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HomeMy WebLinkAboutMinutes Airport Board - 02/08/2006 i tl Minutes CORPUS CHRISTI Airport Board Meeting INTERNATIONAL February 8,2006 AIRPORT " �tw GI'Eliirw �,,. Board Members Citv/Airport Staff ��-� L�.° ®Ed Hicks, Sr.,Chairman ®Dave Hamrick,Director ® Mark Meyer,Vice-Chairman ®Debra Keller,Assistant Director ®Nelda Nfartinez,Member ®Roy Rodriguez,Facilities Manager ®Frank"Rocco"Montesano,Member ®Ralph Zapata,Engineer II ❑Glenn E. Lyons,Member ®Adelle Ives, Management Assistant ®J.C.Ayala,Member ❑Amy Gazin, PR/Marketing Coordinator ®Don Feferman,Member ® Sylvia Whitmore,Member []William Dodge,III,Member ❑Jesse Olivares,Member (]Jerry Kane I. Call to Order The meeting was called to order at 3:33 p.m.by Chair Hicks. A quorum was present. U. Approval of minutes for the Airport Board meeting held January I8,2006, Chair Hicks called for the approval of the minutes from the January l$'b Board meeting. Board member Montesano moved to approve the minutes as written. Board member Feferman seconded and the motion passed. III. Action Item: a. Discussion/Action on Industrial Park signage. Director Hamrick reported that in a meeting with Scannell Properties,he received their suggestions on changing the name of the Industrial Park to International Business Center for the new signage. Some of the suggestions that were brought up in discussion were presented to the Board in a Powerpoint presentation. Asst.Director Keller stated the decision to change the name of the Industrial Park was to not"brand"the park by limiting the types of businesses that would be interested in becoming tenants. Discussion was heard on the various names for the park. Board member Montesano moved to approve the name on an already approved sign design to be "International Business Center." Board member Ayala seconded and the motion carried. b. Discussion/Action on the Airport CIP. Director Hamrick stated that every year the Airport updates their Capital Improvements Program. In discussion with the FAA,insight is gained into Ahporl Board Minutes February 8,2006 Page 2 of 6 what is happening with their organization and funding. He added that the Airport has been very fortunate in obtaining$7-$9 million a year the last several years when in the past years the Airport had only received$3 million. Director Hamrick reported that due to a miscommunication with staff he would have to email a copy of the proposed CIP to Board members. IV., Reports a. Parking Revenue Report Asst.Director Keller began by stating that revenues for January'06 are up $10,000 from January '05. She researched the data to determine which lot had increased revenues and found that there is a$10,000 increase in the covered parking lot. She felt the covered parking would pay for itself and she is hopeful that it will require expansion. She added that since there is sufficient short-term parking,expansion may require area from short-term parking lot. She also reported that during the Thanksgiving and Christmas holidays, long-term parking was full to capacity forcing customers to go to covered parking. b. General Activity Report(GAR) Director Hamrick reported enplanements for January '06 were up .2%over January'05. He felt these numbers would increase this month. Based on travel within a calendar year, he reported that travel was up 6%from '04 to '05. He commented to the Board that all Continental in-bound flights for tomorrow are fully booked and starting in the afternoon, Southwest's in-bound flights are fully booked. He estimates an 800 passenger-per-day increase coaling into Corpus Christi. He has not been informed of any additional flights or use of larger aircraft by either of the airlines. Board member Montesano added that he has spoken with some of the bowling executives and found that some of the bowlers had flown to San Antonio and Houston in part because they were unable to book flights to Corpus Christi. Asst. Director Keller expressed her concern regarding this issue and added that Continental stated they would increase flights and use of larger aircraft if the numbers warranted this action r. Director's Report Director Hamrick updated the Board on new developments. He reported that Airport staff has been approached by a representative of a company which ships base ingredients for medicine from China. He stated that staff will be meeting with principals of the company to discuss the possibility of basing their operations at CCIA. Initially,negotiations were for a small operation with four cold storage units. Since the initial meeting,the company has inquired whether CCIA would be interested in building a complete cold storage facility to include additional Airport Board Mlnules February 8,2006 Page 3 of 6 products. Staff responded affirmatively and Director Hamrick stated he would keep the Board updated as this venture develops. The second item Director Hamrick wanted to inform the Board on was his meeting with Mr.Robert Huegele regarding the building of T-hangars. He reported that he has met with Mr.Huegele and staff will be proceeding with this venture. The final item Director Hamrick wanted to bring to the Board were the tentative negotiations with Scannell Properties regarding their interest in a portion of the International Business Center. They are now considering the entire park and would like to have a contract signed by June,2006. Board member Feferman questioned how the name change would mesh with the China cold storage business. Director Hamrick stated that it would work very well. The initial negotiations with the cold storage facility included a small portion of airport property. With their request for building an entire facility at the airport, they asked to be included within the International Business Center. Board member Montesano questioned what Scannell Properties would be doing with the park. Director Hamrick stated they are still in the negotiation stage. Board member Martinez voiced her concern to insure that the leases for the park be checked not just for Iegalities but also on the business aspect. Mrs. Keller,Asst.Director,informed the Board that this company is requesting an initial six-month term/option period at no cost and the second term of 12 months would have a fee of$20,000 which would be held by the title company until the end of the term. The third term of 12 months would also be an option fee of $20,000. After researching other businesses in Corpus Christi,the developer found he would require a longer period of time than in other regions to acquire tenants. Chair Hicks felt that Board members could be utilized for their business knowledge and expertise for this purpose. Discussion was heard regarding various aspects of this topic. Asst.Director Keller stated that negotiations for this venture are still in the preliminary stage and nothing has been signed. Specific details and amounts have not been finalized. Board member Martinez advised staff to have a commercial leasing consultant who deals with business centers/industrial parks review the lease in order to insure safety nets and fiduciary responsibilities would be in the Airport's best interests. Director Hamrick agreed with Board member Martinez' w Airport Board Minutes February 8,2006 Page 4 of 6 recommendation. Asst. Director Keller informed the Board that staff would be contacting other similar sized airports with commercial leasing areas in order learn from their experience in these types of ventures. She also added that once staff compiled more information on this topic,they would be presenting their findings to the Board for their recommendations. Board member Montesano congratulated staff on this new endeavor. Vice-chair Meyer commented that this type of asset should have an appraiser who would take a regional approach that would incorporate airports of this size. Asst. Director Keller stated that this approach was taken when the Lannon lease was to be renewed. The market rate that came up in that appraisal was extremely high and to have used that rate with Lanmon would have put them out of business. She continued that staff went back and looked at our market based on demographics and economic factors to renew Lanmon's lease. Chair Hicks commented that this venture would work based on the proximity of the port to the airport. Board member Montesano questioned what role the EDC had in this venture. Director Hamrick stated they had made the introduction and he has been keeping them apprised of the negotiations,but they are not part of any further decisions. Director Hamrick informed the Board the Airport had received an offer to amend last year's FAA grant of$5.08 million. The amendment was for an additional $2.7 million for a total of$7.78 million to assist in the runway projects,drainage and apron work. Chair Hicks requested the status of the Runway 13-31 project. Director Hamrick stated the project is basically complete except for some punch list items. Ralph Zapata,Airport Engineer,informed the Board that the Runway 13/31 work for the shoulders,blast pads, lighting is complete. They are now concentrating on the outfall for 17/35 and they are working up from there. This work was started last Monday and the completion date for is set for April 21". Roy Rodriguez,Airport Facilities Manager,reiterated that the actual runway and everything associated with it is completed except for the drainage which flows into the 17/35 area. Director Hamrick shared emails and correspondence with the Board between staff and Aeromar. In response to staff s email, a letter was received from Aeromar indicating a two-month delay of services. He added he has conferred with the City Manager regarding this issue and informed him he would be following through with this venture to the end. He stated that he has asked for a meeting with Aeromar officials in Mexico to offer assistance in carrying this project through to its completion. Airport Board Minutes February 8,2006 Page S of 6 Board member Ayala stated that based on the tone of Aeromar's correspondence, he sensed they are not convinced of the feasibility of this project. Director Hamrick feels their intentions are honorable;but in his next meeting with Aeromar,he suspects they will be expecting additional concessions. With that in mind,Director Hamrick stated he would be meeting with Delta Airline officials in Atlanta. Since Atlanta has two flights per day to Monterrey, at this meeting,he will be trying to convince them of landing one here. At the same meeting he will also discuss flights from Corpus Christi to Austin and Salt Lake City. He added that Delta approached staff with this venture. Director Hamrick will also be approaching Continental regarding flights to Monterrey. He felt that with the right incentives,these flights may be feasible. At the time he first approached Continental regarding this,it was not well received,but he feels that they may reconsider. Board member Ayala stated the Board is aware that a market exists for this venture. He questioned what has been preventing Aeromar from following through. Chair Hicks felt that a tentative agreement was made with another airline to handle ticketing and baggage handling;but,the agreement fell through. This could have influenced their decision for the delay. Asst.Director Keller reported that she has heard from Mr. Fred Haley with the RTA who informed her that they are ready to provide service to the Airport. She provided a route schedule for the Board. She added that this was a start and stated that Mr.Haley would be working with staff in adjusting the schedule to benefit Airport staff and tenants as well as passengers. She reported that Mr.Haley would be making a presentation at the March Board meeting regarding this topic. Chair Hicks questioned whether the route would include any hotel pick-ups. Mrs. Keller referred to the route hand-out which includes the Bishop,Driscoll, Gregory areas. She added that it is a big route,but it is a start. The route from the airport will go directly to Staples Center which enables riders to transfer to any location on RTA scheduled routes. Chair Hicks congratulated staff on this endeavor. Director Hamrick followed up on Board member Montesano's concern expressed at the Master Plan presentation at the last meeting. He felt that the presentation was not up to the Airport's standards. He added that subsequent to that meeting, staff had expressed this to the consultants and another meeting will be held to rectify these issues. Airport Ba4rd Minutes February 8,2006 Page 6 of 6 V. Board Business and Reports a. Board Member Absences Chair Hicks called for action on Board absences. Board member Feferman moved to excuse Board members Olivares, Lyons and Dodge. Board member Montesano seconded and the motion carried. b. General Comments Chair Hicks reported on the Grand Opening of the new post-checkpoint restaurant earlier this week. He added that a tour of the new facility would be given Board members directly following this meeting. VI. Adjournment As there was no further business,Chair Hicks call for adjournment. Board member Martinez moved for adjournment and Board member Montesano seconded. The motion carried and the meeting was adjourned at 4:35 p.m.