Isle airport merchants
seek relief on rentsA bill that would aid
concessionaires may become moot
if the last contract is amended
A legislative proposal up for the third year in a row to help airport concessionaires hit by a decline in revenues in the wake of Sept. 11 terrorist attacks, the Iraq war and SARS might be effective whether or not it becomes law.
The current bill would allow the state Department of Transportation to waive minimum rents when times are bad for reasons beyond Hawaii's control, and instead allow operators to pay a percentage of their rent. It has been referred for consideration to the Senate Ways and Means Committee.
Similar legislation to provide relief to airport concessionaires passed twice before, but was vetoed both times, first by Gov. Ben Cayetano and then by Gov. Linda Lingle, both of whom said such a bill would force the state to guarantee airport concessions stay in business at the expense of the public.
The state Department of Transportation strongly opposes the bill, said Deputy Director Bruce Matsui, who added the DOT is working with airport concessionaires to address their situation.
"We've been largely successful, save for one situation," Matsui said. "If the bill had become law last year, this state in negotiation with various concessionaires would have been hamstrung. The state would have ended up millions of dollars worse than we are now."
Out of the 15 or so concessionaires who applied for relief, the state has amended contacts with all but the airport's longest-running concessionaire, Peter Fithian, owner of Greeters of Hawaii. Fithian, who has had a flower and greeting concession at the airport for about 40 years, said he is still working with the DOT to achieve relief. His business has been hurt by having to stick to the minimum rent that he promised in better times, he said.
"I hope you will keep this bill alive until we get this solved," Fithian told the committee, adding that he's been working since the last legislative session to get the DOT to amend his contract. Sales at Fithian's floral business dropped 33 percent after 9/11, he said.
Following 9/11, the U.S. Congress provided relief to the hard-hit airline industry, but that didn't help concessionaires, who historically have produced more than 60 percent of statewide airport revenues.
While Hawaii's airport system has provided an estimated $200 million worth of benefits and waivers to the airlines, no similar benefits have been provided to concessionaires.
Sen. Cal Kawamoto (D, Waipahu-Pearl City), who introduced the bill, said he's not ecstatic about passing a bill that seems tailored to one entity, but hopes the move will produce relief so that legislation becomes unnecessary.
James Stone, spokesman for the airport concessionaires committee, said although most concessionaires have obtained relief, a bill is still needed to address Fithian's concerns.
"Peter is not that far along in his negotiations," he said. "Having a bill in place might swing the pendulum. It's possible a bill may not be necessary at all."
The state government as a landlord should not favor some tenants over others by providing relief opportunities inconsistently, Stone said.
Sharon Weiner, group vice president for the resort retailer DFS Hawaii, said even though DFS has negotiated relief from the state, a bill is still necessary.
"We are all for one and one for all," Weiner said. "We hope this helps the state and Peter resolve their issues."
In other business, Senate Committees on tourism, as well as transportation, military affairs and government operations, referred two other bills for consideration by the Senate Ways and Means Committee. Senators agreed to support a bill introduced by Sen. Donna Kim (D, Kalihi Valley-Halawa) that would establish an aloha aina patrol to handle crimes against visitors.
And senators agreed to pay up to $532,000 to host the 2005 National Association of Counties meeting in Honolulu if the county matches the contribution.
