Contract Negotiations For $1B LAX Car Rental Facility to Proceed

The Los Angeles Board of Airport Commissioners on Sept. 6 green lighted Los Angeles World Airports’ staff to negotiate a contract with a consortium to design, build and operate the $1 billion consolidated car rental facility near Los Angeles International Airport.

The L.A. Gateway Partners consortium is 11 companies led by PCL Construction Services Inc. of Denver as the general contractor. Downtown-based design firm A.C. Martin Partners is the local participant.

The consolidated car rental facility will be two miles east of LAX and next to the 405 Freeway; a planned automated people mover will connect the facility to the airport terminals. When completed in 2023, the facility will merge 12-plus rental car companies now scattered throughout Westchester, El Segundo and other nearby airport communities.

Last month, the board approved rental agreements with the seven parent companies of car rental firms that control 99 percent of the rental car market at LAX.

LAWA staff recommended L.A. Gateway Partners from among four bidding teams after its bid scored first for lowest cost and second for technical merit. Staff will now negotiate a 28-year contract with the consortium for the design, construction, operation and maintenance of the rental facility.

The final negotiated contract will go before the Board of Airport Commissioners and then the Los Angeles City Council for final approval.

Economy, education, energy and transportation reporter Howard Fine can be reached at hfine@labusinessjournal.com. Follow him on Twitter @howardafine.