From
Mike Day
Title
Ordinance amending the FY 2015/2016 Capital Improvement Projects Budget; construction cost for a new taxilane and run-up area not to exceed $382,500 and approval of a Memorandum of Lease and Proposed Construction of Improvements Agreement with Staggerwing Development #4, LLC at the Grand Prairie Municipal Airport
Presenter
Randy J. Byers, C.M.
Recommended Action
Approve
Analysis
Skymates, Inc. has operated at Arlington Municipal Airport since 1996. They are an FAA 141 Flight School and a CAAV (Civil Aviation Administration of Vietnam) approved facility. They have approached Grand Prairie Municipal Airport (GPM) several times in recent years inquiring about facilities available and the possibility of relocating to GPM. The airport does not have adequate facilities to accommodate their operation.
To provide adequate facilities to accommodate Skymates, Inc., a taxilane extension to a proposed site will be required. A run-up area at the south end of the airport is also deemed necessary to enhance operations for the flight school as well as for other operators. Working with Staggerwing Development #4, LLC, a plan has been developed wherein the City will pay the cost for a run-up area and a taxilane extension. Staggerwing Development #4, LLC, will construct the city-owned improvements. Additionally, Staggerwing Development #4, LLC, will modify a newly constructed hangar on their lease site, and construct additional classroom area, a maintenance hangar with ramp, and a parking lot in order to accommodate the flight school.
Once the project has received a temporary Certificate of Occupancy, Staggerwing Development #4, LLC, will seek permanent assignment of the leased area to Skymates, Inc. The term of the lease will be thirty (30) years with two additional five-year (5) options. The area to be leased consists of approximately 44,455 sq. ft.
This item was presented to the Finance and Government Committe on April 5, 2016 for recommendation and approval.
Financial Consideration
The initial rate for the lease will be $.135 per square foot per year, provided however that rental rates may be adjusted annually on October 1 of each succeeding year to those then in effect. Rates during any options shall be those then in effect for similar leased areas. Initial rental rate for the area will be $6,001.43 annually or $500.12 monthly. Bannister Engineering through Staggerwing Development #4, LLC, will provide a plat with meets and bounds for the leased area. The leased area and annual rental rate will be adjusted to comply with the official plat in the lease agreement.
Through a Memorandum of Lease and Proposed Construction, Staggerwing Development #4, LLC, will construct the taxilane extension at a cost not to exceed $235,000 and a run-up pad at a cost not to exceed $147,500.
In the previous project constructed by Staggerwing Development #4, LLC, for the City, the cost per square foot for design/construction of a similar taxiway was approximately $14.22 per square foot. The cost to construct the new taxilane will be approximately $15.36 per square foot. The cost for the run-up area will be approximately $14.75 per square foot. Design services are included in all the above estimates. The previous project was designed by KSA Engineers. For the new project, Staggerwing Development #4, LLC, will contract with Bannister Engineering for the design.
Funding for the construction of a new taxilane and run-up area in the amount of $382,500 is available by approving an ordinance transferring and appropriating from the unobligated fund balance in the Airport Capital Projects Fund (505292) WO #01611703 (South Taxilane and Run-Up Area).
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2015/2016 CAPITAL IMPROVEMENT PROJECTS BUDGET BY TRANSFERRING AND APPROPRIATING $382,500 FROM THE UNOBLIGATED FUND BALANCE IN THE AIRPORT CAPITAL PROJECTS FUND (505292) TO WO #01611703 (SOUTH TAXILANE AND RUN-UP AREA)
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. That the FY 2015/2016 Capital Improvement Projects Budget be amended by transferring and appropriation $382,500 from the unobligated fund balance in the Airport Capital Projects Fund (505292) WO #01611703 (South Taxilane and Run-Up Area).
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, April 5, 2016.