Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Octo­ber 22, 2025 by Chair Mark Sheldon.

The Invo­ca­tion was giv­en by Chair Mark Sheldon.

The Pledge of Alle­giance was led by Mr. Les McFatter.

Roll was called. In atten­dance were: Ms. Vic­to­ria Williams, Mr. Les McFat­ter, Ms. Hol­ly Melz­er, Mr. Glen McDon­ald, and Chair Mark Sheldon.

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

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

Mr. Les McFat­ter made a motion to accept the Agen­da and Ms. Vic­to­ria Williams sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Reports:

Air­port Activity:

Mr. Park­er McClel­lan updat­ed the Board on the Activ­i­ty Reports. The month of Sep­tem­ber showed an increase in total pas­sen­gers of over I0.5% com­pared to 2024, which is main­ly due to an increase of 42 flights over last year.

Con­sent Agenda:

1. Approve Board Meet­ing Min­utes - Sep­tem­ber 24, 2025

This item pro­vides for Board approval of the Sep­tem­ber 24, 2025 Board Meet­ing Minutes.

Approve Lob­by­ing Agree­ment with Rubin Turnbull

- This item pro­vides for Board approval of the Lob­by­ing Agree­ment with Rubin Turnbull.

Approve Men­zies 2026 Budget

This item pro­vides for Board approval of Men­zies 2026 Budget.

Approve Flori­da Pow­er & Light {FPL) Relo­ca­tion of Main Pow­er Feed for Ter­mi­nal Expan­sion Proiect

This item requests approval by the Board for the Relo­ca­tion of the Main Pow­er Feed for the Ter­mi­nal Expan­sion project.

Approve Dis­pos­al of Property

This item pro­vides for Board approval for the Air­port to dis­pose of lost or aban­doned property.

Mr. McDon­ald made a motion to Accept the Con­sent Agen­da and Ms. Williams sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

1. Pre­sen­ta­tion-Ter­mi­nal Expan­sion Rate Impacts, Ricon­do (infor­ma­tion only)

Ms. Kristi­na Wood­ward, SVP with Ricon­do and Asso­ciates, pre­sent­ed the Ter­mi­nal Expan­sion Project Plan of Finance. The Plan was devel­oped to illus­trate the effects that the Ter­mi­nal Expan­sion project would have on the rates and charges at the Airport.

Fol­low­ing a sum­ma­ry of Finan­cial Terms, three sce­nar­ios were pre­sent­ed and explained:

1) a Base­line Sce­nario to include $20 mil­lion ATP Grant and SIB/TIFIA loans paid with PFC rev­enues; 2) a plan with no ATP Grant and Addi­tion­al TIFIA Loan and Dis­trict fund­ing; and 3) a sce­nario with no ATP Grant nor TIFIA Loan with addi­tion­al debt and rate base charges mak­ing up the dif­fer­ence. Ms. Wood­ward stat­ed that the met­ric we want to focus on in each sce­nario is the Cost Per Enplaned Pas­sen­ger (CPE).

Uti­liz­ing the Base­line Sce­nario with a project cost of $118.6M, the total cost is $165.9M includ­ing financ­ing and inter­est. The total impact to the air­line rate base is $7.5M. The PFC fund bal­ance remains pos­i­tive through the 9‑year pro­jec­tion peri­od due to the avail­abil­i­ty of the ATP grant. Impacts on the CPE are min­i­mized due to max­i­mized Fed­er­al and State grants and PFC funds, and the esti­mat­ed CPE is $7.06 in FY 2034. 

In Sce­nario 2, there are no ATP Grant funds, an addi­tion­al $5M of TIFIA debt to be issued, and the remain­ing cost of $15M will be added to the $7.5M air­line rate base amount shown in the Base­line Sce­nario. The total cost with financ­ing and inter­est is $171.0M. In this sce­nario, the PFC fund bal­ance decreas­es below its cur­rent lev­el in FY 2033 and the esti­mat­ed CPE is $7.34 by FY 2034. 

Sce­nario 3 reflects no ATP grant and also con­sid­ers that no TIFIA loan will be avail­able. Addi­tion­al debt will be issued and the total impact to the rate based will be $40.5M. The total project cost of $118.6M, the total cost includ­ing financ­ing and inter­est is $146.5M. The CPE reach­es a max­i­mum of $7.69 by FY 2034 and the PFC fund bal­ance falls below its cur­rent lev­el by FY 2027. 

Dis­cus­sion ensued and Mr. McClel­lan shared an update on the Air­port’s cur­rent Ter­mi­nal Expan­sion fund­ing process.

Strate­gic Plan (dis­cus­sion only)

Mr. McClel­lan stat­ed, that the typ­i­cal Strate­gic Plan is a five-year plan that includes a Mis­sion, Vision, and Goals with an objec­tive of how to achieve those goals. He has reached out to two Con­sul­tants for infor­ma­tion on how to move for­ward. Mr. McClel­lan seeks direc­tion from the Board.

Chair Shel­don stat­ed he would like to iden­ti­fy what suc­cess is for the Air­port. His goals include deter­min­ing what we need to do in the next five-ten years to be suc­cess­ful, what needs to be done to keep that vision con­tin­u­ing in the long term, and how do we give a roadmap to the next gen­er­a­tion, includ­ing finan­cial­ly, oper­a­tional­ly, and region­al­ly. He also wants the Strate­gic Plan to define how suc­cess is measured. 

Dis­cus­sion about the Strate­gic Plan ensued.

The Board direct­ed Mr. McClel­lan to devel­op and plan with strate­gic plan­ning con­sul­tants and make a rec­om­men­da­tion to the Board regard­ing how to proceed.

Approve Air Ser­vice Devel­op­ment Incen­tive Pro­gram (ASIP}

Mr. McClel­lan pre­sent­ed the new Air Ser­vice Devel­op­ment Incen­tive Pro­gram, which includes new required FAA mod­i­fi­ca­tions, which will be used to active­ly recruit air car­ri­ers to offer new non­stop air service.

The ASIP will offer var­i­ous incen­tives includ­ing rebates of land­ing fees and ter­mi­nal rents when cer­tain cri­te­ria are met.

The ASIP will be post­ed after Board approval and become effec­tive after a 30 day post­ing period.

Mr. McDon­ald made a motion to Approve the Air Ser­vice Devel­op­ment Incen­tive Pro­gram and Mr. McFat­ter sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Con­struc­tion Updates (Infor­ma­tion Only)

Ardur­ra Group

• Mr. Aaron Buob pre­sent­ed an update on the fol­low­ing items:
  • Haul road and Tem­po­rary Road Diver­sion (TRD);

Research­ing Val­ue Engi­neer­ing oppor­tu­ni­ties for the Ter­mi­nal Expan­sion Project;

• Intro­duc­tion of Kyle Athey as Ardur­ra’s Project Manager;

Com­ple­tion of fenc­ing set-up, road clo­sure, and ground breaking;

• Assess­ing admin­is­tra­tive work­flows with the Air­port and Cardel­la; and
• Ter­mi­nal Expan­sion-Mr. Sebas­tiano ​“Seabass” Cardel­la shared the project week­ly report tar­get­ed time­lines and the steps mov­ing for­ward for the team

AVCON

Ms. Tonya Nation pro­vid­ed an update on sev­er­al projects that are on-going, including:

• Devel­op­ment Orders (DO) have been issued for the North Ter­mi­nal Expan­sion Project and the Tem­po­rary Road Diver­sion (TRD), the Build­ing Per­mit was issued for the Ter­mi­nal Expansion;
• Design Team is work­ing on the Con­formed draw­ings for the Ter­mi­nal Package;

Fuel Farm design is mov­ing ahead and the sched­ule and mile­stones are being devel­oped with con­struc­tion fund­ing avail­able late 2026; 

• ACDBE report was com­plet­ed and accept­ed by the FAA; and
• Qual­i­fied Mit­i­ga­tion Super­vi­sion (QMS) is an ongo­ing effort.

Project Plan­ning Update (infor­ma­tion only)

1. Project InSPIRE

Mr. McClel­lan stat­ed there were no new updates for this project.

Flori­da Nation­al Guard Armory

Mr. McClel­lan stat­ed an ease­ment was issued for TECO. An announce­ment for the grand open­ing of the Armory should be forthcoming.

Bay EDA Update (infor­ma­tion only)

Mr. Ben Moor­man pro­vid­ed the fol­low­ing updates to ongo­ing projects.

IAG Aero Group is mov­ing ahead and is con­tract­ing with an archi­tect. Oper­a­tions are expect­ed to begin with­in two to three years. 

• Pre­mière Avi­a­tion is mov­ing in a pos­i­tive direc­tion from a financ­ing stand­point. A meet­ing with Pre­mier, the EDA, and the Air­port is sched­uled for tomorrow.
• Bay Coun­ty EDA returned from MRO Europe and met with 17 com­pa­nies in two days.

MRO Amer­i­c­as will be held in Orlan­do next year, allow­ing us an oppor­tu­ni­ty to host com­pa­nies in Pana­ma City.

• In Novem­ber, project Launch Pad is seek­ing a sight vis­it, look­ing for a 50 to 90-acre site to house a 320,000 square foot facil­i­ty, which will bring 280 jobs and a $220M cap­i­tal invest­ment to Bay County.

Moore Agency Update (infor­ma­tion only)

Ms. Katie Spill­man pre­sent­ed updates on the following:

ECP vot­ed #4 for Best Resort Air­port by USA Today Read­er’s Choice awards.

• 850 Mag­a­zine arti­cle fea­tured an in-depth inter­view with Air­port Exec­u­tive Direc­tor Park­er McClellan.
• ECP rep­re­sent­ed by a half-page ad in the Decem­ber issue of Flori­da Trend Mag­a­zine, con­tent is focused on North­west Florida.
• Air­port Team Com­mu­ni­ca­tions for the Air­port Expan­sion project, includ­ing a video, social media, newslet­ter, and local media coverage.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan report­ed Sun­day’s kick-off of dai­ly ser­vice to LaGuardia.

This week the Trans­porta­tion Secu­ri­ty Offi­cers (TSO) will go into no-pay sta­tus due to the gov­ern­ment shut down. We are for­tu­nate with the ded­i­ca­tion of our TSOs and the fact that they have his­tor­i­cal­ly come to work even when they are not being paid. He asked that all show our appre­ci­a­tion and thank them.

There were no addi­tion­al pub­lic comments.

Next meet­ing sched­uled: Board Meet­ing: Novem­ber 19, 2025 — 9:00 a.m. The meet­ing was adjourned at approx­i­mate­ly 10:06 a.m.