GIAA Specialty Retail Concession Update
Friday, October 17, 2014
The latest complaint filed in Guam Superior Court by DFS Guam L.P. relating to the specialty retail concession contract rehashes old accusations that the A.B. Won Pat International Airport Authority, Guam (“GIAA”) has already refuted in numerous court filings and public statements.
Earlier in the month, the Guam Superior Court entered final judgment in favor of GIAA, dismissing the first lawsuit brought by DFS in this same matter. Yesterday’s court filing by DFS comes in the wake of dismissal of DFS’s protest by Guam’s Office of Public Accountability on September 30, 2014.
Since DFS’s first attempt to stop Lotte from taking over the GIAA duty free concession failed in July 2013, Lotte has renovated and opened the Airport concession space and made over $20 million in capital improvements at the Airport pursuant to its contract with GIAA. Such improvements include much needed renovations to Airport bathrooms and the food court. Under the GIAA/Lotte contract, Lotte also pays GIAA $15.4 million in annual minimum guaranteed rent which is more than three times greater than the minimum guaranteed rent paid by the predecessor concessionaire, DFS. Based in large part upon the Lotte concession contract, GIAA was also able to obtain over $200 million bond financing in September, 2013.
Ada went on to say, “GIAA is committed to making the A.B. Won Pat International Airport a world class facility that will help fuel economic growth for all of Guam. The new concessions contract with Lotte that was awarded through an open, competitive process has led directly to a significant series of improvements at the Airport and allowed GIAA to move forward with $110 million in capital projects, financed in part by revenues guaranteed under the new contract.”
Quicklinks
-
-
-
To assist you in planning your departure or arrival at the A. B. WonPat International Airport, Guam, some general information is readily available...
Learn More