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HomeMy WebLinkAbout2015-09-15 Airport Committee Minutes Meeting Agenda City of Bangor Airport Committee rd City Council Chambers 3 Floor September 15, 2015 The following City Councilors were in attendance: Airport Committee Chair Gibran Graham, Councilors, Pauline Civiello, David Nealley, Sean Faircloth and Joseph Baldacci. Also in attendance, City Manager Cathy Conlow, Airport Director Tony Caruso and Marketing Manager Risteen Bahr. Agenda: 1. T & T Capital, Inc. lease agreement. Airport Director Caruso indicated that Telford Allen has been a known tenant at the Airport and would like to have a new lease with us under T & T Capital. He is changing company name and will reduce his lease from 2 bays down to 1. This will be for the rental of Bay 3 within Hangar #123 at Bangor International Airport. This lease agreement is for a one (1) year term, with two (2) one-year options for extensions. The lease rate includes an increase each year, based on the annual CPI change, and shall not exceed 2.5% each year. This lease rate includes the cost of all utilities furnished and consumed on the demised premises, including electricity, gas, heat, water, storm water and sewer user fees. Motion to approve by Civiello and seconded by Nealley 2. Montage Enterprises-mutual cancellation of lease agreement. Airport Director Caruso indicated that the owners of The Grasshopper Shop, Rick and Laurie Schweikert, recently notified the Airport that they wish to terminate their lease per the current lease terms. They wish to retire and sell their business to the Store Manager, Gary Co-Wallis. Mr. Co-Willis has agreed to keep all current employees and continue to operate within the airport, under the Grasshopper Shop name. The Grasshopper Shop operates a retail concession in the domestic terminal at Bangor International Airport. Montage has operated this concession since 1995 and has been an excellent partner with the City of Bangor. They offer Maine specific items to travelers. Montage has always paid their lease on time and has been very responsive to our customers. This mutual cancellation of lease (the Agreement) is made and effective January 1, 2016. Motion to approve by Baldacci and seconded by Faircloth Comments Several Councilors thank the Schweikert’s for everything they brought to the Airport and thanked them for being excellent tenants and wished them well in their retirement. 3. The Grasshopper Shop lease agreement. Airport Director Caruso indicated that this lease agreement is between the City of Bangor and Gary Co-Wallis, owner of the Grasshopper Shop. This lease agreement will outline the terms and conditions for the rental of Room #203 within the Domestic Terminal at Bangor International Airport. Gary Co-Wallis, the new owner of The Grasshopper Shop, desires to operate this gift shop in the domestic terminal at Bangor International Airport, offering gifts, including Maine specific items to travelers. The Grasshopper Shop has operated at the Bangor International Airport under its former owners since 1995. Mr. Co-Wallis will be purchasing the business and has agreed to keep all current employees and continue to operate within the Airport, under The Grasshopper Shop name. This agreement outlines a five (5) year term of Room #203. The rent is based on a percentage of gross sales due each twelve month period. Motion to approve Nealley and seconded by Faircloth 4. LifeFlight of Maine-lease amendment. Airport Director Caruso indicated that this lease amendment between the City of Bangor and Lifeflight of Maine, LLC, for the rental of additional space within Hangar #600. In May of this year, the City approved a new lease agreement with Lifeflight to help support their fleet expansion and consolidation of operations. Lifeflight now leases a majority of Hangar #600 and as part of this expansion, they are making improvements to the facility. Lifeflight is requesting to the lease additional space, make further improvements to the facility, and address additional code requirements discovered during the construction. The additional space will support a medical simulation lab and a medical equipment storage area. If approved, this amendment outlines the lease of the additional space, extends the lease term, and identifies the list of additional improvements that will comply with code requirements and will mutually benefit both Parties, and adjusts the rental payment terms to incorporate the additional improvements. This lease would be for 20 years. Motion to approve Nealley and seconded by Faircloth 5. Airport statistic-August 2015 Marketing Director Bahr indicated that this is the best June, July and August since 1997 for domestic passengers! The total monthly passengers was 61, 824 up by 10.02%! The YTD was 329,281 and down a little from last year at this time due all the cancellations from the winter months by 2.90%. Overall we were up by 14.9%! Airline load factors all were above 80%! Allegiant was 90%, Delta at 87%, United at 90% and US Airways at 89%. Per the US Airways station manager, US Airways had the best traffic ever! Airport Director Caruso indicated the total Operations were still down a little, this month by 5%. The DOD fuel was up by 60.1%, Retail at -24.7%, Resellers at 11.6%. Over all for fuel sales we were up by 6.7%. 6. Airport Construction projects-update. a. Domestic terminal renovations- Airport Director Caruso indicated that the project is going well, we are still on schedule and right on budget! Currently we are focused on the final construction of the TSA in-line checked baggage system and then will be testing it. In several weeks we will for having an open house/ribbon cutting ceremony! March of 2016, this project should be complete! b. AIP 66 & 67 taxiway rehab. Projects Airport Director Caruso indicated that the construction is progressing well, and the weather has been cooperating. Sargent and Lane are our construction companies doing the work. And they are doing an outstanding job! AIP 66 is the project for the reconstruct and narrowing of taxiway November, located down by Lifeflight and to rehabilitate a portion of taxiway Alpha, located in front of the Air Guard Whiskey, and to rehabilitate dock area taxi lane by the Dock Hanger where C & L are located. The other AIP project is AIP 67. This project is for the ASR mitigation at gates 4 and 6 trench drains, also the rehabilitation of the south entrance to the general aviation ramp. Both these projects are included in BGR’s FAA approved five-year Capital Improvement Plan (CIP). This grant will fund 90% of the project with the additional 5% coming from the State and 5% coming from the Airport. Meeting Adjourned.