2016-04-26 Special Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 26, 2016 PAGE 516
ASSEMBLY
The New Hanover County Board of Commissioners met for a Special Meeting with the New Hanover County
Airport Authority on Tuesday, April 26, 2016, at 8:00 a.m. in the Conference Room of the Wilmington International
Airport, 1740 Airport Boulevard, Wilmington, North Carolina.
Members present: Chairman Beth Dawson; Vice-Chairman Jonathan Barfield, Jr.; Commissioner Skip
Watkins; Commissioner Woody White; and Commissioner Rob Zapple.
Staff present: County Manager Chris Coudriet; County Attorney Wanda Copley; and Clerk to the Board
Teresa Elmore.
New Hanover County Airport Authority members present: Chairman Jonathan S. Crane; Thomas C. Barber
II; Donna Girardot; Dan Hickman; Carter T. Lambeth; John O. Perritt III; and Tom Wolfe.
Wilmington International Airport staff present: Julie Wilsey, Airport Director; Gary Broughton, Deputy
Director; Robert Campbell, Finance Director; Whitney Prease, Facilities Director; Carol LeTellier, Business
Development Director; and Rose Davis, Executive Assistant.
Chairman Dawson and Chairman Crane 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.
Airport Director Julie Wilsey and Deputy Director Gary Broughton presented the annual report highlighting
the following information on the operations, maintenance, development and existing projects of the airport:
Revenue Enplanements and Deplanements:
769,809 Passengers - 2.4% Increase
47,917 Operations - 3.8% Increase
100 Based Aircraft
ILM’s One-Stop Connections:
American and Delta provide one-stop service to the world through their network:
390 destinations within a single stop from ILM each day:
211 unique stops
2 airlines to 5 hubs and 4 international gateways
1,300 seats per day
American Airlines provides majority of service:
3 LaGuardia (LGA) flights starting in June 2016
Seasonal DCA flight returns on May 7, 2016 (Weekends only)
Additional seats to hubs of Atlanta (ATL), Philadelphia (PHL) and Charlotte (CLT)
CLT and ATL are significant hubs for our business and leisure travel
Service from ILM is convenient, hometown airport with southern hospitality
Financial Highlights for Fiscal Year Ended June 30, 2015:
Operating Revenue of $8,475,500 (4.5% increase over FY14):
83% of revenues generated within terminal building:
Parking Lot = 39%
Airlines = 25.5%
Terminal = 18.5%
General Aviation = 8.5%
Business Park = 5.8%
Other = 2.6%
Unqualified audit option on all reports:
Financial Statements
Internal Control over Financial Reporting and Compliance and Other Matters
Compliance on the Major Federal Program and the Passenger Facility Charge Program
Compliance on the Major State Program
Summary of Cash Inflows:
Federal Grants = $5,920,000 – funding for infrastructure (34.6%)
State Grants = $291,500 (1.7%)
Passenger Facility Charges = $1,547,200 (9%)
Contract Facility Charges = $884,800 (5.2%)
Summary of Cash Outflows:
Capital Assets = $9,223,600 (59.8%)
Operating Expenses = $6,194,600 (40.2%)
Excluding depreciation and amortization
Debt Summary:
International Terminal (PFC) $1,182,890
Loan agreement runs through 12/1/2020
Rental Car Facility (CFC) 4,270,000
Loan agreement runs through 6/1/2029
Total Debt as of June 30, 2015 $5,452,890
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 26, 2016 PAGE 517
Economic Impact to the State = $31 billion:
Statewide Employment in the Aircraft/Aerospace Industry = 123,000 jobs
Total ILM Economic Impact = $1.6 billion:
Employment Impact = 4,910 jobs
Payroll Impact = $83,440,000
Tax Impact = $11 Million per year:
Business Sales Tax = $6,292,000
Local Property Tax = $4,425,000
Property Tax on Based Aircraft = $616,100
2015 Facility Development Projects:
Airfield Pavements and Ramps = $13 million
Facility Renovations and Structural Improvements
Storm Water Infrastructure for Runway 24
New security fencing federal requirement from 6 foot to 8 foot fence
Closed Circuit Television (CCTV) System Upgrade – state of the art technology
2015 Items of Importance:
Airport staff of 49 employees including the leadership team of 5
Current Airline Service = American and Delta (two of four possible airlines):
Extensive domestic and international networks
Continue to work in getting a third airline and flights to Chicago and Dallas with Small
Community Air Service Development (SCASD) Grant
Air Service Retention:
Visited headquarters of American Airlines (largest airline) and Delta
Attended 3 conferences
Both airlines add flights for Summer Schedule:
Shows confidence in our market
Flights to Washington, DC will be Saturday only
Good performance would lead to more days
South Ramp General Aviation Tenants:
Three FBO failures on the South Ramp
Currently 25 tenants
Minimum Standards (County code) revised to ease restrictions for new business entrants
New Specialized Aviation Service Operator (SASO) to allow a competitive alternative
Bringing in new aircraft
North Ramp General Aviation Redevelopment:
Drainage improvements
Runway Improvements
Air Wilmington Hangar:
21,000 square-foot facility with door opening of 28 feet
Ability to accommodate 3 Gulfstream IVs:
Property tax revenues on $60 million jets
$3 million investment by Air Wilmington
Runway 24 Project of $5.8 million
ILM Business Park Investing in the Future:
Infrastructure in place to accommodate businesses
Favorable location
Suitable for business recruitment in-line with Garner Report
Business Park will offset cost of operation and remain profitable
New Tenants:
Battle House (electronic/laser tag game business)
SeaHawk Aviation (repair service)
Live Oak Bank (corporate office and hanger)
Business Recruitment Efforts:
10,000 square-foot flexible space
Restaurant
Aerospace
Office
Retail
Presented Economic Impact of Airports in North Carolina Report prepared by the NCDOT Division of
Aviation
ADDITIONAL ITEMS OF DISCUSSION
State Representative Rick Catlin continues to pursue Foreign Trade Zone certification for the area and
the County should receive certification soon through resubmission of application.
Airlines moving to using regional jets in order to be more economical. ILM able to accommodate the
larger jets of 90 seats in length that would provide service to more customers. Currently some smaller
jets have a 90% load factor.
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 26, 2016 PAGE 518
Airport continues to negotiate for better fares; however, ILM is competitive with surrounding markets
with network fares, i.e. Fayetteville, Jacksonville and close to fares in Raleigh. Low cost airlines cause
the lower fares of Myrtle Beach and RDU.
Low fare carrier service is needed at the airport, but Allegiant was unable to get enough business for the
Orlando flights. The ILM market is not large enough for Southwest or JetBlue.
Chicago or Dallas would qualify for a $1.2 million SCASD grant business
Customs’ facility continues to receive some international flights; however, the overflight exemption
allows pilots to land at most any airport for reentry, which has slowed business. Those that do land at
the airport appreciate the quick turnaround and quick refuel. It is anticipated that the PGA tournament
will bring in direct charters from Canada and other international locations from golfers around the world
attending the tournament.
The marketing program using the ILM logo has increased brand awareness in the community. ILM’s
Facebook receives a lot of hits and has received 20,000 likes. The social media for Earth Day received
good responses and the UNCW team leaving ILM for the NCAA Basketball Tournament received
632,000 views.
Brunswick and New Hanover Counties continue to use the closed runway at the airport for driving course
training. The departments provide some maintenance for the road course.
American Airlines flights to Washington, DC will start May 7, 2016 for Saturday and Sunday flights
and should last through the summer.
SeaHawk Aviation, a new aircraft repair business with 3 mechanics, is very successful.
The revisions to the County Code’s Minimum Standards for General Aviation will help ILM be easier
to do business with and more competitive with commercial businesses.
There continues to be a shortage of pilots and discussions continue with Cape Fear Community College
to get flight school classes approved by the state. Other aeronautical training courses being pursued with
the college are training for robotics, drones, mechanics, and seat fabrication.
It was pointed out that airports in surrounding counties are subsidized by County governments. ILM has
benefitted from selling bonds through the County and from the County’s great bond rating of AAA. The
airport is a great economic development tool for the area.
A press conference will be held immediately following the meeting with AT&T announcing that the
ILM Business Park would be the first international airport in the United States to be certified as “AT&T
Fiber Ready.”
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Airport Authority will give the Annual Report again at the Regular Board Meeting on May 16 in order
for the public to hear the report on NHCTV.
ADJOURNMENT
Hearing no further discussion, Chairman Dawson thanked the Airport Authority members and staff for the
great report and stated that the County considers ILM to be a great economic asset. She expressed appreciation to the
Authority members for their commitment and stewardship of the Airport. Chairman Crane expressed appreciation for
the Commissioners attending the meeting and their support of the Airport. Chairman Dawson and Chairman Crane
adjourned the meeting at 8:50 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.