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MAC vote means Delta and a concession partner will overhaul Concourse G in return for lower rent.
A pre-flight drink at Surdyk's Flights at MSP.
The Metropolitan Airports Commission cleared the way Monday for Delta Air Lines and a concession partner to outfit a concourse at Minneapolis-St. Paul International Airport to allow travelers to have food and drink delivered directly to the gates.
The long-term deal trades lower rents in exchange for millions of dollars in improvements to Concourse G by Delta and its partner.
Some commissioners recently raised concern about the risks of the deal, citing a bankruptcy case involving Philadelphia businessman Eric Blatstein years before he owned the concession firm. A court in that case found Blatstein had fraudulently moved money to avoid paying creditors.
But the commission Monday approved the plan unanimously and without debate.
"I think it's a concept worth taking a chance on," said MAC chairman Dan Boivin after the decision, adding he expects it will bring more revenue to the airport.
Boivin said he was "very concerned" about Blatstein's earlier financial problems, but "he was up-front answering questions ... up-front about what happened, the mistakes he made."
The concept envisions gate areas similar to those run by Delta and its concession partner at New York's John F. Kennedy and LaGuardia airports. Existing seating will be replaced with tables holding iPads for ordering food and drinks and surfing the Internet. Additional power sources will be installed for people using laptops.
The Delta deal would pay the airport $3.7 million to $7.2 million less in rent over 10 years than alternatives.
But supporters say Delta and its concessionaire, OTG Management, have pledged improvements to the concourse that would more than make up for the losses.
Delta says it will reimburse the MAC $16 million for the improvements, more than it would typically. OTG has agreed to spend $25 million to retrofit the concourse for its concessions -- changes that could bring the airport more revenue.
But the deal also calls for Delta to hand over responsibility for the concession contract to MAC in 2016, prompting concern from some commissioners.
A MAC report said Blatstein, described as the principal owner of OTG, filed for Chapter 7 bankruptcy protection in 1996 after his nightclub business in Philadelphia foundered. The MAC report noted that the bankruptcy case took "much longer than the standard case."
Blatstein said his previous business failures are irrelevant to his operation of OTG, which he said "is very financially healthy and ... viewed in a very positive way."
The MAC report also listed several lawsuits involving OTG. The MAC's legal counsel, Thomas Anderson, told commissioners that any deal should protect the airport from a default.
Pat Doyle • 612-673-4504
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