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` AIRPORT ADVISORY BOARD AGENDA
• February 7, 2002
1 :30 p.m.
Fayetteville Municipal Airport
Airport Conference Room
4500 S. School Avenue
1 . Call to Order.
2. Approval of the January 10, 2002 minutes.
3. Strategic Planning Report-by Charles Wallace, Chairman
4. Old Business:
A. Airport Construction Project (T-hangar drainage project)
B. Airport Signage on I-540
C. Contract Air Traffic Control Tower
D. Air Museum request for sponsorship for Air Fest 2002.
5. New Business :
A. Director's Report-by Ray Boudreaux
. 1 ). Activities Report
2). Report on the January 31 " meetings with the Arkansas Department of
Aeronautics, Arkansas Highway Department, and the Arkansas Department
of Economic Development
3). Discussion regarding a land lease for a non-aviation factory
4). Report on Chamber of Commerce activities
5). Market Analysis report
B. Engineering contract
C. Forest Service project
D. Executive Ramp Project (develop, design, construct)
ACTION REQUIRED : RECOMMEND APPROVAL OF A GRANT
APPLICATION TO THE CITY COUNCIL
E. "Mission Statement Fayetteville Municipal Airport 2002-2006"
ACTION REQUIRED: RECOMMEND APPROVAL ;
F. Financial Coordinator's Report by James Nicholson
1 ). Revenues/Expense report
2). Fuel sales report
3). Activity report
6. Other Business:
A. Items from the Airport Board
. B . Items from the Public
7. Adjourn .
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• DIRECTOR' S MONTHLY ACTIVITY REPORT
Fayetteville Municipal Airport, Drake Field
January 2002
1 . Met with Bill Clodfelter at the Clarion to see how we could cooperate for in-flight meals and
rooms for our crews that need overnight accommodations.
2. Attended Rotary both Tuesday and Thursday. Will transfer my membership to the Thursday
group.
3. Met with Don Hams, our FAA Project Manager and representatives from McClelland
Engineering and the Forest Service. Discussed the capital program for the airport and the
Forest Service Fire Base project. Lease was approved by the City Council. Forest Service
has been notified.
4. Met with Greg McCoy of the Arkansas Aviation Technology Center. The Tech Center
building needs some repairs that we are obliged to do and will do. They will make some
additional improvements on their own.
5 . Met with Bill Smith of the Arkansas Air Museum, along with representatives of the Ozark
MilitaryMuseum. The two museums are still a ways apart but need to get together to remain
viable.
6. Attended the Fayetteville C of C Economic Development Committee meeting as the guest
speaker. We will be a member of that committee, as well as the Transportation Committee.
• 7. Interviewed by Lesa Leonard for the C of C newsletter.
8. Have been contacted by two different companies that want to build 10,000 SF hangars. We
are working to develop an executive ramp project which will provide the space for these
hangars. State grant has been filed and will present the grant to the State Aeronautics
Commission on February 13.
9. John McGuire showed me around the area including the industrial park, Genesis and the
Business Technology Park.
10. Visited the Springdale Airport and toured with Verl Thompson. Fayetteville has much more
to offer in every measure, but Springdale is operating like a business so is a very viable
competitor.
11 . Fuel prices went up so we adjusted. We are still the lowest in the area, but not by as wide
a margin. We will stay the lowest, but will make enough money to pay for ourselves. Plan
is to make monthly adjustments mid-month and base the adjustments on the cost of fuel.
12. The Strategic Planning Session was very productive. I think that after a lot of discussion,
all were in agreement that the airport must proceed to develop general aviation activities and
leave scheduled commercial for the folks at XNA. We finalized a Mission Statement and
will recommend it to the City Council. We will develop goals and objectives to accompany
the Mission Statement.
13. Met with David Jones from Jones Transportation Services to discuss cleaning up their area.
He said he would get right on it. His father, the owner, is out of town, returning in February.
We have a 30 day kick-out clause if we want to use it.
14. Dr. Loewer toured me around Genesis and we discussed how we can cooperate on new
• initiatives for the future. A great place and a great opportunity for partnering in growth.
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15. Met with Drake Aviation, Ron Dixon and Yassar Saeed. We worked out an agreement for
• fuel and they agreed to continue to work with us. Too late to get them to locate here. They
now own a hangar and are looking at providing FBO services in Springdale.
16. Met with Roger Luck, FAA TRACON Manager from Razorback Approach in Fort Smith.
He and Scott Williams, FAA Facilities Manager, drove up to visit. We discussed all items
concerning the FAA support of the Fayetteville Municipal Airport.
17. Showed ground available for lease to a company located in the area that is building a new
building and needs to be near the USPS facility in the Industrial Park. They need 2 acres.
18. Spent Thursday January 31" in Little Rock visiting with the Director of the Arkansas
Department of Aeronautics, Director of the Highway Department and Director of ADED.
All were very eager to support our aviation and economic development initiatives. I also met
with Joe Faucett of Central Flying Service. I piqued his interest enough that he had an
associate visit with us on the following Friday. We may need to do a market analysis to find
customers for his business to convince him to make the leap. It will cost a bunch to start a
Part 135 operation from scratch in Northwest Arkansas
19. Attended the first two hours of the SBIR/STTR planning meeting at Genesis. We will be
able to guide innovative projects to the right people to be able to access the programs.
20. Attended the Business Forecast luncheon. Some impressive information from some very
credible people. Things are looking up and we need to be in the game.
Expectations for week of February 2002:
• 1 . Work the project to develop the executive ramp.
2. Work with Central Flying Service and other interested companies to see if we can do a project
to start a Part 135 charter service operation in Fayetteville.
3 . Follow up on meetings of January week including letters to those who agreed to meet with us.
4. Prepare to start work on the two projects that are in progress in the Spring.
5 . Close out the drainage project in the T-Hangar area.
•
• POLICY
FAYETTEVILLE MUNICIPAL AIRPORT
DRAKE FIELD
AIRPORT BUSINESS AND OPERATIONS CENTER
GENERAL: With the loss of scheduled airline passenger service, the former TerminalBuildingno
longer serves scheduled airline planes and passengers. The Fixed Base Operation
(FBO) is located on the airside of the building and is operated by the airport owner,
the City of Fayetteville. Airport employees service the needs of general aviation and
FAR Part 135 and Part 91 operators and users and monitor the Fayetteville UNICOM
during the hours of operation of 6am until 9pm weekdays and 6am until 6pm
weekends.
PURPOSE: The purpose of this document is to enumerate the policy for the use of the building
to generate revenue and create commerce now that the facility is no longer used for
ticket sales and scheduled airline passengers. The goal is to create a business center
and to provide first class service to passengers and crews of the aircraft that use
Fayetteville Municipal Airport. While it is understood that the facility will be
modified in the future to eliminate the trappings of a passenger service terminal, that
equipment still remains and will thus limit the use of the building until it is removed
and disposed of.
• PERMANENT USES:
The goal is to develop the facility into a building that conducts business and
commerce that is aviation related and pays a share of the building operating costs.
Samples of aviation related businesses are: Flight instruction, aircraft maintenance,
charter operators, cargo operations, aircraft sales, etc. Other related businesses might
include law firms, CPA firms, Communications Centers, book stores, pilot shops and
other small businesses.
TEMPORARY USES:
Temporary uses could include craft fairs, coin shows, train shows, book fairs,
conference meetings, educational classes, recitals, air shows, open houses and other
one-time uses that do not interfere with the aviation uses in the building.
POLICY: Whether temporary or permanent, the use of the Business and Operations Center
building shall not interfere with the conduct of the aviation business of the airport
including but not limited to; the conduct of passenger services, the conduct of flight
training, the support ofbased and transient crews, and the overall process of customer
service to include fuel, repair, parking, tie downs, charter, catering, housing and
transportation.
•
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MARKET ANALYSIS
DRAKE FIELD
CITY OF FAYETTEVILLE
BY
THE REAL ESTATE CONSULTANTS
118 NORTH EAST AVE.
FAYETTEVILLE, AR 72701
• 0 COPYRIGHT 2002 BY THE REAL ESTATE CONSULTANTS
THE r
REAL ESTATE 118 N. East Ave.
P.QEONSULANTS Fayetteville, R 72702
• REALTORS • APPRAISERS • CONSULTANTS • Phone (501 ) 442-0762
January 17, 2002
T0: Mr. Ed Connell &
Mr. Gary Dumas
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
RE: Drake Field Market Analysis
Per your request, my firm conducted a market analysis of major airfields in the Northwest
Arkansas area. Specifically, the scope of this assignment consisted of three phases:
Phase I - Research the market for competitive airport land lease rates in the
NW Arkansas area. Review market for full amenities and without
amenities. Also review price fluctuations due to size variances.
• Phase R Research the market for competitive rents for T-Hangars in the
NW Arkansas area.
Phase II1 Research the market for competitive rents on large hangars.
Communication of this assignment includes the following executive summary as well as an
airport `profile digest' for each location studied in depth.
Locations studied include the municipal airfields of Springdale, Rogers, Bentonville, and Siloam
Springs, as well as the NW Arkansas Regional Airport in Highfill. A large majority of the
information collected was the result of examining these complexes. Significant information is
summarized on the following pages.
Sincerely,
Mark E. Risk Gregory E. Young
•
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EXECUTIVE SUMMARY
MARKET DATA BRIEF
LAND LEASES- Contract rates range between 1 - 17 cents per square foot per year. There
appears to be no correlation between rate and land size. Rates are fixed regardless of square
footage to be rented. 5 cents has been the industry norm for many years, although this is tied
more to local custom than market conditions. The city of Rogers negotiates new agreements
with a floor of 10 cents/SF/annum. XNA is the only local location currently receiving more than
10 cents. Minimal amenities are assumed in these agreements (electricity, lighting, grounds
access, basic security) with very little present correlation between rate and additional amenities.
T-HANGARS- Exact square footage estimates were not available for many of the
locations. Basic categories and their related rental rate per month are offered below. Differences
in rates can be attributed mainly to total unit size, age/quality of structure, and location/services
appeal.
Open structures Monthly Rental
Open, single engine (appx. 1 ,200 SF or less) $45-70
Open, single/small twin $ 100- 125
Fully enclosed structures
• Closed, single engine (appx. 1 ,200 SF or less) $ 100-110
Closed, single/twin $ 100-135
Closed, twin + $200-225
LARGE HANGARS (COMMERCIAL WAREHOUSING)- Currently, Springdale is the only
other municipal facility offering pre-constructed warehousing for lease. All other locations
allow the land lease tenant to construct private hangars/storage space according to individual
specifications. Rental rates for Springdale range from 15-20 cents/SF/Month.
•
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EXECUTIVE SUMMARY CONT. . .
• ADVISORY BRIEF
After analyzing available information and discussing current conditions with those knowledgeable in the
airline industry, the following comments can be respectfully offered:
• COMMON WISDOM OF AIRFIELD LAND & BUILDING LEASES
There exists a philosophy most municipal airfield operators hold regarding the leasing of assets, especially when
seeking to satisfy desires of the general aviation market. Basically, the attempt is made to draw private pilots by
offering low storage and airstrip use rates (It should be noted that FAA licensed locations are also somewhat
restricted regarding the maximum rate chargeable). A majority of operating income then comes through ancillary
services, primarily fueling. These ancillary services can be provided by Fixed Base Operators- private businesses
operating within the complex. Some city governments choose to manage the entire airport operation themselves.
SUGGESTION: SHORTER-TERM, RENEWABLE CONTRACTS TIED TO AN
INFLATION OR MARKET INDEX
Many existing ground and structure rentals have been in place for many years with a typical
agreement running 25 years or more. An extended term lease with fixed rental rate is quickly
becoming out-dated. Most importantly, escalation clauses allowing a periodic rate adjustment
dependant upon a common index should be considered. Many variations are possible, depending
on negotiating assumptions. Flexibility within existing governmental guidelines is key.
• • EXISTING RATE STRUCTURE- LAND LEASES
As noted before, the prevailing rate for ground rents stands at 5 cents/SF/Annum. This is based primarily on local
historic custom. There is some 'competitive' restraint, as most locations are still willing to agree to this amount.
When considering the general aviation market, convenience (distance traveled & operation hours) and depth of
services are more important than monthly rent- assuming no excessive overpricing.
SUGGESTION: MINIMUM LAND LEASE RATE OF 10 CENTS/SF/ANNUM
Interviews with city managers and fixed base operators reveal the notion that a rate below 10
cents neither mirrors the market (what clients are truly willing to pay) nor covers associated costs
with any margin of comfort. An initial negotiating rate at 10 cents/SF/Annum should be
considered.
• EXISTING RATE STRUCTURE- T HANGARS & MISC. STORAGE STRUCTURES
All municipal airports studied offer T-Hangars, at least for single engine planes. It is interesting to
note there appears to be no correlation between extra storage-related amenities and rents received.
As long as basic utility requirements are satisfied, additional amenities appear to have little
impact. All locations are experiencing fairly low vacancies (-10-15%).
SUGGESTION: EXISTING HANGAR RATES WITHIN ACCEPTABLE RANGE.
FUTURE LEASES COULD BE INCREASED TO THE LOW TEENS
(12-15 CENTS/SF/MONTH) WITH LITTLE NEGATIVE IMPACT.
• SUGGESTION: EXISTING WAREHOUSE STORAGE RATES WITHIN
ACCEPTABLE RANGE. FOCUS ON MARKETING LAND LEASES
AS OPPOSED TO CONSTRUCTING NEW BUILDINGS.
SPRINGDALE MUNICIPAL
SITE INFORMATION:
166.8 total acres
sphalt
.iii. ; , . �....... .• . -• • . . _•. control- runway with . 'tower..
ter. . .. •.:s- - r . . -... - _ .: �+-_ Gate security system.
Located in the East-central
portion of city.
Weight Limitations
_ ^�' _ - ^� ' fes /• 'y'�:'1�i== n�ii•.'� � `-..
. ` ' - . : �. 1,1 :: ~•:: Single wheel 35,000
Double 1 111
Dbl tandem91111
OPERATIONAL 1 of • Planes per • period
DistributionPlane Distribution
1 Planes based o
Multi-engine84 Single engine 38 Transient General Aviation
32
Commercial
Helicopters
3 Ultra-lights
MAJOR FBO: Springdale Air Service 802 Airport Road 7514462
Attended Mon-Fri 24 hours
0700-2000
AVAILABLENo landing fees required
AIRPORT- freight, • ulance, avionics, oxygen, • . • .
sales/leasing/brokerage I
PILOT-STORAGE- Hangars & Tie-downs, commercial warehousing
. • • • i supplies,
pilot lounge/snoozeroom,
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SPRINGDALE MUNICIPAL CON'T. . .
•
COMMENTS: Springdale Municipal is the largest FAA certified air charter airport in the
S-central United States. In addition to the major fixed based operator,
there is also a small aircraft maintenance business on-site as well as a
restaurant. Of all locations surveyed, this complex is considered the most
similar in overall characteristics to Drake Field.
BUILDING LEASE INFORMATION:
STRUCTURE TYPE UNIT SIZE (SF) MONTHLY RENT $/SF/MO.
Open T-Hangar (3 units) 1062 $ 50 $ .05
Open, 8-Bay T-Hangar 1275 $ 100 $ .08
Enclosed, 8-Bay T-Hangar (198 8) 1444 $ 110 $ .08
Enclosed, 8-Bay T-Hangar (198 8) 1217 $ 110 $ .09
Enclosed, 8-Bay T-Hangar (198 8) 940 $ 90 $ . 10
Enclosed T-Hangar (5 units) 1020 $ 100 $ . 10
Enclosed, 8-Bay T-Hangar 1334 $ 130 $ . 10
Enclosed, 8-Bay T-Hangar (1988) 1392 $ 135 $ . 10
• 70' x 70' Commercial (middle partition) 4900 $750 $ . 15
80' x 121 ' Commercial 9680 $ 19750 $ . 18
80' x75' Commercial 6000 $ 1 , 180 $ .20
LAND LEASE INFORMATION: No agreements exist at this time, although the complex has potential
to provide this service. City officials are studying the benefits of land lease offerings and in the early
stages of satisfying initial legal requirements (contract language, planning approval, etc.).
COMMENTS: Information provided/verified via City of Springdale Mayor 's office & Mr. Wyman
Morgan, Director of Finance for the city. The above building lease data differs slightly from the initial
information offered to the appraiser by Drake Field officials. Basically, one of the 8-bay T-hangars is
divided into (3) open & (5) enclosed units with differing square footage & monthly rent. There is also
an additional 8-bay hangar leasing for $ 130/month In discussions with city officials and airport
management, demand is described as high with little to no vacant spaces available.
•
ROGERS MUNICIPAL- CARTER FIELD
SITE INFORMATION:
6,01 V x 100' Dual lane grooved asphalt runway,
no control tower. Gate security system.
Located in the Northeast portion of the city
li '• Q\ Wcight Limitations
Single wheel 42,000 lbs.
Double wheel 73,000
OPERATIONAL 1 • 1 . .
Plane Distribution Use Distribution
118 Planes based on field : 1 ' Local General Aviation
1 Single engine 14 Transient General Aviation
Helicopter22 Multi-engine 6 Air Taxi
25 Jets
MAJOR . • Hammerschmidt Dr 636-9400
Mon-SunAttended
AVAILABLENo landing fee required
AIRPORT- freight,
maintenance/parts, sales, aerial surveying
STORAGE- . .
PILOT- supplies,
pilot lounge/snooze room
on-sitePASSENGER- Terminal & lounge, rental cars
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ROGERS MUNICIPAL CON'T. . .
COMMENTS: Rogers Municipal concentrates heavily on servicing local pilots. In
addition to the major fixed base operator, there is also a small aircraft
maintenance & parts business on-site. In January of last year, the airport
was provided $800,000 from the FAA for runway rehabilitation.
BUILDING LEASE INFORMATION:
The airport complex offers open T-Hangar structures with nine (9) partitioned units per building. Exact
square footage was not available, but the units are large enough to fit one single engine or one small
twin-engine plane with pre-heater. All units are currently leased for $70/month. The units offer
electrical service and fighting.
LAND LEASE INFORMATION: Current rates consist of two basic categories: the oldest existing
agreements call for 5 cents per square foot per year, newer leases call for 10 cents per square foot. No
new leases are negotiated below the 10-cent level. All existing land leases were for construction of
private hangars with the rate remaining constant regardless of land size requested. Lease length is no
shorter than 25 years with the constructed building reverting to city ownership after expiration.
•
COMMENTS: Information provided/verified via Mr. Frank Speer, Airport manager for the city of
Rogers. Mr. Speer mentioned that the airport is in process of expanding facilities, which will include the
construction of a control tower. Also, the Western portion of the complex will be opened up for hangar
construction and land leasing. Rates for both leased hangars and leased land will be increased at that
time. Mr. Speer commented that similar small hangars lease for appx $200/month in the Dallas market.
In his opinion, the two most important appeal factors for non-commercial (private pilot) aviation are
location (proximity from pilot's residence) and pilot services (technology/plane maintenance facilities).
•
EENTONVILLE MUNICIPAL- LOUISE M. THADEN FIELD
SITE INFORMATION:
Appx 250 total acres
4,082' x 65' Dual lane asphalt
runway, no control tower
Located in the Southern_ . . . •
rtion
of the city
Weight Limitations
Single wheel 12,500 lbs.
„
Double 11
OPERATIONAL DATA: Average Traffic of 74 Planes per 24-hour period
Plane
Distribution Distribution
based45 Planes
Transient41 Single engine 18
3 Jets 7 Air Taxi
<1 Military
MAFOR 11 • 11 -7 Airport ' • . . 1 : 254-0657
Attended Mon-Sun Sunrise-Sunset
requiredAdditional hours available for plane maintenance
No landing fee
AIRPORT-AVAILABLE SERVICES:
hour self-service available), air freight, air cargo, avionics,
maintenancelparts, sales
PILOT-STORAGE- Hangars & Tie-downs, commercial warehousing
i i • • • supplies,
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BENTONVILLE MUNICIPAL CON'T. . ,
COMMENTS: Early last summer, the airport was given $ 150,000 by the Department of
Transportation. The funds were to be used for apron expansion, thereby
increasing the number of parking spaces for general aviation planes.
BUILDING LEASE INFORMATION:
All existing hangars are for single engine planes (square footage not determined) with a small amount of
additional space for storage. Each unit has electrical service and lighting. All units are leased.
There are three basic categories and lease rates available:
Type 1 $45/Month Basically a covered tie-down space with partial perimeter walls
Type 2 $60/Month T-Hangar with open front
Type 3 $ 100/Month T-Hangar fully enclosed
LAND LEASE INFORMATION: The current rate stands at 5 cents per square foot for both existing
and negotiated leases. All public utilities are available to the sites. The leases have a term of 35 years
with ownership of the constructed building reverting to the city after expiration.
• COMMENTS: Building lease information provided/verifred via Hughes Aviation. Land lease
information provided/verified via Mr. John Simmons & Mr. Charlie Scott, Airport board members. Mr.
Scott was especially informative and mentioned the city wishes to increase existing lease rates across the
board. Currently, a study is being conducted to establish the most effective procedure for tying in lease
rates to a standard economic indicator. In this way, the city hopes to better mirror existing market
conditions. Mr. Scott also mentioned the desire to "get the city out of the landlord business" by holding
building ownerstlessees more accountable for upkeep and removing contract language where land-
leased buildings revert to the city after term expiration.
•
SILOAM SPRINGS-
• SITE INFORMATION:
Appx 240 total acres
• j''--• . "rte �,- t • . . ti
ual lane asphalt
runway, no control tower
Located in the Northeast portion
of the city
Weij!ht Limitations
,
'� _~•'t;� • -+ Single wheel 24,000
OPERATIONAL 1 of • • Planes per • period
Plane Distribution Distiribution
38 Planes based on field 77% Local General Aviation
MAJOR33 Single engine 23 Transient General Aviation
t • of • . , Springs 20610 Smith Field ' • . • 5244103
Attended • 0700-1700
No landing
AVAILABLE
AIRPORT- Fueling (24 hour fufl-service available), air freight, sales, maintenance
• • AGE- Hangars & Tie-downs, commercialwarehousing
PILOT- • • • • •
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. SILOAM SPRINGS MUNICIPAL CON'T. . .
COMMENTS: Small community airstrip operated since 1963. Located near the
intersection Hwys 59 & 412, the major roadways of the immediate area.
Interviews with city officials indicate a continuing planned expansion of
services including additional hangar units and construction of a parallel
taxiway.
BUILDING LEASE INFORMATION:
All units offer electrical service and shared lighting. Exact square footage was unavailable, but the units
are basic T-hangars with a minimal storage space. The available units are appx 85% leased. There are
four basic categories and lease rates available:
Type 1 $50/Month Open T-Hangar, single engine only
Type 2 $ 125/Month Enclosed T-Hangar, up to small twin engine
Type 3 $200/Month Enclosed T-Hangar, twin engine
Type 4 $225/Month Enclosed Hangar, twin engine with additional storage space
• LAND LEASE INFORMATION: Very little information was discovered regarding existing land
leases at this complex. Verified information indicates at least one land lease agreement exists. This
lease currently calls for $528/Annum for a 5,625 SF plot (9 cents/SF/Yr.). It began in 1989 and has
been renewed every 5 years with an associated rate increase tied to the Consumer Price Index.
COMMENTS: Building lease information provided/verified via Mr. Michael Kirkland, CityAirport
manager and Mr. Jim Kennedy, City Financial Manager. Mr. Kirkland mentioned the city was in the
process of adding additional land to the airport complex.
•
NORTRWEST ARKANSAS REGIONAL- XNA
SITE INFORMATION-
�y
Total acres
8,800' x 150' Dual lane grooved
concrete runway with control
tower
Located in Highfill, Arkansas
Weight Limitations
Single wheel
s y .
— mat'` "'C:, •� ,.
75,000 lbs.
e . :
Double wheel 150,000
. . �•- '. . .� ` Dbl Tandem350,000
OPERATIONAL 1 of Planes per r period
Plane Distribution Distribution
4 Planes based on . . ' Air Taxi
MAJORI Single engine 16 Transient General Aviation
3 Jets 12 Commercial
9 Military
8 Local General Aviation
/ : Regional Jet Center 12344 Towerr M- 1100
Attended Continuously
No landing fee required
AVAILABLE
AIRPORT-
STORAGE- rr
PILOT- • r • ze room/showers, courtesy
lounge,
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NORTHWEST ARKANSAS REGIONAL CON'T. . .
• COMMENTS: In addition to the major FBO, there is an aircraft service business offering
maintenance and modifications for craft exterior and interior.
BUILDING LEASE INFORMATION:
XNA does not offer leases for pre-constructed buildings
LAND LEASE INFORMATION:
Current agreements- Four (4) existing ground rentals, all at $. 17/SF/Annum All leases have rate
increase clauses, two of which rise at 3% per year. The two oldest leases allow for the 3% per year
increase to be initiated, then held steady, every five years (I S% raise every five years). This was
considered an incentive for the tenants to commit in the early stages of the airport's development. None
of the four existing contracts have terms longer than 30 years. These are also `improved' land leases
offering all utilities to site and access to the complex grounds. At the present, the ground rate is fixed
with no consideration for land size desired. Ownership of any constructed buildings reverts to the
airport after the term expiration. There is an additional existing lease for the control tower which calls
for $ 10,000/Year for the 100' x 100' plot ($ 1 .00/SF/annum).
•
COMMENTS: Information provided/verified via Ms. Kelly Johnson, Assistant manager for the XNA
complex. Ms. Johnson mentioned her previous ground lease research throughout the state indicated a
$/SF/Year range between two to forty cents depending on location and services offered. Little Rock
enjoyed the highest land rates (thirty or more cents/SF) with the Ft. Smith area between twenty to thirty
cents.
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• MISSION STATEMENT
FAYETTEVILLE MUNICIPAL AIRPORT
2002-2006
MISSION: To serve Fayetteville and Northwest Arkansas by providing access to aviation
transportation and educational programs that contribute to the community
and its prosperity,
GOALS : Foster Partnerships with the business community and educational institutions
Capitalize on the assets of the airport
Ensure fiscal stability of the airport
Contribute to the economic well-being of the community
OBJECTIVES :
Provide a first class, professionally operated airport.
Provide a safe, secure and well maintained facility
• Provide high quality customer service
Develop effective public relations and marketing campaigns
Develop new revenue streams to insure the fiscal stability of the airport
Create an environment that fosters business and commerce at the airport
Administer the airport in accordance with all Federal, State and local rules and
regulations.
•
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODY, MAYOR
• 4500 Sct=I Ave., Suite F
Fayetteville, AR 72701
501.7111.7"2
AVIATION AND ECONOMIC DEVELOPMENT
RAY M. BOUDREAUX, DIRECTOR
TO: Airport Board Met ers
THRU: Ray M. Boudreau Directo '
FROM: James Nicholson , Financial Coo dinat
DATE: February 6, 2002
SUBJECT: Financial Report / FBO Fuel Sales / Air Traffic Operations Count
Attached for your information is a summary financial spreadsheet for Fiscal Year 2001 .
The spreadsheet shows revenue and expense information available from the city's
accounting system on 2/6/02. In the course of preparing the City's annual audit, these
figures may be adjusted when final entries are input by the City's accounting
department.
Also attached for your information are updated graphs which depict monthly fuel sale
quantities, and Airport operations as counted by Fayetteville Municipal Airport ATC
Tower. Both graphs analyze information from the previous 24 months. The graphs
compare the past twelve month period with the year previous.
• /jn
Attachments: Financial Summary spreadsheet
Fuel Sales Graph
Operations Graph
•
• Fayetteville Municipal Airport
Summary Financial Information for Airport Board
Year - End 2001
• These figures represent the 12/31 /01 revenue and expense recorded in the City's accounting
system as of 2/6/02.
Airport Cash & Investments @ 01 /01 /2001 : 3,440,996
Airport Revenue:
Charges for Service 4340243
Miscellaneous 21724
Interest on Investments 181 , 157
Contrib Capital - Grants 455,982
-----------------------
Total 11074, 107 110749107
Total Available Revenues 415159103
Airport Expense by Program:
Landside (11549,021 )
Airside (130,718)
FBO (1660007)
Capital (802,804)
-----------www..........
SubTotal of Airport Expense: (21648,550) (29648,550)
• Subtract Depreciation Expense: _ 1 ,272,408
Net expense liability outstanding @ 12/31 (1980301 )
..........................
Total Expenses (19574,443)
Airport Cash & Investments @ 12/31 /2001 2,940,659
•
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FAY ETTEVI LLE
THE CITY OF FAYETTEVILLE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
LEGAL DEPARTMENT
DEPARTMENTAL CORRESPONDENCE
TO: Ray Boudreaux, Airport Manager
FROM: Kit Williams, City Attorney ��
DATE: February 5, 2002
RE : Request for information conerning Conflict of Interest
requirements for Airport Advisory Board
State statutory authority generally prohibits board members of
commissions such as our Airport Advisory Board from discussing or
voting on any issue " if the member has a pecuniary interest in the
matter under consideration . . . . " A.C.A. §21-8-1001 (a) (1) .
However, if the pecuniary interest only " accrues to him or her as
a member of a . . . . large class" , the apparent conflict may be waived .
Otherwise the legislature and city council could never vote to pass a
budget which includes salary payments to legislatures and aldermen.
Thus if one of your members rents hanger space from you and
the subject of altering the rental amounts for all hangers comes up, that
member could still participate. However, I would strongly recommend
against such participation.
It is almost an important to avoid the appearance of a conflict of
interest as it is to avoid an actual conflict of interest. My advice is that,
1 '
if any board member has even a slight possible monetary interest in a
decision before the Airport Board, that member should avoid
participation in the discussion and not vote on that issue. Otherwise
some critics may never be satisfied that a real conflict of interest has
occurred.
6 157 ETHICS AND CONFLICTS OF INTEREST 21-8-1001
n (2) The person donating the gift, grant, or donation of money; and
s (3) The estimated value of the gift, grant, or donation of money.
History. Acts 2001, No. 239, § 2.
0.
SUBCHAPTER 9 - DISCLOSUR.E BY LEGISLATORS - SALES TO THE STATE
9
SECTION.
21-8.901: Disclosure required.
21-8-901. Disclosure required.
i
In addition to the required filings under § 21-8-701, a member or a
member-elect of the General Assembly shall report any goods or
services sold during the previous calendar year having a total annual
value in excess of one thousand dollars ($1,000) to an office, depart-
ment, commission, council, board, bureau, . committee, legislative body,
agency, or other establishment of the State of Arkansas by the member,
his or her spouse, or by any business in which such person or his or her
spouse is an officer, director, or stockholder owning more than ten ,
percent (10%) of the stock.
History. Acts 1991, No. 808, § 1; 1999, or a member-elect" for "under § 21-8-401
No. 553, § 47. et seq., a member," inserted "during the
Amendments. The 1999 amendment previous calendar year," and substituted
substituted "under § 21-8-701, a member "such person" for "the member."
SUBCHAPTER 10 - STATE BOARDS, COMMISSIONS, AND ENTITIES RECEIVING
STATE FUNDS
SECTION. SECTION.
21-8-1001. Conflicts of interest. 21-8-1004. Penalties — Investigation by
21-8-1002. Use of position for privileges Arkansas Ethics Commis-
or exemptions. Sion.
21-8-1003. Confidential information.
21-8-1001. Conflicts of interest.
(a)( 1 ) No member of a state board or commission or board member of
an entity receiving state funds shall participate in, vote on, influence, or
attempt to influence an official decision if the member has a pecuniary
interest in the matter under consideration by the board, commission, or
entity,
(2) A member of a state board or commission or board member of an
entity receiving state funds may participate in, vote on, influence, or
attempt to influence an official decision if the only pecuniary interest
that may accrue to the member is incidental to his or her position or
accrues to him or her as a member of a profession, occupation, or large
class to no greater extent than the pecuniary interest could reasonably
be foreseen to accrue to all other members of the profession, occupation,
or large class.
4
r :;
154' 155' I ETHICS AND CONFLICTS OF INTEREST 21=8=801
iy of (2). Mailed ,to, the appropriate : •public tofficial;'' properly -raddr'essed,
postage. prepaid ' bearing. a ,postmark indicating that it+was'•received 4byi,
the• post office or common.carrier� on+ or. before- the dateAue;� kkJ:11' rr";
9. in- .(3)rReceived- -via ' facsimileuby, the , appropriate public tbffi6alcon:or
erre,: before the date;due;}provided,the;originalAissre6eivedby4the appropriate
t public official�:witt Iten (10) d'ays: ofcthe transmission; -oast '
3 ,in-
.e in '(4jOReceived by the4tppropriate publicofficial:in a readable electronic
;.ea- format :which is acceptable :to such' public,•ofcial. and approved byt the
due" Arkansas,,Ethics Commission.
the Ustory Acts 1959, No 719, §: 3, 1999; ' fice"- in, '(a)(1),''inserted "and office"' in'
in- No6 .668; § 46; 2001;"No. 1839; §` 31. (a)(2); inserted "and candidates For munic-'>
3! in Amendments. The 1999 ramendment :ipal office"-in (e)(3); added"and".to:the end
lin
g
inserted "and manner" in the section of (a)(4); added ,(a)(6) substituted"appio=
Ier" i .catchline; added (b); and made: stylistic kN priatep*pubhc�„official” fol' "Secretary-_of`
stic changes. State throughout (b) and, `in (b)(4) ' sub-
The; e2001h.' amendmentt'inserted'' "andI .4tituted "such public official" for "the""Sec-
` :csndidates •for atate1 , diatnct pubhcLof. retaryiof:State " : r . ,} LL
. •ST*HAkER 8t ,)1SCLOSURE BY STATE. AN ,UCAL40FFICL►L8 — CONFLICT
k - OF INTEREST . . .
Ilk41
4;i�'
us ' ` ' ' 't4 (09ECfION. t , f r .�.. .i i•
} SECTION. '
It 21-8-801. Prohibite'd'{a"cts generally ' ' 12118-864. .0dts;to governmental esti 1 .1
het [ i . . ,r ,t , : { o
I : M A•C 1LC.-Notes Acts` 2001,iNo 1' 839, 1clanfications as 'soon as`posslbled There, '
nt 36:"became jaw wrtHout govei'g6Pi eigna- 'fore; dweimergelicy ie'declare"d"to exist'andl
X,, torn+ Approved Apr.- 20„200,1•.rEmergeneytigthis act! being5immediately:_necessary; for
clause provided jIt) is foundrand rdeter- , : the. , preservationJiofTthey,publicl;peace j
mined by the,General t�ssembly,.that var- ,health and safety 'shall become effective
'ious, provisions bf, t4e'.Arkansas Code re on the date of its approval by thWGov&'
: 'lating to canipalgnfinancing'-andnetilucsl'`"nor. IIf the bill'•is neither'appro`ved"nor
are vague; or :otherwise;in need of modifi- vetoed by ,the Govemor, tib halhbecomet
it cation kk,ktIthattlus actaecomphehes those • teffectiveon the expiration•ofthe period of
purposes; and that'this act should go into time during which the,Governor may veto
B; . effedt as soonXas possible :sogthat those the bill.`If ihe, billI I is vetoed`by,ths,&ver-
persona who are eutilect`to the p`rovielons nor and °the, veto is `overridden, ;it-- shall
.e ? of,`the various ethidg� ,and campaign 'fi; become effective on the datd'the last lice
nance statutes receive the benefit of the overrides the vetd.”
Nky
i ^t
„21-8 801: Prohibite`df acts generally. .
),4 No pubhc"sei vantslfall i ., � ,i
ie .(1) Receive a gift. orteompensation as defined MI 4 , 21-8-401 et seq.,
otherthan income, and benefits from the governmental body, to:which he
a• or she is duly entitled, for, the performance of. the. ,duties and. responsi-
( bilities of his or:her� office or position; or
� (2)�sPoselyiuse 6TA'sclos''
urperto =any�,otherrperson or entity co 'ifiden-
tialrgovernmentlinformamon)acquired by him or her in the course of and:
i by reason of the public servant's official 'Auties, toCsecure anything,'of
material value or benefit.for•;himself or herself or his,or her; family." . .
wi ,
21-8-303 PUBLIC OFFICERS AND EMPLOYEES 140
campaign financing and ethics are vague tion of the public peace, health and safety
or otherwise in need of modification; that shall become effective on the date of its
this act accomplishes those purposes; and approval by the Governor. If the bill is
that this act should go into effect as soon neither approved nor vetoed by +he Gov-
as possible so that those persons who are ernor, it shall become effective on the
subject to the provisions of the various expiration of the period of time during
ethics and campaign finance statutes re- which the Governor may veto the bill. If
ceive the benefit of the clarifications as the bill is vetoed bythe Governor'and the
soon as possible. Therefore, an emergency veto is overridden, it shall become effec-
is declared to exist and this act being tive on the date the last house overrides
immediately necessary for the preserva- the veto."
21-8-303. Enforcement.
(a) It shall be the duties and responsibilities of the prosecuting
attorneys of this state to supervise compliance with this subchapter and
to prosecute persons who violate the provisions hereof. Provided,
however, the Arkansas Ethics Commission shall also have authority to
investigate and address alleged violations of this subchapter.
(b)(1) In the event the prosecuting attorney shall fail or refuse to
enforce the provisions of this subchapter when the facts are known by
him, or called to his attention, any citizen of this state may bring action
* in circuit court to force compliance with this subchapter.
(2) The citizen shall be entitled to receive reimbursements for
expenses and reasonable attorney's fees upon the successful outcome of
such litigation.
4 History. Acts 1979, No. 570, § 7; A.S.A. Amendments. The 1999 amendment
1947, § 12-3007; Acts 1999, No. 553, § 30. added the proviso in (a).
21-8-304. Prohibited activities.
(a) No public official or state employee shall use. or attempt to use his
or her official position to secure special privileges or exemption for
himself or herself or his or her spouse, child, parents, or other persons
standing in the first degree of relationship, or for those with whom he
or she has a substantial financial relationship that is not available to
others except as may be otherwise provided by law.
(b) No public official or state employee shall accept employment or
engage in any public or professional activity while serving as a public
official which he or she might reasonably expect would require or induce
him or her to disclose any information acquired by him or her by reason
of his or her official position which is declared by law or regulation.to be
confidential. ' . 1 1
(c) No public official or state employee shall disclose any such
information gained by reason of his or her position, nor shall he or she
otherwise use such information for his or her personal gain or benefit.