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2015-04-29 Special Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, APRIL 29, 2015 PAGE 284 ASSEMBLY The New Hanover County Board of Commissioners met for a Special Meeting with the New Hanover County Airport Authority on Wednesday, April 29, 2015, at 8:00 a.m. in the Conference Room of the Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Members present: Chairman Jonathan Barfield, Jr.; Vice-Chairman Beth Dawson; Commissioner Skip Watkins; Commissioner Woody White; and Commissioner Rob Zapple. Staff present: County Manager Chris Coudriet and Clerk to the Board Teresa P. Elmore. New Hanover County Airport Authority members present: Chairman John O. Perritt, III; Thomas C. Barber, II; Jonathan S. Crane; Donna Girardot; Dan Hickman, Carter T. Lambeth; and Tom Wolfe. Wilmington International Airport staff present: Julie Wilsey, AAE Airport Director, Gary Broughton, CM Operations Director, Jim Morton, CM Finance Director, Whitney Prease, CM Facilities Director; and Rose Davis Executive Assistant. Chairman Barfield and Chairman Perritt called their respective Boards to order for the Special Meeting reporting that the purpose of the meeting was to hear the Annual Report of the Wilmington International Airport (ILM). Airport Director Julie Wilsey presented the following update: Airport Authority Changes in 2014:  August 2014 the Authority changed from a five member board to seven members with the following new members: Donna Girardot, Dan Hickman, and Tom Wolfe:  Greater Public Participation  Diversity in Representation  Additional Business Expertise and Community Knowledge Operations Director Gary Broughton provided an update on the Airport operations:  Record Ice Event in January February 2014:  136 airline flights canceled  Lost 1,273 seats  Lost 1,203 General Aviation Operations  Total passengers down 3.3% at end of year:  Seasonal reductions in LGA, ATL and DCA service  Revenue versus load factor  General Aviation down 13%  Military operations up 19.9%:  Off Shore Maneuvers  Air Wilmington has fuel contract with the military  Cargo up 2%  4AA – ILM Revenue Available Seat Mile (RASM) Performance:  ILM’s Charlotte RASM and load factor were slightly below American’s average at Charlotte (84% system load factor and unit revenue at 31.6 cents)  ILM’s New York (LGA) RASM was significantly above American’s average at LGA, while load factor was slightly below the system average (78% system load factor and unit revenue at 26.9 cents)  Operations Challenges:  Four major airlines: American, Delta, United and Southwest  Retain existing and add new air service  ILM has American and Delta  Phase out of 50 seat aircraft  Pilot Shortage due to:  Less time and disposable income  Major investment/low income return  Customs Overflight Rules  Provide greater focus on General Aviation  North Carolina’s 10 commercial air transportation airports serve residents throughout the State:  Asheville  Charlotte  Concord  Fayetteville  Greensboro  Greenville  Jacksonville  New Bern  Raleigh/Durham  Wilmington NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, APRIL 29, 2015 PAGE 285  Publicly owned/operated airports in North Carolina = 62 General Aviation and 10 Commercial  Second Annual Aviation Day scheduled for October 10, 2015:  25 vendor participants in 2014  13 fly-ins/pancake breakfast in 2014  160 runners/Jones Racing Company in 2014  Double participation in 2015  Featuring: Stationary Aircraft Displays, Coastal Classic Car Show, Local Cuisine Food Trucks, Remote Control Airplanes and more Facilities Director Whitney Prease provided an update on the Airport facilities:  Facilities:  RWY 17-35 Rehab of Pavement - $6 million:  Received best airfield pavement project in US  RWY 17 Obstruction Clearing - $1.2 million adjacent to Blue Clay Road and Kerr Avenue  RWY 6-24 Ditch & Drainage Project - $4.6 million:  In progress through October 2015  Future General Aviation Projects = $9 million (estimated):  North General Aviation Apron Pavement Rehabilitation and Storm Water Improvements: 1. Apron Rehabilitation 2. Proposed Storm Pipe (Drainage System A) 3. Proposed Storm Pipe (Drainage System B) 4. Apron Expansion 5. Fill Existing Ditch/Temporary Facilities  Future Terminal Expansion $40-87 million (estimated) willenable ILM to meet customers’ needs for the next 20 years:  Proposed ILM Expansion of Apron, Terminal and Parking includes:  Larger TSA Screening Area  Ten Aircraft Gates  More Retail and Amenities  Baggage Handling  2 Parking Decks ($20 million)  Proposed ILM Terminal Expansion 2018-2033  Observation Area Upgrades:  New and improved observation area to connect community to general aviation and Airport.  Live ATC feed to hear pilots and controllers in action  More improvements to come in the next few months Finance Director Jim Morton presented an update on financial matters of the Airport:  Revenues up to $13 million reinvested back into Airport  ILM FY14 Capital Contributions:  Runway 17 Rehabilitation  New LED Taxiway Lighting  Runway 17 Land Easements  Runway 24 Ditch Piping  Land Purchase  New Rental Car Facility  New Business Park Road/Infrastructure  New Equipment  New Marketing Initiatives:  Redesign flyILM.com website (Traffic up 34%, Unique Visitors up 48%)  Launch “It’s Not Just a Long Drive” campaign  Develop relationship with local AAA (vacation packages)  Launched new Digital Marketing strategies:  Stronger Social Presence (15,000 likes on Facebook)  Improved customer recovery response time  Digital Re-Targeting Campaign  Pre-Roll Video Campaign  Mobile Boarding Pass Technology  Customer Appreciation Promotions:  Cake Pop Giveaway for Valentine’s Day  Mother’s Day Flower Giveaway  Military “Relax Packs” Giveaway  Partnered in hosting the Southeastern Bonanza Fly-In  First annual Aviation Day and 5k on the Runway  Partnered with NCDOT DOA for Sun N Fun (National Fly-In/Airshow)  ILM Business Park Layout:  Infrastructure Analysis  Sanitary Sewer: Upgrade NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, APRIL 29, 2015 PAGE 286  Water: New and Relocated  Storm Water: Built and expanded retention basin  Developed new road for accessing parcels  Traffic Impact Analysis  Hotel Feasibility Study  New Flex Space Building:  Currently in design phase  10,000 square feet  Designed for tenant flexibility  7 Bays, 1,450 square feet each  Targeting office, retail, and restaurant tenants  Marketing Strategies for the Aviation Service District Parcels:  Collaborate with Economic Development partners  List the property with a Commercial Real Estate Firm  Update property information on NC Commerce website  List the property on Loopnet.com and Showcase.com  Schedule promotional event to be attended by NC Commerce officials and site consultants  Foreign Trade Zone Application (FTZ)  Attend Aerospace Conference and visit Aerospace Industry  Economic Development Partners:  Wilmington Business Development  NC Southeastern Regional Economic Development Partnership  New Hanover County:  Update A-I Airport Industrial Zoning regulations to include permitted uses such as aircraft manufacturing and general manufacturing for development of airport property Airport Director Wilsey concluded with the importance of aviation to the economy:  Aviation is important to a strong economy  Referenced in Garner Report as a major resource and economic driver  The State of North Carolina determined that the 72 airports contributed $25.9 billion throughout the State from commercial and general aviation activities  108,000 jobs in the State  In 2008 ILM conducted a study:  Provided $641 million locally and 4,500 jobs  New activity from the VA clinic which opened in 2013 = 210 jobs  The County collects taxes on the based aircraft  Aviation services at ILM are important to businesses such as LOB, PPD, and many other small businesses  Military and tourism benefit from services  NC will provide an update on the Economic Impact Study with new data  ILM’s One-Stop Connections 388 World-wide Destinations:  American and Delta provide one stop service to the world through their network  Connections through four International Gateways:  CLT and ATL are significant hubs for the carriers - important for business and leisure travel  Compliments about ILM’s convenience, outstanding service and southern hospitality  15 miles of highway gets one to the next county while one mile provides access to the world  Current Air Service:  Two airlines to five hubs and four international gateways  1,300 seats per day  American Airlines provides majority of service:  3 LGA flights/day starting June 2015  DCA flight June-September (Saturday only)  Additional flights to hubs for peak summer season  Still working on ORD or DFW  Small Community Grant from USDOT for more than $1 million to start ORD or DFW service:  Four year grant with 2 ½ years to go  Continue to remind American and United about the incentive - challenging endeavor  On the Horizon for 2015:  Maintain self-sufficient budget with low operating costs  Preserve current air service  Redevelop North Ramp to increase general aviation activity (part of master plan)  Recruit air service to Chicago or Dallas for Small Community Air Service Development Grant (SCASD)  Obtain free trade zone status  Flexible building in business park  Financial plan for terminal expansion NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33 SPECIAL MEETING, APRIL 29, 2015 PAGE 287 ADDITIONAL ITEMS OF DISCUSSION  Prices of fuel from the fixed based operators are decreasing and making the prices more reasonable  Two corporate hangars are needed (one corporate fleet)  The old Piedmont hanger needs to be removed/torn down because of its deteriorating conditions and it is not located in a good location  Discussion on the need and demand to have a flight school/pilot training program through Cape Fear Community College:  No planes available for training at this time  Costly for pilots to obtain 1,500 flying hours for certification  Discussion of flight to Boston (analysis shows a need in the top ten)  Top requests for Chicago and Dallas  Proposed use for the old general aviation building:  Special use request for aircraft manufacturing  Corporate campus, training  Announcement of bio-technical conference coming to ILM and to be held at Union Station ADJOURNMENT Hearing no further discussion, Chairman Barfield expressed appreciation to the Airport Authority members for their commitment to the Airport and thanked Staff for the update. Chairman Perritt expressed appreciation for the Commissioners attending the meeting and their support of the Airport. The meeting adjourned at 9:15 a.m. Respectfully submitted, Teresa P. Elmore Clerk to the Board Please note that the above minutes are not a verbatim record of the Special Meeting of the New Hanover County Board of Commissioners.