Airport management is proposing the Town enter a Developer Participation Agreement provided for under Subchapter C, Chapter 212 of the Texas Local Government Code (the “Code”) with Sky Squared, LLC (“Sky Squared”) to reconstruct a portion of the airport vehicle service road at Addison Airport for the use and benefit of the general airport public. The Town’s portion of the project costs will be paid from the Airport Enterprise Fund.
In June 2022, the Town entered a new ground lease agreement with Sky Squared wherein, among other things, Sky Squared is to construct, at its sole expense, a new 27,500+/- square-foot executive jet hangar together with a 33,500 +/- square-foot dedicated heavy aircraft apron on a 2.2-acre-site located at 4485 Eddie Rickenbacker Drive. Sky Squared is in the final stages of obtaining its building permit to be issued by the Town and anticipates construction commencing within the next few weeks.
The airport vehicle service road runs parallel to and is nearly the full length of Taxiway Alpha, the airport’s primary parallel taxiway to Runway 16/34, and is the main means for users and operators to safely move about within the airport’s operating area. The proposed reconstructed portion of the airport vehicle service road must be designed and constructed to tolerate heavy fuel trucks and the rigors of daily heavy aircraft crossings over the road. Since the Sky Squared aircraft apron is of the same design and construction criteria as the airport vehicle service road, the parties agree that mutual benefits could be realized should the Town contract with Sky Squared to reconstruct that portion of the airport vehicle service road adjoining the Sky Squared leased premises.
Subchapter C, Chapter 212 of the Code allows the Town to contract directly with Sky Squared without having to follow the competitive sealed-bid procedures generally required under Chapter 252 of the Code. Therefore, the Town may contract directly with Sky Squared to construct these public improvements provided the Town’s share does not exceed 30% of the total project costs (excluding any Town-requested upgrades for which the Town is allowed to pay, up to 100%). Additionally, the contracted work must be for public improvements and cannot include any vertical structures. The reconstruction of the airport vehicle service road pursuant to the proposed Developer Participation Agreement qualifies under Subchapter C, Chapter 212 of the Code.
The proposed Developer Participation Agreement sets forth the terms, conditions, and scope of work that Sky Squared is responsible for performing pursuant to a design plan prepared by a licensed engineer and approved by the Town. Sky Squared will also be responsible for contracting and overseeing its contractor(s) performing the work.
The engineer’s Estimate of Probable Cost (“EPC”) for the reconstruction of the airport vehicle service road is $1,028,338.00, with the Town’s share not expected to exceed $314,985.00. Of the Town’s share, $35,000 is allocated for minor soil remediation which is required of the Town under the Ground Lease and is considered a Town-requested upgrade at 100% the Town’s cost. Should the contract price exceed 110% of the total engineer’s EPC, Sky Squared and the Town will cooperate to reduce the scope of the project as needed; otherwise, the Town and Sky Squared will terminate the Developer Participation Agreement.
The benefits of approving the Developer Participation Agreement include:
- A portion of the airport vehicle service road will undergo much-needed reconstruction pursuant to the Airport’s current design standards.
- The Airport should realize certain economies of scale being associated with Sky Squared’s larger aircraft apron project.
- Having the airport vehicle service road reconstructed at the same time as the adjacent aircraft apron will provide for an overall improved and uniform project, enhanced coordination, with less disruption to routine airport operations.
The Developer Participation Agreement has been reviewed by the Town’s attorney who finds it acceptable to form for the Town’s purposes.
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