20251112-012 UPS amendment — original pdf

Backup

City of Austin Recommendation for Action File #: 25-2378, Agenda Item #: 12/11/2025 Posting Language Authorize negotiation and execution of an amendment to the Sublease with United Parcel Service, Inc., to include portions of the Airport Cargo Apron Area for aircraft parking positions and Cargo Handling Area for air freight and mail handling operations at Austin-Bergstrom International Airport, commencing on January 1, 2026. Funding: This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Austin Aviation Operating Budget. The item consolidates the tenant’s existing contracts related to the lease and use of Cargo Apron Areas and Cargo Handling Areas into the Sublease. Accordingly, the tenant’s projected total rental revenue is unchanged. Lead Department Austin Aviation. Fiscal Note This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Austin Aviation’s Operating Budget. The item consolidates the tenant’s existing contracts related to the lease and use of Cargo Apron Areas and Cargo Handling Areas into the Sublease. Accordingly, the tenant’s projected total rental revenue is unchanged. For More Information: Inquiries should be directed to Tracy Thompson, Airport Chief Officer - Business & External Affairs at tracy.thompson@flyaustin.com, 512-530-5023. Council Committee, Boards and Commission Action: To be reviewed by the Austin Airport Advisory Commission on November 12, 2025. Additional Backup Information: Austin Aviation seeks to streamline the contracts with cargo carriers related to the lease and use of Cargo Apron Areas, Cargo Handling Areas, and the lease and use cargo buildings by incorporating the Cargo Apron Area and Cargo Handling Area square footage into the cargo building leases. United Parcel Service, Inc. (UPS) currently has a cargo building lease with the City for a term of occupancy through June 30, 2027. Under this amendment, UPS will have preferential use of approximately 11,173 square feet of cargo handling space in the Cargo Handling Area and approximately 72,793 square feet of aircraft parking area in the Airport Cargo Apron Area. City of Austin Page 1 of 1 Printed on 11/3/2025 powered by Legistar™