Parish
Council Member McCracken Responds
RECEIVED Tue., Nov. 18, 2003
Mike Clark-Madison writes that the City Council's effort to protect local businesses and local identity at the city-owned airport is "merely symbolic" and "smacks of downright dishonesty" ["Austin@Large," Nov. 14].
Local businesses know this policy isn't symbolic. They are beating down our doors for the opportunity to do business at the airport. There is a simple reason why: Local companies are making good money inside the airport, even when they simply license their name and products.
Airport concession leases in Austin are held by a mixture of local owners and national operators. The national operators pay a license fee to and share profits with the businesses whose products they sell and names they use. The question, then, is who gets those license dollars and exposure – national chains or local businesses?
Without a local business policy, the airport's national operators will choose national chains. Why? Because opening a national chain like McDonald's is guaranteed money, while running a local business like Waterloo (which the national operator has probably never heard of in its corporate board rooms) is a gamble.
Austinites also hold numerous concession leases. One of these leases is the site of the proposed Starbucks.
Under the proposal before council, the Austin residents who hold the current lease will sell this lease to Houston concession broker Charles Bush. Bush's company would not operate the Starbucks – Starbucks would operate the site and pay Bush a cut. One hundred percent of the money under this arrangement would flow out of Austin to the national operator in Houston and the national chain from Seattle. That would be a significant departure from existing airport policy.
In the last week, a canard has emerged that the local-only policy hurts minority-owned businesses. Austin's airport currently has approximately 40% minority business participation in the concession leases, a significant achievement that exceeds even the airport's ambitious goals. The current policy, therefore, works. It promotes opportunity not only for local businesses, but for minority-owned businesses as well.
Concessions at Austin Bergstrom Airport are valuable and profitable. Without the local policy, local businesses would never have a chance to get in the airport. The City Council's oft-repeated policy of going local ensures that when lucrative license rights are awarded, these lucrative license rights go to local businesses rather than wealthy national chains. That isn't dishonest or symbolic. It's what makes Austin different (and better) than other cities.
Local businesses know this policy isn't symbolic. They are beating down our doors for the opportunity to do business at the airport. There is a simple reason why: Local companies are making good money inside the airport, even when they simply license their name and products.
Airport concession leases in Austin are held by a mixture of local owners and national operators. The national operators pay a license fee to and share profits with the businesses whose products they sell and names they use. The question, then, is who gets those license dollars and exposure – national chains or local businesses?
Without a local business policy, the airport's national operators will choose national chains. Why? Because opening a national chain like McDonald's is guaranteed money, while running a local business like Waterloo (which the national operator has probably never heard of in its corporate board rooms) is a gamble.
Austinites also hold numerous concession leases. One of these leases is the site of the proposed Starbucks.
Under the proposal before council, the Austin residents who hold the current lease will sell this lease to Houston concession broker Charles Bush. Bush's company would not operate the Starbucks – Starbucks would operate the site and pay Bush a cut. One hundred percent of the money under this arrangement would flow out of Austin to the national operator in Houston and the national chain from Seattle. That would be a significant departure from existing airport policy.
In the last week, a canard has emerged that the local-only policy hurts minority-owned businesses. Austin's airport currently has approximately 40% minority business participation in the concession leases, a significant achievement that exceeds even the airport's ambitious goals. The current policy, therefore, works. It promotes opportunity not only for local businesses, but for minority-owned businesses as well.
Concessions at Austin Bergstrom Airport are valuable and profitable. Without the local policy, local businesses would never have a chance to get in the airport. The City Council's oft-repeated policy of going local ensures that when lucrative license rights are awarded, these lucrative license rights go to local businesses rather than wealthy national chains. That isn't dishonest or symbolic. It's what makes Austin different (and better) than other cities.
Brewster McCracken
Austin City Council Member
Austin City Council Member
