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[Transportation and Infrastructure on December 2, 2025.]
IT IS NOW 2:41 PM AND I AM COMMENCING THE MEETING OF THE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE.NOTICED FOR, UH, THIS TIME OUR FIRST ITEM OF BUSINESS IS APPROVAL OF THE NOVEMBER 17 TRANSPORTATION AND INFRASTRUCTURE COMMITTEE MEETING MINUTES.
MAY I HAVE A MOTION? I SECOND? ANY DISCUSSION? UM, OH.
THEY OVER THERE? UM, WHO DO WE HAVE? OH, IN.
YOU MIGHT JUST NEED TELL HIM TO COME.
MR. GRACIE, WE NEED YOU FOR A QUORUM.
WHO ELSE? HOPEFULLY, YEAH, I DON'T HAVE ANY QUESTIONS ON THIS.
HAS, UH, IS THERE A MOTION TO APPROVE THE MINUTES FROM NOVEMBER 17 SECOND? ANY DISCUSSION? SEEING NONE.
ALL THOSE IN FAVOR, PLEASE SAY, AYE.
THE FIRST BRIEFING ITEM IS ITEM A CONSIDERATION OF APPOINTEE CANDIDATE TO FILL VACANT POSITION NINE ON THE DFW AIRPORT BOARD OF DIRECTORS TO FILL THE UNEXPIRED 24 26 TERM.
THIS IS AN ISSUE THAT, UM, IS RIPE FOR CONSIDERATION.
THE COMMITTEE PREVIOUSLY APPROVED FULL TERM RECOMMENDATIONS FOR DART BO, UH, DFW AIRPORT BOARD MEMBERS, BUT THOSE TERMS DO NOT COMMENCE UNTIL JANUARY 31ST.
THAT WILL BE VOTED ON AT THE DECEMBER 10TH MEETING OF THE FULL CITY COUNCIL.
BUT WE ARE LEFT WITH THE EARLY RESIGNATION OF GLORIA TARPLEY, AND THAT LEAVES A GAP IN COVERAGE FOR THAT SEAT FROM DECEMBER 10TH.
WELL, ACTUALLY, HER RESIGNATION WAS EFFECTIVE NOVEMBER THE FOURTH UNTIL JANUARY 31ST.
ONE IS TO LEAVE THAT POSITION NINE VACANT UNTIL JANUARY 31ST WHEN THE PERMANENT APPOINTMENT TAKES EFFECT, OR TO APPOINT AN INDIVIDUAL TO SERVE A PARTIAL TERM UNTIL JANUARY 31ST.
UM, THIS IS SOMETHING THAT I'D LIKE TO DISCUSS WITH THE COMMITTEE.
ANY PREFERENCES, MS. BLACKMAN? UM, I SUGGEST WE GO AHEAD AND PUSH HER UP TO MAKE SURE THAT WE HAVE REPRESENTATION ON THAT BOARD.
I WHEN IS HER? WHEN IS HER WE WON'T, WE WON'T HOLD THAT AGAINST HER.
HUH? WE WON'T HOLD THAT AGAINST HER.
AND SO SHE IS QUITE QUALIFIED.
WE, WE WERE PLACING HER ON THE FULL AGENDA ANYWAY.
LET'S JUST MOVE IT UP FOR, I GUESS, A VOTE FOR THE, ON THE 10TH, AND THAT WAY SHE CAN FILL THE TWO MONTHS AND THEN WE'LL VOTE ON HER AGAIN FOR THE, IN JANUARY TO COMPLETE THE TERM.
UH, THAT WAY WE MAKE SURE WE HAVE SOMEBODY SITTING IN THAT SEAT AT DFW.
WELL, I, I CERTAINLY SUPPORT THAT POSITION.
UM, DO YOU WISH TO MAKE A MOTION TO THAT EFFECT? SURE.
UM, I WISH TO MOVE, UH, THAT WE, WE APPOINT MONICA LAURA BRAVO TO THE UNEXPIRED TERM IN THE POSITION.
ANY ANY FURTHER DISCUSSION? SEEING NONE, I'LL CALL THE QUESTION.
ALL THOSE IN FAVOR, PLEASE SAY AYE.
ITEM B IS THE PUBLIC TRANSPORTATION IMPROVEMENT PROJECTS UPDATE.
KEN, CARLY, ARE YOU AVAILABLE? ARE THERE ANY QUESTIONS WITH REGARD TO THIS MEMO FOR DR.
KEN CARLEY? VICE CHAIR ROTH? THANK, THANK YOU FOR, UH, THIS COMPLETE, UH, AND VERY, VERY DETAILED, UH, LIST OF ALL THE THINGS THAT YOU'RE DOING.
CAN YOU EXPLAIN TO ME WHAT, UH, WHAT, WHAT, AND PERHAPS THIS IS SOMETHING I SHOULD KNOW, BUT I DON'T KNOW.
UH, WHEN YOU'RE TALKING ABOUT PANEL REPLACEMENTS, WHAT ARE, WHAT ARE WE TALKING ABOUT ON THOSE PANEL REPLACEMENTS FOR NO, WE'RE ON B, AREN'T WE? I WAS LIKE, HUH.
MIKE, DID I MISS SOMETHING? ANY OTHER QUESTIONS ABOUT THE MEMO? ITEM B.
SEEING NONE, WE WILL MOVE ON TO C WE TRANSPORTATION PUBLIC WORKS WORK PLAN REPORT FOR FISCAL YEAR 2026.
UH, VICE CHAIR ROTH, DID YOU HAVE A QUESTION ABOUT THIS ITEM? THANK YOU.
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UM, IT, IT, THIS REALLY IS A DETAILED REPORT FOR MAINTENANCE ITEMS AND STUFF, AND AGAIN, IT'S JUST CLARIFICATIONS ON WHAT THE WORK IS THROUGHOUT THE THING.
THERE'S, UH, REFERENCE TO PANEL REPLACEMENTS IN ALL IN DIFFERENT, UH, LOCATIONS AS WELL AS ONYX, UH, REPLACEMENTS.
UH, COULD YOU JUST TELL ME WHAT THAT IS, PLEASE? YES, I, I THOUGHT ABOUT, I MEAN, SO FIRST OF ALL, GUEST CARLY, DIRECTOR OF THE DEPARTMENT OF TRANSPORTATION AND PUBLIC WORKS.
SO I THOUGHT ABOUT THIS ITEMS ON, ON THE NEXT REPORT, I WILL HAVE A CLEAR DEFINITION OF ALL THESE ITEMS TO CLARIFY THIS, UH, ISSUE.
BUT, UH, THE ONYX TREATMENT IS BASICALLY ASPHALT WITH, UH, POLYMERS MIX THAT GIVES IT A BETTER, UH, CHARACTERISTICS.
AND AS FAR AS THE PANEL REPLACEMENTS, WE GENERALLY REFER TO IT IN THE PAST WHEN THE, WHAT WE, UH, IN THE CITY OF DALLAS, WE USED TO USE WHAT WE CALL THE JOINTED CONCRETE PAVEMENT.
AND THOSE WERE LIKE 20 FOOT BY 20 FOOT PANELS.
AND WHEN WE REPAIR, WE HAVE TO REPAIR A FAILED PANEL.
WE HAVE TO GO THE FULL PANEL TO REPLACE IT.
SO ON THE NEXT REPORT, I WILL HAVE A DEFINITION, A, A INDEX, IF YOU WILL, OF THE DEFINITION OF THE ITEMS. THAT'S FINE.
ANY OTHER QUESTIONS FOR THE SURE.
UH, UH, CHAIRMAN MENDELSON, SO I'M JUST GONNA SAY THIS IS THE BEST REPORT, AND I KNOW THAT IT HAS EVOLVED SO SIGNIFICANTLY FROM A VERY BRIEF ONE PAGE MEMO THAT JUST HAD, YOU KNOW, A COUPLE BOXES TO, UM, LOTS OF PAGES, WHAT DO WE SAY, 26 PAGES NOW OF THIS REPORT.
UM, IT'S, IT WAS WORTH WAITING FOR, SO THANK YOU FOR THAT.
UM, BUT ALSO THIS TIME YOU DID SORT IT BY COUNCIL DISTRICT, AND SO THANK YOU FOR MAKING THAT CHANGE.
UM, I THINK IT REALLY HELPS US TO BE ABLE TO NARROW IN ON THE PROJECTS THAT ARE HAPPENING IN OUR DISTRICT AND BE ABLE TO SHARE THAT WITH FOLKS.
AND I ALSO LOVE YOUR SUMMARY, UM, BOTH OF COUNCIL DISTRICTS AND THE KINDS OF PROJECTS YOU'RE WORKING ON.
SO WE HADN'T SEEN THAT BEFORE, AND I, I THINK IT'S FANTASTIC.
SO, AND THAT YOU INCLUDED BOTH BOND AND GENERAL FUNDS TOGETHER, UM, WHICH HAD BEEN SO SEPARATED, WHICH, YOU KNOW, THE REGULAR RESIDENTS DON'T CARE ABOUT HOW IT'S FUNDED.
UM, SO THIS, I THINK REALLY HELPS US TRACK WHAT, WHAT'S HAPPENING AND THE IMPROVEMENTS FOR OUR INFRASTRUCTURE.
SO I JUST WANNA SAY THANK YOU BECAUSE, YOU KNOW, A YEAR AGO THIS WAS NOT, WELL, IT, IT WAS NOT ANYTHING LIKE THIS.
AND SO THANK YOU FOR A GREAT REPORT.
AND, AND APPRECIATE YOUR, UM, FEEDBACK AND, AND THIS WAS VERY VALUABLE FOR US TO PRODUCE THESE REPORTS.
ANY OTHER QUESTIONS FOR DR. KING CARLEY? UH, DR. KING CARLEY, I'VE GOT A QUESTION IN THE NEXT REPORT.
COULD YOU INCLUDE IN THE SCHEDULE EXHIBITS A TALLY OF, UH, TRAFFIC LIGHTS THAT ARE BEING REPLACED BOTH IN THE GENERAL FUND AND BOND FUNDS, AND PERHAPS A THIRD CATEGORY? I KNOW THERE ARE GRANT FUNDS THAT YOU'RE UTILIZING FOR THAT PURPOSE FROM THE COG AND, UH, PERHAPS OTHER SOURCES.
UM, THAT IS A GREAT NEED IN OUR DISTRICTS, AND THAT WOULD BE OF INTEREST, I THINK, UH, TO HAVE THAT INFORMATION AS WELL.
SEEING NO FURTHER QUESTIONS, OUR LAST ITEM ON THE AGENDA IS THE COMMITTEE FORECAST.
ANY QUESTIONS OR COMMENTS ABOUT THE FORECAST? YES.
UH, VICE CHAIR ROTH, UM, I'M, I'M, I'M, UH, NOT REALLY CLEAR AS TO WHAT THE PROCESS IS ON EVALUATING THESE AND HOW THESE THINGS ARE GOING TO BE PRESENTED.
IF SOMEBODY CAN HELP CLARIFY THAT FOR ME, ESPECIALLY SINCE WE'RE DEALING WITH SOME SIGNIFICANT, UH, CAPITAL LEASES, UH, SIGNIFICANT ITEMS AND SOME OF THESE FUTURE FORECASTED ITEMS, IN PARTICULAR WITH AVIATION AND SOME OTHER MAJOR, UH, EVENTS.
AND I, I'M JUST TRYING TO UNDERSTAND, UM, WHAT OUR PROCESS IS GONNA BE IN RECEIVING BRIEFINGS, UH, WHAT THE ACTION ITEMS, HOW THE ACTION ITEMS WOULD BE, UH, ACTUALLY, UH, PURSUED AND, AND AT WHAT POINT WE WOULD BE GOING TO A COUNCIL SITUATION.
WELL, IF THAT'S, IF THAT'S APPROPRIATE.
WELL, ACTUALLY, UH, ONCE AGAIN, YOU'RE A LITTLE BIT AHEAD OF THE CURVE, UH, VICE CHAIR ROTH IN THAT YOU'RE ADDRESSING NOT THE COMMITTEE FORECAST, BUT THE UPCOMING AGENDA ITEMS. OH, I THOUGHT THESE WERE FORECASTED ON, NO, THOSE ARE THE, UH, CITY COUNCIL AGENDA ITEMS THAT WILL BE COMING UP ON DECEMBER THE 10TH.
THANK YOU AGAIN FOR, WELL, THANK YOU AGAIN FOR EDUCATING ME.
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COMMENTS OR QUESTIONS ABOUT THE COMMITTEE FORECAST? SEEING NONE, WE'LL TURN TO THE UPCOMING AGENDA ITEMS AND TO ANSWER YOUR QUESTION ABOUT THOSE ITEMS, UH, MR. ROTH, THESE ARE, UM, GENERALLY NOT, UM, BRIEFED BY STAFF AT THE COMMITTEE LEVEL THERE TO ALERT US TO ITEMS THAT WILL BE COMING UP ON A FULL COUNCIL AGENDA MEETING.UM, TO ADVISE US THAT THESE ARE DEVELOPMENTS WITHIN OUR PURVIEW IN THIS COMMITTEE.
IF YOU HAVE SPECIFIC QUESTIONS ABOUT THOSE, UM, PLEASE CONTACT, UH, EITHER DEV, UH, REPRESENTING OUR CITY MANAGER'S OFFICE OR THE INDIVIDUAL DEPARTMENT DIRECTORS TO GET FURTHER INFORMATION.
I'M SURE THEY WOULD WELCOME YOUR INQUIRY.
UH, WOULD IT BE APPROPRIATE, AND, AND AGAIN, UM, THAT AS A COMMITTEE, WOULD IT BE APPROPRIATE FOR SOME OF THESE LARGER ITEMS TO ASK FOR SPECIFIC COMMITTEE BRIEFINGS? UH, IF THERE SIGNIFICANT, UH, ITEMS OR, OR, WELL, UM, WE CAN CERTAINLY DO THAT WITH AVAILABLE STAFF.
UM, ARE THERE SPECIFIC ONES THAT YOU HAVE QUESTIONS ABOUT? WELL, IN PARTICULAR, THE, THE ITEMS RELATED TO THE, UH, TO THE, UH, EXTENSIVE, UH, LEASES AND CONTRACTS THAT ARE BEING DONE AT, UH, AT THE, UH, AT THE AIRPORT.
UM, I DON'T KNOW THAT THE DIRECTOR IS HERE.
HE, HE IS, AND I DON'T KNOW THAT WE HAVE TO DO IT TODAY.
COUNCIL MEMBER ROTH, THAT THOUGHT MIGHT ADD.
WE DO HAVE, UM, STAFF HERE TO RESPOND TO QUESTIONS ON THESE UPCOMING AGENDA ITEMS. AND OFTENTIMES WHAT'LL HAPPEN IF WE SEE SOMETHING THAT IS, UM, PROBABLY SOMETHING THAT REQUIRES A LOT OF EXPLANATION, UM, WE OFTEN PUT OUT A FRIDAY MEMO IN ADVANCE OF THOSE COMING FORWARD SO THAT YOU CAN, UM, REACH OUT TO MYSELF OR THE DIRECTORS TO GET MORE INFORMATION.
UM, OF COURSE, UM, DURING THE AGENDA MEETING, UM, YOU'RE ALSO, UM, WELCOME TO ASK QUESTIONS FOR CLARIFICATION IN ADVANCE OF THESE ITEMS BEING VOTED ON.
UH, AGAIN, I'M, I'M, I'M TRYING TO UNDERSTAND THE PROCESS, BUT THESE ARE 40 YEAR LEASES WITH SIGNIFICANT EXTENSIONS TALKING ABOUT A HUNDRED MILLION DOLLARS WORTH.
I MEAN, HUNDREDS OF, LOTS OF, LOTS OF MONEY.
MILLIONS AND MILLIONS OF DOLLARS WORTH OF FUTURE COMMITMENTS.
I JUST DON'T UNDERSTAND WHAT THEY ARE.
AND I THINK MY, I WOULD ASSUME THAT MY COLLEAGUES WOULD WANT TO HAVE MORE DETAILS UNLESS THEY ALREADY KNOW ABOUT IT.
WELL, WE HAVE THE DIRECTOR OF AVIATION HERE, SO PLEASE FEEL FREE TO ASK ANY QUESTIONS YOU HAVE NOW.
EXPLAIN THESE, EXPLAIN THESE ITEMS TO ME STARTING AT THE BEGINNING.
'CAUSE I DON'T KNOW WHAT THIS IS ABOUT.
UM, COUNCIL MEMBER, COULD YOU, UH, RESTATE THE QUESTION ON WHICH ITEMS? I BELIEVE THE FIRST AVIATION ITEMS ITEM F.
UM, THAT IS THE CBP LEASE? YES.
UM, THIS ONE IS, UH, WE ARE A USER FEE AIRPORT.
UH, SO WHAT THAT MEANS IS, UH, WE DO NOT, WE'RE NOT A PORT OF ENTRY, SOMETHING THAT YOU SEE AT DFW.
THERE'S NOT A FEDERAL INSPECTION STATION.
UH, THESE ARE FOR GENERAL AVIATION CLEARANCES.
SO PART OF THIS IS WE ESSENTIALLY PAY FOR THE, UH, CUSTOMS BORDER PROTECTION TO CLEAR GENERAL AVIATION PLANES.
UH, WE DO A COUPLE HUNDRED OF THOSE A MONTH.
UH, IN THIS AGREEMENT, WHAT IS REQUIRED IS WE PAY FOR THE SERVICES.
WE PAY FOR BASICALLY ALL THEIR NEEDS, THEIR SPACE, EVERYTHING.
UM, AND THEN WE SET A FEE TO THE USERS THAT COME IN.
SO DEPENDING ON YOUR AIRCRAFT AND HOW MANY PEOPLE YOU HAVE, YOU PAY A FEE, UH, THAT MAKES UP FOR THAT COST.
UM, IN THIS ONE, UM, BECAUSE THIS SPACE ISN'T OURS, WE HAVE TO REIMBURSE THEM ESSENTIALLY FOR RENT.
UM, WE WILL BE LOOKING TO PUT IN A STANDALONE FACILITY AT THE CBPS REQUEST FOR THE LAST FEW YEARS.
SO WE'RE WORKING TOWARDS THAT.
UM, SO THIS WILL EVENTUALLY GO AWAY, BUT FOR NOW, WE'RE REIMBURSING THOSE COSTS.
UM, THE, THE NEXT ONE I HAVE IS THE SOUTHWEST, UH, AIRLINES, UM, LEASE PREMISE.
UM, THIS ONE IS ESSENTIALLY FOR THE EXISTING LEASE.
THE CITY COUNCIL APPROVED A NEW LEASE, UH, WHICH STARTS IN 2028 IN MAY.
UM, THIS IS THE ONE BETWEEN NOW AND 2028.
UH, ESSENTIALLY WE WERE VERY SHORT IN THE TERMINAL, UH, FOR SUPPORT SPACE FROM AIRPORT OPERATIONS TO, UH, CONCESSION SPACE.
SO, UH, THEY HAVE AGREED TO KIND OF RELINQUISH SOME OF THE SPACE OF THEIRS.
UH, WE'RE GONNA TAKE THAT BACK AND USE IT FOR AIRPORT OPERATIONS.
UM, AND THE BULK OF IT WILL GO TO ACTUALLY CONCESSION STORAGE WHERE WE DON'T HAVE ENOUGH BACK OF HOUSE SPACE.
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THE NEXT ONE, THE NEXT TWO ARE ACTUALLY TIED TOGETHER.UM, THESE ARE HANGAR LEASE DEVELOPMENTS, UH, WE'RE VERY EXCITED ABOUT.
UH, WE DID A SOLICITATION ABOUT 18 MONTHS AGO, UH, FOR BOTH AIRPORTS.
WE HAVE SOME PROPERTY LEFT ON DALLAS LOVE FIELD, AND PARTICULARLY DALLAS EXECUTIVE HAS QUITE A BIT OF PROPERTY.
SO WE LOOKED FOR A OPERATOR TO COME IN AND BUILD NEW HANGERS, TRACK NEW TENANTS, UH, AT BOTH AIRPORTS.
AND THIS WAS THE ONE THAT, THAT, UM, RESPONDED TO THE SOLICITATION.
SO WE'VE BEEN WORKING WITH THEM FOR SOME TIME NOW, UH, TO COME UP WITH THE LEASE.
WE HAVE LEASE RATES THAT ARE APPROVED BY CITY COUNCIL FOR THE LAND, AND THAT'S WHAT YOU'LL SEE, UH, THE DIFFERENCE IN THE ESTIMATED REVENUE FOR EACH OF THESE.
UM, SO THEY WILL, UH, THEY'LL DO ABOUT 15 ACRES AT DALLAS EXECUTIVE AND ABOUT SEVEN, UH, EIGHT ACRES AT DALLAS LOVE FIELD.
UM, THEY'LL DEVELOP PRIVATE HANGERS.
THESE ARE FOR INDIVIDUAL HANGAR TENANTS.
IT MAY BE EXISTING PEOPLE THAT ARE BASED AT THE AIRPORT, BUT THE BULK OF 'EM BE NEW, UM, ENTRANCE AT BOTH DALLAS EXECUTIVE AND DALLAS LOVE FIELD.
AND THESE FUNDS ARE IN AN AVIATION FUND THAT, THAT YOU ALL HAVE PART OF YOUR, SO THESE ARE, UH, THIS IS REVENUE THAT COMES IN FOR AVIATION FUNDS.
UM, SO THIS WILL COME INTO THE AIRPORT ENTERPRISE FUND.
UH, THE DALLAS EXECUTIVE, UH, MONEY IS TYPICALLY ALLOTTED TO THAT COST CENTER.
AND THEN THE DALLAS, UH, LOVE FIELD IS IDENTIFIED FOR DALLAS LOVE FIELD.
AND IS IS THE CAPITAL INVESTMENT OBLIGATION OF 17 AND A HALF MILLION DOLLARS, IS THAT A CAPITAL OBLIGATION ON THE TENANT OR IS THAT A CAPITAL OBLIGATION FOR THE CITY ON THE TENANT? SO BOTH OF THESE, UM, AT, UH, LOVEFIELD FOR 17 AND A HALF AND 35 MILLION IS AN OBLIGATION THAT THEY HAVE TO MAKE THOSE INVESTMENTS ON BOTH OF THEM.
AND, AND IS THE, AND IS THE TERM FOR 40 YEAR, UH, AND, AND TWO TENURE OPTIONS, IS THAT, IS THERE A REASON FOR SUCH A LONG TERM, WAS IT AMORTIZATION? WAS IT A REQUIREMENT? TYPICALLY IN THE BASE YEAR, THE FAA ALLOWS US TO GO OUT TO 50 YEARS.
WE TYPICALLY LOOK AT ABOUT 40 AND THEN COME BACK IN.
UM, THESE TYPES OF FACILITIES ARE PUTTING SIGNIFICANT MONEY IN, THEY CAN AMORTIZE THAT, BUT WE'D BE LOOKING TO KEEP THEM AND THEN REINVEST.
SO THERE'S DIFFERENT TERMS WHEN YOU GET TO THOSE OPTIONS, GIVEN THAT IT'S NOW A FACILITY THAT'S BEEN AMORTIZED, UM, YOU KNOW, THEY END UP PAYING A HIGHER RATE AND THINGS LIKE THAT.
UH, SO THESE ARE PRETTY TYPICAL.
UM, PREVIOUSLY, I THINK IN TEXAS, THERE WAS A STATE LAW AT 40 YEARS, UH, I THINK THAT'S BEEN MOVED TO 50 NOW ACROSS THE COUNTRY IT'S 50 FOR FAA.
SO YOU TYPICALLY SEE THESE IN THE 40 TO 50 YEAR RANGE WITH OPTIONS POTENTIALLY.
AND IS, UH, ON THESE KIND OF, IF YOU WERE, IF THEY'RE SPENDING $50 MILLION TO BUILD, UM, UH, TERMINALS OR BUILD FACILITIES THERE, UM, IS THERE RESTRICTIONS ON HOW THEY FINANCE IT, WHAT OUR OBLIG, WHAT THEIR OBLIGATIONS ARE, IF, MAKE SURE THAT WE END UP WITH THE, WITH THE BUILDINGS WHEN THEY'RE FINISHED? IN OTHER WORDS, IS THERE ARE, HOW IS THE CITY PROTECTED AND THE, AND THE AIRPORT PROTECTED? THERE'S CONTRACT TERMS THAT THEY HAVE TO MEET THESE OBLIGATIONS.
SO THE CAPITAL INVESTMENT, UM, THEY HAVE TO MAINTAIN THE FACILITIES.
UM, THERE'S MECHANISMS IN PLACE, LET'S SAY THAT THEY SOLD THE FACILITY, UM, THEY DISSOLVED OR SOMETHING LIKE THERE'S PROTECTIONS.
ULTIMATELY THE LAND IS OWNED BY THE CITY OF DALLAS.
SO THE ASSETS, THE, THE PHYSICAL STRUCTURE, THE VERTICAL STRUCTURES WILL ALWAYS BE TECHNICALLY OUR PROPERTY.
UH, IT'S JUST WHEN IT REVERTS.
SO IF THEY DEFAULT IT ON THE TERMS OF THE CONDITIONS OF THE LEASE, IT WOULD DEFAULT TO THE CITY OF DALLAS.
UH, IF THE TERM WAS UP AND THEY DIDN'T RENEW, THE WHAT WAS BUILT WOULD BECOME THE CITY OF DALLAS.
AND WHAT KIND OF THINGS ARE THEY GONNA DO THERE, DO YOU KNOW? OR IS THIS A SPECULATION? SO THESE ARE PRIVATE STORAGE HANGERS.
SO, UH, THESE ARE, YOU KNOW, TYPICALLY WILL BE JETS.
UM, THEY'LL BE PRIVATE INDIVIDUALS THAT, WHAT WE WOULD CALL A FIXED BASE OPERATOR.
THEY MAY NOT WANT TO GO TO A FIXED BASE OPERATOR.
THEY MAY WANT THEIR OWN SPACE.
UH, THEY MAY NOT HAVE, YOU KNOW, WANNA MAKE THE INVESTMENT IN BUILDING THEIR OWN.
SO, UM, WE OBVIOUSLY WE'RE DALLAS LOVE FIELD.
UH, DALLAS EXECUTIVE IS GROWING.
DALLAS LOVE FIELD'S, THE THIRD BUSIEST PRIVATE JET AIRPORT.
WE'RE TRYING TO GET MORE JET TRAFFIC DOWN TO DALLAS EXECUTIVE.
SO THERE IS A MARKET IN THE, IN THIS PART OF THE, THE METROPLEX ESPECIALLY, UM, ADDISON AIRPORT'S, FULL DALLAS LOVE FIELD'S PRETTY FULL.
SO, UH, DALLAS EXECUTIVE HAS A PRIME OPPORTUNITY FOR THIS, AND WE STILL HAVE, IT'S A GOOD THING FOR DALLAS LOVE FIELD BECAUSE, UM, YOU'RE NOT GONNA BE ATTRACTING TRANSIENT TENANTS WHERE A FIXED BASE OPERATOR MIGHT HAVE A LOT OF IN AND OUT.
UH, THESE WILL BE SINGLE OPERATORS THAT MAY BE JUST TRAVELING ONCE A DAY OR A COUPLE TIMES A WEEK.
UM, SO IT'S, IT'S A GOOD WIN FOR US
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AT DALLAS LOVE FIELD AS WELL.AND AS, AS FAR AS THE, THE, THE RENT THAT YOU'RE GETTING, AND, AND AGAIN, I'M NOT DISPARAGING THE, THE, UH, THE DEALS I WANT.
THIS IS A GREAT OPPORTUNITY TO, UH, GENERATE REVENUE, TO GENERATE ACTIVITY.
THIS IS ALL ECONOMIC, UH, DEVELOPMENT, WHICH IS, WHICH IS ABSOLUTELY TERRIFIC.
UM, THE, BUT I WANT TO, I, I'M ASKING IF THESE ARE ABSOLUTELY TRIPLE NET DEALS, IF THEY'RE MADE SURE THAT, THAT WE'RE COVERING OUR COSTS, THAT ON THE LOOKS LIKE THE INCOME OVER 40 YEAR, UM, UH, YOU KNOW, TERMS IS REALLY BASICALLY GROUND RENT FOR, FOR VACANT LAND IS WHAT I'M ASSUMING.
DO WE HAVE ANY ADDITIONAL INFRASTRUCTURE REQUIREMENTS? ARE WE GONNA HAVE ANY OTHER COSTS THAT ARE NOT GONNA BE COVERED BY THIS? BECAUSE THESE ARE, THIS IS A BIG PROJECT, IT SOUNDS LIKE TO ME.
UM, THERE'S SOME INFRASTRUCTURE COSTS, PARTICULARLY AT DALLAS EXECUTIVE EXTENDING AROUND SOME UTILITY EXTENSIONS.
UH, BUT THOSE ARE KIND OF FACTORED INTO WHAT WE DO DAY TO DAY.
UM, WE ARE TRYING TO SET UP AN ENVIRONMENT TO ENCOURAGE PEOPLE TO COME IN AND MAKE THOSE, IF WE DON'T KIND OF EXTEND THE ROAD, THE UTILITIES, UM, THERE'S 11 RELIEVERS IN THE METROPLEX.
DALLAS EXECUTIVE'S, ONE OF 'EM WE'RE, YOU KNOW, WE'RE NOT GONNA BE VERY COMPETITIVE.
SO, UM, WE HAVE THAT ALL FACTORED INTO OUR CAPITAL PROGRAMMING.
UM, THE POTENTIAL TO MAKE SOME OF THESE, UH, LIKE I SAID, UTILITY EXTENSIONS.
UM, SO THOSE ARE ALL FACTORED INTO WHEN WE LOOK AT THE ROI ON THESE, UM, OBVIOUSLY WE WANT TO BE POSITIVE, UM, BUT WE ALSO WANT TO GENERATE THE, THE AVIATION GENERATION OR ECONOMIC, UM, GENERATION FROM, ITS VALUABLE FOR US AS WELL.
UM, SO WE'RE LOOKING AT, WE NEED TO PAY OUR BILLS, BUT WE ALSO WANT TO BRING THE NEW ENTRANT IN AND DRIVE, YOU KNOW, MORE BUSINESS.
WHEN DO YOU ANTICIPATE THAT THESE PROJECTS ARE GONNA START AND GET AND GET ONLINE? UH, SKY HARBOR'S A PRETTY LARGE COMPANY DOING THIS ALL ACROSS THE COUNTRY.
UM, THEY HAVE A REALLY STRONG FUNDING, UM, BEHIND THEM, AND WE WOULD EXPECT THEM TO HAVE THIS COMPLETED PROBABLY BY THE END OF 26TH.
THEY'LL GET STARTED AS SOON AS IT'S, UM, CODIFIED BY CITY COUNCIL.
UM, AND IT'S, THEY'VE BEEN APPROVED TO START.
UM, WE WOULD EXPECT THEM TO BE DONE WITHIN LESS OF A YEAR.
AND PATRICK, COULD YOU IDENTIFY YOURSELF FOR THE RECORD? UH, PATRICK RENO, DIRECTOR OF AVIATION.
AND JUST ONE QUESTION, PATRICK, ON THESE TWO ITEMS, WAS THERE A RFP PROCESS? HOW DID YOU IDENTIFY SKY HARBOR AS THE POTENTIAL TENANT? WE ARE NOT REQUIRED TO DO, UH, A FORMAL PROCESS BY LAW, BUT WHAT WE DO FOR GROUND THESE LEASES, WE DO A INFORMAL SOLICITATION PROCESS, AND WE HAD AN INFORMAL SOLICIT SOLICITATION PROCESS FOR THIS WHERE WE ASK COMPANIES TO LOOK AT THESE TWO PROPERTIES.
UM, AND, UH, SKY HARBOR WAS THE ONE THAT KIND OF CAME THROUGH AND, AND, UH, RESPONDED TO THE SOLICITATION AND WAS, I THINK THEY WERE THE ONLY ONE THAT RESPONDED TO IT, UM, AS WE HAD REQUESTED.
BUT YOU BELIEVE THAT THESE ARE REASONABLE TERMS FOR THE VALUE OF THE LAND THAT WE'RE LEASING TO THEM, UH, AND THE, UH, CONSIDERATIONS, COMMERCIAL CONSIDERATIONS? UH, YES.
THESE ARE, UH, AGAIN, THESE RATES ARE SET BY CITY COUNCIL.
WE LOOK AT MARKET RATES FOR THE LEASE, UH, FOR THE THE UNIMPROVED LAND.
UH, WHAT'S UNIQUE ABOUT THIS IS WE ARE, WE ARE TRYING TO DRIVE MORE TRAFFIC TO OUR RELIEVER AIRPORT.
UM, THIS IS A COMPANY THAT WAS WILLING TO STEP UP AND HELP US WITH THAT.
SO ONE OF THE THINGS THAT'S NOT TANGIBLE IN THE, THE NUMBERS IS WE'RE DRIVING THAT RELIEVER TRAFFIC.
WE'RE PROVIDING RELIEF FROM LOVE FIELD AND USING DALLAS EXECUTIVE AIRPORT, HOW IT WAS DESIGNED.
UM, AND THIS IS A GOOD MODEL TO START TO SEE THAT HAPPENING.
WELL, THANK YOU FOR BEING PRESENT TO ANSWER THESE QUESTIONS.
ARE THERE ANY QUESTIONS ABOUT ANY OTHER UPCOMING ITEMS FOR THE AGENDA? SEEING NONE, I BELIEVE WE HAVE COMPLETED OUR AGENDA FOR THIS MEETING.
WE ARE NOW ADJOURNED AT 3:05 PM.