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BCC Minutes 05/30/2002 W (w/Airport Authority)May 30, 2002 BCC-CCAA Workshop Minutes May 30, 2002 BCC Members Present - Fred Coyle, Jim Coletta, Donna Fiala, James Carter CCAA Members Present - Bill West, Dennis Vasey, Raymond Rewis, Gene Schmidt, Robin Doyle (Vice Chairman), Stephen Price (Chairman), John Drury (Executive Director), Bob Titus (Financial Manager), Gail Hambright County Staff- Jim Mudd, Leo Ochs Jim Coletta began the meeting at 9:06 a.m., followed by the Pledge of Allegiance. He then handed the meeting over to Stephen Price. 1. Introduction - Stephen Price Price thanked the Board for meeting today and briefly explained the agenda. He reminded everyone that the meeting will only pertain to Everglades Airpark, Immokalee Airport, and Marco Island Airport since they are the only airports located within the county itself. Naples Airport belongs to the city of Naples. He then explained that two Airport Authority members, Scott Cameron and Monte Lazarus, could not make it today because they are out of town. Lastly, he talked briefly about each Airport Authority member, including his/her j ob, his/her affiliation with aviation, and the year he/she joined the board. 2. History A. Everglades Airpark - Stephen Price Everglades was the original county seat and housed the school, buses, stores, the post office, bank, and the Collier offices. In 1947, the Collier family hired Albin Garris to build an airport so that they could commute to and from West Palm Beach. The facility included a 1000 ft. paved strip with 500 ft of grass on each side, and was used by many people for multiple purposes, including test planes, piloting, and even the Good Year Blimp. On December 6, 1947, President Page 1 May30,2002 Truman dedicated the national park at the airport. In 1960, Hurricane Donna removed every structure at the airport except for the rotating beacon, which is still used today. Eight years later, in 1968, Collier County purchased the airport from the Collier family for about $190,000. In 1993, the Collier County Airport Authority was created to manage the airport, which then contained very few structures and facilities. B. Immokalee Airport - Stephen Price The Immokalee Airport was built in the early 40's as a WWII Army training facility. In January of 1960, the property was transferred, at no cost, to Collier County under the Surplus Property Act of 1944. The restrictions require that it can't be sold and that it must be maintained as a public use airport. Between the 40's and the 90's, it was mainly used for practice and by a few businessmen, with no services to the general public. The county had no interest in it and, in the early 90's, thought about shutting it down, but did not because of the deed restrictions limiting the property to be only maintained as an airport. In 1993, it was turned over to the CCAA. C. Immokalee Industrial Park - Steve Price A county industrial park was planned in the 70's, but it never happened and the land was leased to a farmer instead. D. Marco Aiport - Monte Lazarus, Secretary (video message) The development of Marco Island began in the 1960s by the Macro brothers and the Deltono Corporation as a residential resort and a retirement community. An airport strip was built for real estate purposes only. The Macro brothers and the Deltono Corp. later decided to move the airport off the island to Mainslip Drive. From 1972 - 1976, the airport was under construction. Soon after it was completed, the Deltono Corp. ceded the property to the state in return for litigation for a project in Miami. Immediately after the contract was signed, the airport was leased by Collier County from the state of Florida. PBA later ceased operations at the airport for financial reasons. Over the years, the airport became a general aviation facility, and the facilities began to decay. The state expressed an interest to close it down, but the county recognized its asset value and persuaded the state to let it stay in existence, saying that it was an economic engine for the county. In 1993, The CCAA took over after Page 2 May 30, 2002 negotiations from the state and transferred 2000 acres of land for the 60 acre Marco Island Airport. 3. Establishment of Authority - Scott Cameron (video message) A. Ordinance 93-36 This ordinance formed an independent airport authority with an appointed 7-person advisory committee. John Drury was later chosen as the executive director of the committee. These changes began a transformation, making the committee more organized and enabling them to review grant opportunities that had previously been lost because of lack of time and other cumbersome processes. B. Ordinance 95-67 Ordinance 95-67 was created by the Economic Development Council, Collier County, and the County Commission to give more independence to the CCAA and to enable them to direct daily business on their own for the next 30 years. It removed the county manager from the day to day operations of the three airports. In addition, it retained budget approval for Collier County and for the County Manager, requiring the CCAA to come before the County Commissioners and the County Manager for budget - related items. C. Loan Agreement Ordinance 95-67 also created a loan agreement, which allowed the County funds for the airports to be given on the basis of a loan. It created liability and allowed future potential for net revenues back to the county with interest. This is the only facility arranged in this manner. In conclusion, Cameron stated that the three airports are critical to the infrastructure of Collier County, are true economic engines, and have the potential to be self-sufficient. He then thanked all for the support. 4. Authority Work 1994-2002 - Bill West Bill West said that every project built between 1994-2002 has had grants contributing to 50-90% of the cost, with the remainder financed by loans. Both the Immokalee and the Everglades terminal buildings were financed 90% by grants. So far, the county has loaned money for 27% of the costs, leaving 73% funded by grants. A. Everglades Airpark Page 3 May 30, 2002 Projects at the Everglades Airpark include aircraft aprons, fuel farms, terminal building, master plan for 20 years, various safety items (lighting, taxiway, rotating beacon, north and south turnouts, and obstruction removal). They have also acquired land for further expansion. The slide showed many planes at the airport for the Seafood Festival, which demonstrates how many people use it today. B. Immokalee Airport Work completed on the Immokalee Airport includes a 20 year master plan, hangers, taxiways, terminal building, aprons, fuel farm, navigational aides, runway lighting, environmental studies, customs and cargo buildings, and security fencing. These projects have totaled 4.7 million dollars, 3.1 million (66%) of which are funded by a grant and 1.6 million of which is funded through county loans. C. Immokalee Airport Industrial Park Additions to the Immokalee Airport Industrial Park include an entrance road, utilities (water, sewer, and 3 phase electricity), a manufacturing incubator building (including a calibration lab, conference room, truck docking station, and 13 manufacturing bays), extension of roads, widening SR 846 from two to four lanes, and an incubator support facility (adding assembly areas, Powder coating, and a warehouse). The total cost came to 6.9 million dollars, with 5 million (72%) coming, from grants, and the remaining 1.9 million (28%) from county loans. D. Marco Airport Marco Airport has received a 20 year master plan, aprons, hangers, a terminal building, cleared approaches lighting, a fuel-contaminated soil clean-up, new instrument approaches, negotiations for a new taxiway, and has been purchased from the state of Florida. Marco's projects total 4 million dollars, with 3.1 million (77%) coming from grants and 900,000 (23%) from county loans. These totals come to over 17 million dollars, with 12.3 million dollars funded by grants and other outside sources, and 4.7 from the county. 5. Financials - Bob Titus A. Financial Overview 1994 - 2001 There are two accounts: the Operating Account and the Capital Account. The Operating Account had total expenses of $2,082,000. Fuel purchases accounted for $715,000 (34%), personnel services for Page 4 May30,2002 $754,000 (36%), and operating for $613,000 (30%). It had total revenues of also $2,082,000. The bulk, $1,333,000 (64%) came from fuel sales, $335,000 (16%) came from rentals, leasing, and other, and the remaining $414,000 (20%) came from general fund advances. The Capital Account projected the expenses for the 2002 fiscal year to total $569,000. The revenues include grant reimbursements totaling $420,000 (74%) and the general fund advances at $149,000 (26%). As of September 30, 2001, the total assets came to $15,583,164 and the fund investments came to $5,050,061. On September 30, 1994, the total assets came to $52,808 and the fund investments came to $209,745. The CCAA liability to the General Fund is approximately 8.2 million dollars as of 9/01. The fund equity, excess of assets over liabilities, is now $5,096,811. Therefore, the CCAA is a financially healthy organization. 6. Authority Today A. Staff- Dennis Vasey The staff takes a caretaker status, with 15 people running all three aviation facilities. These 15 people include a financial manager (in charge of accounts payable and accounts receivable), an Immokalee airport manager (in charge of 2 line maintenance technicians), an airport manager of both Everglades and Marco Island (in charge of 2 customer service representatives and 4 line maintenance technicians) and an administrative assistant. He states that we have moved from a "sleepy hollow" to high tech security problems faced all over the country. The people are the greatest resource and are excellent. James Carter asked if the CCAA has a projection of staff for the future and if they have it factored in. Price and Drury replied by telling him that they will increase staff with an increase in growth and currently have another position to add. B. Projects - Gene Schmidt Immokalee Airport is currently undergoing the construction of a US Customs and Cargo Processing Facility, which will put the airport on the international radar screen. It will cost $1,070,000 which will be divided equally by a grant and a loan ($535,000 each). Page 5 May30,2002 The airport has also been designated as a Port of Entry. As a result, a Federal Institution Station (FIS) must be built to house US Customs, USDA, and the INS. The CCAA designed a 10,000 sq. ft. FIS/Cargo processing facility with 2,600 sq. ft. for the FIS facility and two 3,700 cargo processing bays. The purpose is to increase revenues, create jobs, facilitate the transportation of air cargo, and to increase business. It is 90% designed and is projected to be on time and within the budget. $9,700 has been spent this quarter, $64,000 has been spent to-date, and $1,005,000 remains to finish the design, construction, and the necessary permits. It should be completed by December 2002. In addition, the airport is just completing a bulk storage hanger. It will be 4,300 sq. ft. with room for aircraft parking, aprons, automobile parking, a small air-conditioned office, and restrooms. It will increase jobs, increase the tax base, increase business, and will house aviation enterprises. It is 80% complete. The estimated cost was $200,000 which was to be split equally between a grant and a loan. However, the project is $40,000 over budget. The FDOT will contribute $20,000 and the CCAA is requesting that capital reserves fund the remaining $20,000. $16,900 has been spent this quarter and $99,300 has been spent to date. $100,700 remains in the budget. The Immokalee Airport has other projects underway including an environmental resource permit, a runway length assessment report, a Motor Sports Park conceptual master plan, a survey of lease plots for Phase I of the Industrial Park, and an airport layout plan update. These five items are necessary to obtain approval and permits in order to move forward with full development of the airport. The environmental resource permit is addressing all issues and includes runway extensions, a water sports park plan, and an Industrial Park layout plan. The plan has been submitted and its cost will be $350,000 with $280,000 coming from a grant and the remaining $70,000 from a loan. The Draft Runway Assessment Report is completed and has been turned into the board. The Motor Sports Park conceptual plan is 90% complete and includes a noise study, an economic impact study, a real estate evaluation study, a road network improvement assessment, a conceptual layout plan, FLUCFS wetlands assessment, a utilities Page 6 May 30, 2002 needs assessment, an environmental assessment, a land use zoning assessment, and an airport development program. After the Financial Impact Component is developed, a public meeting will be held to gain insight and opinion about the park. Afterwards, the conceptual master plan will be brought to CCAA for review and consideration. The lease plots are being surveyed so they can be easily identified when leasing out. A property map is being developed and should be completed within 60 days. The Airport Layout Plan (ALP) has been approved by the CCAA and will be submitted to the advisory board, FAA and the FDOT office for further approval. It is 75% complete and is on time and within budget. $40,000 has been spent this quarter, $203,500 has been spent to date, and $146,500 remains. Gene said that he is trying to get Lorenzo Walker students to work on a 727 cargo plane that has been acquired from the UPS. The Immokalee Airport Industrial Park is currently undergoing three projects including a manufacturing incubator support facility, an Industrial Park Road extension, and the widening of a portion of SR 846 in front of the airport. These projects are being funded by a $3,416,500 grant and a $1,014,000 loan. The manufacturing incubator support facility will be 10,000 sq. ft. and will include a bonded warehouse, a Powder Coating facility, and a manufacturing assembly area. It is the second of four buildings needed to develop the manufacturing business. A packing/shipping and a training facility remain, which will develop manufactured support services to attract businesses and will train people with the necessary skills. This project will increase airport revenues and will increase the tax base. 75% has been completed with landscaping, drop ceilings, painting, and Powder Coating equipment still remaining to be finished. $114,700 has been spent this quarter, $399,700 has been spent to date, and $932,100 still remains. It is within budget and on time, except for the Powder Coating equipment. $250,000 will be funded by a USDA grant, which will not go into effect until February of 2002. The remaining cost is $277,000, of which only $181,000 is covered by the budget. The CCAA is hoping other grants will cover the remaining costs for the Powder Coating equipment. Page 7 May 30, 2002 Fiala asked what the training facility will accomplish. Drury said that it would train people to run the CNC equipment in the incubator and it would work to train Immokalee citizens to use high tech equipment. They would also use the Human Resource Center for help. The entrance road will be extended by 1300 ft., inclusive of water, sewer, and electric utilities. This also includes construction of a campground, restrooms (which will replace the port o lets), and turf parking at the drag strip. The purpose is to increase revenue by opening the Industrial Park for leasing, increasing jobs, and increasing the tax base. The campground will be available for special events. It has been designed and the results are being evaluated. $151,200 has been spent this quarter, $262,800 has been spent to date, and $940,700 remains in the budget. The widening of SR 846 will increase the road to 4 lanes from 29 to the airport entrance road, will reconstruct the intersection of 29 and SR 846, will connect the airport loop road with the Industrial Park, and will relocate water and sewer lines along SR 846. Sienna Marble plans to lease 10 acres to construct a 50,000 sq. ft. marble manufacturing building that will employ 75 people. The road will improve access, which is now inadequate. It is 90% designed, with the remaining 10% put on halt. Sienna Marble has submitted for a permit and should hear within 30 days, at which point the project design will continue. Nothing has been spent this quarter, $160,600 has been spent to date, and $1,037,400 remains in the budget. They are within budget, but substantially delayed because of Sienna Marble's slow process. The Marco Island Airport is acquiring land to mitigate for a taxiway. Purely for safety, the addition of a taxiway will bring safety standards up to date with the FAA and will allow planes to no longer have to back taxi on the runway. Negotiations are currently underway. $6,000 have been spent this quarter, $108,000 has been spent to date, and $242,000 remains in the budget. The Everglades Airport is acquiring a new runway lighting system. $100,000 is coming from a grant and $25,000 is coming from a loan. The existing runway lighting is 25 years old and has direct Page 8 May 30, 2002 buried cable. It is frequently inoperable and a new system would provide more reliability. They are working on a design and no money has been spent so far. A total of about $6 million has been spent in capital projects, with $4 million (72%) coming from a grant and $1.8 million (28%) from a loan. 7. Authority in the Future - Robin Doyle In 1995, the CCAA obtained grants to develop master conceptual plans on all three airports. After their completion, workshops were held for public input, and then all three plans went through county, state and federal reviews. Each plan was accepted and is now implemented. A. Everglades Airpark The goal of Everglades Airpark is to maintain a safe airport, to preserve eco tourism, to provide a transportation facility, and to increase revenues. Therefore, they need to consider building hangers and parallel taxiways, and to widen and overlay the runway to meet FAA standards. They are also considering putting in a campground which will enhance the airport and increase revenues. No other significant projects are apparent. The main focus is to preserve the economic impact, to promote eco tourism, and to operate and maintain the airport. The CCAA is applying for grants to cover 95% of the costs. B. Immokalee Airport The real focus of Immokalee Airport is to help it become an economic engine. It is hoped that it will attract businesses and enable them to engage in international trade. In order for this to occur, the runway must be extended beyond its current 52 ft. After it is completed, it will facilitate more air cargo operations and will allow for larger aircraft. Hangers must also be built, taxiways need to be improved, and an aircraft parking system needs to be constructed. They will seek FAA and state grants to cover 90 - 95% of the expenses, and the remaining will be covered by county investments. C. Immokalee Industrial Park The two goals for this area are to attract light industry to develop the Industrial Park, and to complete the manufacturing incubator Page 9 May 30, 2002 campus. The campus has three purposes: to provide affordable homes for new businesses, to provide a place for training, tools, a calibrator, and Powder Coating equipment, and to attract larger manufacturing companies with its inexpensive land and manufacturing support. The CCAA is continuing to work with the EDC to develop the park and manufacturing incubator campus. D. Marco Island Airport The four projects for this airport include continuing the construction of a parallel taxiway, overlaying the runway and relocating the terminal building for safety standards, and constructing additional hangers. Once the projects are completed, the airport should provide as a transportation facility for emergencies, residents, businesses, and the growing air charter. E. Motor Sports Park The CCAA is in the process of conducting research and gathering public input, and is putting together the necessary documentation to rezone the airport to add this park for conditional use. In 2000 - 2001, they hired FGCU to form a committee to get public opinion about the park and its impact. They have commissioned studies of noise, economic impact, residential property value, traffic, utilities, and environmental impact. In addition, they have developed a conceptual master plan. The park will include a ¼ mile drag race strip, a 3/4 mile oval course, a 2 mile European Road Course, and a motor cross track. In November of 2002, workshops will be held to solicit further public input and will be conducted in the three languages of English, Spanish, and Creole. In January of 2003, they will review all studies and the input for the building of this park. The ultimate decision is with the County Commission. In summary, the CCAA will maximize grants and revenues through county loans to develop the infrastructure that will provide safe and efficient airports. The goal of Everglades Airpark is to promote eco tourism, the goal of Immokalee Airport is to develop trade and create jobs, and the goal of Marco Airport is to promote convention events. Fiala wanted to clarify if an entrepreneur started the raceway and was leasing the land from the airport. Doyle said yes, it was started by an entrepreneur 3 years ago as a single drag strip. As a Page 10 May 30, 2002 result of the success, interest, and economic possibilities, studies were done and a Motor Sports Park has been proposed. Coletta asked how many people it would draw on any given day. Drury responded by estimating about 5,000 people for Phase I, with an additional couple thousand for each phase of construction over the next ten years. Coletta then assured the CCAA that it would be economically successful, but he was concerned about road planning and the moratorium. He wanted them to make sure to extend Orangetree to Immokalee, and to also encourage the Immokalee community to push the road extensions. Doyle said that the CCAA would bring a traffic study plan next year to the meeting. Price said that the Motor Sports Park is probably the #1 project from that area, and that other roads will also carry the traffic since it is coming from all directions. He said how Immokalee has already been impacted by the drag race strip and how restaurants, stores, and gas stations are all seeing an increase in business. Coletta implied that the majority of traffic will come from this county and that the CCAA really needs to encourage the building and extension of roads. Business Plan Update - Stephen Price & Robin Doyle The CCAA believes in the statement "Airports are for those who don't fly" because of its many economic and social benefits including increases in tourism, emergency transportation, jobs, and businesses. The goal is to improve the quality of life for all Collier County citizens. It is time to update the '94 plan and many changes have occurred since, including a new president, different economics, and the events of 9/11. The CCAA is the only county department with a program to pay back the county and one of the few, if not the only, with a full business plan. They are meeting their plan, and are slightly ahead. Although the old plan predicted for $270,000 in investments in order to operate and they now need $440,000 (+$170,000), they had not projected the assessment costs ($139,000) and the increase in insurance ($55,000 to $179,000). Therefore, they are about $100,000 Page 11 May 30, 2002 better than they had predicted. The CCAA feels the business plan is good and they are working hard to achieve the objectives. The committee did an outline of a new business plan and will expand it after today's workshop. The new plan will include an updated mission statement - which should place safety, capital improvements, and economic development ahead of self-sufficiency, an establishment of specific goals, the identification of challenges and opportunities associated with the goals, the identification of measurable planned responses to the challenges and opportunities, the recent financial trends, and an updated financial forecast. Overall, the airports have shown a substantial increase in economic activity. Coletta asked if they could add the idea of encouraging road construction to their mission statement. Doyle said they would certainly look into it. o Public Comments Barbara Berry - She encouraged the BCC to lend support to the CCAA and to stay the course with them. The airports have come a long way and have become a viable economic and transportation asset. The BCC has to consider the need for the roads and the viability for the county. The loan and asset program is positive and should be continued. Raymond Holland - He is representing the Immokalee Area as the President of the Immokalee Area Chamber of Commerce. He urged the City Commission to support the CCAA and their expansion plans at the Immokalee Airport. The CCAA has worked diligently to get long range plans, to obtain grant money, and to acquire tenants to lease in the industrial area. The county needs to expedite the permit process in order to maximize the growth. Immokalee doesn't need the image of an anti-growth community. The county also needs to reduce the impact fees. Businesses are moving to other location because it is too expensive in Immokalee. The raceway is an excellent idea and provides entertainment and family participation, and allows people to see what a nice place Immokalee is. It also provides an opportunity for people to spend money and invest in the community. Therefore, the raceway should be expanded to include all the previously mentioned tracks. The airport is the single biggest asset for industrial and commercial development in Immokalee. Page 12 May 30, 2002 Floyd Cruise - The biggest thing that Immokalee needs is roads. A different architectural design from the city is also important. Immokalee is a nice place now and has come a long way. More and more money is being brought into the community and youth participation has increased dramatically. The CCAA should be commended. Coletta interjected and agreed that the impact fees are too high and that he would like to get together with the CCAA and the Immokalee Area Chamber of Commerce to lower them and to come up with two-tier zoning that will benefit Immokalee. Ralph Hester - Ralph is the owner and operator of the drag strip, which is becoming quite successful. It brought in over 5,000 people on the first day and he would like to see the continued growth. Larry Fox - Larry is the manager of the manufacturing incubator facility. He asked the BCC to continue to support the CCAA. He urged them to be proactive, faster, and stronger than before so that more businesses will be attracted to Immokalee. He sees many opportunities for business growth and success, and the future will only bring in more and increase the economic base. He feels the BCC has to move fast to lower the impact fees and feels that manufacturers won't relocate if Immokalee is too costly. He wants to make the community a friendlier place to start a business. There were three letters from those who could not attend. They were not read aloud, but are found in the binder. 10. BCC and County staff Comments Carter - He wants the CCAA to redefine the mission statement and to make sure that everyone is comfortable with it. He says that although the numbers look good, the financing comes out of a general fund and they don't have enough resources to support it. The challenge of the BCC is to get comfortable with the goals and strategies of the CCAA and to find a way to finance them. Price interjected and said that the CCAA is just as important as other county programs such as the new library, roads, and the beach clean-up, and the BCC needs to make an investment in the authority. Although it's a challenge, the BCC needs to meet it because they are a part of Collier County services. Doyle said that they would try to Page 13 May 30, 2002 look for sources other than the general fund for financing. Carter said he would help in the process. Fiala - She wanted to know who will fund the raceway expansion and how the profits will be split. Price said there were a number of potential grants and the possibility of an investment from the raceway owner. Drury mentioned that it will be a partnership between the private sector and the government. The government will pay for water, sewer, electric, and road infrastructures while the entrepreneur will cover the cost of building new facilities. Drury has researched other raceways and found that it is common for both groups (the government and the entrepreneur) to split the percentage of gate and concession sales. The government can also gain revenue through the lease fees. Coyle - He felt that the loan program is excellent, but that the asset value is meaningless unless the airport is sold. He would like the CCAA to put together a specific business plan including revenues and trends. He would also like them to do a business plan by project, not by airport, and to do a different mission statement for each airport. In addition, he would like the authority to pursue efforts in leasing the land and expecting the tenants to build. He felt that the anecdotal evidence is not enough to allocate large amounts of taxpayers money, and needs clear evidence of benefits. Coletta - He asked if the CCAA reached an agreement with Parks and Recreation for the Motor Sports Park. Drury told him that they were in the process. Once the appraisal is completed, it will be brought before the CCAA for further decisions. They have to find a balance with the FAA requirements and their goals. Coletta said that he would like to be a part of the community decisions and input, and requested a tape for Immokalee citizens with dubbed Spanish, so that they will be informed as well. Mudd - He felt that people should get together and come up with a plan on how the loan is to be carried in the books. There are some bonding issues that need to be dealt with and he would like to see a cleaner, more efficient process. Page 14 May 30, 2002 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 11:55 a.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEAL/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL There minuteswere p~resented to the Board on ~-~-./$ ..*.~a~ as presented or as corrected Page 15