Subject:
Title
Second Amendment to the St. Pete-Clearwater International Airport Airline Operating and Use Agreement.
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Recommended Action:
Recommended Action
Approval of the Second Amendment to the St. Pete-Clearwater International Airport (PIE) Airline Operating and Use Agreement.
• The current Airline Operating and Use Agreement’s term expires on September 30, 2025.
• Allegiant and PIE are currently negotiating the next five-year agreement, particularly the rates for rentals, fees, and charges.
• The current agreement does not have a hold-over clause to allow us additional time.
• This amendment allows a hold-over time in case Allegiant still occupies the space after the Agreement’s term expires, in which all terms and conditions will continue to be in effect.
• This amendment will also affect Sun Country Airline’s Airline Operating and Use Agreement, since this is the master document for both air carriers.
• The First Amendment to the agreement was for 147 square feet added to Allegiant’s storage area.
• Revenue from this agreement is receipted to the Airport Revenue and Operating Fund, included in the Fiscal Year (FY) 2025 Amended Budget and the FY26 Proposed Budget, in the amount of $2,571,510.00. Actual revenue in FY24 was $2,936,301.87.
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Strategic Priorities:
Prosperity and Opportunity
Foster Business Growth
Summary:
Summary
This amendment gives PIE more time to negotiate the rates and charges for the next five-year agreement that will expire in 2031 if this Amendment is approved.
This amendment will ensure that the same terms and rates will continue for the next year while both entities continue to negotiate in good faith.
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Background Information:
PIE staff has been working with Allegiant to negotiate the rates and charges of the next five years. We need additional time to ensure that the agreement enables both parties to plan for the future.
Fiscal Impact:
If this Amendment is executed, all existing rates and charges will continue to be paid until the new agreement is negotiated. The current fees are as follows:
1. Landing Fees: $0.95 per thousand pounds of maximum gross landed weight
2. Terminal Service Facility Fees (per flight/aircraft): 0-2500 departures = $75; 2501-5000 departures = $65; 5001-7500 departures = $55; >7500 departures = $50
3. Passenger Screening Fees: $0.75 per enplaned passenger
4. Airline Office Space: $20.00 per square foot per year
5. Ticket Counter Space: $1,200 per ticket counter position per year
6. Aircraft Remaining Over Night (RON) Parking Fees: $40.00 per aircraft per night
7. Fuel Flowage Fees: <20,000 gallons per month = $.055 per gallon; 20,001 - 100,000 gallons = $.02 per gallon; >100,000 gallons per month = waived for the portion of fuel purchased more than 100,000 gallons
8. Passenger Boarding Bridge Fees: $50 per turn (4 hours continuous use)
Staff Member Responsible:
Mark Sprague, C.M., Interim Director, Airport
Partners:
Allegiant Air, LLC
Sun Country Airlines
Attachments:
Second Amendment to St. Pete-Clearwater International Airport Airline Operating and Use Agreement
First Amendment to St. Pete-Clearwater International Airport Airline Operating and Use Agreement
St. Pete-Clearwater International Airport Airline Operating and Use Agreement