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HomeMy WebLinkAbout2015-01-07 Meeting Minutes New Hanover County Airport Authority January 7, 2015 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY REGULAR PUBLIC MEETING January 7, 2015 CALL TO ORDER The New Hanover County Airport Authority met on Wednesday, January 7, 2015, at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Chairman Perritt called the meeting to order at 5:05 p.m. Airport Authority members present were; John Perritt, Chairman; Jonathan Crane, Vice- Chairman; Tom Barber, Secretary; Donna Girardot, Dan Hickman, and Carter Lambeth. Also present were Julie Wilsey, Airport Director; Jim Morton, Finance Director; Gary Broughton, Operations Director; Whitney Prease, Facilities Director; Rose Davis, Executive Assistant; Wanda Copley, New Hanover County Attorney; and Steve Bright and Amy McLane, Talbert & Bright, Inc. Thomas Wolfe was absent from this meeting. Guests present included Joseph Pickering, Mead & Hunt; Aldo Baldessari, AviatMall; James Bodnar, American Airlines/US Airways; Tom Goodwin and Chief Gary Taylor. APPROVAL OF MINUTES The Authority has reviewed the minutes of the Regular Public Meeting on December 3, 2014. Mr. Lambeth MOVED, SECONDED by Dr. Crane, to approve the minutes of the December 3, 2014 Regular Public Meeting as submitted. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. PUBLIC COMMENTS Chairman Perritt recognized our visitors and introduced James Bodnar from American Airlines/US Airways. SPECIAL EVENTS None. AIR SERVICE DEVELOPMENT PRESENTATION Chairman Perritt turned over the floor to Joseph Pickering of Mead & Hunt who gave the Authority an air service update. d: American has 68% market share and Delta has 32% at ILM; Delta and American serve LGA via non-stop, although Delta has pulled down their flight for seasonal service from October-June; ILM has global connections and 214 unique destinations through existing schedule; except for MYR; am continues to focus on adding more non-stop destinations to our top O&D markets. We also have a SCASDP grant for ORD, DFW or New Hanover County Airport Authority January 7, 2015 Page 2 a westward destination; ILM established good relationships in 2014, but air service development takes time and persistence; For 2015, ILM has two conferences scheduled for face-to-face meetings with airlines. We will continue to strengthen our community partnerships and marketing programs. FINANCE REPORT November 2014 financials, cash report and summary of accounts. Mr. Morton reported that the County Commissioners approved the extension of the lease with the Airport Authority for an additional 30 years from June 2019 to June 2049. This extension will allow the Authority to enter into long term leases going forward. Mr. Morton recommended approval to purchase 2124 Old Wrightsboro Road (Pennington) property (.66 acres) for $70,000 contingent upon due diligence (PFC Funded). After some discussion, Mr. Lambeth MOVED, SECONDED by Mr. Barber to approve this purchase. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Morton recommended approval of a one year lease with Jet Star for $646.00 per month for building C-41. Area composed of 1,250 SF ($5.00 SF) of garage bay area and 168 SF ($9.00 SF) of office space. Mr. Lambeth MOVED, SECONDED by Mr. Barber to approve the lease. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Morton recommended that the Authority grant Chairman Perritt authority to approve the pending lease for Mountain Air Cargo so as not to delay the scheduled demolition of their current location. Mr. Lambeth MOVED, SECONDED by Mr. Hickman to grant Chairman Perritt the authority to approve the Mountain Air Cargo lease. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Morton recommended that the Authority revisit the purchase of 2916 Acorn Branch Road and reminded the Authority that this is .45 of an acre that staff was previously authorized by the Authority to negotiate the purchase of for $12,000. That offer was rejected by the seller. The recent appraisal on the Pennington property, which is in the same neighborhood, put a value on the land around $60,000 per acre, giving this property a value of about $26,000. Mr. Morton recommended approval to negotiate the purchase of 2916 Acorn Branch Road not to exceed $15,000. Mr. Lambeth MOVED, SECONDED by Mr. Barber to negotiate the purchase of the property at 2916 Acorn Branch Road as recommended. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Morton reported to the Authority that he had received a letter of intent from a potential tenant for a portion of the old AAI facility. Mr. Morton stated that the company is Battle House laser tag entertainment group which caters to law enforcement training, general entertainment and corporate team building. Battle House is proposing a 3 year lease with 2 additional 3 year terms starting the first year at $56,430 ($5.50 SF), the next year would increase 18% or $1 SF to $66,000 and the third year increase 15% to $76,000+. Battle House is looking for $10,000 towards lighting and electrical improvements and ILM has to check the HVAC to be sure it is New Hanover County Airport Authority January 7, 2015 Page 3 working. This will also require ILM to seek a special use permit since this is entertainment and is not covered. set any precedence on the rental rate for other buildings or the flex building due to the age of this building and its condition. Mr. Morton added that the potential tenant also wants the first right of refusal on the remaining 10,000 SF of the building in the hopes that the business will grow. There was some discussion about building upfit and parking. Chairman Perritt and Mr. Morton gave new Authority members some background on the condition and history of the building. Mr. Lambeth MOVED, SECONDED by Mr. Barber to move forward with negotiation of the lease based on the letter of intent and subject to obtaining the special use permit. The MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Morton reported for information purposes at this time an additional letter of intent on the former Conway Freight facility from an auto dealership looking for a 5 year lease with the first year being $48,000 and they are still working through details first before bringing to the Authority for approval. Mr. Morton stated that both potential tenants have come through Jeremy Phillips of Environments Unlimited. FACILITIES Mr. Prease recommended approval of a contract with 4 Seasons Site & Demo, Inc. in the amount of $65,000 for demolition of seven buildings located in the North GA Ramp Rehabilitation Area. CFC funding will pay $29,600 and $30,380 will be paid by ILM Capital funding. Mr. Barber MOVED, SECONDED by Mr. Lambeth to approve the demolition of the proposed buildings. Discussion followed regarding environmental testing of the buildings, condition and ownership of the former Aero Services building, the current use of the ramp in the area of the demolition, and security and fencing concerns. Hangar, Mrs. Wilsey responded that st Air Wilmington has a lease for the hangar through the end of FY 2015 so as of July 1 it will be unde. In order to get the project done with AIP funds, that hangar will have to come down as well. After a brief discussion, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Mr. Prease provided updates on the status of the Observation Area and the AviatMall roof. Mr. Prease reported that he, Amy McLane and Steve Bright would be visiting the Memphis Airport Division Office January 22-23, 2015 to discuss FY15 and FY16 funding and provide an update on the ILM Airport Layout Plan and the North GA Ramp. GOVERNMENT Mrs. Girardot updated the Authority on the recent changes to the County Commissioners with the loss of Mr. Wolfe and the addition of Mr. Watkins and Mr. Zapple. Mrs. Girardot reported on a recent conference call with Mrs. Wilsey and Tracy Montross of New Hanover County Airport Authority January 7, 2015 Page 4 sales tax exemption on jet fuel. Mrs. Girardot reported on her attendance at a recent MPO meeting where the topics included the 2014 draft Roadway Project ranking and funding, bus service to the airport, and the ranking of aviation projects. Mrs. Girardot pointed out the project approval process is a year long process, the MPO. Mrs. Wilsey pointed out this is for the 2040 Transportation Plan and staff has educated a lot of people on the demographics of our business and the people who use the facility, while bus service and mass transit to the airport is big on some pe, we think it is needed elsewhere before coming to the airport. MARKETING AND PUBLIC RELATIONS Mr. Morton advised that mobile boarding passes are now available with both airlines and it appears to have expedited the movement in the check-in and TSA lines. Mrs. Wilsey reported positive feedback regarding the website from the Air Service Development focus group, pointing out the trip cost calculator and its value. PLANNING & DEVELOPMENT Mr. Morton shared a presentation with the Authority regarding future investment opportunities with the Business Park and with hangar development and the possibility of being able to do both. Mr. Morton shared information regarding cost estimates and ROI and a discussion followed. Mr. Morton also shared with the Authority the breakdown of the fee structure proposed by Rees Architecture for the flex space building. Discussion followed. Staff was instructed to do additional research on the hangars and discuss hangar development with the existing FBOs and update the Authority at the next meeting. Mr. Hickman s proposal for approval now. Mr. Morton recommended the approval of $76,325 proposal from Rees Architecture for design services required for bidding, permitting and constructing proposed 10,000 SF flex space building. Mr. Barber MOVED, SECONDED by Mr. Hickman to approve the proposal from Rees Architecture. Upon vote, the MOTION WAS APPROVED. Dr. Crane opposed. Mr. Wolfe was absent. OPERATIONS REPORT Using charts for illustration, Mr. Broughton reported total passengers handled, seats available and customs traffic for December 2014. Mr. Broughton updated the Authority on the status of the letter of investigation from the TSA responded to this matter by meeting with the agency heads of the mutual aid partners who executed a letter of agreement which was sent to the TSA. Mr. Broughton stated that based on New Hanover County Airport Authority January 7, 2015 Page 5 immediate corrective actions, there is no legal action warranted by the TSA for this incident and the TSA was pleased with the quick action ILM took. Mr. Broughton shared details with the Authority on the Sunwing diversion which occurred on th December 14 and gave kudos to the ARFF Responders, Public Safety Office and Maintenance Technicians that handled this situation and especially to our Ops. Specialist, Kenny Smith, who stayed in the customs facility from 1:19 pm until the flight departed at 10:46 pm. Mr. Barber suggested Mr. Smith be given a letter of commendation. D Mrs. Wilsey shared information with the Authority on AirportsForTheFuture.org which emphasizes how important the airport and aviation industry is to our region. Mrs. Wilsey advised that the NC Aviation Task Force will be meeting at ILM on January 30, 2015 and the NC Airports Association is also meeting in downtown Wilmington that morning. Mrs. Wilsey reported that the Aviation Task Force is working on possible investment for aviation across the state so that airports of all size can have a fund for developing aviation infrastructure and capabilities. They plan to present some information to the legislature at the th March 11 NCAA Legislative Day in Raleigh. Mrs. Wilsey asked for comments and input from the Authority on the draft nomination criteria and form for the ILM Aviation Wall of Fame s one of the criteria and Mrs. Wilsey proposed making th Mrs. Wilsey suggested May 30 as a possible target date to hold the induction since that was the date that this field was dedicated to Arthur Bluethenthal. UNFINISHED BUSINESS Mr. Prease thanked Talbert & Bright for making their presentation earlier today on the Terminal Capacity Study for new Authority members. NEW BUSINESS Chief Taylo th Aviation Day is October 10. Chairman Perritt asked for a couple of Authority members to work with the Staff team on the Aviation Day committee. Discussion followed about the potential need for an event coordinator and it was agreed to wait and see how the event grows in the future. CLOSED SESSION Chairman Perritt called for a closed session to consult with attorney regarding matter of potential litigation pursuant to G.S. 143-318.11(a)(3). Mr. Barber MOVED, SECONDED by Mr. Lambeth to go into closed session. All guests were asked to leave the board room at this time. Persons remaining for closed session were all Authority members, with the exception of Mr. Wolfe; Wanda Copley; Julie Wilsey; Gary Broughton and Jim Morton. The Authority went into closed session at 6:57 pm. New Hanover County Airport Authority January 7, 2015 Page 6 Mr. Barber MOVED, SECONDED by Mr. Hickman to return to open session. The Authority returned to open session at 7:15 pm. Chairman Perritt called the meeting back into open session and stated that the Authority has concluded its consultation with the attorney and no action was taken. ADJOURNMENT There being no further business to come before the Board, Mr. Lambeth MOVED, SECONDED by Chairman Perritt to adjourn. Upon vote, the MOTION WAS APPROVED UNANIMOUSLY. Mr. Wolfe was absent. Chairman Perritt adjourned the meeting at 7:18 p.m. Prepared by: Respectfully Submitted: Rose M. Davis _______________________________ Thomas C. Barber, II, Secretary Date of Approval: February 4, 2015