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HomeMy WebLinkAbout2023-06-21 Special Meeting Minutes New Hanover County Airport Authority June 21, 2023 Page 1 NEW HANOVER COUNTY AIRPORT AUTHORITY AND NEW HANOVER COUNTY BOARD OF COMMISSIONERS JOINT MEETING MINUTES June 21, 2023 CALL TO ORDER The New Hanover County Airport Authority met in joint session with the New Hanover County Board of Commissioners on Wednesday, June 21, 2023, at 8:30 am in the Executive Conference Room at Wilmington International Airport, 1740 Airport Boulevard, Wilmington, North Carolina. Authority members present were Spruill Thompson, Chairman; Nick Rhodes, Vice-Chairman; Thomas Wolfe, Secretary; Lee Williams, Faison Gibson, and LeAnn Pierce. ILM staff present included Jeff Bourk, Airport Director; Robert Campbell, Deputy Director; Granseur Dick, Deputy Director; Carol LeTellier, Business Development Director; Rose Davis, Executive Assistant; Stephanie Lawson, Accountant; Erin McNally, Marketing, Air Service Development, and Public Relations Manager; Kenny Smith, Operations Manager; and Keaghon Stark, Facilities Manager. County Commissioners present were Bill Rivenbark, Chairman; LeAnn Pierce, Vice Chairman; Jonathan Barfield, Jr., Dane Scalise, Rob Zapple, and Kymberleigh G. Crowell, Clerk to the Board. County staff present included Chris Coudriet, County Manager; Jessica Loeper, Assistant County Manager; Crystal Whittaker, Executive Aide; Wanda Copley, County Attorney; Jordan Smith, County Attorney; Kemp Burpeau, Deputy County Attorney. Authority Chairman S. Thompson and Commissioner Chair Rivenbark called their respective Boards to order for this Special Meeting for the purpose of hearing the Annual Report of the Wilmington International Airport. Commissioner Barfield gave the invocation. ANNUAL REPORT Mr. Bourk provided the Annual Report to the County Commissioners starting with the Landside/Airside leases that are currently active and moving forward, representing 150 acres of ground leases. New Hanover County Airport Authority June 21, 2023 Page 2 Active projects include: Cold Storage Warehouses - CIL, CIL 2, CIL 3, Hotel, 84 Lumber, GA Hangars/Westside, GA Hangar/Training Facility/Eastside, Auto Auction and Car Wash/Bank. Mr. Bourk explained that these ground leases and the Business Park are important because they diversify ILMs revenue stream and allow ILM to lower rates and charges to the airlines which will help ILM bring in more airlines and grow air service further which is good for the community and benefits everyone, even the people that dont fly. (Ref. DOT Economic Impact) Mr. Bourk shared a map of the remaining parcels of property available for future development. Mr. Bourk announced changes coming to the terminal concessions which include the addition of Port City Java, Flying Machine Brewing Co., Dunkin Donuts and Jimmy Johns, along with a new retail convenience center. Mr. Bourk outlined the second portion of the Annual Update regarding the $165M Five-year Capital Plan which touches every aspect of the airfield, and all projects are needed. The biggest project in the Capital Plan is the Terminal Curb and Roadway Improvements which will cost $92M. Mr. Bourk showed slides detailing the plans to straighten and lengthen the terminal curb, improve the traffic flow in front of the terminal and increase the available parking spaces. Mr. Bourk noted that parking is the number one biggest complaint that we hear from customers that we can control. Mr. Dick explained to the Commissioners the Contract Manager at Risk (CMR) delivery method that is being used for the Terminal Curb, Roadway Improvements and parking project. New Hanover County Airport Authority June 21, 2023 Page 3 Mr. Bourk noted that ILM could use the Commissioners help in changing the stormwater permitting process with DEQ. All airports in the state have a master permit but are only allowed to have one permit open at a time. Why cans in process at one time? Additional projects in the Five-Year Capital Plan include the next phase of the Terminal Expansion; RWY 6-24 Rehabilitation; TWY B relocation; and various airfield projects. Mr. Bourk explained the FAA environmental process under the National Environmental Protection Act (NEPA) and noted that ILM should receive Federal Grants to pay for the environmental work. Discussion followed regarding the cost and consultants involved in the process. Mr. Bourk reported that ILM is receiving a $1M grant for a Part 150 Noise Compatibility Study which is a community process taking 18-24 months. It looks at current noise impacts on surrounding area and future impacts based on growth of the airport. If impacts are found, mitigating money may be available for those communities. Discussion followed. Mr. Bourk shared slides showing the impact of ILM on the local economy including jobs, personal income and tax revenues and the economic impact of one new Non-Stop route. Mr. Bourk noted the TDA and CVB have been great in marketing the new routes in the destination cities. ILM is not permitted to spend advertising revenue outside of our market area. Mr. Campbell provided a review of ILMs income and expenses for fiscal year ending June 2023. Mr. Campbell reviewed the funding available from state and federal sources, as well as Passenger Facility Charges (PFCs) and Customer Facility Charges (CFCs) for the Five-Year Capital Plan projects. Mr. Bourk noted that if we dont use this money, we will lose it. The Capital Plan will require $60M not currently funded but we can use reserve funds, discretionary grants, and incur future debt, if needed to fill that shortage or projects can be deferred until the funding becomes available. Mr. Bourk shared ILMs Route Map and reported that the 10 new Non-Stops (4 in 2022; 6 in 2023) represent 128,517 new seats annually to ILM. New Hanover County Airport Authority June 21, 2023 Page 4 Mr. Bourk shared information about upcoming inaugural flights and promotional events in the community. Discussion followed regarding air service development and the process of attracting new airlines to ILM, as well as new destinations on existing airlines. Discussion followed regarding ILMs marketing campaigns, both locally by ILM and outside of the local area by the Tourism Development Authority and CVB, and the need to continue to be mindful of diversity in all marketing efforts. Mr. Bourk updated the Commissioners on ILMpartnership with Genesis Block to help get local businesses certified as Airport Concession Disadvantaged Business Enterprise (ACDBE), as well as Disadvantaged Business Enterprise (DBE). The airport is required to have an ACDBE program which is a separate qualification by the state. Genesis Block is working to register more local companies for ACDBE. Mr. Bourk shared monthly passenger numbers and seat capacity in the market supporting recent rd reports that ILM is NCs fastest growing airport and the 3 fastest growing airport in the US. ADJOURNMENT There being no further business to come before the joint session the meeting was adjourned at 9:46 am. Prepared by: Respectfully Submitted Rose M. Davis _______________________________ Thomas Wolfe, Secretary Approved: July 12, 2023