MEET­ING MINUTES

MEET­ING MIN­UTES

PANA­MA CITY – BAY COUN­TY AIR­PORT AND INDUS­TRI­AL DIS­TRICT

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Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., June 29, 2022 by Chair Glen McDon­ald.

The Invo­ca­tion was giv­en by Vice Chair Hol­ly Melz­er.

The Pledge of Alle­giance was led by Mr. Will Cramer.

Roll was called. In atten­dance were: Mr. Bri­an Kel­len­berg­er, May­or Mark Shel­don, Mr. Will Cramer, Mr. Les McFat­ter, Vice Chair Melz­er and Chair Glen McDon­ald.

Chair McDon­ald asked if there were any Pub­lic Com­ments. There were no Pub­lic Com­ments.

Chair McDon­ald asked if there were any items on the Agen­da, includ­ing the Con­sent Agen­da, that any Board Mem­ber would like to move to a Busi­ness Item for fur­ther dis­cus­sion, and if not, to make a motion to accept the Agen­da.

Vice Chair Hol­ly Melz­er made a motion to accept the Agen­da, and May­or Mark Shel­don sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Pre­sen­ta­tion: Procla­ma­tion Rec­og­niz­ing Randy Iler’s Retire­ment

Chair McDon­ald rec­og­nized Mr. Randy Iler for 33 years of ser­vice with Pana­ma City – Bay Coun­ty Air­port and Indus­tri­al Dis­trict and pre­sent­ed him with a Procla­ma­tion mak­ing June 29, 2022 ​“Randy Iler Day”.

Reports:

Mr. Park­er McClel­lan pre­sent­ed the Activ­i­ty Reports. Air­fares are up 37 – 40% with increased fuel prices and are impact­ing dis­cre­tionary trav­el, so num­bers are down a lit­tle, but Mr. McClel­lan says there should be no need for con­cern. We are still in pos­i­tive growth over 2019, and still on course to have a very good year. The load fac­tors are very high and the air­lines are doing extreme­ly well at capac­i­ty man­age­ment. We are at 23% of the Mar­ket Share and we are a pos­i­tive part of the suc­cess across our Region; show­ing growth espe­cial­ly in Bay and Wal­ton Coun­ties.

Mrs. Dar­lene Gor­don pre­sent­ed the Finan­cial Reports for the 8 months end­ing May 31, 2022. Our cash increased $1.1 mil­lion in the month of May. Our total cash bal­ance is $34.1 mil­lion; a $7.6 mil­lion increase over this time last year. Rev­enues are strong and con­tin­ue to exceed our bud­get. YTD our Oper­at­ing Rev­enues at 133% of bud­get. Income from the Rental Cars is up 19%, and Park­ing Fees are up 74% over May YTD of last year. Both con­tin­ue to be big assets. Over­all, finan­cials are very pos­i­tive and we are in a very strong finan­cial posi­tion.

Con­sent Agen­da:

Board Meet­ing Min­utes – May 25, 2022

This Item pro­vid­ed for Board approval of the May 25, 2022 Board Meet­ing Min­utes.

Approve Lease with DADE GSE

This item pro­vides for Board approval of a Car­go Build­ing Lease between the Dis­trict and Dade GSE.

In Sep­tem­ber, 2019, Dade GSE began leas­ing space from the Air­port to pro­vide Ground Sup­port Equip­ment main­te­nance ser­vices to Delta and Unit­ed at the Air­port. This lease is set to expire August 31, 2022. Dade GSE con­tin­ues to pro­vide Ground Sup­port Equip­ment main­te­nance ser­vices at the Air­port and has request­ed to con­tin­ue leas­ing same space in sup­port of the ser­vices to Air­port air­line ten­ants. Dade GSE has request­ed no lapse in the lease agree­ment and will enter a new lease to be effec­tive Sep­tem­ber 1, 2022. The terms of the lease will be as fol­lows:

Lease term is one year with two, one-year renew­al options

Start­ing rental rate will be $1,949.85/month, with an annu­al adjust­ment based on the CPI

Proof of gen­er­al lia­bil­i­ty, casu­al­ty and auto­mo­bile insur­ance is required, with Dis­trict named as an addi­tion­al insured

Area leased will be approx­i­mate­ly 1,000 square feet, locat­ed in the air car­go build­ing at the Air­port.

The Air­port Oper­at­ing and Main­te­nance Bud­get will be pos­i­tive­ly impact­ed by the amount of rev­enue from this lease. Month­ly rev­enue gen­er­at­ed would be approx­i­mate­ly $1,949.85 ($23,398.20 annu­al­ly).

Staff rec­om­mends Board approval of the Lease with Dade GSE

Rat­i­fy Accep­tance of FAA Grant Offer for Envi­ron­men­tal Mit­i­ga­tion

This item pro­vides for Board Rat­i­fi­ca­tion of the Accep­tance of an FAA Grant for use of Enti­tle­ment Funds that pro­vides fund­ing for Envi­ron­men­tal Mit­i­ga­tion con­struc­tion efforts on the approx­i­mate­ly 9,600 acres south of the Air­port. This is an ongo­ing part­ner­ship between the FAA and the Air­port to con­tin­ue mit­i­ga­tion efforts.

This FAA Grant Offer rep­re­sents one of the Airport’s FY22 requests for enti­tle­ment funds under the FAA Air­port Improve­ment Pro­gram. This Grant pro­vides for:

Mit­i­ga­tion Site Devel­op­ment (Phase 6 of 8)

Ongo­ing project to improve the mit­i­ga­tion prop­er­ty; and

Includes tasks iden­ti­fied as con­struc­tion projects, includ­ing, but not lim­it­ed to, con­struc­tion of low water cross­ings, replant­i­ng, and burn­ing.

The total cost of con­struc­tion phase of the project is $143,676 and is reim­bursable under this FAA Grant at a 90/10% split for eli­gi­ble items.

Fund­ing for this project will be includ­ed in the FY23 Air­port Bud­get.

Staff rec­om­mends Board Rat­i­fi­ca­tion of the Accep­tance of the FAA Grant Offer for Envi­ron­men­tal Mit­i­ga­tion Site Devel­op­ment.

Mr. Les McFat­ter made a motion to accept the Con­sent Agen­da, and Mr. Will Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Busi­ness Items:

Approve Lease Amend­ment #6 – Sheltair Pana­ma City, LLC

Mr. McClel­lan explained that Sheltair has been a great part­ner to the Air­port since 2010 and have a very suc­cess­ful facil­i­ty. He showed an aer­i­al view of Option Par­cel #4 that Sheltair is ask­ing to be added to the lease where they plan on build­ing an addi­tion­al ramp, hangar, park­ing and oth­er build­ings. This Item is to approve Amend­ment #6 to their lease.

We have received a request from Sheltair to mod­i­fy their lease to trans­fer the Option Par­cel 4 to the per­ma­nent­ly leased area. Sheltair intends to con­struct an addi­tion­al ramp, vehi­cle park­ing and a hangar on the addi­tion­al area.

Amend­ment #6 will incor­po­rate the area includ­ed in Option Par­cel 4 into the per­ma­nent­ly lease area. This Option Par­cel 4 includes approx­i­mate­ly 81,338 square feet or 1.867 acres.

Exhib­it A of the Amend­ment reflects the esti­mat­ed acreage that will be includ­ed in the amend­ment and a final sur­vey will be attached at the time of exe­cu­tion reflect­ing as built con­di­tions as well as bound­aries.

The Amend­ment will be effec­tive July 1, 2022. Rent will remain at the Option rate of $0.03 per square foot until the improve­ments are com­plete, but not lat­er than Decem­ber 31, 2023, at which time the rent will be approved rental rate per square foot.

The fis­cal impact of the Amend­ment #6 will increase rev­enues for the future bud­gets based on the approved rental rate at time of ben­e­fi­cial occu­pan­cy, with the rental con­tin­u­ing through­out the term of the lease unless fur­ther amend­ed.

Staff rec­om­mends that the Amend­ment #6 to Sheltair’s Lease be approved.

Mr. Will Cramer made a motion to approve Lease Amend­ment #6 – Sheltair Pana­ma City, LLC, and May­or Mark Shel­don sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

b. Approve FBO Lease with South­ern Sky Avi­a­tion, KECP, LLC


This project, known as ​“Project Tiger”, began as a dis­cus­sion with the Air­port, the Bay Eco­nom­ic Devel­op­ment Alliance and South­ern Sky Avi­a­tion as a Main­te­nance Repair and Oper­a­tions (“MRO”) type project. As the process began to move for­ward, it was rede­fined as an FBO Project.

Mr. McClel­lan explained that South­ern Sky Avi­a­tion is head­quar­tered in Birm­ing­ham, AL and has loca­tions in Pascagoula, MS and Birm­ing­ham, AL. The FBO lead­er­ship team has more than 40 years of expe­ri­ence in FBO oper­a­tions and main­te­nance and oth­er types of air­craft ser­vices and sup­port ser­vices. They wish to build a new FBO facil­i­ty at ECP. He pre­sent­ed slides with the aer­i­al view of the approx­i­mate­ly 11-acre par­cel of land (Exhib­it A) that they would like to lease for the build. The sec­ond FBO will be com­pli­men­ta­ry to the already exist­ing Sheltair.

Mr. Don­ald How­ell, Pres­i­dent and CFO of South­ern Sky Avi­a­tion, KECP, LLC intro­duced his team and pre­sent­ed the site plan and the con­cep­tu­al views for the pro­posed FBO. If approved, ground­break­ing is expect­ed in in mid-Octo­ber 2022. They have ten­ta­tive­ly planned to start oper­at­ing with a par­tial facil­i­ty, as soon as it is safe to do so, while the rest of the project is being com­plet­ed. Project com­ple­tion is antic­i­pat­ed to be in Decem­ber 2023.

South­ern Sky Avi­a­tion will lease the par­cel between the Fuel Farm and the cor­po­rate hangars, which is approx­i­mate­ly 11+/- acres at a rental rate of $0.38/ square foot. The Facil­i­ty will include a ter­mi­nal, hangars, air­craft tie-downs and ramp space, and will have a cap­i­tal invest­ment esti­mat­ed to be in excess of $25 mil­lion dol­lars. The facil­i­ties will meet the min­i­mum stan­dards for an FBO, pro­vid­ing ser­vices for gen­er­al and com­mer­cial avi­a­tion.

The term of the lease is thir­ty (30) years, with two (2) ten (10) year options and has rate adjust­ments through­out the term. Addi­tion­al­ly, the Dis­trict will pro­vide $400,000 to South­ern Sky to be spent on the con­struc­tion of the infra­struc­ture on the FBO site.

As part of the devel­op­ment process, Staff and Legal Coun­sel have per­formed dili­gence as to the financ­ing of the project.

Accep­tance of this agree­ment will pos­i­tive­ly impact the Airport’s Oper­at­ing and Cap­i­tal Improve­ment Bud­get with an ini­tial esti­mat­ed annu­al income of $182,000 along with rate esca­la­tions as out­lined in the lease. The $400,000 invest­ment from the Air­port will be paid with funds from the CARES grant.

Staff rec­om­mends Board approval of the FBO Lease Agree­ment with South­ern Sky Avi­a­tion – KECP, LLC and the $400,000 infra­struc­ture invest­ment pro­vid­ed by the Air­port.

Mr. Will Cramer made a motion to approve FBO Lease with South­ern Sky Avi­a­tion, KECP, LLC, and Vice Chair Hol­ly Melz­er sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

c. Adopt Res­o­lu­tion for FDOT – State Infra­struc­ture Bank (SIB) Loan Appli­ca­tion for Ter­mi­nal Expan­sion

Mr. McClel­lan explained that as we look to the future, we want to make sure fund­ing is avail­able to begin future devel­op­ments. At the moment, we are wait­ing for fund­ing from the FAA as well as oth­er grants. This loan would be for $25 mil­lion and would give cash flow that will allow work to begin on the North expan­sion or oth­er while wait­ing for the pos­si­ble grant monies to become avail­able.

The adop­tion of this Res­o­lu­tion will allow for the fil­ing of an appli­ca­tion with the Flori­da Depart­ment of Trans­porta­tion State Infra­struc­ture Bank (“SIB”) for finan­cial assis­tance. The assis­tance will be in the form of a loan to pro­vide par­tial fund­ing for the pur­pose of expan­sion of the North­west Flori­da Beach­es Inter­na­tion­al Air­port accord­ing to the Mas­ter Plan Update as approved and adopt­ed by the Board on April 20, 2022. The Res­o­lu­tion also autho­rizes the Exec­u­tive Direc­tor to act on mat­ters relat­ed to the appli­ca­tion.

While Staff is active­ly pur­su­ing grants to fund the projects, it is not prob­a­ble that the Air­port will receive ade­quate grant funds to com­plete the con­struc­tion of the projects. Com­pli­cat­ing the process of the SIB loan appli­ca­tion is the tim­ing of the Bipar­ti­san Infra­struc­ture Law (BIL) Grant funds award noti­fi­ca­tion admin­is­tered through the Fed­er­al Avi­a­tion Admin­is­tra­tion (FAA). The expect­ed date of the announce­ment of the first round of awards is end of June or lat­er. There are addi­tion­al awards that will fol­low the first round, annu­al­ly.

With the tim­ing dead­line of the SIB loan due date being end of June, Staff believes it is in the best inter­est of the Air­port to begin the appli­ca­tion process. Should the orig­i­nal appli­ca­tion amounts need to be reduced, SIB rep­re­sen­ta­tives have indi­cat­ed that would be accept­able pri­or to the loan’s issuance.

Staff rec­om­mends the adop­tion of this Res­o­lu­tion to file an appli­ca­tion for finan­cial assis­tance from the Flori­da Depart­ment of Trans­porta­tion State Infra­struc­ture Bank in an amount not greater than $26,000,000, which is approx­i­mate­ly 50% of the project cost and to allow the Exec­u­tive Direc­tor to act in all mat­ters relat­ed to the appli­ca­tion.

May­or Mark Shel­don made a motion to Adopt Res­o­lu­tion for FDOT – State Infra­struc­ture Bank (SIB) Loan Appli­ca­tion for Ter­mi­nal Expan­sion, and Mr. Will Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Con­struc­tion Update (infor­ma­tion only):

Air­port Entrance Round­about and State Road (SR) 388 Realign­ment

Mr. Richard McConnell report­ed on the S.R. 388/​Airport Entrance Round­about. The Airport’s Entrance Sign is now up in the cen­ter of the future Round­about. They have begun the curb and gut­ter for the Round­about. FDOT has asked us to look into drilling a third well to sup­ply water to the land­scap­ing that will be added to the cen­ter of the Round­about. It is antic­i­pat­ed that the work should be most­ly com­plet­ed by Octo­ber. Mr. McClel­lan added that the pow­er to the sign should be con­nect­ed by August and the sign will be illu­mi­nat­ed at night.


Bay EDA Update (Infor­ma­tion Only):

Bay EDA Pres­i­dent Ms. Bec­ca Hardin report­ed that the South­ern Sky project was a col­lab­o­ra­tive effort and thanked every­one involved. Since the last Board Meet­ing, Cen­tral Mal­oney had a rib­bon cut­ting and grand open­ing at Ven­ture Cross­ings. They will start hir­ing in the fall through Career­Source. Resia is a new com­pa­ny that will be build­ing a 200,000 square foot man­u­fac­tur­ing facil­i­ty in Ven­ture Cross­ings across from Cen­tral Mal­oney and will be cre­at­ing 200 jobs and $45 mil­lion in cap­i­tal invest­ment. Resia man­u­fac­tures mod­u­lar rooms for the con­struc­tion of high-rise apart­ments. A Cana­di­an com­pa­ny that Bec­ca and her team met at Project Maple is com­ing to our area for a site vis­it at the end of July or first part of August. Bec­ca and Ben will be trav­el­ling to the 2022 Farn­bor­ough Inter­na­tion­al Air Show with Enter­prise Pow­er and Flori­da Pow­er and Light in July to rep­re­sent our area. It is the first event like this to take place in 2 years since the Pan­dem­ic, so every­one is excit­ed.

The Moore Agency Update (Infor­ma­tion Only):

Ms. Katie Spill­man of The Moore Agency report­ed on mar­ket­ing. She announced the Wheels Up Sum­mer Music Series is kick­ing off in July. We will have local musi­cians enter­tain­ing pas­sen­gers in the Ter­mi­nal every Sat­ur­day in July. She also pre­sent­ed a video project host­ed by Den­nis Quaid that will be aired through pub­lic tele­vi­sion on the pro­gram ​“View­point” in all 50 states. It will start to roll out in Sep­tem­ber 2022.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan gave the Exec­u­tive Direc­tor Report. He talked about the addi­tion­al staff that have been added over the last month. He intro­duced Beth Har­less, Account­ing Assis­tant, Mikko Hut­tunen, Air­port Plan­ner and Lau­ren Bakun, Intern who all began employ­ment at the Air­port.

Pub­lic Com­ments:

There were no Pub­lic Com­ments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:00 a.m.

Next meet­ing is sched­uled: July 27, 2022 – Board Meet­ing 9:00 a.m.
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Lisa Brady, Exec­u­tive Assis­tant Hol­ly Melz­er, Chair