority by more than $465,000 over the first five years of the agreement. And while Paradies has committed to remodel two stores at an investment of $300,000, the Hudson Group has proposed to remodel all five locations for $350,000.

Still, Paradies Shops under the proposed five-year contract would not be able opt out and would have to maintain its financial contribution to the airport, Feger said.

The committee unanimously approved carrying Feger’s recommendation to the full commission.

“If you have the market leader in concessions coming in and stating that for 1 1/2 years they’ve been interested, the least you should do is open it up to bid,” said former Burbank Mayor Michael Hastings, who is representing the Hudson Group. “How can you make a decision without all the facts in front of you? It doesn’t sit right for me as a public entity, especially in this economy.”