Apparently, the Transportation Security Administration (TSA) is operating under a different set of fiscal rules than the FAA. The FAA objected when the management of Gerald R. Ford International Airport, in Grand Rapids, Mich., doubled their rent after a 10-year lease expired back in September 2002. The airport wanted the FAA to pay $50 per square foot for its 3,000 square feet of prime terminal space, which the airport said was the going rate. After two years of stalemate, the FAA has agreed to pay $274,000 in back rent, after the airport threatened to sue, the Grand Rapids Press reported on Thursday. The FAA will vacate the premises … which now will be rented to the TSA, which had no problem with the rental rate. The FAA had used the space for employee breaks and training. So where do they go now? “We’ll squeeze” into the control tower, FAA spokesman Tony Molinaro told the Press.
Airport Versus FAA
Key Takeaways:
- The FAA disputed a doubled rent increase ($50/sq ft) at Gerald R. Ford International Airport after its lease expired in 2002, leading to a two-year stalemate over the 3,000 square feet of terminal space.
- After the airport threatened legal action, the FAA agreed to pay $274,000 in back rent and will vacate the premises.
- The Transportation Security Administration (TSA) will take over the space, having no issues with the rental rate that the FAA found excessive.
- FAA employees, who used the space for breaks and training, will now relocate by "squeezing" into the control tower.
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