City Council

(40) 13­0171 CD 11 CATEGORICAL EXEMPTION and TRADE, TRAVEL AND TOURISM COMMITTEE REPORT relative to the Fifth Amendment to a Terminal Facilities Lease and License Agreement LAA­8757 with Southwest Airlines Co. covering space in Terminal 1 at Los Angeles International Airport (LAX). Recommendations for Council action: 1. ADOPT the determination by the Board of Airport Commissioners (BOAC) that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. 2. APPROVE the Fifth Amendment to Terminal Facilities Lease and License Agreement LAA­8757 with Southwest Airlines Co. to extend the term through June 30, 2025, covering space in Terminal 1 at LAX. 3. CONCUR with the June 13, 2024 BOAC action, by BOAC Resolution No. 27953, authorizing the Chief Executive Officer, LAWA, or designee, to execute the Fifth Amendment to Terminal Tuesday - August Facilities 27, 2024 Lease and - Agreement LAA­8757 License with29 PAGE Southwest Angeles City CEQA Guidelines. 2. APPROVE the Fifth Amendment to Terminal Facilities Lease and License Agreement LAA­8757 with Southwest Airlines Co. to extend the term through June 30, 2025, covering space in Terminal 1 at LAX. 3. CONCUR with the June 13, 2024 BOAC action, by BOAC Resolution No. 27953, authorizing the Chief Executive Officer, LAWA, or designee, to execute the Fifth Amendment to Terminal Facilities Lease and License Agreement LAA­8757 with Southwest Airlines Co. Fiscal Impact Statement: The BOAC reports that there is no impact to the General Fund. The City Administrative Officer (CAO) reports that approval of the proposed lease between the Los Angeles World Airports (LAWA) and Southwest Airlines Co. at LAX will result in annual rent revenue to the LAWA of approximately $52.1 million during the one­year extended term of the lease (excluding automatic annual rental rate adjustments). The lease revenue will be deposited into the LAWA Revenue Fund – Terminal Building Rental Account. The recommendations in the CAO report comply with the LAWA’s adopted Financial Policies. Approval of the proposed lease agreement will have no impact on the City’s General Fund.