Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
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__________________<br />
PFC COLLECTIONS DESIGNATED AS REVENUES BY THE COMMISSION<br />
FOR PAYMENT OF DEBT SERVICE ON OUTSTANDING BONDS<br />
Source: <strong>San</strong> Francisco <strong>Airport</strong> <strong>Commission</strong>.<br />
Amount Designated Applicable<br />
Designation Date ($ in millions) Fiscal Year<br />
04/16/02 $18.8 2001-02<br />
11/05/02 13.0 2002-03<br />
03/25/03 46.1 2003-04<br />
06/03/03 10.0 2003-04<br />
06/01/04 68.4 2004-05<br />
06/07/05 67.7 2005-06<br />
05/02/06 58.4 2006-07<br />
05/01/07 54.4 2007-08<br />
05/06/08 51.0 2008-09<br />
05/05/09 61.0 2009-10<br />
The <strong>Commission</strong> may use a portion <strong>of</strong> current or future PFC collections to redeem Outst<strong>and</strong>ing Bonds <strong>and</strong><br />
for the payment <strong>of</strong> debt service. The <strong>Commission</strong> can give no assurances that PFC amounts will be collected as<br />
anticipated or that PFC amounts so collected will be designated as Revenues in any given Fiscal Year.<br />
Collection <strong>of</strong> PFCs in the Event <strong>of</strong> Bankruptcy<br />
In order to ensure continuation <strong>of</strong> the PFC program, including the trust fund status <strong>of</strong> collected PFCs,<br />
Congress amended the PFC enabling legislation, effective December 12, 2003, to provide additional specific<br />
obligations for an air carrier operating under bankruptcy protection in Chapter 7 or Chapter 11. The statute provides<br />
that (i) the air carrier must segregate in a separate account an amount <strong>of</strong> PFCs equal to its average monthly liability,<br />
(ii) PFCs are funds held in trust for each airport regardless <strong>of</strong> the ability to identify or trace precise funds, (iii) the air<br />
carrier may not pledge the PFCs to a third party, (iv) an airport is entitled to recover costs for enforcing an air<br />
carrier’s compliance with the statute, (v) the air carrier may keep any interest income earned on the segregated PFCs<br />
if it is in compliance with the PFC enabling legislation <strong>and</strong> (vi) PFCs may not be commingled with other air carrier<br />
revenues.<br />
While the PFC enabling legislation provides that PFCs are trust funds both before <strong>and</strong> after an air carrier<br />
files for bankruptcy protection, there can be no assurance that the air carrier has collected, retained, segregated or<br />
properly accounted for its PFCs, or that the <strong>Airport</strong> would be able to collect the PFCs from the air carrier that were<br />
collected prior to the bankruptcy filing.<br />
Concessions<br />
Retail Program<br />
Each retail tenant at the <strong>Airport</strong> is charged a Minimum Annual Guarantee (a “MAG”) pursuant to its lease.<br />
DFS Group. DFS Group is the principal retail concessionaire at the <strong>Airport</strong>. Effective June 1, 2007, the<br />
DFS Group lease was amended to add 3,066 square feet <strong>of</strong> rentable space <strong>and</strong> the MAG paid by DFS Group was<br />
increased from $26.1 million to $26.4 million. The DFS Group exercised its final five year option to extend its lease<br />
pursuant to the Concession Support Program <strong>and</strong> the <strong>Airport</strong> exercised the first <strong>of</strong> its two one-year discretionary<br />
options to extend the DFS Group lease. The DFS Group lease expires on December 31, 2017.<br />
Other Retail. During Fiscal Year 2007-08, the <strong>Airport</strong> opened new retail <strong>and</strong> services establishments in<br />
24 additional locations, including five <strong>Airport</strong> Wireless locations, seven retail locations in Terminal 3 <strong>and</strong> a spa in<br />
each <strong>of</strong> Terminal 3 <strong>and</strong> the ITC.<br />
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