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Agenda 07/09/2019 Item #16G 4 (Solicitation #19-7623 w/Global Flight Training Solutions)07/09/2019 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, acting as the Collier County Airport Authority, award Solicitation No. 19-7623, “Airport Office for Lease - Immokalee Regional Airport,” and authorize its Chairman to execute the attached Collier County Airport Authority Standard Form Lease Agreement with Global Flight Training Solutions for vacant counter/office space at the Immokalee Regional Airport. _____________________________________________________________________________________ OBJECTIVE: To generate revenue by leasing vacant counter/office space and provide commercial aeronautical services to the general public at the Immokalee Regional Airport (IMM). CONSIDERATIONS: The Collier County Airport Authority (Authority) solicited competitive proposal from parties interested in leasing vacant office space located at IMM for commercial aviation service providers. Two proposals were received from Global Flight Training Solutions and Dylan Caldwell. Airport staff met to evaluate the proposals on May 6, 2019. After reviewing the proposals, the first ranked vendor was Global Flight Training Solutions. Staff recommends awarding the solicitation and entering into a lease agreement with Global Flight Training Solutions. Company City County State Rank Responsive/Responsible Global Flight Training Solutions Immokalee Collier FL 1 Yes/Yes Dylan Caldwell Naples Collier FL 2 Yes/Yes According to the business plan from Global Flight Training Solutions, the company desires to commence operations as a flight school/aviation academy at IMM, which will offer personalized flight and ground instruction to aspiring pilots. The proposed business operation also promises to enhance IMM’s service offering, as the airport does not currently have a flight school based onsite. The term of the lease is sixty (60) months, with a sixty (60) day early-termination provision for either party. The initial lease rate is $118.65 per month, plus applicable taxes, in accordance with the currently approved rates and charges. The rent shall increase annually on January 1 st based on the Consumer Price Index (CPI) throughout the life of the agreement FISCAL IMPACT: Monthly rent in the amount of $118.65, plus applicable sales tax of 7%, shall be deposited in Authority operating Fund (495), Immokalee Regional Airport Cost Center (192330). GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with the Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. -JAB RECOMMENDATION: That the Board of County Commissioners, acting as the Collier County Airport Authority, award Solicitation RFP No. 19-7623, “Airport Office for Lease - Immokalee Regional Airport,” and authorize its Chairman to execute the attached Collier County Airport Authority Standard Form Lease Agreement with Global Flight Training Solutions for vacant office space at the Immokalee Regional Airport. 16.G.4 Packet Pg. 2339 07/09/2019 Prepared by: Justin Lobb, Airports Manager, Airport Authority ATTACHMENT(S) 1. GFTS Lease at IMM_tenant signed (PDF) 2. 19-7623 NORA (PDF) 3. 19-7623 Advertisement - Immokalee Office (PDF) 4. GFTS Cover and Business Plan 2019 (PDF) 16.G.4 Packet Pg. 2340 07/09/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.4 Doc ID: 9284 Item Summary: Recommendation that the Board of County Commissioners, acting as the Collier County Airport Authority, award Solicitation No. 19-7623, “Airport Office for Lease – Immokalee Regional Airport,” and authorize its Chairman to execute the attached Collier County Airport Authority Standard Form Lease Agreement with Global Flight Training Solutions for vacant counter/office space at the Immokalee Regional Airport. Meeting Date: 07/09/2019 Prepared by: Title: Manager - Airport – Airport Authority Name: Justin Lobb 06/10/2019 11:45 AM Submitted by: Title: Division Director - Operations Support – Growth Management Department Name: Gene Shue 06/10/2019 11:45 AM Approved By: Review: Airport Authority Justin Lobb Additional Reviewer Completed 06/10/2019 11:47 AM Growth Management Department Christine Arnold Level 1 Reviewer Completed 06/10/2019 1:12 PM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 06/11/2019 3:57 PM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 06/17/2019 8:12 AM Growth Management Department Gene Shue Additional Reviewer Completed 06/17/2019 9:20 AM Procurement Services Swainson Hall Additional Reviewer Completed 06/18/2019 11:36 AM Procurement Services Ted Coyman Additional Reviewer Completed 06/18/2019 6:00 PM Growth Management Department James C French Deputy Department Head Review Completed 06/18/2019 6:30 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/19/2019 10:11 AM Growth Management Department Thaddeus Cohen Department Head Review Completed 06/24/2019 4:41 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/26/2019 1:44 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/26/2019 3:11 PM Budget and Management Office Ed Finn Additional Reviewer Completed 06/27/2019 1:10 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/27/2019 2:12 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM 16.G.4 Packet Pg. 2341 16.G.4.a Packet Pg. 2342 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2343 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2344 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2345 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2346 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2347 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2348 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2349 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2350 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) Victor Costello Melissa Linn 16.G.4.a Packet Pg. 2351 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2352 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.a Packet Pg. 2353 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 6/18/2019 Mark Edward Partners Andrew P. Guerin 212-355-5005 TBD Patrick P. Linn 16.G.4.a Packet Pg. 2354 Attachment: GFTS Lease at IMM_tenant signed (9284 : IMM Office Lease - Global Flight Training Solutions) 16.G.4.bPacket Pg. 2355Attachment: 19-7623 NORA (9284 : IMM Office Lease - Global Flight Training Solutions) VACANT AIRPORT OFFICE FOR LEASE INVITATION FOR SEALED PROPOSALS NOTICE IS HEREBY GIVEN THAT THE COLLIER COUNTY A IRPORT AUTHORITY (AUTHOR ITY) IS SOLIC IT ING PROPOSALS FROM ANY PARTY(IES) INTERESTED IN LEAS ING VACANT OFFICE SPACE LOCATED AT THE IMMOKALEE REGIONAL AIRPORT (IMM) FOR COMMERCIAL AVIATION SERVICE PROVIDERS Use of the propert y shall be for the sole purpose of providing commercial aeronautical services (ie: air carrier/charter operations, air taxi, pilot training, aircraft rental, sightseeing, aerial photography, flying clubs, etc) to the general public. The counter/office space is approximately 108 square feet, and is located within the main lobby of the general aviation terminal building. The Authority desires to award a lease term not-to-exceed five years, to include a 60-day earl y- termination provision. The minimum annual rent for the first year term shall be at a rate of $13.1838 per square foot, remitted monthly. The rent shall increase annually on January 1 st, based on the Consumer Price Index (CPI) throughout the life of the lease agreement. The proposer shall meet the requirements set for in the Authority’s published “Minimum Standards for Commercial Aeronautical Activity and Service Providers at the Collier County Airports” (Minimum Standards) in order to be deemed responsive. The proposal shall contain, at a minimum, the requirements outlined in Section 3 – “Applications and Qualification” to demonstrate sufficient intent. Proposals will be reviewed and ranked by Authority staff in accordance with the process outlined in Section 4 – “Action on Application.” The awarded proposer shall enter into a Lease Agreement with the Authority within sixty (60) days from the last publication of this notice in order to address additional terms and conditions deemed necessar y by the Authority. The awarded proposer shall also be responsible for the costs associated with the publication of this notice. Additional information may be obtained b y contacting Justin Lobb at (239) 642-7878. P LEASE FORWARD SEALED PROPOSALS TO: (Indicate: "SEALED PROPOSAL" on envelope) Justin Lobb Airport Manager Collier County Airport Authority 2005 Mainsail Drive, Suite 1 Naples, Florida 34114 PROPOSALS W ILL NOT BE ACCEPTED AFTER THE NOON HOUR ON MARCH 1, 2019. THE BOARD OF COUNTY COMMISSIONERS RESERVES THE RIGHT TO REJECT ALL PROPOSALS AND/OR NEGOTIATE WITH THE QUALIFIED ON ANY PROVISIONS OF THE LEASE. 16.G.4.c Packet Pg. 2356 Attachment: 19-7623 Advertisement - Immokalee Office (9284 : IMM Office Lease - Global Flight Training Solutions) March 23, 2019 Collier County Airport Authority Attn: Justin E. Lobb, Airports Manager 2005 Mainsail Drive Naples, FL 34114 Dear Mr. Lobb: This letter serves to formally convey the intent and application to conduct a business operation at the Immokalee Airport by Global Flight Training Solutions, LLC (GFTS). For ease of reference, this cover letter will follow the Minimum Standards Document you provided to us some weeks ago. 1. Resumes of individuals proposing business, and business plan detailing the nature of the proposed business entity: • Resumes for Victor Costello and Patrick Linn are attached • The most current business plan is attached 2. Legal names and signatures of partners/directors/corporate officers: • Victor C. Costello – signature appears at close of cover letter • Patrick P. Linn – signature appears at close of cover letter 3. Name, Telephone Number, and Address of primary contact person: • Patrick P. Linn • (239) 207-4575 • 4372 Steinbeck Way, Ave Maria, FL 34142 4. Current financial statement: • Pro forma estimates are attached. These pro forma estimates were prepared by the Small Business Development Center of Naples, and represent startup, year 1, 2, and 3 • The pro forma estimates are just that, and expectations are that the first year will likely be modest in terms of clientele served 5. A list of assets owned, being purchased, or leased: • Upon receipt of investment funds, GFTS will enter into a lease of 3-4 single engine training aircraft to be used for time building/training • Upon receipt of subsequent (and adequate) investment funds, GFTS will purchase the first segment of a training fleet from a reputable aircraft manufacturer in the United States 16.G.4.d Packet Pg. 2357 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) • Upon receipt of adequate funding, GFTS intends to lease land within the airport fence to construct hangar facilities, training facilities, classrooms, and administrative offices. The buildings, when constructed, will be assets of GFTS 6. Credit report for each party owning or having 20% or more financial interest in the business: • Per discussions with airport management prior to this submission, the credit report requirement for the two principles has been waived • Should proof of financial solvency be required, please advise; the principles of GFTS will certainly comply – as able – to any reasonable extent 7. An agreement to provide bond or suitable guarantee of adequate funds…to be used as a security deposit: • GFTS will comply with security deposit requirements for both office space and tie-downs per usual and customary fees set by the Airport Authority 8. Written authorization to the Airport Manager and/or Collier County Airport Authority to release information in their files from the FAA, any aviation or aeronautics commissions, administrators, and departments, of all states in which the applicant has engaged in aviation business relating to the applicant or its operation: • Written authorization attached 9. Preliminary plans, specifications, and dates for any improvements which the applicant intends to make on the airport as part of the activity for which the approval is sought: • Basic timeline of events follows • April, 2019 i. Engage in administrative tasks associated with business structure, staffing, and operations ii. Enter into lease for initial training aircraft • May, 29019 i. Begin revenue generating operations ii. Continue background administrative setup iii. Continue securing investment funds iv. Court investors for longer-term DBA • June, 2019 i. Begin work on design, permitting, and securing contractor(s) for permanent facilities which will allow substantial growth ii. Pursue agreement with reputable aircraft manufacturer for both training aircraft and (eventually) charter aircraft 10. Proof of liability insurance coverage for the business: • Proof of liability insurance attached • Proof of coverage for aircraft to be furnished upon GFTS’s entrance into lease agreement for same 11. The approximate number of employees, names and qualifications, full or part-time: • Initially, three (3) i. Patrick Linn – CEO, CFI, CFII, MEI ii. Melissa Linn – Startup Administrative Coordinator iii. Victor Costello – Business Development • In the months to follow, two additional i. Kevin Dunleavy – CFI, CFII, MEI ii. Ruth Luenterbusch – Logistics, Scheduling, and Training Visa Expert 12. Such other information required: 16.G.4.d Packet Pg. 2358 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) • GFTS is ready and willing to answer any reasonable request for information pertaining to expectations of the operation moving forward • Leadership of GFTS views its mutually beneficial relationship with the Collier County Airport Authority and wider community as essential to success Thank you for the opportunity and assistance you have provided our nascent business. We look forward to working with you and your team for years to come. Kind regards, Patrick P. Linn, MS, MSHAPI Victor C. Costello 16.G.4.d Packet Pg. 2359 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) Business Plan OWNERSHIP TBD Global Flight Training Solutions Headquarters - Immokalee Regional Airport (KIMM) 165 Airpark Boulevard Immokalee, FL 34142 Contact: Victor Costello greenvicc@gmail.com Patrick Linn +1 239 207 4575 patricklinn@comcast.net 16.G.4.d Packet Pg. 2360 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 2 I. Table of Contents I. Table of Contents II. Executive Summary III. General Company Description IV. Products and Services V. Marketing Plan VI. Operational Plan VII. Management and Organization VIII. Startup Expenses and Capitalization IX. Financial Plan X. Appendices 16.G.4.d Packet Pg. 2361 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 3 II. Executive Summary Aircraft manufacturer Boeing projects the number of professional pilots needed in the coming twenty years will easily exceed three-quarters of a million. That is nearly twice the number currently employed. Global Flight Training Solutions (the Academy) desires to commence operations as a flight school/aviation academy at the Immokalee Regional Airport in Immokalee Florida. The Academy will be a career pilot training center with global reach. In due course, it is expected that additional facilities will be established in strategic locations across the globe. The Academy plans to emphasize career mentoring for students from around the world who seek flight deck positions. Programs will include, but not be limited to: ab initio student training; time-building; and ‘direct-to-airline’ bridge programs. The Academy will also offer full FAA Part 61 training options for those seeking FAA certification or in need of time-building. In addition to a robust training fleet, the Academy plans to operate a complement of flight training devices (FTD’s) to augment the training experience. The decision to headquarter the Academy in the southeast United States (Florida) is strategic. General aviation in the US – including flight training – is known worldwide to be affordable, accessible, and well-supported. South Florida enjoys excellent weather conditions for training year-round. Superior training aircraft manufacturers are nearby. Business and economic development enthusiastically supports new ventures like the Academy. Community leadership actively courts investment by business savvy entities. Startup and expansion costs are very reasonable. Unique to the Academy, the development of business relationships with multiple air carriers will allow the school to promote itself as a ‘feeder’ for affiliated airlines interested in receiving quality, highly trainable professionals the world over. The current (and anticipated) pilot shortage worldwide makes now the time to create and fine-tune a business of this sort. The Academy will offer personalized and thorough flight & ground instruction. We understand that needs vary by individual, and the Academy plans to offer a variety of programs to hasten the success of our students. As an example, Global Flight Training Solutions will partner with the Cork Institute of Technology (among others) to provide concurrent ATPL/BA 16.G.4.d Packet Pg. 2362 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 4 programs. Growth in size, scope and capacity will occur through superior customer service and active promotion of its programs worldwide. The Academy seeks to educate and mentor current and future pilots, assist in their career plans beyond the school, and develop a reputation in the industry of being second-to-none. Our vision is to provide a service so valuable as to be sought after by aspiring pilots and reputable air carriers worldwide. We will accomplish this by providing an atmosphere of encouragement, enthusiasm, and sound guidance for clientele. Although there are other successful flight training entities in the US and beyond, Global Flight Training Solutions will provide a level of involvement in the students’ training which will greatly increase the likelihood of successful advancement to the air carrier cockpit. The operators of the Academy have long-been a part of, and thus understand the close-knit nature of the aviation community. The Academy will work to exploit the ever-present chatter within this community to bolster its good name and success. The “pipeline” for prospective students/clientele will be kept full by and through the efforts of the Academy operators. Relationships with other flight schools around the world, colleges/universities, and air carriers, all combined with sound marketing will be exploited to their fullest natural extent. With the understanding that the burgeoning pilot shortage will continue and grow for years to come, it is the intent of Global Flight Training Solutions to smartly seize upon opportunities, and become the worldwide, sought-after professional pilot training organization. For an aspiring pilot to achieve proficiency in maneuvering, navigating, and communicating, s/he must receive consistent, frequent training in the cockpit. Southwest Florida was selected to be the Academy headquarters as it offers excellent airspace variety, ease of egress and ingress, and experiences some of the best flight training weather on the planet – generally more than 300 days per year. The relative “predictability” of weather conditions suitable for daily training makes southwest Florida optimal for establishment of a business of this ilk. Certainly, weather challenges do arise, and these too provide excellent ‘natural’ learning scenarios. Despite hot, humid summers, the temperature lapse rate and affordable air conditioning units will provide comfortable flying any time of year. 16.G.4.d Packet Pg. 2363 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 5 Importantly, the demand for well-trained, capable pilots worldwide is only beginning to blossom. It is our firm belief that with sound best practices, expertise, and care, the return on investment will be substantial – for decades to come. Those responsible for the creation and operation of this Academy thank you for your interest in participating in doing something larger than any one person. We hope you will agree that the Academy will be an elegant business solution for air carriers worldwide. Opportunity is knocking! 16.G.4.d Packet Pg. 2364 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 6 III. General Company Description Global Flight Training Solutions plans to provide high quality, affordable flight and ground training to aspiring pilots worldwide in a location well- suited for the pursuit. The company’s strengths will include its philosophy - reflected in its vision, mission, and employees’ commitment to excellence. The Academy will succeed due to the collective efforts of all involved by and through sharing our passion for aviation. As a group, we bring expertise in business, flight, aviation instruction, and sound maintenance procedures to this new venture. Background: The business of aviation is changing rapidly. No longer is flying available to a privileged few; the world is traveling, shipping, moving. From business aviation to passenger service, freight, and beyond, civil aviation is burgeoning in markets previously absent. Rapidly connecting any two points on the globe has safe, efficient aviation to thank. The rapid growth in the aviation industry worldwide, combined with the retirement of those completing flight deck careers, means that the world is on the cusp of a profound pilot shortage. The challenges of meeting pilot demand with supply are already evident in many parts of the world, where pilots are being offered up to four-times their base salary to cover trips on days off. News travels quickly, and those with a passion for flying are ready to make the move toward a career on the flight deck. Global Flight Training Solutions is poised to become the means by which these individuals realize their career aspirations. Those participating in this venture recognize the magnitude of gathering momentum of need for professional pilots. It is our intention to become the “solution” for air carriers seeking competent professionals. Vision Statement: Develop a profitable and sustainable aviation academy through superior program offerings, customer service, innovative & wide-ranging curriculum, and pragmatic adaptation to changes in the industry. Develop and maintain 16.G.4.d Packet Pg. 2365 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 7 multiple, highly regarded relationships with industry partners, providing carriers of all types with excellent career-minded pilots. Achieve a reputation for commitment to safe operation, personal approach, and student success. Create a well-regarded brand, known worldwide to be superior in flight-career training. Continually seek and entertain new clientele, and grow in any economy. Mission Statement: The Mission of Global Flight Training Solutions is to provide flight and ground instruction that emphasizes thorough knowledge of the basics of safe flying. Further, the Academy will hone students’ abilities to utilize and manage technology in the cockpit. We will invest time, energy, and care in each student to ultimately produce prepared, marketable, professional, and flexible pilots. Company Goals and Objectives: The Goals of the Academy include, but are not limited to: 1. Develop a sustainable and profitable flight school through intelligent execution; 2. Grow pragmatically in any economy; 3. Embrace and adapt to trends in aviation while holding true to the philosophy that what makes a great pilot never changes. Objectives: To meet the above goals, the following objectives will provide measurable evidence to that end: 1. Instructional effectiveness will be validated by students who complete various programs and/or move on to flight deck positions with air carriers; 2. Quarterly financial analyses of flight school operations. These analyses will help guide best practices and be used to gain consensus among owners/investors for new direction and/or further investment; 3. Invite input from multiple sources (air carriers, aviation administration experts, and others) regarding technological trends and desired skills in incoming flight deck crew. 4. Partner with educational institutions and others in the aviation indus try to widen program scope and provide a competitive advantage for both the student and the Academy. Business Philosophy: Successful achievement of the mission is essential to longevity. The Academy will meet its mission through superior customer service and 16.G.4.d Packet Pg. 2366 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 8 involvement in each student’s journey. Student success ulti mately results in referral of new business. A sound brand and image, marketed well, leads to recognition. 16.G.4.d Packet Pg. 2367 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 9 IV. Products and Services Global Flight Training Solutions plans to offer ground instruction, flight training device (FTD) experience, and flight training, all from the Immokalee Regional Airport in Immokalee, Florida. Flight training competition at the airport is currently nil. Ground instruction is an essential ingredient in preparing pilots for safe aviating. Without the distraction of “a hand full of airplane”, instructor and student are able to focus not only on meeting requirements, but also on areas of weakness or particular importance. The Academy will provide both group and individual ground instruction in preparation for ATPL /EASA and FAA Certificates & Ratings. FTD training, executed correctly, can enhance students’ technical skills, as well as offer multi-crew practice for transition to the flight deck. Flight training in an FTD (simulator) also allows a “compression” of time to maximize the benefit to the student/flight crew. Further, the ability to “pause” – to emphasize a teachable moment – is not available while airborne in an aircraft. The Academy plans to employ current connections with Frasca Flight Simulation, Inc. for customized flight training devices. The most visible, and certainly the focal point of any flight school, is its fleet of aircraft. Training aircraft are often treated harshly, although without the intention of doing so. The Academy will enter into an agreement with Piper Aircraft for its training fleet. This manufacturer provides time-tested, reliable options for the fleet and its support. Options are currently being investigated, and the Academy has every intention of maintaining the fleet to the highest standards of safety and aesthetic. The potential for leaseback of suitable aircraft for fleet augmentation also exists. Flight decks on aircraft continue to evolve rapidly. Ever changing flight management systems are designed to increase safety, reduce pilot workload, and maximize efficiency. The principles of flight do not change with time, however. That all in mind, a fine pilot is one that possesses the ability to fly the aircraft and manage the systems. The flight school will invest the time and energy to teach students in such a manner that, if technology should fail, the pilots we make will still be able to fly, and thus, manage the aircraft. 16.G.4.d Packet Pg. 2368 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 10 The Academy seeks to offer programs that are of highest and best use for our clientele. Examples of programs included (Title to indicate example of expected outcome): • Time building • Concurrent enrollment in college/university undergraduate aviation programs • Return to aviation to finish-up and move on • Ab initio – “Zero to Hero” • Bridge programs • Airline interview Sim Ride Prep • Airline readiness, CRM, and proficiency training • Ratings – Instrument, Multi-Engine • Certificates – Private through ATP(L) The Academy will also offer discovery flights, sightseeing, and photography flights as regulations allow. 16.G.4.d Packet Pg. 2369 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 11 V. Marketing Plan Market Research, Analysis, and Summary: Global Flight Training Solutions will initially be focused on engaging students who have an immediate need to “build time” in preparation for a career flight deck position. The Academy’s time-building programs can (and will) be marketed to aviation training centers where the weather may hinder rapid completion of this portion of required training. We anticipate that with even a modest advertising push (internet, magazine, social media, blog, YouTube, in-person meetings), the flight school will see enough business to have a ‘soft opening’. Plans for a grand opening will follow in a reasonable period of time, allowing for efforts to secure adequate facilities, solidify program offerings, hire suitable employees, and work out any ‘glitches’. The school plans to have an informative website that reaches anyone in the world looking for the type of services we offer. Website optimization and promotion will be essential, as the signal to noise ratio in marketing favors noise. Southwest Florida enjoys some of the best flying weather year-round and offers much for the traveling pilot. Advertising will also be conducted in the form of press releases, invitations to media, blogging, and through the various promotional materials – clothing, accessories, etc . Although the town of Immokalee is rural and agricultural, r elative affluence exists in the area as well. Per the US Census, Collier County, FL remains in the top 50 counties in the nation with respect to per capita income. Florida Aviation Business Magazine notes that the state of Florida ranks second in the nation in business and private aviation. Due to this high relative demand for general aviation activities, the Academy plans to align and promote itself in this realm as well. From a pilot’s perspective, business and general aviation often offer agreeable scheduling and more atypical missions. The Academy will tailor programs for those pilots who find business and general aviation an attractive alternative to the airlines. Southwest Florida’s population is unique in that it swells to nearly double its size during the winter months. The influx of both part -time residents and tourists coincides with some of the best flying weather of the year. It stands to reason, then, that the school will see a peak in business during the winter 16.G.4.d Packet Pg. 2370 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 12 months. It is the intention of the Academy to actively seek new business all year as well as to “gear up” for and during the winter season. Market Segmentation: 1. Go-getters world-wide wanting to become professional pilots 2. Time builders 3. Those seeking concurrent degree certification from an accredited college/university in their “home” country 4. Those seeking advanced certification for any reason 5. Unsatisfied students from other locations, schools, institutions 6. Curious flyers – “I’ve always wanted to learn to fly” 7. Aircraft owners desiring assistance in augmenting their skill set 8. General public of all ages – participate in flying events, open houses, etc. to inspire and promote the school’s ability to help “earn your wings” 9. Those interested in aerial tours of the area and/or to take real estate photos 10. Impulse flyers – offer Discovery Flights with real estate developers, local businesses, and tourism hubs As with most business, the pendulum of demand swings with the economy. In aviation, it has been said the industry “feels it first and recovers last”. In any other time – until now – this statement has been a truism. Times, however, have changed. Business is now routinely conducted world-wide. At any given moment, there are up to 10,000 aircraft airborne, moving people, goods, essentials, and business as never before. Even in times of recession to come, the demand for safe transport of people and goods is expected to multiply many times its current capacity. Potential barriers to entry into the flight training market are likely capital costs and talent to make it work. Obtaining, operating, and maintaining aircraft is expensive, so much so that this topic is often the subject of aviation humor. Skillfully overcoming these obstacles will require investment (of time, money, energy), perseverance and optimism, no doubt present in abundance among those interested in this venture. 16.G.4.d Packet Pg. 2371 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 13 Promotional Budget The majority of the above marketing will be accomplished through the employment of a Marketing/PR/Communications Specialist. This highly- skilled individual will work closely with the organizers of the school in creating an innovative and far-reaching promotional plan. We recommend a contract/retainer with this professional. It is estimated that approximately $75/hour will interest the candidate with the level of expertise we need. Pricing • Aircraft “wet” pricing to be determined • Flight instructor billing rate will depend on type of instruction provided: o Initial flight training $60/hr o Advanced flight training $70/hr o Ground instruction $50/hr o FTD instruction TBD 16.G.4.d Packet Pg. 2372 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 14 VI. Operational Plan Location The planned location for the Academy will be the Immokalee Regional Airport. The flight school will initially lease office/classroom space from the Airport. Adequate and reasonably attractive facilities are available as early as September 2018 at the airport. The flight school will have ample space for parking, ground school, and ramp space for aircraft. Negotiations with a developer who is already underway with a (multiple) hangar facility project at the Immokalee Airport can be started at any time. It is expected that the project, leading to a “built -to-suit” facility will be ready for use by summer, 2019. FAA Part 141 Certificate and Options An FAA Part 141 Certificate (Pilot School Certification) will be pursued once the Academy is in operation. Assistance from counsel and the hard work of Academy staff will produce the necessary “Training Course Outline” and other required documentation. This certificate allows the school to participate in international certification programs like EASA. Although a highly valuable item in terms of global reach with training and time-to-grow, the FAA Part 141 Certificate is not required to commence business operations. Instruction and time-building can be provided under FAA Part 61. House-Keeping and Administration The Academy will have high speed internet access and telephone service. Normal business hours (counter open) are expected to be from 8:00am to 6:00pm. Required insurance coverage for all operations will be obtained prior to the start of business. Employees will include flight instructors, administrative staff for front desk operations, a director of maintenance, a chief flight instructor/director of operations, and an international recruitment professional. The school 16.G.4.d Packet Pg. 2373 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 15 expects to commence operations with approximately four to six employees. Pay structure will be competitive with other flight schools in the area. Accommodation options in the vicinity can be few, and expensive; a potential aversion for CFIs and students considering the Academy. It is strongly recommended that a housing subsidy be provided to incoming instructors. Should investors be interested in an additional income stream, the on-site Director of the flight school maintains an active real estate license, and is certainly capable of handling any transactions, management, and placement. The purchase of 2-3 condominiums in the vicinity would provide housing for approximately 6-8 employees/students. Expenses associated with such a purchase would be in the $4-700K range. All flight instructors will be “standardized” so that customers who train with the organization will be instructed on procedures in a similar manner. It is not the intent of the organization to quash instructor personalities and alter training styles, but rather to achieve a best practice for the sake of continuity in training. Minimum qualification for employment as an instructor will be successful completion of the FAA practical test for Certified Flight Instructor and a demonstrable ability to teach in the field. Front desk operations will be conducted by Ruth Luenterbusch, a highly- seasoned aviation logistics professional. The flight school will seek individuals with competent “people skills” and attention to detail to assist Ruth in meeting administrative needs. Payroll and flight school financial matters will be managed by Mrs. Melissa Linn, who has an extensive background in all areas of office management and payroll. Melissa will also manage administrative employee staffing and scheduling. The organization plans to initially use Quickbooks software to manage accounts and invoicing. Payroll may also be managed in-house with the aforementioned Quickbooks software. The Director of Maintenance will be Mr. Peter Brake. Mr. Brake is currently the owner of DynaMaint, LLC in Naples, and will be responsible for assuring the aircraft are in airworthy condition and that all maintenance and inspections are performed in a timely fashion. Mr. Brake has demonstrated his competence in this role for many years, and will, no doubt, be an asset to the organization. 16.G.4.d Packet Pg. 2374 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 16 On a day-to-day basis, Patrick Linn and Victor Costello shall serve as Directors of the flight school. Credit Policy It will be the policy of the Academy to not sell flight and/or ground instruction on credit. All accounts will be payable upon receipt of service or from a prepaid account. Should a student receive training and have a negative balance on account, the account must be paid in full prior to continuation of training. The Academy desires to offer incentive to students for keeping money in a training account. It is expected that the school will be able to offer a 5% discount for prepayment of 10-40 hours and a 10% discount for prepayment of more than 40 hours. The school will accept payment in the form of cash, local check , traveler’s check, and credit/debit card. Policy for Accounts Receivable To ensure that the Academy remains solvent and viable, timely payment for services provided are a necessity. Accounts will be reviewed on an ongoing basis (business software to flag/alert overdue accounts) to determine delinquency. The organization will phone and send written notice (invoice) to the individual(s) owing money after 30 days of nonpayment . Following 30 days nonpayment, usual and customary means of obtaining payment will be followed at 60 and 90 days, as well as over 90 days. Please refer to Credit Policy above. Policy for Accounts Payable Global Flight Training Solutions fully intends to pay creditors in a timely fashion in order to achieve a relationship of trust and take advantage of prompt payment discounts. If the school is unable to make prompt payment on any account payable, the creditor will be contacted immediately in order to avoid conflict resulting from delinquency. To the greatest extent possible, recurring payments will be set to an “auto-payment” status to reduce check usage and mailing. 16.G.4.d Packet Pg. 2375 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 17 VII. Management and Organization Day-to-day management of the Academy (at commencement of operations) will be accomplished by Patrick Linn, Victor Costello, Melissa Linn, Ruth Luenterbusch, Kevin Dunleavy and Peter Brake. Should any one of the aforementioned individuals become unable to perform his or her duties, the business will continue to run via cross-training of staff. Professional and Advisory Support Board of Directors: Investors of Record, Victor Costello, Patrick Linn Attorney(ies): Advocate Consulting, LLC, Forrest Owens, Esq., Wolcott & Associates Accountant: Sundi Faith, CPA Insurance Agent: Avemco or other suitable insurer Banker: Bank of America Aircraft Maintenance: DynaMaint, LLC Consultant(s): Marketing/PR/Communications – Robin King 16.G.4.d Packet Pg. 2376 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 18 VIII. Startup Expenses and Capitalization In order to thrive in any aviation-related business venture, anticipating and exerting control over as many variables as possible is essential. In simple terms, two important objectives exist: 1. Reasonably minimize financial obligation, such as overhead and ownership of the fleet; and 2. Become and remain poised to take advantage of opportunity when it arises. In so many words, the Academy will work to keep costs controlled while maximizing revenue through conducting all forms of instruction and renting aircraft. Experience teaches those in the business that utilizing all time scheduled with a student helps them to learn more and drastically improves revenue. Information regarding fleet aircraft is attached separately. Our recommendation is to go with the Piper Aircraft company. The current lease rate for the facilities at the Immokalee Regional Airport is approximately $500/month. This includes office, ground instruction space, and aircraft tie-downs. High speed internet and phone service is in place. Servers for school business will be required. As the time required to fulfill an order for training (fleet) aircraft from Piper Aircraft is approximately nine months, the Academy will enter into a lease agreement for training aircraft with Christiansen Aviation. The time to delivery (from lease engagement) is approximately 30 days. These aircraft will suffice nicely until the fleet aircraft from Piper are ready. 16.G.4.d Packet Pg. 2377 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions) 19 IX. Financial Plan Global Flight Training Solutions enters the business of flight instruction, ground instruction, FTD instruction, and aircraft rental with the intent to prosper. As mentioned previously, the business of aviation has historically demonstrated a magnified response to changes in the economy. Times have changed for the better, and the industry is on the verge of its greatest-ever shortage of pilots. A well-run training organization stands to do very well for some time to come. The Academy desires to capitalize on this need for pilots and plans to become the brand synonymous with success in delivering competent pilots to air carriers. Growth of the business will occur through analysis of what works, what doesn’t, and anticipating needs in various markets throughout the world. Developing relationships and a reputation for doing fine work is going to be the heart of the business’ success. Careful, calculated growth will help to minimize risk and allow the organization to weather any economic storm. There is little doubt that demand will ebb and flow over time, but the demand for competent aviators is expected to remain higher than typic al for decades to come. 16.G.4.d Packet Pg. 2378 Attachment: GFTS Cover and Business Plan 2019 (9284 : IMM Office Lease - Global Flight Training Solutions)