City Council

(10) 13-0039-S1 CD 11 CATEGORICAL EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to a proposed Amended and Restated Premier Passenger Lounge Space Lease No. LAA-8753 between the Los Angeles World Airports and Korean Air Lines Co., Limited, for lounge space in the Tom Bradley International Terminal at Los Angeles International Airport. Recommendations for Council action: ADOPT the determination by the Board of Airport Commissioners (Board) that the proposed action is categorically exempt under the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1(18)(c) of the City of Los Angeles CEQA Guidelines. APPROVE the Amended and Restated Passenger Lounge Space Lease to No. LAA-8753 between the Los Angeles World Airports and Korean Air Lines Co., Limited for lounge space in the Tom Bradley International Terminal at Los Angeles International Airport that will extend the term of the lease by five years, from January 1, 2024 through December 31, 2028, and generate revenues of approximately $3,900,000 during the first year of the extended period, and an estimated $19,600,000 over the total term. CONCUR with the Board’s action on October 19, 2023, by Resolution 27830, authorizing the Interim Chief Executive Officer, Los Angeles World Airports, or designee, to execute said Amended and Restated Premier Passenger Lounge Space Lease with Korean Air Lines Co., Limited. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed lease between the Los Angeles World Airports and Korean Air Lines Co., Limited will provide annual Premier Passenger Lounge Space rent in the Tom Bradley International Terminal of approximately $3,900,000 in the first year, and an estimated $19,600,000 over the five-year extended period, not including annual rate escalations or additional percentage rent triggered by other services. Revenues collected during the lease term will be remitted to the Los Angeles World Airports Revenue Fund. The actions of the proposed amendment comply with the Los Angeles World Airports’ adopted Financial Policies. Approval of the proposed amendment will have no impact on the City’s General Fund.