Rent Relief Granted For Businesses At Phoenix Sky Harbor Airport
Restaurants and retail shops at Phoenix Sky Harbor International Airport are getting rent relief.
The Aviation Department said passenger traffic is down about 75% compared to the same time last year. Due to COVID-19, 72% of concessionaires in Terminal 3 and 78% in Terminal 4 remain closed.
Normally, retailers pay the airport rent that includes a minimum annual guarantee that’s based on the previous year’s sales. On Wednesday, the City Council agreed to drop the minimum guarantee through the end of the year. Instead it will require businesses pay rent based on a percentage of sales only — generally between 13% and 15%.
Sky Harbor estimates it will collect about $20 million less from concessionaires.
In May, several operators pleaded for financial relief. At that time Joya Kizer Clarke told the council without switching to a percentage rent format her family and business would be forced into bankruptcy.