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Investors - OCTOBER 24, 2018

L.A. World Airports approves $2b contract with LA Gateway Partners for consolidated Rent-A-Car facility

by Jody Barhanovich

Los Angeles World Airports (LAWA) has approved a not-to-exceed $2.028 billion, 28-year contract for L.A. Gateway Partners (LAGP) to design, build, finance, operate, and maintain (DBFOM) the Consolidated Rent-A-Car (ConRAC) facility at Los Angeles International Airport (LAX).

“With today’s board approval, we have completed the procurement process on the major components of the Landside Access Modernization Program (LAMP),” said Sean Burton, president, BOAC.

The ConRAC will consolidate more than 20 various rental car locations in and around the airport into one convenient facility located adjacent to the 405 freeway. It will feature 6,600 ready/return parking stalls, 10,000 idle vehicle storage, 1,100 rental car employee parking spaces, and more than 2,500 parking spaces for badged LAWA employees. It is an approximately 5.3 million-square-foot facility.

Last month, BOAC approved an Early Works Agreement with LAGP not-to-exceed $5 million, which allowed the developer to move forward with pre-construction activities such as soil testing, engineering, and design of the ConRAC, all of which are crucial to maintaining the project schedule.

The ConRAC facility will be connected to the Automated People Mover (APM), which will eliminate the need for rental car shuttles to access the Central Terminal Area. With the removal of rental car shuttles, LAX will see a reduction in shuttle traffic and passengers waiting to board curbside at the airport.

As part of their proposal, LAGP committed to delivering an environmentally friendly project. The facility will feature drought tolerant landscape using California native plants and the building will meet or exceed minimum requirements for LEED Silver certification.

 

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