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San Jose Airport Car Rental Facility Likely to be Approved

An extra $5 is expected to be tacked on to every car rental to aid in the cost of the facility.

by Staff
October 3, 2007
2 min to read


The San Jose, Calif. City Council is expected to vote to pay the master contractor for the city's massive airport expansion an extra $105 million to create a 3,000-space rental-car facility, enabling travelers to stroll across the airport roadway and rent a car from a new, seven-story garage, the Mercury News reports.

That would replace the half-mile shuttle ride to the northern lot that currently serves car renters at Mineta San Jose International Airport. But the convenience will come at a cost. The council also is expected to approve tacking an extra $5 onto every car-rental contract, on top of possible rate increases rental-car companies may start charging to cover increased rents they pay to the airport.

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What's more, the new facility may take as many as 18 months longer to build than the rest of the airport - as late as early 2012.

Airport officials for months have included the extra $105.3 million in their $1.3 billion master plan for the upgrade, which is being designed and built by Hensel Phelps Construction.

City officials plan to fund the extra amount using "commercial paper," a form of short-term borrowing. The eight rental car companies that operate out of the airport have agreed to repay the debt by assessing customers a $10-per-rental fee, up from $5 currently, and by paying an extra $4.8 million in annual rents for at least 10 years.

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