The Tucson City Council got its first chance to publicly weigh in on a controversial incentive guarantee provided to American Airlines for its direct flights between New York and Tucson.
The questions came during a presentation this week from Tucson Airport Authority officials about future plans for the airport.
As part of a two-year deal that brought the flights to Tucson International Airport last year, a $3 million revenue guarantee was created that the airline could dip into when performance was lackluster.
American came in around $1.3 million under guaranteed revenue levels through the end of December and those that had pledged funds, which included the city, Pima County and private backers, were asked to deposit half their pledged money into a fund controlled by the Tucson Metro Chamber, which brokered the deal with the airlines.
While the city did not cut a check to American Airlines, Councilman Steve Kozachik said he wanted an independent analysis to make sure that if city funds were used, it would not violate the gift clause of the state constitution.
However, the city did play a role in having Visit Tucson cover the $75,000 commitment, which had been discussed by city and airport officials.
More than a year ago, City Manager Mike Ortega agreed in principle to the city contributing to the revenue guarantee in a meeting with Bill Assenmacher, who is on the Tucson Airport Authority Board of Directors and helped coordinate the deal between the airlines and the chamber.
The handshake deal was largely forgotten until Assenmacher began calling groups that had committed to the flights and asking them for their money.
How the two governments handled their respective arrangements diverged.
The Pima County Board of Supervisors voted 4-1 last month to release the $100,000 county administration had pledged .
Ortega approached Visit Tucson, which the city subcontracts with for promoting tourism, to cover half of the cityβs pledged $75,000. Shortly afterwards, Visit Tucson cut a check for $37,500 for the fund.
