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HomeMy WebLinkAboutIR 8563 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8663 TK January 20, 2004 To the Mayor and Members of the City Council Page 1 of 2 Y47% SUBJECT: SPINKS AIRPORT DEVELOPMENT PROPOSAL (UPDATE) On September 23, 2003 staff disseminated an IR pertaining to the development of Fort Worth Spinks Airport. The IR identified the fact that staff was approached by three separate organizations wishing to develop portions of Spinks Airport. The primary focus was on the Fixed Base Operations (fuel provider) portion of the airport. Since we had received three proposals staff envisioned an RFP process with the intention of attracting a Master Developer to the airport to help with both airport development and revitalization of south Fort Worth. The weight of the proposals would rely upon immediate and long-term development, as well as job creation and other economic stimulation. Staff has developed a draft RFP and is ready to move forward with the process. On December 10, 2003 staff received a proposal from Mr. Haydn Cutler and Mr. Gary Havener who propose to develop various facilities on the airport and have elected to not participate in the RFP process. Staff consulted with the City Attorney's Office, which confirmed that since Spinks Airport is a federally funded public use airport the City of Fort Worth cannot unduly deter development proposals if the proposed development complies with the airport's master plan. Staff has eviewed the proposal, which includes the development of: • Executive Terminal/FBO Facility (6000 s.f.), 2004 • Corporate hangar facility (20,000 s.f.), 2004 • Warehouse Facility (30,000 s.f.), 2005 • Corporate hangar facility (20,000 s.f.) 2006 • Warehouse facility (30,000 s.f.), 2008 The developers have also proposed to pay the City of Fort Worth's 10% match for all future airport improvement projects in exchange for rent or fuel flowage concessions. Assuming all facets of this proposal are developed, the City of Fort Worth would realize the creation of 94 new jobs and an increase in the capital infrastructure at Spinks worth over 6.4 Million dollars. Previous proposals have included significant development after the assumption of the FBO. The most recent one, Lone Star Jet Center (Anthony Properties) breached their contract and turned the operations back over to the City within the first six months. The development was not realized since there was no requirement for it to occur before assuming services. The Cutler/Havener proposal includes the requirement for the new development to be on the ground prior to assuming the FBO Services. Based on that proposal, the City would continue providing FBO Services until such time as a final Certificate of Occupancy is issued for the new facility. At that time the services would be transferred to the new facility under private sector management. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No- 8563 January 20, 2004 To the Mayor and Members of the City Council Page 2 of 2 SUBJECT: SPINKS AIRPORT DEVELOPMENT PROPOSAL (UPDATE) Staff proposes to begin negotiations with the Cutler/Havener group while also disseminating the RFP for privatization of the airport. This would provide staff the opportunity to weigh proposals from other developers while continuing to negotiate with Mr. Cutler and Havener. Assuming the negotiations Mr. Cutler and Havener are successful, staff would remove the F130 portion of the RFP from the privatization process and present their proposal to the Capital Improvements and Infrastructure Committee prior to going to full council. -%�ry �Jacik- City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS ......------------ 1111 1- --------