
Reno-Tahoe International Airport Ground Transportation Center including a Consolidated Rental Car Facility
Conrac Solutions and Meridiam
In partnership with the rental car industry (RACs) and the Reno-Tahoe Airport Authority (RTAA), Conrac Solutions and Meridiam reached Financial Close to develop, finance, and operate a Ground Transportation Center (GTC) and Consolidated Rental Car Facility (ConRAC) at the Reno-Tahoe International Airport in May 2024. Construction of the four-floor facility will take place through a multi-year effort that is aligned with ensuring minimal disruption to existing Airport operations. Located on the facility's first floor, the GTC is scheduled for opening in 2027, and the ConRAC is slated to open to the public in 2028. The $299 million project is privately financed by Meridiam and is part of the Airport's broader MoreRNO multi-year infrastructure program. The 440,220 sq ft facility includes 24 fueling stations, six car washes, and 300 staging/storage spaces. It will initially house up to 10 rental car brands and all ground transportation providers serving RTAA customers. Innovation in procurement, structure, finance and/or delivery: The RTAA and rental car industry elected to use the Tenant Development Approach (TDA) to bring the project to fruition. Existing RAC concessionaires uniquely drive this project delivery method for on-airport ConRACs and airport landside development. This delivery method allowed rental car industry concessionaires who operate out of the future facility to run their delivery team selection process for this highly specialized infrastructure. After completing the project's initial feasibility and planning by entering an option to ground lease a site, the rental car industry partnered with Conrac Solutions and Meridiam to assume development risk and responsibility for the long-term financial and operational performance of the Airport's asset. Conrac Solutions and Meridiam formed a Project Company (or Special Purpose Vehicle) to contract with the RTAA to deliver the project via a 30-year ground lease at no cost to local taxpayers. TDA’s flexible approach allows it to incorporate all or some elements of a typical Design, Build, Finance, Operate, and Maintain (DBFOM) while using a collaborative process resulting in a facility that meets the needs of the Airport, RACs, and all other stakeholders. Notably, this method does not alter or interfere with the Airport's relationships with its concessionaires and includes the following benefits: Risk Shift o Project Company absorbs volumetric risk on project revenue o Project Company is responsible for 100% of major maintenance/repair and replacement Stability o No Customer Facility Charge (CFC) shortfall obligation (contingent rent) for RACs o Fixed CFC schedule o Lower borrowing costs due to less overall debt and delayed draw interest Control o Airport retains control and approval of key project characteristics through a long-term ground lease and project development agreement o RACs retain rights under subleases and participate in determining facility requirements. Efficiency and Expertise o Single approach to development, finance, and operations o Majority of debt remains off the Airport's balance sheet, providing additional bonding capacity for other Airport priorities o The Airport is relieved of maintaining and operating the facility and is handed back a functional asset at the end of the lease term Effective risk assessment and transfer and meeting financial close milestones: Using TDA's Project Finance method, the project was financed using private debt and equity, with equity provided by Meridiam and repaid by the CFC applied to rental car transactions, collected by the RACs and transmitted to a trustee. An initial CFC rate of $9.80 was implemented at Financial Close with fixed adjustment amounts and a cap to provide pre-determined CFC levels. The Project Company assumes the majority of development risk and takes responsibility for the project's long-term financial performance. This arrangement also provides stability through a 30-year ground lease with the RTAA, governing the use, major maintenance, operations, and ground rent, after which the facility is provided back to the RTAA upon completion of the contract term. Further, the facility will be delivered with at-risk capital primarily supplied by equity investors, and at no cost to local taxpayers, freeing up additional Airport credit and funds for other uses such as airside modernization and growth. Project-related discussions began in 2018. While the timeline was extended to ensure comprehensive stakeholder alignment on the facility’s site and scope, Financial Close took place in May 2024, only 23 days from Commercial Close, to mitigate previous delays. Design quality, and sustainability and the promotion of environmental measures: The project promotes sustainability and environmental initiatives by increasing vehicle ready/return capacity and servicing for all on-Airport RAC brands. The new facility will contribute to reducing the Airport's carbon footprint by offering more rental car vehicles directly adjacent to the terminal. Unlike rental car facilities at some airports, which shuttle vehicles to and from offsite locations, customers will have walkable access to all on-Airport rental car brands via a covered walkway directly from the terminal. Further, the facility is being built to support future green infrastructure investment, including a potential transition to electric rental car fleets and a rooftop solar array. Operational building components are anticipated to include LED-efficient lighting and water reclamation systems, which will, in turn, contribute to a lower overall carbon footprint for the Airport. Visually, the facility is designed to extend the Airport's campus architecture through consistent “Modern Mountain” aesthetics that enhance the customer experience. Drawing inspiration from the Truckee River—a key geographic and cultural feature of Reno—the design team blended warm, natural, and rustic visuals with contemporary materials to reflect the region's character. A standout element is the garage's curved façade, which softens the structure's rigid backdrop and connects to a structured roof emulating the peaks and valleys of the surrounding landscape. Design considerations also include strategic window placement to optimize line-of-sight views and support intuitive wayfinding between the facility and terminal while incorporating views of the Reno skyline. Additionally, "Art in Architecture" elements have been integrated into the surrounding areas, creating a visually engaging experience for pedestrians and drivers. Demonstration of the project’s social impact and the transformative effect it will have on the local community and/or users: Airports are often visitors' first and last impressions of a region, and a GTC + ConRAC can play a critical role in facilitating positive impressions. Before and after flying, there are multiple ways for the traveling public to reach their destination. As such, an Airport's ground transportation infrastructure is key to the overall experience of the traveling public. The GTC + ConRAC will include rental cars and employee parking, with all ground transportation operators, including local hotel and casino shuttles, buses to Lake Tahoe, taxis, Uber, Lyft, Turo, and others located on the ground floor. There are multiple benefits of this new facility. Perhaps most important is improved customer service experience due to increased vehicle capacity, allowing rental cars to be consistently available to the growing Reno-Tahoe area. This consolidated facility also decreases the Airport's carbon footprint by keeping all ground transportation functions in a convenient, on-Airport location, with walkable access for customers via a covered walkway directly from baggage claim. Further, improved vehicle circulation will reduce the amount of vehicles on the Airport’s Loop Road, increasing driver safety and convenience.. Further, the facility will increase the Airport's public parking capacity because the project frees up space currently occupied by the RAC industry by giving back space in the Airport’s public parking garage and transforming space currently used for rental car cleaning, fueling, and maintenance into a surface lot. This additional parking capacity is anticipated to provide approximately 600 new parking spots for Airport customers. Lastly, local hire has been a key project priority. Conrac Solutions' locally based Design-Build Joint-Venture partner, Q&D Construction, along with 29 other local subcontractors, will provide a myriad of services, including concrete, drywall, surveying, fencing, HVAC, and plumbing.