With Pappas set to lose its place in Hobby Airport, CEO questions 'flawed' contract process
Pappas questioned how Areas could have beaten 4 Families' proposal, and he suggested the company used outsized revenue projections to entice the city, which gets a cut of the money. He said the projections moved from $330 million in the first round of bidding to $470 million in the most recent one.
“We firmly believe our 50 years of success have prepared us well to establish our Hobby operations, engage passengers and be a productive city partner. Indeed, we are as confident in our ability to succeed at Hobby as we are in our judgment regarding projected sales."Mayoral aide was offered more than $10K to help bar pass inspection, fast-track permit, records show
It is not publicly known how the companies scored in previous rounds, or whether Areas leapfrogged Pappas to win the deal.Jedediah Greenfield, the city's chief procurement officer, said it is the department's policy not to comment publicly on rankings until after a deal has been approved. Greenfield said last year's request was canceled"to attract more bidders and to seek better pricing for the city of Houston.
Martin and Turner separately suggested Tuesday that the decision appeared to come down to revenue. Turner told Pappas "it's not going to help in a competitive process" if Pappas lists a contribution rate to the city in its proposal that is less than what it currently gives. Those figures were not publicly available Tuesday.Martin said the administration circulated an email to council members recapping the process it followed.
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