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City Council Agenda Item Meeting of August 20, 2019

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City Council Agenda Item Meeting of August 20, 2019 City Council Agenda Item Meeting of August 20, 2019 TO : The Honorable Mayor and Members of the City Council FROM: Monte K. Falls, City Manager (\1\¥-(p,,J_L,$ ~/~ DATE: August 8, 2019 SUBJECT: RFP 090-19/JO - MRO Hangar - Sheltair Aviation REQUESTED BY: City Manager/Airport Director The following is requested as it relates to the above-referenced agenda item: X Request Council review and approval based on the attached supporting documentation. No action required. (Information only) MEMORANDUM TO: Monte K. Falls, City Manager FROM: Ericson W. Meng DATE: August 1, 2019 SUBJECT: 0 HANGAR- SHELTAIR AVIATION In accordance wit h Florida Statutes, City of Vero Beach staff, assisted by the Indian River County Chamber of Commerce Economic Development Director, reviewed and selected the attached proposal t o complete the construction for a maintenance, repair, and overhaul (MRO) facility at the Airport. BACKGROUND: The proposal is to construct a new 30,000 square foot hanga r to support increased capacity to handle large scale operators that intend to use co rporate jet aircraft at Vero Beach Regional Airport. Staff requested proposals in order to find a qualified private partner to develop airport property and construct an M RO facility in keeping with the master plan for the mid-field of the airport. The process was as follows: • Legal advertisement for the Request for Proposals (RFP) was issued May 14, 2019. • Responses to the RFP were received and opened in a public meeting on July 18, 2019, at 2:30 pm . • One (1) firm responded to the RFP - Sheltair Aviation Vero Beach, LLC; the proposal was responsive to the City's requirements. • On July 29, 2019, the evaluation committee met to review their comments on the proposal in a public meeting at City Hall and also to interview Sheltair. Based on the selection committee's comments and the interview process, staff recommends that we proceed with negotiations with Sheltair to complete the construction and property management of the facility. Upon approval by City Council for authorization to negotiate the contracts, Airport staff will complete negotiations. After an agreement has been reached in principle, final documents will be prepared in coordination with Sheltair, the City Purchasing Division, and the City Attorney's Office for final approval by the City Manager and City Council. FUN DING: The total cost of the project is estimated at $5,000,000; FDOT will be funding a maximum amount of $4,000,000 (80%) and Sheltair will be responsible for the City's grant match of approximately $1,000,000 (20%) . No City funds (other than staff time) are anticipated for this project. Airport staff will manage the project and grant administration of this project. Financial accounting will be handled by the Finance Department once the FY 2020 budget is approved (Airport Construction Fund). RECOMMENDATION: I respectfully request that this item be included on the agenda for the City Council meeting on August 20, 2019, recommending approval of the selected firm for purposes of negotiation. All final contracts and/or lease agreements will be brought before City Council at a later date for final approval. EWM cc: Ai rport Commissioner Members Cynthia Lawson, Finance Director N:\Capital Improvement Projects\1.5 CIP -Active Projects\442101-1 - Construct Hangar Pa rcel 30 (M RO)\R FP to Co nstruct Hangar\20190729 CC Me mo Sheltair Proposal.d ocx SHELTAIR sheltairaviation.com MRO HANGAR RFP NO. 090-19/JO City of Vero Beach Manager of Purchasing 1053 20th Place Vero Beach, Florida, 32960 Dear Purchasing Manager: It is my pleasure to present to the City of Vero Beach this proposal on behalf of Sheltair Aviation. Sheltair is a pri- vately owned, financially sound, Fort Lauderdale-based aviation development company offering FBOs, aviation prop- erties and construction services in Florida, Georgia, and New York. The company provides full-service FBOs to the aviation community at 18 of our 24 airport properties and employs more than 500 professionals throughout the network. The company has strong construction, aviation real estate development, leasing and property manage- ment expertise along with an exceptional safety and customer service reputation. Just a few examples of the signifi- cant value that Sheltair will bring to Vero Beach Airport: • Florida's largest private Aviation Real Estate Developer and FBO: Sheltair is the largest privately held FBO and General Aviation Real Estate Development Company in Florida, able to leverage relationships throughout the state and beyond. • Florida Based Owner: Sheltair has maintained our corporate headquarters in Fort Lauderdale for over 40 years. Owner Gerald M. Holland is a native resident of the State of Florida. • Ability to attract new business: Sheltair operates award winning FBO and commercial tenant facilities at ma- jor airports in Florida, Georgia and New York, including Fort Lauderdale-Hollywood International and JFK Inter- national, further enhancing Sheltair's ability to attract operations and reach international markets. • Proven aviation real estate developer: Sheltair has the unique ability to provide aviation development, and to have a dedicated professional property management team that delivers world class services to our tenants while maintaining and improving over 4 million sq. ft. of real estate on more than 591 acres of airport property. Our team and I look forward to answering any questions you have about this proposal and the advantages it offers to City of Vero Beach. We look forward to speaking with you soon, and to working with you for many years into the future. <.._____ _ Todd S. Anderson, A.A.E. Senior Vice President of Real Estate & Development phone: 407-854-1818 cell: 407-325-0388 [email protected] sheltairaviation.com 2 TABLE OF CONTENTS Cover letter 2 Table of Contents 3 Sheltair: One Company, One Vision 4 The Communities we Serve 5 Proposal (1): Financial Terms 6-7 Proposal (2): Time Schedule 8 Proposal (3): Total Project Cost Analysis 9 Proposal (4a): Financing Plan 11 Proposal (4b): Legal Organizational Structure 12 Proposal (4c): Proposer's Principals/Officers 12 Proposal (4d): Proposer Relevant Experience/ 12-14 Key Personnel/Past Projects Proposal (4e): Professional References 15 Proposal (4f): Disclosure 15 RFP Required Documents 16-24 3 S'HELTAIR ON~ COMPANY. ON~ VISION AVIATION REAL ESTATE DEVELOPMENT 1-langars, 1=BOs, Office Buildings 24 AIRPORT LOCATIONS AIRPORT DEVELOPMENT PARTNERSl-·IIPS !=inancial leveraging for private development of airport facilities Strong proven public & private financial part nerships J:BO OPERATIONS 18 World-Class !=BOs J:BO/ REAL ESTATE Management Agreements AVIATION BUSINESS CONSULTING !=BO Operations, Land Use Planning, t::conomic Development Airport Master Planning CONSTRUCTION MANAGEMENT By l-lolland Builders Partners with the airports and communities we serve. We're ready for you! 4 EVERYTI-HNG YOU NEED WI-IEN YOU'RE ON Tl-IE GROUND IN Tl-IE NORTI-I, SOUTI-I, EAST AND WEST FBO & Properties Locations KBJC Rocky Mountain tv1etropolitan Airport DENVER, CO KDAB Daytona Beach lnterna~ional DAYTONA BEACM, FL KECP Northwest f:lorida Beaches In ternational PANAMA CITY BEACH, l=L KFLL n. Lauderdale - 1-follywood International FT. LAUDERDALE, FL KFOK !=rancis S.. Gabreski WESTMAMPTON BEACH, NY KFRG Republic J:ARMIMGOALE, NY KISP Long I land MacArthur RONKONKOMA, NY KJAX Jacksonville International JACKSONVILLE, FL KLAL Lakeland Linder Regional LAKELAND, l=L KOCI= Ocala International Airport OCALA, J:L KORL Orlando t.xecutive ORLANDO, FL • KPH: St. Petersb urg - Clearwater International CLEARWATER, S:L KPMP Pompano Beach Air Park POMPANO BEACH, Fl KSAV Savannah - !-lilton Head International SAVANNAH, GA KSPG Albert Whitted Airport ST. PETERSBURG, l=L KTPA Tampa International Airport TAMPA, FL KLGA LaGuardia NEW VoRK, NY KJFK John !=. Kennedy NEW YORK, NY • KJ:XI; i:t. Lauderdale ~xecutive l=T. LAUDERDALE, FL • KISM Kissimmee Gateway KISSIMMEE, FL • KMLB Melbourne International MELBOURNE,• FL • • KTIX Space Coast Regional TITUSVILLE, l=L • • KX-21 Arthur Dunn Air Park TITUSVILLE, FL •: • KX-26 Sebastian Municipal SEBASTIAN, S:L • 5 PROPOSED FINANCIAL TERMS 1. State t he offering price for the property including terms of payment, anticipated lease start dat e, and any conditions, contingencies, and additional requirements that affect the lease (2-page limit) To enable the highest possible return on investment to the City of Vero Beach, Sheltair proposes a prop- erty management agreement with the City. The City of Vero Beach will utilize Sheltair as agent for the construction phase, and Sheltair will manage the construction process under a design-build format to achieve the maximum building space and quality possible with the total $5 million maximum project in- vestment. Immediately upon agreement of terms, Sheltair will initiate an intensive marketing period of 6-9 months, creating the business case and specifications for potential users. During that time, the City and Sheltair will work cooperatively on the permitting and design efforts. At the completion of the marketing phase, either with a tenant contract secured or a mutual agreement go-forward, the City will initiate the con- struction phase. Sheltair will market the Vero Beach Airport Central Ramp Facility primarily for use as an Aircraft or Com- ponent Maintenance, Repair, Service, Manufacture or Assembly facility (the primary aeronautical use need identified by the City). Sheltair will also engage in marketing for use as a Flight
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