[Transportation and Infrastructure on December 2, 2025.] [00:00:03] IT IS NOW 2:41 P.M. AND I AM COMMENCING THE MEETING OF THE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE. NOTICED FOR THIS TIME, OUR FIRST ITEM OF BUSINESS IS APPROVAL OF THE NOVEMBER 17TH TRANSPORTATION AND INFRASTRUCTURE COMMITTEE MEETING MINUTES. MAY I HAVE A MOTION? MOTION TO APPROVE SECOND. ANY DISCUSSION? OH. DO WE HAVE OH WE CAN GET THIS DOWN YEAH [LAUGHTER]. I DON'T HAVE ANY QUESTIONS ON THAT OKAY. OKAY I NOW RECOGNIZE A QUORUM THERE HAS. IS THERE A MOTION TO APPROVE THE MINUTES FROM NOVEMBER 17TH. ANY DISCUSSION? SEEING NONE. ALL THOSE IN FAVOR, PLEASE SAY AYE. ANY OPPOSED? MOTION PASSES. MINUTES ARE APPROVED. THE FIRST ITEM IS ITEM. A CONSIDERATION OF APPOINTEE CANDIDATE TO FILL VACANT POSITION NINE ON THE DFW AIRPORT BOARD OF DIRECTORS TO FILL THE UNEXPIRED 24-2026 TERM. THIS IS AN ISSUE THAT IS RIPE FOR CONSIDERATION. THE COMMITTEE PREVIOUSLY APPROVED FULL TERM RECOMMENDATIONS FOR DART BOARD 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 4TH UNTIL JANUARY 31ST. WE HAVE TWO OPTIONS. 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. THIS IS SOMETHING THAT I'D LIKE TO DISCUSS WITH THE COMMITTEE. ANY PREFERENCES, MS. BLACKMON? I SUGGEST WE GO AHEAD AND PUSH HER UP TO MAKE SURE THAT WE HAVE REPRESENTATION ON THAT BOARD. SHE LIVES IN D9, I WAS HER. WON'T HOLD THAT AGAINST HER. WE WON'T HOLD THAT AGAINST HER. [LAUGHTER]. I WILL SHE WAS INTERVIEWED. 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. THAT WAY WE MAKE SURE WE HAVE SOMEBODY SITTING IN THAT SEAT AT DFW. WELL, I CERTAINLY SUPPORT THAT POSITION. DO YOU WISH TO MAKE A MOTION TO THAT EFFECT? SURE. I WISH TO MOVE THAT WE APPOINT MONICA LAURA BRAVO TO THE UNEXPIRED TERM IN THE POSITION D9. SECOND SEEING NONE, I'LL CALL THE QUESTION. ALL THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANY OPPOSED? MOTION PASSES. ITEM B IS THE PUBLIC TRANSPORTATION IMPROVEMENT PROJECTS UPDATE. DOCTOR KHANKARLI, ARE YOU AVAILABLE? ARE THERE ANY QUESTIONS WITH REGARD TO THIS MEMO FOR DOCTOR KHANKARLI? VICE CHAIR ROTH. THANK YOU FOR THIS COMPLETE AND VERY, VERY DETAILED LIST OF ALL THE THINGS THAT YOU'RE DOING. CAN YOU EXPLAIN TO ME WHAT AND PERHAPS THIS IS SOMETHING I SHOULD KNOW, BUT I DON'T KNOW. 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? MY READERS AREN'T WORKING OKAY SEEING NONE, WE WILL MOVE ON TO C THE TRANSPORTATION PUBLIC WORKS WORK PLAN REPORT FOR FISCAL YEAR 2026. VICE CHAIR ROTH, DID YOU HAVE A QUESTION ABOUT THIS ITEM? THANK YOU I THINK I DO [LAUGHTER]. THIS REALLY IS A DETAILED REPORT FOR MAINTENANCE ITEMS AND STUFF. [00:05:07] AND AGAIN, IT'S JUST CLARIFICATIONS ON WHAT THE WORK IS THROUGHOUT THE THING THERE'S A REFERENCE TO PANEL REPLACEMENTS IN ALL IN DIFFERENT LOCATIONS AS WELL AS ONYX REPLACEMENTS. COULD YOU JUST TELL ME WHAT THAT IS, PLEASE? YES, I THOUGHT ABOUT THAT [LAUGHTER]. I MEAN, SO FIRST OF ALL, GUS KHANKARLI, THE DIRECTOR OF THE DEPARTMENT OF TRANSPORTATION AND PUBLIC WORKS. SO I THOUGHT ABOUT THIS ITEM. SO ON THE NEXT REPORT, I WILL HAVE A CLEAR DEFINITION OF ALL THESE ITEMS TO CLARIFY THIS ISSUE. BUT THE ONYX TREATMENT IS BASICALLY ASPHALT WITH POLYMERS MIX THAT GIVES IT A BETTER CHARACTERISTICS WHEN YOU APPLY IT. AND AS FAR AS THE PANEL REPLACEMENTS, WE GENERALLY REFER TO IT IN THE PAST WHEN THE WHAT WE 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 INDEX, IF YOU WILL, OF THE DEFINITION OF THE ITEM. THAT'S FINE THANK YOU I APPRECIATE IT. ANY OTHER QUESTIONS FOR? CHAIR I JUST HAVE A COMMENT. YES CHAIR MENDELSOHN. SO I'M JUST GOING TO 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 LOTS OF PAGES. WHAT DO WE SAY, 26 PAGES NOW OF THIS REPORT? IT'S IT WAS WORTH WAITING FOR. SO THANK YOU FOR THAT. BUT ALSO THIS TIME YOU DID SORT IT BY COUNCIL DISTRICT. AND SO THANK YOU FOR MAKING THAT CHANGE. 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. 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 WHICH HAD BEEN SO SEPARATED, WHICH, YOU KNOW, THE REGULAR RESIDENTS DON'T CARE ABOUT HOW IT'S FUNDED, THEY JUST WANT IT FUNDED. SO THIS, I THINK, REALLY HELPS US TRACK WHAT, WHAT'S HAPPENING AND THE IMPROVEMENTS FOR OUR INFRASTRUCTURE. SO I JUST WANT TO SAY THANK YOU BECAUSE, YOU KNOW, A YEAR AGO, THIS WAS NOT, WELL, IT WAS NOT ANYTHING LIKE THIS. AND SO THANK YOU FOR A GREAT REPORT. THANK YOU, MA'AM AND APPRECIATE YOUR FEEDBACK AND THIS WAS VERY VALUABLE FOR US TO PRODUCE THESE REPORTS. SO THANK YOU SO VERY MUCH. ANY OTHER QUESTIONS FOR DOCTOR KHANKARLI? DOCTOR KHANKARLI, I'VE GOT A QUESTION IN THE NEXT REPORT. COULD YOU INCLUDE IN THE SCHEDULE EXHIBITS A TALLY OF 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 ARE UTILIZING FOR THAT PURPOSE FROM THE COG AND PERHAPS OTHER SOURCES. THAT IS A GREAT NEED IN OUR DISTRICTS. AND THAT WOULD BE OF INTEREST, I THINK TO HAVE THAT INFORMATION AS WELL. YES, SIR THANK YOU. ALL RIGHT SEEING NO FURTHER QUESTIONS, OUR LAST ITEM ON THE AGENDA IS THE COMMITTEE FORECAST. ANY QUESTIONS OR COMMENTS ABOUT THE FORECAST? YES VICE CHAIR ROTH. I'M 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 CAPITAL LEASES, SIGNIFICANT ITEMS IN SOME OF THESE FUTURE FORECASTED ITEMS, IN PARTICULAR WITH AVIATION AND SOME OTHER MAJOR EVENTS. AND I'M JUST TRYING TO UNDERSTAND WHAT OUR PROCESS IS GOING TO BE IN RECEIVING BRIEFINGS WHAT THE ACTION ITEMS, HOW THE ACTION ITEMS WOULD BE ACTUALLY PURSUED AND AT WHAT POINT WE WOULD BE GOING TO A COUNCIL SITUATION, IF THAT'S IF THAT'S APPROPRIATE. WELL, ACTUALLY, ONCE AGAIN, YOU'RE A LITTLE BIT AHEAD OF THE CURVE VICE CHAIR ROTH IN THAT YOU'RE ADDRESSING THAT THE COMMITTEE FORECAST. BUT THE UPCOMING AGENDA ITEMS. I THOUGHT THESE WERE FORECASTED THANK YOU AGAIN FOR EDUCATING ME [LAUGHTER]. YOUR QUESTION NONETHELESS IS A VALID ONE, AND I'LL GET TO THAT IN JUST A MOMENT. WERE THERE ANY OTHER COMMENTS OR QUESTIONS ABOUT THE COMMITTEE FORECAST? [00:10:04] SEEING NONE, WE'LL TURN TO THE UPCOMING AGENDA ITEMS. AND TO ANSWER YOUR QUESTION ABOUT THOSE ITEMS, MR. ROTH, THESE ARE GENERALLY NOT BRIEFED BY STAFF AT THE COMMITTEE LEVEL. THERE ARE TO ALERT US TO ITEMS THAT WILL BE COMING UP ON A FULL COUNCIL AGENDA MEETING TO ADVISE US THAT THESE ARE DEVELOPMENTS WITHIN OUR PURVIEW IN THIS COMMITTEE. IF YOU HAVE SPECIFIC QUESTIONS ABOUT THOSE PLEASE CONTACT EITHER DEV REPRESENTING OUR CITY MANAGER'S OFFICE OR THE INDIVIDUAL DEPARTMENT DIRECTORS TO GET FURTHER INFORMATION. I'M SURE THEY WOULD WELCOME YOUR INQUIRY. WOULD IT BE APPROPRIATE? AND AGAIN THAT AS A COMMITTEE, WOULD IT BE APPROPRIATE FOR SOME OF THESE LARGER ITEMS TO ASK FOR SPECIFIC COMMITTEE BRIEFINGS IF THEY'RE SIGNIFICANT ITEMS OR? WELL WE CAN CERTAINLY DO THAT WITH AVAILABLE STAFF. ARE THERE SPECIFIC ONES THAT YOU HAVE QUESTIONS ABOUT? WELL, IN PARTICULAR THE ITEMS RELATED TO THE, TO THE EXTENSIVE LEASES AND CONTRACTS THAT ARE BEING DONE AT THE AT THE AIRPORT YEAH. I DON'T KNOW THAT THE DIRECTOR IS HERE. HE IS WE DO HAVE STAFF HERE TO RESPOND TO QUESTIONS ON THESE UPCOMING AGENDA ITEMS. AND OFTENTIMES, WHAT WILL HAPPEN IF WE SEE SOMETHING THAT IS PROBABLY SOMETHING THAT REQUIRES A LOT OF EXPLANATION, WE OFTEN PUT OUT A FRIDAY MEMO IN ADVANCE OF THOSE COMING FORWARD SO THAT YOU CAN REACH OUT TO MYSELF OR THE DIRECTORS TO GET MORE INFORMATION. OF COURSE DURING THE AGENDA MEETING YOU'RE ALSO WELCOME TO ASK QUESTIONS FOR CLARIFICATION IN ADVANCE OF THESE ITEMS BEING VOTED ON. AGAIN, I'M TRYING TO UNDERSTAND THE PROCESS, BUT THESE ARE 40 YEAR LEASES WITH SIGNIFICANT EXTENSIONS, TALKING ABOUT $100 MILLION. I MEAN, HUNDREDS OF LOTS AND 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. OKAY EXPLAIN THESE. EXPLAIN THESE ITEMS TO ME. STARTING AT THE BEGINNING, BECAUSE I DON'T KNOW WHAT THIS IS ABOUT. OKAY COUNCIL MEMBER, COULD YOU RESTATE THE QUESTION ON WHICH ITEMS? I BELIEVE THE FIRST AVIATION ITEM IS ITEM F. OKAY. THAT IS THE CBP LEASE? YES. OKAY. THIS ONE IS WE ARE A USER FEE AIRPORT. SO WHAT THAT MEANS IS WE DO NOT WE'RE NOT A PORT OF ENTRY. SOMETHING THAT YOU SEE AT DFW. THERE'S NOT A FEDERAL INSPECTION STATION. THESE ARE FOR GENERAL AVIATION CLEARANCES. SO PART OF THIS IS WE ESSENTIALLY PAY FOR THE CUSTOMS BORDER PROTECTION TO CLEAR GENERAL AVIATION PLANES. WE DO A COUPLE HUNDRED OF THOSE A MONTH. IN THIS AGREEMENT, WHAT IS REQUIRED IS WE PAY FOR THE SERVICES. WE PAY FOR BASICALLY ALL THEIR NEEDS, THEIR SPACE, EVERYTHING. 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 THAT MAKES UP FOR THAT COST. AND THIS ONE BECAUSE THE SPACE ISN'T OURS, WE HAVE TO REIMBURSE THEM ESSENTIALLY FOR RENT. WE WILL BE LOOKING TO PUT IN A STANDALONE FACILITY AT THE CBP'S REQUEST FOR THE LAST FEW YEARS. SO WE'RE WORKING TOWARDS THAT. SO THIS WILL EVENTUALLY GO AWAY, BUT FOR NOW, WE'RE REIMBURSING THOSE COSTS. OKAY. THE NEXT ONE I HAVE IS THE SOUTHWEST AIRLINES LEASE PREMISE. THIS ONE IS ESSENTIALLY FOR THE EXISTING LEASE. THE CITY COUNCIL APPROVED A NEW LEASE WHICH STARTS IN 2028, IN MAY. THIS IS THE ONE BETWEEN NOW AND 2028. 28. ESSENTIALLY, WE WERE VERY SHORT IN THE TERMINAL FOR SUPPORT SPACE FROM AIRPORT OPERATIONS TO CONCESSION SPACE. SO THEY HAVE AGREED TO KIND OF RELINQUISH SOME OF THE SPACE OF THEIRS. WE'RE GOING TO TAKE THAT BACK AND USE IT FOR AIRPORT OPERATIONS. AND THE BULK OF IT WILL GO TO ACTUALLY CONCESSION STORAGE, WHERE WE DON'T HAVE ENOUGH BACK OF HOUSE SPACE. THE NEXT ONE, THE NEXT TWO ARE ACTUALLY TIED TOGETHER. [00:15:03] THIS IS A SKY HARBOR. THESE ARE HANGAR LEASE DEVELOPMENTS. WE'RE VERY EXCITED ABOUT WE DID A SOLICITATION ABOUT 18 MONTHS AGO 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 HANGARS, ATTRACT NEW TENANTS AT BOTH AIRPORTS. AND THIS WAS THE ONE THAT THAT RESPONDED TO THE SOLICITATION. SO WE'VE BEEN WORKING WITH THEM FOR SOME TIME NOW 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 THE DIFFERENCE IN THE ESTIMATED REVENUE FOR EACH OF THESE. SO THEY WILL THEY'LL DO ABOUT 15 ACRES AT DALLAS EXECUTIVE AND ABOUT SEVEN, EIGHT ACRES AT DALLAS LOVE FIELD. THEY'LL DEVELOP PRIVATE HANGARS. THESE ARE FOR INDIVIDUAL HANGAR TENANTS. IT MAY BE EXISTING PEOPLE THAT ARE BASED AT THE AIRPORT, BUT THE BULK OF THEM WILL BE NEW ENTRANCE AT BOTH DALLAS EXECUTIVE AND DALLAS LOVE FIELD. AND THESE FUNDS ARE IN AN AVIATION FUND THAT YOU ALL HAVE? THESE ARE SO THIS WILL COME INTO THE AIRPORT ENTERPRISE FUND. THE DALLAS EXECUTIVE MONEY IS TYPICALLY ALLOTTED TO THAT COST CENTER, AND THEN THE DALLAS LOVE FIELD IS IDENTIFIED FOR DALLAS LOVE FIELD. IS THE CAPITAL INVESTMENT OBLIGATION OF $17.5 MILLION. IS THAT A CAPITAL OBLIGATION ON THE TENANT, OR IS THAT A CAPITAL OBLIGATION FOR THE CITY? ON THE TENANT. SO BOTH OF THESE AT LOVE FIELD FOR $17,500,000 AND $35 MILLION IS AN OBLIGATION THAT THEY HAVE TO MAKE THOSE INVESTMENTS. ON BOTH OF THEM? YES. AND IS THE AND IS THE TERM FOR A 40 YEAR IN TWO 10-YEAR OPTIONS. IS THAT IS THERE A REASON FOR SUCH A LONG TERM AMORTIZATION? WAS IT REQUIRED? WE TYPICALLY LOOK AT ABOUT 40 AND THEN COME BACK IN. 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 YOU KNOW, THEY END UP PAYING A HIGHER RATE AND THINGS LIKE THAT. SO THESE ARE PRETTY TYPICAL PREVIOUSLY, I THINK IN TEXAS THERE WAS A STATE LAW AT 40 YEARS, 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 ON THESE KIND OF IF YOU'RE IF THEY'RE SPENDING $50 MILLION TO BUILD TERMINALS OR BUILD FACILITIES THERE, IS THERE RESTRICTIONS ON HOW THEY FINANCE IT? WHAT ARE WHAT THEIR OBLIGATIONS ARE TO MAKE SURE THAT WE END UP WITH THE WITH THE BUILDINGS WHEN THEY'RE FINISHED? IN OTHER WORDS, IS THERE OR HOW IS THE CITY PROTECTED AND THE AND THE AIRPORT PROTECTED? THERE'S MECHANISMS IN PLACE, LET'S SAY THAT THEY SOLD THE FACILITY THEY DISSOLVED OR SOMETHING, THERE'S PROTECTIONS. ULTIMATELY, THE LAND IS OWNED BY THE CITY OF DALLAS. IT'S CONTROLLED BY AVIATION. SO THE ASSETS, THE PHYSICAL STRUCTURE, THE VERTICAL STRUCTURES WILL ALWAYS BE TECHNICALLY OUR PROPERTY. IT'S JUST WHEN IT REVERTS. SO IF THEY DEFAULTED ON THE TERMS OF THE CONDITIONS OF THE LEASE, IT WOULD DEFAULT TO THE CITY OF DALLAS. 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 GOING TO DO THERE? DO YOU KNOW? OR IS THIS A SPECULATION? STORAGE HANGARS SO THESE ARE, YOU KNOW, TYPICALLY IT WILL BE JETS. 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. THEY MAY NOT HAVE, YOU KNOW, WANT TO MAKE THE INVESTMENT IN BUILDING THEIR OWN. SO WE OBVIOUSLY WE'RE DALLAS LOVE FIELD, DALLAS EXECUTIVE IS GROWING. DALLAS LOVE FIELD IS 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 METROPLEX, ESPECIALLY ADDISON AIRPORT'S FULL DALLAS LOVE FIELD'S PRETTY FULL. SO DALLAS EXECUTIVE HAS A PRIME OPPORTUNITY FOR THIS. AND WE STILL HAVE IT'S A GOOD THING FOR DALLAS LOVE FIELD BECAUSE YOU'RE NOT GOING TO BE ATTRACTING TRANSIENT TENANTS WHERE A FIXED BASE OPERATOR MIGHT HAVE A LOT OF IN AND OUT. THESE WILL BE SINGLE OPERATORS THAT MAY BE JUST TRAVELING ONCE A DAY OR A COUPLE TIMES A WEEK. SO IT'S A GOOD WIN FOR US AT DALLAS LOVE FIELD AS WELL. [00:20:02] AND AS FAR AS THE RENT THAT YOU'RE GETTING AND AGAIN, I'M NOT DISPARAGING THE DEALS I WANT. THIS IS A GREAT OPPORTUNITY TO GENERATE REVENUE TO GENERATE ACTIVITY. THIS IS ALL ECONOMIC DEVELOPMENT WHICH IS WHICH IS ABSOLUTELY TERRIFIC. THE BUT I WANT 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. 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 GOING TO HAVE ANY OTHER COSTS THAT ARE NOT GOING TO BE COVERED BY THIS? BECAUSE THESE ARE THIS IS A BIG PROJECT. IT SOUNDS LIKE TO ME IT IS A BIG PROJECT. THERE'S SOME INFRASTRUCTURE COSTS, PARTICULARLY AT DALLAS EXECUTIVE EXTENDING A ROAD, SOME UTILITY EXTENSIONS. BUT THOSE ARE KIND OF FACTORED INTO WHAT WE DO DAY TO DAY. WE'RE 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 THERE'S 11 RELIEVERS IN THE METROPLEX, DALLAS EXECUTIVE'S ONE OF THEM, WE'RE YOU KNOW, WE'RE NOT GOING TO BE VERY COMPETITIVE. SO WE HAVE THAT ALL FACTORED INTO OUR CAPITAL PROGRAMING. THE POTENTIAL TO MAKE SOME OF THESE LIKE I SAID, UTILITY EXTENSIONS. SO THOSE ARE ALL FACTORED INTO WHEN WE LOOK AT THE ROI ON THESE. OBVIOUSLY YOU WANT TO BE POSITIVE. BUT WE ALSO WANT TO GENERATE THE AVIATION GENERATION OR ECONOMIC GENERATION FROM IT'S VALUABLE FOR US AS WELL. SO WE'RE LOOKING AT WE NEED TO PAY OUR BILLS, BUT WE ALSO WANT TO BRING THE NEW ENTRANTS IN AND DRIVE MORE BUSINESS. WHEN DO YOU ANTICIPATE THAT THESE PROJECTS ARE GOING TO START AND GET AND GET ONLINE? SKY HARBOR IS A PRETTY LARGE COMPANY DOING THIS ALL ACROSS THE COUNTRY. THEY HAVE A REALLY STRONG FUNDING BEHIND THEM. AND WE WOULD EXPECT THEM TO HAVE THIS COMPLETED PROBABLY BY THE END OF 26. THEY'LL GET STARTED AS SOON AS IT'S CODIFIED BY CITY COUNCIL. AND IT'S THEY'VE BEEN APPROVED TO START. WE WOULD EXPECT THEM TO BE DONE WITHIN LESS OF A YEAR. OKAY THANK YOU. AND, PATRICK, COULD YOU IDENTIFY YOURSELF FOR THE RECORD? PATRICK CARRENO, 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 A FORMAL PROCESS BY LAW. BUT WHAT WE DO FOR GROUND THESE LEASES, WE DO A INFORMAL SOLICITATION PROCESS, AND WE HAD AN INFORMAL SOLICITATION, SOLICITATION PROCESS FOR THIS, WHERE WE ASKED COMPANIES TO LOOK AT THESE TWO PROPERTIES. THEY WERE TIED TOGETHER. AND SKY HARBOR WAS THE ONE THAT KIND OF CAME THROUGH AND, AND RESPONDED TO THE SOLICITATION AND WAS I THINK THEY WERE THE ONLY ONE THAT RESPONDED TO IT AS WE HAD REQUESTED. BUT YOU BELIEVE THAT THESE ARE REASONABLE TERMS FOR THE VALUE OF THE LAND THAT WE'RE LEASING TO THEM AND THE CONSIDERATIONS COMMERCIAL CONSIDERATIONS? YES THESE ARE AGAIN, THESE RATES ARE SET BY CITY COUNCIL. WE LOOK AT MARKET RATES FOR THE LEAST FOR THE UNIMPROVED LAND. WHAT'S UNIQUE ABOUT THIS IS WE ARE WE ARE TRYING TO DRIVE MORE TRAFFIC TO OUR RELIEVER AIRPORT. 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. AND THIS IS A GOOD MODEL TO START TO SEE THAT HAPPENING. I SEE. 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 P.M. * This transcript was compiled from uncorrected Closed Captioning.