Board of Directors Regular Meeting Agenda


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Meeting Date: 08/27/2014  

SUBJECT MATTER:
Receive, consider and act upon a presentation from County representatives regarding the Lone Star Airport Customs Facility;
FISCAL IMPACT:
The Board approved a commitment of 25% of the total project costs up to a maximum of $600,000 for the Township share.
BACKGROUND:
The Township Board of Directors approved participation in a regional economic development project at its meeting on July 24, 2014. The Township Board authorized participation in the development of a new customs facility to be constructed at Lone Star Airport. After receiving a presentation and recommendation from The Woodlands Area Economic Development Partnership, the Board determined that the customs facility would be beneficial for the economic development of The Woodlands for both existing and new business prospects. The Board approved a commitment of 25% of the total project costs up to a maximum of $600,000 for the Township share. The other contributing partners to this regional economic development project are Montgomery County, the City of Conroe and the Galaxy FBO at Lone Star Airport. This commitment will be funded by the Township’s Economic Development Fund Reserve.

Listed below are the general conditions placed on this commitment by the Township Board of Directors.

1. Request that the Montgomery County Commissioner’s Court evaluate a change in the name of the airport to include a better geographic description/for example Lone Star Executive Airport at Conroe - The Woodlands or The Conroe/The Woodlands Regional Airport.

2. Require a Development Agreement with the following provisions:

a. The Township will be provided representation on the Lone Star Airport Advisory Board.
b. The County will provide for the operations of a Customs Facility for a period of at least five years, and if the operations cease prior to five years, the Township will be repaid its original investment.
c. The Township will have an ownership interest in the building for a period of 25 years (beyond the initial five year operations period). If there is a reuse or sale of the facility within the 25-year period, the Township will be entitled to a proportionate share of the proceeds or a share of a market rate facility lease.
d. The Township’s contribution will be limited to a share of the capital construction costs limited to 25% of up to a maximum cost of $2.4 million.
e. The Township will not be responsible for funding operating costs associated with the Customs Facility.

After approval by the Township Board on July 24, the Montgomery County Commissioners Court discussed the offered Township conditions and it is my understanding that they found all of the conditions acceptable with the exception of allowing the Township to appoint a representative to the Lone Star Airport Advisory Board. This concern appeared to focus primarily on having to increase the size of the Advisory Board from 7 to 9 (to have an uneven number) and Commissioners Court requested that Commissioner Noack discuss this matter with the Township Board. Commissioner Noack and Airport Manager Scott Smith will be attending the Township Board meeting on August 27, 2014. One of the seven appointees on the Lone Star Airport Advisory Board is Mr. Bill Wingo, who was appointed by Commissioner Noack. Mr. Wingo resides in The Woodlands Township, is the pilot of a small plane and appears to be very knowledgeable of airport operations and issues.

As Mr. Wingo resides in The Woodlands, one option for Board consideration would be allow Mr. Wingo to continue as the Township representative and seek an agreement that when this position is reappointed by the Precinct 3 Commissioner, the appointment would be based on a nomination provided by the Township Board of Directors to the Commissioner.

Any changes to the July 24 approved conditions will require action by the Board of Directors.

The purpose of the presentation on August 27th is to receive feedback from Montgomery County representatives on this matter. I would suggest that after the Board reviews and discusses this matter, that it may consider directing the President/General Manager to work with County representatives to consider representation options for future consideration by the Board.
RECOMMENDATION:
As determined by the Board

    

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