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Home My WebLink AboutIR 8407 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8407 To the Mayor and Members of the City Council Date: June 4, 2002 Page 1 of 3 • SUBJECT: Issuance of Fixed Base Operator Permit to Anthony lass Properties at Spinks Airport On May 28, 2002, the City Council was briefed on a proposal to issue a Fixed Base Operator(FBO) Permit to Anthony Properties at Spinks Airport and for the Aviation Department to transition out of the provision of these services. Council members asked staff to provide additional information on the following: 1) what is the projected break even point for expenditures and revenue from Spinks Airport, 2) what is Anthony Properties' relevant experience, and 3) what performance measures will be included in the FBO Permit. 1. Expenditure and Revenue Issue—Break Even Point: The chart below shows a projected break-even point for Spinks of FY2004. The FY2003 budget request reflects the purchase of a replacement airport vehicle at $28,500 and a replacement mower for $10,400. These costs will not reoccur in the next years, which accounts for the drop in expenses in FY2004. The expenditures reflect an anticipated 3% increase on an annual basis and do not reflect additional capital outlays in this time frame. The revenue estimate reflects current revenue with an assumed 3% CPI increase, as well as anticipated revenue from the completion of R&R Hangars' eastside development in the eromount of$23,200 in FY 2004. The fuel flowage fee revenue was derived from fuel sale estimates received Anthony Properties. Year 2003 2004 2005 2006 2007 Revenue $387,485 $429,410 $447,992 $469,982 $492,631 Expenditures $465,508 $420,866 $433,492 $446,497 $459,892 2. Anthony Properties: Anthony Properties is a real estate development entity which caters to credit retailers across the country. Most projects are individual buildings constructed for single tenants with long term, triple net leases, and a guaranteed twenty-year income stream. As such, all costs and profit potential are identified prior to purchasing land or incurring significant costs. The principal owner, Jay Anthony, has pursued this business since 1983, and been responsible for numerous projects totaling over 2,000,000 square feet of retail. Mr. Anthony received a B.A. from DePauw University where he majored in Economics and Romance Languages. He has studied abroad in Spain, Colombia, and France. In 1975, he earned an M.B.A. from the Fuqua School of Business at Duke University. Mr. Brian Shiu, Vice President of Development for Anthony Properties, will manage all aspects of the Anthony Properties involvement at Spinks Airport. Anthony Properties' philosophy in commercial real estate development centers around building products that are somewhat overlooked by most traditional developers. Over the last 18 years, they have built over CX10 multi- and megaplex movie theatres that are leased on a long-term basis. In 2001, they began to search or new ways to diversify their portfolio while maintaining the same philosophy. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8407 To the Mayor and Members of the City Council Date: June 4, 2002 �r ;0% Page 2 of 3 a SUBJECT: Issuance of Fixed Base Operator Permit to Anthony lays Properties at Spinks Airport Anthony Properties' business plan for the FBO is to build several corporate hangars with office space and a new FBO terminal building. They will provide first-class facilities and offer first-class FBO service. Because they are new to the FBO business, they have hired Mr. Douglas Toombs to manage the FBO. Mr. Toombs brings many years of FBO experience and has had great successes and numerous accomplishments while running the FBO at Alliance Airport. Emphasis will be on excellent customer service from the entire staff. All staff members will be neat in appearance, clean-cut and uniformed. Every plane will be marshaled upon arrival and departure regardless of whether any revenue was generated by that aircraft. Fuelers will undergo training both on the job and in the classroom. I. Staffing: • 1 full time Manager • 1 full time, 2 part time Customer Service Representative • 2 full time, 2 part time Fuelers S. Hours of Operation: • 6:00 a.m. - 9:00 p.m., 7 days per week III. Marketing: Marketing will be a key component to the success of the FBO. The main focus of the FBO will be fuel sales since they will not be in the flight school, charter, or maintenance business. Mr. Douglas Toombs, FBO Manager (see attached resume) served in the United States Air Force and has many contacts for bringing in military aircraft for fueling. Spinks, due to its location outside the DFW International Airport Class B airspace and its proximity to many area restaurants, is a very attractive spot for military personnel stopovers. Advertising in various industry publications such as: • ACUKWIK—an international FBO listing • Airport Magazine, Flying Magazine Internet marketing: • Creation of Lone Star Jet Center website and links to it from other websites • Listing Lone Star Jet Center on several websites Attendance and display at industry conventions such as the National Business Aviation Association Aircraft Owners and Pilots Association membership ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8407 To the Mayor and Members of the City Council Date: June 4, 2002 Page 3 of 3 SUBJECT: Issuance of Fixed Base Operator Permit to Anthony Properties at Spinks Airport IV. Potential Tenants: Anthony is currently in discussions with several potential tenants who will occupy the corporate hangars that were approved by the Council on May 21, 2002. These tenants will provide the first corporate users of the airport since it opened in 1988. The hangars that are being constructed by Anthony will provide much needed office space that will facilitate business development at the airport. This business development will then generate additional sales tax and fuel sales. Attached is a draft site plan for the development. 3. Performance Standards: Anthony Properties must be in compliance with the Aviation Department Minimum Standards for Fixed Base Operators dated June 16, 1992, or any subsequent revisions, at all times. Those standards cover such elements as required staffing levels, hours of operation, required services, required reporting such as fuel sales and environmental compliance information, insurance and indemnification coverages, payments, Qcord keeping, and the right to audit. Due to the fact that Anthony Properties is new to the FBO business, ey will also be required to perform an annual customer service satisfaction survey that will be used to determine the level of customer satisfaction as well as areas for improvement. Also, Anthony Properties will be required to submit to the City at the beginning of each fiscal year, a business plan for the upcoming year that will include staffing and service levels, marketing plan, revenue projections, and prospective airport business development. Staff believes that Anthony Properties' business plan and the expected return on the City's investment in the airport, make this a win-win proposal for both parties and will provide the impetus to take the airport to the next level. �\mo ary W. ackson City Manager C ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Y. LVVL /,44RIYI t,lir .Vr ri WVnin NV. 218 P. 1 Douglas ,A,. Toombs P.O.Boo 77831 (1)817.490.8820 Fort Worth,Texas 76177 (C)817.688.8383 Douglattoombs @es.com FROFF,SSTONAL PROFILE Recognized Project Manager in all aspects of planning, scheduling,cost estimating and control with consistent ability to plan fir opportunity,organize for results and lead'aggressively. Proven=nagement style with strong commitment to team excellence and contiriuous improvement, as well as ability to organize complex projects by bringing resources together for final product. . Industrial airport • Fuel storage/Products * Operations • Air show/Special events • Management—Domestic and • Strategic and tacticQl Intcrrnational project planning SELECTED ACCOMPLISHMENTS • Launched installation of fuel storage facility as Project Manager at Alliance Airport bringing successful operations under budget and on time, • Received Exxon Tiger Spirit Gold Awaxd(recognizing continued improvement in quality and safety) for facilities at Alliance for five consecutive years. This had never been accomplished before in the industry. • Rated in top ten"fixed based operations"in North America by Professional Pilots Magazine. • Achieved four consecutive years with zero discrepancies on Federal Aviation Administrative annual airport inspection. • Planned and organized annual Fort Worth.Inwmational Air Show, attracting 150,000 yearly. - • Successfully organized arrival and service for 500 aircraft for annual NASCAR Race,including hangar storage,catering;transportation,hotels and other special needs, PROFESSIONAL EXPERIENCE ALLIA.NtE AIR ANUTION SERVICES--Fort Worth,Texas 1994-2002 Uperatians Manager • Successfully served as Airport Manager responsible for security,'fecility maintenance and customer service with staff of 17, s Managed f.eling operations and fuel storage facilities. • Coordinated major airport events. Actively managed airport tenant relations. Instigated personnel training programs and authored maintenance operations manual. • Generated airfield maintenance with consistent recognition for excellence, * Accomplished all construction projects via Federal Aviation Administration grants. GENERAL DYNAMICS/.LOCKHEED MARTIN—Fort worth,Texas 1986-1994 PYeld Serviee Technician • Worked special projects aircraft and production aircraft on flightline and,factory. • Installed wiring modifications, • Configured equipment installation,wiring modifications and testing, ivin i• V. L V V L .4Ifm1Y1 V 1 I 1 yr r I wvK I n-+ Kr."Au1V o i . .• NU. 21d N. 'I Doug Toombs Page Z PARAGOULD CONCRETE--Paragould,Arkansas 198+4-1986 Marnager • Managed fleet of concrete trucks. • Managed batch plant for redi-mix concrete. * Perfotmcd job bidding end customer service, Recruitcd and trained personnel, GENERAL DYNAMICS SERVICES—Cairo,Egypt 1983-1984 ,Field Service Representa dve Coordinated training on P-16 weapons loading,test procedures,troubleshooting arid repair of weapon system and tech data. EDUCATION/PROFESSIONAL DEVELOPMENT Sehoolcraft College,Police Science Weber State College,Police Science American Association of Airport Executives,Basic Airport Safety and Operations NATA,Safety First Program Exxon Fuel Training Program MILITARY United States Air Force—Weapons Spccialist PROFESSIONAL MEMBERSHIP Fort worth Chamber-Associate Member Alliance Facility Managers Association—Chairperson . Alliance Airport Security Counsel—Chsirperson American Association of Airport Executives—Member National Air Transportation Association—Member 6 E i ` f 1 r P F , 9 •