A recommended developer was approved Thursday by the Los Angeles World Airport Board of Airport Commissioners to design, build, finance, operate and maintain the Consolidated Rent-A-Car Facility at LAX.

The first agreement between L.A. Gateway Partners and LAWA moves the company toward full contract approval by BOAC and the Los Angeles City Council.

The ConRAC is part of the $5.5 billion Landside Access Modernization Program that aims to bring together more than 20 car rental offices into a central location and feature a 2.25-mile Automated People Mover to eliminate the need for rental car courtesy vehicles to enter the central terminal area and reduce the number of autos driving in and out of the airport by an estimated 3,200 each day.

LAGP’s proposal had the lowest price score and second-highest technical score of the four teams that participated in the procurement process, the BOAC said.

LAWA said it will present a 28-year contract to the BOAC and City Council for approval in the coming months.

“This was a very competitive process that brought out strong proposals from all four teams who bid for the project,” said Sean Burton, president of the BOAC. “The ConRAC is an important piece of infrastructure that will not only serve our visitors who use rental cars but will benefit everyone by helping us deliver on our crucial goal of significantly reducing traffic on roadways in and around LAX.”

The BOAC approved an Early Works Agreement with LAGP, not to exceed $5 million, which will allow pre-construction activities, and the BOAC said the contract approval is important to maintain the schedule to complete the project in 2023.

The ConRAC will consolidate rental car locations in and around the airport into one facility located adjacent to the 405 Freeway. The approximately 5.3-million-square-foot facility will be built in an area bordered by Aviation Boulevard on the west, Arbor Vitae Street to the north, La Cienega Boulevard on the east and the new 98th Street extension to the south.

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