Airport remodeling

Remodeling of retail spaces at

Reno/Tahoe International Airport takes

another step forward this week, and airport

officials say a vibrant retail scene at

the terminal is important to the facility's

financial health.

Work begins this week on remodeling of

the Paradies retail stores on the lower level

of the airport's central lobby.

The stores will receive new exterior and

interior looks that attempt to capture the

feel of the Reno and Lake Tahoe areas with

natural stone and wood facades.

A new store, Explore Reno/Tahoe, will sell

merchandise branded with many of the

region's most popular special events.

During this work, which is scheduled for

completion in November, stores on the

south side of the lobby and the Travelers

Gifts store in the B concourse will be closed.

Stores on the north side of the lobby as well

as Ethel M will remain open, said airport

spokesman Adam Mayberry.

The north-side stores along with

Travelers Gifts in the C Concourse will

close for construction in January. That work

is scheduled for completion next March.

The retail remodeling comes after recent

completion of renovation of the airport's

food court.

Compass Group USA Inc., which operates

the food court and the food concessions

on both concourses of the airport under the

trade name of Select Service Partner, invested

$3.5 million in the remodeling.

Paradies, the retail concessionaire, holds a

lease to operate the stores until 2011.

The airport's stake in its retail sectors is

significant.

Joan Dees, director of finance and

administration at Reno/Tahoe

International, said last week that concessions

account for 60 percent of the

total revenue at the airport.

Car rentals and the parking account for

the lion's share of the airport's non-airline

revenue. Even so, the airport's share of retail

and food-and-beverage business contributes

about $2 million a year to its operation.

That's important, Dees said, because it

means the airport which is financially

self-sufficient can keep a handle on the

fees it charges airlines for airport services.

And lower fees to the airlines, she

said, encourage carriers to continue

serving Reno.

The effects of the dramatic slowdown

in travel following the Sept. 11 attacks

were seen in those revenue streams.

The airport's revenue from car-rental

concessions, Dees said, have been running

about 30 percent under budgeted levels.

Parking revenues have been running at

least 15 percent behind budget.

Contracts for food, gaming and

retail concessions, however, require

minimum annual payments to the airport,

a stipulation that limited the

effects of a slowdown in sales.

While the retail remodeling project is

under way, new carpet will be installed

throughout the terminal.

Mayberry said, too, the ski sculpture now

located at the terminal doors will be moved

to the center of the main terminal building.