HomeMy WebLinkAboutR-2024-062 Resolution authorizing an airport concession rent credit between the City of Yakima-Yakima Air Terminal-McAllister Field and Hertz Corporation Car Rental RESOLUTION NO. R-2024-062
A RESOLUTION authorizing Airport Concession Rent Credit between the City of Yakima,
the owner and operator of Yakima Air Terminal-McAllister Field (hereinafter
referred to as "CITY"), and the Hertz Corporation dba Hertz Car Rental
(hereinafter referred to as "CONCESSIONAIRE").
WHEREAS, the City owns and operates the Yakima Air Terminal-McAllister Field in
accordance with applicable Federal, State, and Local regulations; and
WHEREAS, the 2019-20 coronavirus pandemic (COVID-19) has reached more than 190
countries, causing economic distress on all forms of businesses including the transportation
industry; and
WHEREAS, on Thursday, March 11, 2021, the President of the United States signed the
American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117-2) to provide continued funding
from the federal government throughout the FY 2021-2022 and to minimize the economic impacts
and assist Cities throughout the nation with their response to the COVID-19 virus; and
WHEREAS, Title IV, Department of Transportation of the ARPA (H.R. 1319, Public Law
117) provides approximately $8 Billion Dollars to support U.S. airports experiencing severe
economic disruption caused by the COVID-19 public health emergency; the funds will be
distributed to airports to prevent, prepare for, and respond to the COVID-19 public health
emergency; and
WHEREAS, the grant funds are available to sponsors as defined in Section 47102 of title
49, United States Code; airport sponsors meeting statutory and policy requirements under this
section and identified in the FAA's current National Plan of Integrated Airport Systems are eligible;
and
WHEREAS, grant funds will be provided directly from the U.S. Treasury's General Fund
to prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency;
the FAA's Office of Airports will administer grant funds to airport sponsors; and
WHEREAS, the ARPA (H.R. 1319, Public Law 117), has allocated at least $6.5 Billion
Dollars in additional funding to Commercial Service Airports that may receive the additional
funding for any purpose for which airport revenues may lawfully be used; the additional grant
funding will be distributed to all Commercial Service Airports based upon a modified Airport
Improvement Program apportionment while any remaining funds will be distributed based on the
airport's passenger enplanements; and
WHEREAS, the ARPA (H.R. 1319, Public Law 117) funds may be utilized for cost related
to operations and maintenance, construction, debt service payments, personnel, cleaning,
sanitization, janitorial services, combating the threat of pathogens at the airport; and
WHEREAS, the ARPA (H.R. 1319, Public Law 117) also provides an additional $800
million to primary airports based on enplanements "to provide relief from rents and minimum
annual guarantee to on-airport car rental, on-airport parking, and in-terminal airport concessions";
and
1
WHEREAS, in accordance with the ARPA, airport sponsors receiving the additional relief
funding would be required to provide relief to airport concessioners from the date of enactment
until the sponsor has provided an amount equal to the grant amount specifically allocated for
concessions "to the extent practicable and to the extent permissible under state laws, local laws,
and applicable trust indentures"; and
WHEREAS, an airport concession must certify to the airport sponsor that it has not
received a second draw or assistance for a covered loan under section 7(a)(37) of the Small
Business Act (15 U.S.C. 636(a)(37)) that has been applied toward rent or Minimum Annual
Guarantee is eligible for the relief; and
WHEREAS, the CONCESSIONAIRE has provided proper notice to the CITY by submitting
the airport concession rent relief certification form indicating the desire to receive rent relief under
the Airport Coronavirus Response Grant Program and CONCESSIONAIRE has certified at the
time this agreement is entered into that they meet the criteria outlined in the correspondence
labeled: Federal Grant Funding Related To The Coronavirus Response and Relief Supplemental
Appropriations Act, as evidenced by the Certification signed by CONCESSIONAIRE, copies of
which are attached hereto as Exhibit A and fully incorporated into this agreement; now therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
In consideration of the mutual benefits to be derived by each party hereto, the parties mutually
agree to provide the following rent relief:
$11,890.00 dollars will be credited to the CONCESSIONAIRE'S account to be applied to previous
monthly rent charges as outlined in Exhibit A. Once the rent relief credit is fully expended, the
CONCESSIONAIRE will be responsible for ensuring all future lease payments are provided as
outlined within the airport lease agreement.
ADOPTED BY THE CITY COUNCIL this 2nd day of April, 2024.
•
ATTEST: ,,,.......\ Patricia Byer , Mayor
i YAK
'•(� * q ,','I
osalinda Ibarra, City Clerk NI
2
AIRPORT CONCESSION RENT CREDIT
BETWEEN
CITY OF YAKIMA
AND
THE HERTZ CORPORATION dba HERTZ CAR RENTAL
THIS AIRPORT CONCESSION RENT CREDIT BETWEEN THE CITY OF YAKIMA, the owner
and operator of YAKIMA AIR TERMINAL - McALLISTER FIELD (hereinafter referred to as
"CITY"), AND THE HERTZ CORPORATION pa HERTZ CAR RENTAL (hereinafter referred to
as "CONCESSIONAIRE"), is executed this-_'"day of 4of Clpf,1 024.
WITNESS ETH:
WHEREAS, the City owns and operates the Yakima Air Terminal-McAllister Field in accordance
with applicable Federal, State, and Local regulations; and
WHEREAS, the 2019-20 coronavirus pandemic was a pandemic of coronavirus disease 2019
(COVID-19)that has reached more than 190 countries, causing economic distress on all forms of
businesses including the transportation industry; and
WHEREAS, on Thursday, March 11, 2021, the President of the United States signed the
American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117-2) to provide continued funding
from the federal government throughout the FY 2021-2022 and to minimize the economic impacts
and assist Cities throughout the nation with their response to the COVID-19 virus; and
WHEREAS, Title IV, Department of Transportation of the American Rescue Plan Act (ARPA)
(H.R. 1319, Public Law 117) provides approximately $8 Billion Dollars to support U.S. airports
experiencing severe economic disruption caused by the COVID-19 public health emergency; the
funds will be distributed to airports to prevent, prepare for, and respond to the COVID-19 public
health emergency; and
WHEREAS, the grant funds are available to sponsors as defined in Section 47102 of title 49,
United States Code; airport sponsors meeting statutory and policy requirements under this section
and identified in the FAA's current National Plan of Integrated Airport Systems are eligible; and
WHEREAS, grant funds will be provided directly from the U.S. Treasury's General Fund to
prevent, prepare for, and respond to the impacts of the COVID-19 public health emergency; the
FAA's Office of Airports will administer grant funds to airport sponsors; and
WHEREAS,the Yakima Air Terminal-McAllister Field is presently eligible to receive a 2021 Airport
Improvement Program (AIP) grant from the federal government and may not require the use of
the airport sponsor's local 10% match funded under the Passenger Facility Charge Program
(PFC); and
WHEREAS, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117), has allocated
at least $6.5 Billion Dollars in additional funding to Commercial Service Airports that may receive
the additional funding for any purpose for which airport revenues may lawfully be used; the
additional grant funding will be distributed to all Commercial Service Airports based upon a
modified Airport Improvement Program apportionment while any remaining funds will be
distributed based on the airport's passenger enplanements; and
WHEREAS, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) funds may be
utilized for cost related to operations and maintenance, construction, debt service payments,
personnel, cleaning, sanitization, janitorial services, combating the threat of pathogens at the
airport; and
WHEREAS, the American Rescue Plan Act (ARPA) (H.R. 1319, Public Law 117) also provides
an additional $800 million to primary airports based on enplanements"to provide relief from rents
and minimum annual guarantee to on-airport car rental, on-airport parking, and in-terminal airport
concessions"; and
WHEREAS, in accordance with the Act airport sponsors receiving the additional relief funding
would be required to provide relief to airport concessioners from the date of enactment until the
sponsor has provided an amount equal to the grant amount specifically allocated for concessions
"to the extent practicable and to the extent permissible under state laws, local laws, and applicable
trust indentures";
WHEREAS, an airport concession must certify to the airport sponsor that it has not received a
second draw or assistance for a covered loan under section 7(a)(37) of the Small Business Act
(15 U.S.C. 636(a)(37))that has been applied toward rent or Minimum Annual Guarantee is eligible
for the relief; and
WHEREAS, the CONCESSIONAIRE has provided proper notice to the CITY by submitting the
airport concession rent relief certification form indicating the desire to receive rent relief under the
Airport Coronavirus Response Grant Program and CONCESSIONAIRE has certified at the time
this agreement is entered into that they meet the criteria outlined in the correspondence labeled:
Federal Grant Funding Related To The Coronavirus Response and Relief Supplemental
Appropriations Act, as evidenced by the Certification signed by CONCESSIONAIRE, copies of
which are attached hereto as Exhibit A and fully incorporated into this agreement;
NOW THEREFORE, in consideration of the mutual benefits to be derived by each party hereto,
the parties mutually agree to provide the following rent relief:
1. All recitals above are fully incorporated herein. Other than the specific amendments stated
herein, all other terms, conditions, obligations, rights and requirements of the underlying
agreement(s) between the CITY and CONCESSIONAIRE shall remain in full force and
effect throughout said agreement(s)' term.
2. Rent Relief:
$11,890.00 dollars will be credited to the CONCESSIONAIRES account to be applied to
previous monthly rent charges as outlined in Exhibit A. Once the rent relief credit is fully
expended, the CONCESSIONAIRE will be responsible for ensuring all future lease
payments are provided as outlined within the airport lease agreement.
3. Agreement to follow all terms and conditions of the Grant
CONCESSIONARE shall follow all the terms and conditions of the Concessions Rent Relief
Airport Rescue Grant Agreement and transmittal letter attached hereto as Exhibit B and fully
incorporated herein. Failure to comply with the terms and conditions therein shall result in the
return of all monies paid to CONCESSIONAIRE by the City under the Grant Agreement.
4. Hold Harmless
The CONCESSIONAIRE shall be responsible for the conduct and liability of its own personnel in
the performance of this Agreement. The CONCESSIONAIRE agrees to release, indemnify,
defend, and hold harmless the City of Yakima, its elected and appointed officials, officers,
employees, agents, representatives, insurers, attorneys, and volunteers, from all liabilities,
losses, damages, and expenses related to all claims, suits, arbitration actions, investigations, and
regulatory or other governmental proceedings arising from or in connection with this Agreement
or the acts, failures to act, errors or omissions of the CONCESSIONAIRE, or any of the
CONCESSIONAIRE'S agents or subcontractors, in performance of this Agreement. Nothing
contained in this Section or this Agreement shall be construed to create a liability or a right of
indemnification in any third party.
CITY OF YAKIMA
YAKIMA AIR TERMINAL— MCALLISTER FIELD
2406 W. Washington Avenue, Suite B
Yakima, Washington 98903
(509) 575-6149— phone
(509) 575-6185—fax
By: Date: KDOD4--1Dave Zabell, Interim ity anager
f l v nONTRACT NO
-; c, cHON NO 2-at) -0
ATTEST: y F,r Irvin
/...mit:ckb)
Rosalinda Ibarra, City Clerk
• O
STATE OF WASHINGTON )
ss
County of Yakima
I certify that I know or have satisfactory evidence that Dave Zabell signed this instrument,
on oath stated that he was authorized to execute the instrument and acknowledged it as
the City Manager of the City of Yakima, Washington to be the free and voluntary act of
such party for the uses and purposes mentioned in the instrument.
Date (4/6,-e
\a\\ooluuuiip77j/i By: oAttA...p '
•,,,\s FAA. ' Notary Public r h State of Washington
0 9 Residingat: -4411&,
P10TARy
NO 107265 = Appointment E ires
Nam'. PUBLIC
'i9> '°?/15/2O2y••'
/�'��iiOFWASN• �`��\
CONCESSIONAIRE:
THE HERTZ CORPORATION dba HERTZ CAR RENTAL
Joshua Blum
Vice President of Global Real Estate and Concessions
jblum@hertz.com
8501 Williams Road
Estero, Florida 33928
(239) 301-7000—office
(847) 323-4533—cell phone
By:
Joshua BI m, Vic President Global Real Estate and Concessions
Date: 1 L So
STATE OF FLORIDA )
) ss
County of LEE )
I certify that I know or have satisfactory evidence that Joshua Blum signed this instrument,
on oath stated that he was authorized to execute the instrument and acknowledged it as
the Vice President of Global Real Estate and Concessions of The Hertz Corporation dba
Hertz Car Rental, to be the free and voluntary act of such party for the uses and purposes
mentioned in the instrument.
Date Slip I ZC2- j
_ _ 1
a►AY Po'•: _ _ SARAH SRONCE ( By: ��/
frel Notary Public-State of Florida
', Commission S HH 339758 Notary' 4 •lic for the tate of FLORIDA
ov' My Comm.Expires Dec 8,2026 Residing at: �►—
( Bonded through National Notary Assn.
Appointment Expires 12- / fi / Zoz(o
EXHIBIT A
FUND DISTRIBUTION
2019 Hertz Counter Rent*leasehold Tex(No Gross Rec iepts)
Month 2019 2020 2021 2022
January $ 1,151.95 $ 1,18658 $ 1,222.12
(February $ 1,151.95 $ 1,18658 $ 1,222.12
Mandl $ 1,151.95 $ 1,18658 $ 1,22212
Agri $ 1,151.95 $ 1,18658 $ 1,222.12
May 5 1,151.95 $ 1,18658 $ 1,222.12
June $ 1,151.95 $ 1,18658 $ 1,222.12
July $ 1,151.95 $ 1,18658 $ 1,222.12
August $ 1,151.95 $ 1,18658 $ 1,222.12
September $ 1,151.95 $ 1,18658 $ 1,222.12
October $ 1,186.58 $ 1,18658 $ 1,222.12
November $ 1,186.58 $ 1,222.12 $ 1,222.12
December $ 1,186.58 $ 1,222.12 $ 1,222.12
$ 23,9V 20 Total calculation for rent distribution
Relief Distribution Explalntion
Apr'21-Dec'21.Son $ 10,999.08 (Amounts in gray boxes)
Rent Relief Total 5 11,890.00
Partial Relief Jan'22 $ 890.92 (Amount applied to final box in red)
EXHIBIT B
CERTIFICATION FORM
FLYYYakima Air Terminal-McAllesra Field
.. 2406 W Washington Ave,Suite B Yakima,WA 98903
www flyYKAtcom
Airport Rescue Grants 3-53.0089-051-2022
Airport Concession Certification for Yakima Air Terminal—McAlister Field
Business Legal Name The Hertz Corporation
OBA or Tredename(if applicable) Hertz
Authorized Representative Joshua Blum
Business Phone 847-375-6511
Email Address jblum@hertz.com
Business Qualifies as an Airport .7 Yes 24 No
Concession Disadvantaged Business
Enterprise(ACDBE)
Business Qualities as a Joint Venture Yes X No
under 49 CFR§23.3
Paycheck Protection Program(PPP) n/a
First Draw Loan Number(if applicable)
Have you applied or do you intend to ❑Yes X)No
apply for a PPP Second Draw?
PPP Second Draw SBA Loan Number n/a
(if applicable)
Purpose of PPP Second Draw Loan(it ❑Payroll Costs 0 Covered Supplier Costs
applicable) 0 Utilities 0 Covered Property Damage
0 Rent/Mortgage Interest 0 Covered Property Damage
0 Covered Operations Expenditures
0 Covered Worker Protection Expenditures
D Other
I certify that The Hertz Corporation has not received a second draw or assistance
for a covered loan under section 7(a)(37)of the Small Business Act(15 U S C 636(aX37))that has been
applied toward rent or minimum annual guarantee costs
I also certify that The Hertz Corporation wit not apply for a covered loan under section
7(a)(37)of the Small Business Act(15 U S C 636(a)(37))for rent or minimum annual guarantee costs
I certify that The Hertz Corporation shall follow all the terms and conditions of the
Concessions Rent Relief Airport Rescue Grant Agreement and transmittal letter attached hereto and fully
incorporated herein. Failure to comply with the terms and conditions therein shall result in the return of
all monies paid to The Hertz Corporation by the City under the Grant Agreement
October 3, 2023
Signature(of A, thorized Representative Date
Vice President,
Joshua Blum Real Estate&Concessions
Print Name Title
'
'
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.L.
For Meeting of:April 2, 2024
ITEM TITLE: Resolution authorizing an airport concession rent credit between
the City of Yakima-Yakima Air Terminal-McAllister Field and Hertz
Corporation Car Rental
SUBMITTED BY: Jaime Vera,Airport Operations and Maintenance Manager
SUMMARY EXPLANATION:
On Thursday, March 11, 2021, the President of the United States signed the American Rescue
Plan Act(ARPA) (H.R. 1319, Public Law 117-2)to provide continued funding from the federal
government throughout the FY 2021-2022 and to minimize the economic impacts and assist
Cities throughout the nation with their response to the COVI D-19 virus. Grant funds will be
provided directly from the U.S. Treasury's General Fund to prevent, prepare for, and respond to
the impacts of the COVI D-19 public health emergency; the FAA's Office of Airports will
administer grant funds to airport sponsors.
The City has previously received funding through this program. Subsequently the City contacted
concessionaires of the airport to make them aware of the opportunity. The CONCESSIONAIRE
has since provided proper notice to the CITY by submitting the airport concession rent relief
certification form indicating the desire to receive rent relief under the Airport Coronavirus
Response Grant Program and CONCESSIONAIRE has certified at the time this agreement is
entered into that they meet the criteria outlined in the correspondence labeled: Federal Grant
Funding Related To The Coronavirus Response and Relief Supplemental Appropriations Act, as
evidenced by the Certification signed by CONCESSIONAIRE, copies of which are attached
hereto as Exhibit A and fully incorporated into this agreement.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution.
2
ATTACHMENTS:
Description Upload Date Type
D Resolution_riettz Reso'ution
D Agreernent_Hertz ,,.` Contract