The current Automobile Rental Concession Leases to operate car rental concessions at the Billings Logan International Airport expired March 31, 2016.  These Leases were extended on a month-by-month basis until June 30, 2016, while the terms of the new Leases were finalized.  The Airport has five car rental concession spots available, currently leased by (1) Overland West, Inc., DBA Hertz Rent-A-Car, (2) Corpat, Inc., DBA Alamo/National Car Rental, (3) Enterprise RAC Company of Montana/Wyoming, LLC, DBA Enterprise Rent-A-Car, (4) Larson Enterprises, Inc., DBA Avis Rent A Car, and Blackfoot Rentals, Inc., DBA Budget Rent A Car, and (5) DTG Operations, Inc., DBA as Thrifty/Dollar Rent A Car.  All five existing Concessionaires have requested to enter into new Leases.  The new Leases begin July 1, 2016 and end on June 30, 2021.  Copies of the new Leases for each of the five Concessionaires are on file in the City Clerk's Office.
 

↵City Council may:

• Approve the new Leases with the five current car rental concessionaires for terms beginning July 1, 2016 and ending June 30, 2021; or
• Disapprove the new Leases with the five current car rental concessionaires for terms beginning July 1, 2016 and ending June 30, 2021.

With the acceptance and approval of the five Automobile Rental Concession Leases, the City will be guaranteed a revenue stream of $5,757,510 over the next five-year period.  The five-year minimum annual guarantees (MAGs) are as follows:

 

CONCESSIONAIRE	MAG
Overland West, Inc., DBA Hertz	$1,925,000
Corpat, Inc. DBA Alamo/National	$1,675,000
Enterprise	$797,510
Avis/Budget	$750,000
DTG Operations, DBA Thrifty/Dollar	$610,000

Staff recommends the City Council approve the five Automobile Rental Concession Leases with the five current concessionaires for terms that begin July 1, 2016 and end on June 30, 2021.