The mayor of Atlanta, Georgia, USA, has signed legislation enabling the city to temporarily reduce airport concessionaire and car rental company rental requirements.
The legislation will see the suspension of the Minimum Annual Guarantee (MAG) payment obligation in the concessions and consolidated car rental agreements for a period of four months, ending on June 30, 2020.
It is designed to enable companies to use four months of rental funds to provide relief to employees experiencing reduced hours and lost wages as a result of the COVID-19 health threat. The Atlanta administration is taking a holistic approach to dealing with the impact COVID-19 will have on concessionaires and airlines, it said in a statement.
“Atlanta families – many of whom are already living paycheck to paycheck – will be overburdened if we do not provide much-needed economic relief immediately,” said Mayor Keisha Lance Bottoms. “We are asking our business partners to continue showing compassion toward their employees, and when possible, provide continuity of pay for their hourly associates.”
At the expiration of the initial four-month period, the city may extend this Temporary Emergency Rental Payment for an additional 30-day period, at its sole discretion, if the COVID-19 pandemic is still active and it is in the best interest of the city.
Once the Emergency Rental Payment term expires, payments must resume.
“We are thankful that the mayor and city council were able to find a way to give our concessionaires some much needed relief by reducing their rent during these uncertain times,” said Hartsfield-Jackson International Airport general manager John Selden.
“Further, in an effort to mitigate the financial impact to our airline partners, the Department of Aviation is working closely with the mayor on a plan to issue advanced credits that will give these partners immediate rent relief. The relief should help stabilize our airline partners as they deal with any financial hardships caused by the pandemic.”