HOUSTON – On Wednesday morning at Houston City Hall, there will be nearly 80 agenda items heard by city council members.
The City Council session is the second to last of Mayor Sylvester Turner’s tenure.
Once again this week, the item catching the eyes of KPRC 2 Investigates is the same as last week, “ORDINANCE amending Revenue Agreements with SSP AMERICA IAH ITRP, LLC; PARADIES LAGARDERE @ IAH 2021, LLC; LATRELLES GALLEY, LP; and AREAS HOU JV, L L C for Food and Beverage and Retail Concessions at George Bush Intercontinental Airport/Houston (IAH) and William P. Hobby Airport (HOU)”.
As KPRC 2 Investigates first highlighted, what is being proposed to council members is a vote focused on, “Revenue agreements to be amended to require City Council approval for terminations for convenience or cause. All other terms of the agreements would remain unchanged.”
In the past, the Director of the Houston Airport System and the Mayor of Houston could cancel a contract. The agenda item backup clearly states, “The four Revenue Agreements contain clauses granting the Director of the Houston Airport System (HAS) authorization to terminate the Agreements at any time for convenience with 30 days written notice.”
However, now Airport Director Mario Diaz wants Houston City Council to change this practice. As a result, it will be more difficult for a future Mayor to cancel city contracts by making it necessary for a vote on a contract cancellation to go to the city council for a vote.
Council Member At-Large 3 Michael Kubosh along with Council Member Robert Gallegos quickly tagged the item when it was presented a week ago, “I believe it is being pushed to protect those from whoever the next mayor maybe who may terminate the contract,” said Kubosh following his tag that delayed the vote a week.
Kubosh and others believe this specifically has to do with the “Hobby Food Fight” between areas and Pappas. The agenda item is perceived by many as being specifically designed to keep the highly lucrative and controversial food contract with Areas. The Miami-based company was in a massive fight last winter with Pappas for the concessions rights at Hobby Airport, “There are a lot of connections between the Mayor and many of the people in the Areas contract,” said Kubosh.
Council Member Mike Knox told KPRC 2 Investigates that the proposed move by Mayor Turner and Director Diaz is unlawful, “It’s illegal because the city charter – which is the constitution of the city says that city council members may not, they shall not engage in any administrative in any department, anywhere in the city,” said Knox.
Mayor-Elect John Whitmire told KPRC 2 Investigates, “They’re not fooling anybody,” regarding the actions by the Mayor and the Airport Director. Whitmire also described the act as, “wrong,” adding “much of the city’s business right now is awful timing,” said the next Mayor of Houston.
Whitmire made his position clear to Houstonians on the unprecedented agenda item including council members, “I think at this stage when you’re a lame duck you ought to acknowledge there is an election and you’re in transition and you ought to wait for the new administration I would hope council recognizes that,” said Whitmire.
Knox said he feels Mayor Turner is abusing his public office and hopes others -- including the federal investigators -- are taking notice of tomorrow’s vote, adding the case is hard to miss, “I can’t see how they already aren’t alerted, it’s been all over your news program,” said Knox.
The agenda item was tagged during City Council on Wednesday, which means it will potentially go to a vote next Wednesday.
Chris Pappas issued the following statement to KPRC 2 Investigates following Wednesday’s developments at City Hall:
“Due to our pending litigation, we continue to be concerned about the proposed changes to hand-picked concessions contracts. Additionally, the ordinance and amendment are unlawful and violate the City Code and Charter – that is not good governance. The terminal E contracts that Pappas signed in 2019 have a termination for convenience clauses. Further, every airport concession throughout Texas that Pappas is involved in has a termination for convenience clauses in favor of the Landlord.”