Denver International Airport has been facing continuous issues with concessions management, notably with Woody Creek Bakery & Café, which has been found to not completely abide by the financial terms of its contract. In the words of Denver Auditor Timothy M. O’Brien, the airport is failing "to hold concessionaire accountable for unallowable deductions, late payments, and by not itemizing utility charges," as per the Denver Auditor's Office. The lack of stringent contract enforcement has been a persistent thorn in the airport's side for years.
In a commendable attempt to introduce fiscal discipline, the airport has now mandated independent CPA certification of annual statements for concessionaires like Woody Creek. This move is aimed at clearly ascertaining annual revenues and thereby calculating rent. Still, the airport seems to have failed to fully implement recommendations for developing explicit criteria for allowable and unallowable deductions from reportable vendor revenue. "It is frustrating to see Denver International Airport is still not adequately overseeing contracts,” O’Brien said, as obtained by the Denver Auditor's Office, clearly indicating the gaps that persist in the process.
The audit highlights that Woody Creek Bakery & Café made $197,433.50 in unallowable deductions for the years 2023 and 2024. A new policy requiring staff to review deductions that exceed 2.5% of gross revenues did not trigger any review for Woody Creek's deductions, as they didn't hit the limit, leading to these unaddressed discrepancies. Auditor O’Brien sharply criticized this policy, saying, “A limited review policy still allowing a concessionaire like Woody Creek to claim unallowed deductions fails to correct the ongoing problem," as noted by the Denver Auditor's Office. He emphasized that this insufficient policy does not guarantee the airport the full rent it’s due.
Another point of contention is the timing and enforcement of rent payments. Recommendations to remind Woody Creek and/or the owner, Skyport Hospitality, about timeliness were apparently ignored. According to audit findings, there is approximately $900,000 in overdue payments across various airport concessionaires. The Finance Department plans to start charging interest and fees on late payments, but the implementation will not be ready until 2026. “Charging interests and fees on late payments incentivizes on-time payments and holds concessionaires like Woody Creek accountable for contract terms,” said O’Brien, as per the Denver Auditor's Office, pointing out a mechanism that could help in future enforcement.
