Finance Committee - Budget Hearing - Meeting #6

>> I'm about to start early. Good morning, everyone. Welcome to the 6th and final full day budget hearing to discuss that this year. 26 27 budget proposal. Start with introductions to my left. >> Angela Moyer budget office. Mike Weinstein, theirs off Peterson counselor's office. Ramparts counselor's office. Mary Bliss Office of General Counsel. That large visiting Councilmember Matt carlucci at large. Try that again for thank you. Good morning. Chris Miller at large 5 will aid in district 3. Good morning and thank you all for the kind words and prayers for my my my baby girl. She is home and a lot of pain. But she's she's recovering Terrance Freeman at large group want. >> Alright, Gay District 2, Randy White District. Well Nikolic that large group, 3 Ron Salem group, 2 at large. Good Morning, Raleigh or is district? >> All right. Good morning, everyone. I did Councilmember Diamond does have a approved excuse for part of the day and looks like Johnson is running late, but we do have corn for now and we will require 5 for court at this point in time today. It. Excuse me, sir. Today Jay is going to get the first 90 minutes to go into Skus. Both the budget and Cecil Field. Then after that, we will will have a number of council members outside of finance here where we will all start off by giving a summary as to where we are at through the end of yesterday and then entertain a debate. Any additional request that we will then put into the finance substitute to go to committee this coming Tuesday, the way we're going to do this. Just like the other hand up and authorities were going to have MISTER Peterson walk us through their auditor notes. And then if we have any questions, we will let you know and ask you a specific questions about the budget based on the auditor that so with that MISTER Hand it off to you. Okay. That takes us to our handouts on Page 3 of the hand of similar to the other independent agencies. >> You'll see Jay-z. 25 26 budget. 8 months of axles where they project to finish the current year and then their proposed budget for 26 27, I think would be helpful to just have that in front of you while we go through this handout, j uses aircraft landing fees, terminal rental charges, concession fees, and other rental charges, including this for parking and rental car companies to cover their operating costs. Capital costs are covered by grants, customer facility charge is passenger facility charges excess revenues from operations and then And then obviously they have the 4 airports that they operate at should be noted that the new parking garage is expected to open OCTOBER of this year. Concourse b to open either in DECEMBER or JANUARY. And then the hourly garage is expected to be completed, were fixed rather JUNE, JULY of next year. Within their operating revenues. They have 161.2 million budgeted for the upcoming year. That's an 11.5 million dollar increase year-over-year within that concessions budget at 27.0, 1 million up nearly a million dollars due mostly. I expected increased activity with the opening of Concourse b that's in their retail and food and beverage lines. And then also 227,000 in fuel flow, which fees based on higher sales at Cecil. Within their fees and charges. Revenue line item budget. 29.2 million. That's an increase of 1.4 million year-over-year. Lot of that is 7 on the 700,000 landing fees for signatory Airlines. 290,000 aircraft parking 180,000 and operating permits for their grand hit ground handling services and then another 140,000 and their landing fees for fixed base operators, space and facility rentals is increasing 9.8 million year every year. 5.9 is within space rental for their signatory airlines. And then a little over 2 million and joint use space for the signatory Airlines. 1.5 million in the rental car ready return spaces and facility rentals due to additional car rental spaces being available once the new garage opens. This increase is partly offset. By decreasing the joint u space charged in non signatory airlines to better align with the actual as they are experiencing while accounting for the anticipated rate increase. Parking is budgeted. At 31.3 million. That's a decrease of a little over 900,000 865,000 of that economy. Lots one and 2 based on what they're seeing, an actual Ys, another 700,000 and hourly garage due to ongoing repairs. And the fact that some MAY choose the new daily garage when it opened some sort of the hourly garage. The decrease was partially offset by an increase in daily surface parking of 300,282 1000 and the Daily Garage due to the new anticipated usage sale of utilities is increasing based on fuel sales at her long recreational. But then there are other operating expert within the operating expenditures. Total budget of 104.1 million, an increase of 10 million year-over-year salaries are budget. At 31.7 million increases are due to a combination of adding 4 new put a 40 new positions mainly related to Concourse b, various promotions that occurred during the year of 4% pay increase effective 10. One of 26. And then and increase in overtime and double pay to better align with what they're seeing. And this year. But if its budget, 15.1 million, that's an increase of 2.3 year every year. Most of that's due to the 40 additional positions and to Cepeda rate increases and they're frs pension contributions and they're expecting their health insurance costs to increase by 10% services and supplies budget. 26.5 million. The there are 3 large contracts within this line item, the aircraft rescue firefighting contract with the city at 7.2 million parking operations and management at 4 million and then their passenger assistance mail and cargo handling and ground operations contract. At 1.7 million. The increase is due to it. Support temporary agency helped with the opening of Concourse b and then mostly and parking operation and management with the additional parking spaces, the repairs and maintenance line or 14 point 6 million is decreasing due to Toronto floor resurfacing that was included their 25 26 budget. That is not repeated this year. Promotion advertising in dues budget. At 1.4 million. The increase is due to normal increases with the following items being added to the budget, 150,000 for the grand opening of Concourse b 15,000 for leadership, Florida program, a 15,000 Jax Chamber. Membership and 10,000 for the Florida Airports. Councilmember shouldn't we do know that within the spot but note that within the sponsorships activity, their ticket patch packages for the players championship. The Jaguars, Gator Bowl jumbo shrimp. Jack's Iseman as well as sponsorship activities such as the Jazz Festival registrations and travel is increasing 156,000 mostly within the airport operations area. And then cost of goods for sale. Going up 86,000. That's due to the increase in the price of fuel, their utilities, taxes and government fees. Increasing 1.2 billion due to the electric and water increases at g and then also increased demand related to opening a concourse b and then they have a 3 million dollar operating contingency line that is excess revenues over expenditures to be able address any negative variances that arise during the year. Non-operating revenues include passenger facility charges. This is a charge on each flight segment. The reduction is to better align with Actuals the customer facility charge revenue. It's a charge to 8 each rental car user. This is increasing to align with what they're seeing in the current year and then investment income. It has a pretty significant decrease of almost 3.4 million due to their available cash what they've used towards the recent capital projects. Other revenue is decreasing 252,000. This is primarily attributable to lower projected timber sales, the various properties and the debt service increasing 6.8 million due to the new debt that was taken out in MAY of this year related to Concourse b Jay-z budget does include 41 million dollars in net income before transfers and that would result in 35.2 million being transferred to operating capital outlay and 5.9 million being transferred to their retained earnings on Page 9, you'll see their capital budget broken down by the various funding sources. And then the 5 different areas which their projects will occur. If you want to flip to Page 13, you can see a more detailed outlook of what those projects broken down by site and source. I'm just going to hit a couple of the high-level once federal contributions. The 6.3 million, almost 5, millions for militant milling and overlay of taxi lanes at her long. And then 1.2 million of million overlay of taxiways a and b at Jackson executive at Craig Tenet and other contributions. 10.3 million, 8 million of that is for a pay load processing vehicle storage facility at Cecil. And then 1.3 million for rocket Motor test facility at Cecil the customer facility charge is 3.3 million is for rental car lane, rehabilitation and extension to Owens Road at j. I a and then with the other with an operating capital outlay. 35.2 million scattered amongst multiple projects at all of their facilities. Page 11, we have their employee incentive plan. The 26 27 budget has $451,500 budgeted for this. This is for all full time and part time employees employed at least 180 days and work a set number of hours prior to the payout the maximum pay per qualified employees. $1500. And it awarded based on their operating margin percentage. The ceo is the only one who has a contract at j a we do not have any recommendations. But however, do want to make you aware that when the cip bill comes up the second cycle in SEPTEMBER. We will have a recommendation as it relates to that to correct the amounts plan for the hangar. 18, 20 roof rehabilitation and the hot Cargo apron, reconstruction design and existing space port area incidents projects and the schedules are shown on the following pages pages. 13, 3.19, or the five-year cip for and then pay just 20. And 21 of your hand under their budget ordinance schedules. MR. Pearson also like welcome Dr Johnson and MISTER Boyland. >> I have the council PRESIDENT Nick Allen the Queue. >> Thank you, MR. Chair, MR. Peterson Page 9. Have a column fiscal year. 25 26 was that the approved budget four-year to from last year? What is that budget? >> charity Council PRESIDENT On. That's the approved budget for 25. 26 at year. One, if you will. >> So that would include the 10 million that we moved in to see so capital. Last year. And the 2.6 million we moved into Cecil Spaceport last year threw the chair it accounts That's correct. Okay. It's wonderful to see the investment going up. Both Enciso important Cecil Spaceport. Thank you MISTER Chair. If I can have a few minutes before we have Jay come up. Absolutely. Okay. Great I want to give a little detail of what's transpired since our last budget hearing, which was on AUGUST 15, 2025. Little over a year ago. Recall then that I actually built our own presentation with data from j and help from the auditors where I showed that there was more investment for Craig. Then Cecil capital plan and 0 for the Cecil Spaceport. At the time. I know that they had over 350 million dollars in cash. So I was trying to encourage them to spend more at Cecil to develop it into aerospace hub I don't know what their current cash levels are now, but fast forward to this past year. And I think that was in a board meeting and it's north of 400 million but recall, then we made 3 amendments totaling about 12.6 from their retain earnings into their capital plan and about 500 k from their retain earnings into a professional studies and consultant line the goal of all 3 of those amendments was clearly we stated it here to accelerate investment at Cecil Field. Each of those amendments was approved in advance by ogc and everyone clear that we cannot move these, that we could move line items within their budget. But did not have to spend it. We were all hoping that our 3 moves would encourage the airport to accelerate investment Cecil. And I know that also in the meeting that we would be launching a j bill specifically to a Numer 8, the role of Cecil Economic development and the Charter for j a and require them to bring an economic development plan for Cecil to create it into an aerospace hub. The city Council every year concurrent with the presentation of the Really excited to see that today. But since then, since that 8/15/2025, budget hearing. A number of things have transpired and I'd like highlight 5 of them. The first one is in their 9/29/2025. Meeting about a month after our budget hearing. They passed a motion condemning Summit City Council for those budget moves, the quote that they put in the motion was the council exceeded its delegated powers and infringe upon those of j a by purporting to amend James 2026. Budget otc had been at that meeting at that board meeting and confirmed before the vote that are amendments had been entirely legal in that same board meeting item number 2, Jay-z board passed a resolution condemning the Jay Bill. We had written as, quote, non consensual. That Jay Bill passed this council 18 to 0 and then it went to Tallahassee in the past 149 to 0 in the end up being signed and then into law by the governor this past JUNE. That's not non-consensual. Number 3, fast forward to this JULY, JULY 16, 2026 and the Jay Bill is now law. And the board passed a resolution again condemning this council. Can any me specifically condemning Ogc condemning MR. Fact specifically against all sorts of transit transgressions and authorizing to initiate a lawsuit against the city. That resolution named this council and its transgressions. 19 times. So number 4, that resolution also authorized a draft law suit to see break from the city, which name this council over 100 times. It named me 33 times and it named council members areas lane Salem in the same draft lawsuit, the most repeated transgression is that this council forced j to break federal law through those 3 amendments from last budget hearing. We know that's not true. No one forced anyone to do anything. But all of that, those 4 things are all old news. Here's the new news item. Number 5, what no one knows is that Jay a file, an ethics complaint against me with the Florida Ethics Commission in JULY. It was dismissed immediately for legal insufficiency. But alleges that I believe members of this committee last year in the AUGUST 15, 2025 budget hearing to get my way with those 3 boats to invest in Cecil, also against their wishes. Here's the quote. COUNCILMAN Howland used his position of influence to pressure City Council in 2 improperly. Amending j is 2026 budget COUNCILMAN Lane. And you were in that meeting. I hope you didn't feel by me because I think everyone here can make up their own minds. As I said, that ethics complaint was dismissed. But here's my favorite line from the dismissal letter. And as I read it note that I am the respondent in this. The only apparent pulling a potential beneficiary of respondents actions is the city of Jacksonville which would be indicative of being motivated by a public purpose. I love that line. And I still firmly believe it's in the public's best interest to accelerate investment Cecil in to take advantage of this unique and timely market opportunity to capitalize on the fast-growing aerospace economy and bring jobs to Jacksonville's families. So please of my fellow council members, I ask for no retribution against for any of this. They MAY have named this council and its members over 150 times in those 5 episodes. But we have not called for resignations. We have not made allegations of a toxic workplace. We have not setup. And that's I see nor will we if we're guilty of anything, it's persistence. We want to do. The public will and create Cecil Field into the airspace hub that it needs to be. So as we review their budget today and their economic development plan, I hope we all keep laser-focused on getting j a the means to deliver safe and efficient airport operations. And at the same time, accelerating investment Cecil Field to create an aerospace hub and a job growth engine for northeast Florida. I'm excited to finally see that first version of the plan to do that. Thank you for the privilege. Thank you, MR. PRESIDENT and I do not feel Coors to tell you. Well said on that councilmember, why? >> Yes, sir, would like to ask the question if somebody from the would like respond, the PRESIDENT Has said that they do and if they don't want to, but I like to give him that opportunity, they want to respond to his comments. >> I will get to the opportunity if he wants to. Again, it's a not a requirement, but has been white did give you the opportunity if they stick, come to the podium to address that if not a get is the auspices on. If you want to respond, if no one wants to respond, let's go back to the budget at this point. So give it a pregnant pause there. I am taking it that there will not be a response. Councilmember White, so MR. Jones, I'm gonna open up to budget questions. I thank you for being here this morning. I do not have any one of the cutest anyone on the committee. Again, there are no recommendations to act on. There will be when we take the actual Jay Bill up in committee to cycles from now, I believe. >> MR. Jones, I did not have any questions and they did to my colleague, thank you for being here this morning. Next up on the agenda is the Cecil presentation. >> Actually, it's extent of morning. Good morning, CHAIRMAN Lamb members, the Finance Committee. Name is Tony Kanaan. The chief operating officer of the checks alleviation authority. I'm here today to brief you on the Cecil Aaron Spaceport development plan. But more importantly, I want to discuss what is actually required to undertake a large-scale aviation development at a public use federally obligated airports such as Cecil, but also honor for the committee. What is our plan over the next 5 to 10 years to do so? So first, let's talk about 6. Let's talk about what its mission Cecil's, one of the premier industrial airports in the U.S. As a primary focus of maintenance, repair and overhaul activity. We have companies such as the Boeing company Flight start Northrop Grumman. In Mantech we're doing large-scale complex maintenance repair overhaul. And upgrade to aircraft. Such the kc. 46, the pa the f 18 and a wide variety of commercial service aircraft both domestically and internationally. We also have auto airspace will be forthcoming. Who will build the next generation corporate jet? We have a va shun training and support companies like lsi Tech aired. Her would tell us I did. They do 3 d kind of augment Haitian training for military for working on aircraft. Tactical air support has contracts with the Department of War simulate air air up dog fighting with the Corps, Navy Air Force. And we also have her Very interesting to affair with her. Miyas does is they are developing the next generation propulsion system for Mark 5 and above really amazing work. We have an education component with fscj his mp's pilots and air traffic controllers. We have several jfrd provides aircraft rescue and firefighting services to the same extent that we have a j. I we have a government military presence, as you can see. Cecil is also in my opinion, one of the most successful brac reuse cases in the program. I will admit that it's my opinion, but that is also the opinion of publish academics who have studied this is the opinion of people who work in the federal government who study this material. And why is that? Well, as peer data currently today, Cecil some pouring 3,000 direct jobs that are high paying high skilled jobs that created the annual salary of $70,000 a year. There's 3,000 jobs or creating 9,000 indirect jobs. They have individual purchasing power of $250,000 a year. Fdot recently that the study of the economic impact of all airports in the state of Florida. And this to Cecil as having the highest per capita salary of any airport in the state of Florida. So what is this great? Creates 2.2 billion dollars of economic impact for our community. It's the result of 600 million dollars worth of capital investment in the facility since 1999. From the j and our partners with fdot faa in space, Florida. So what economic development actually look like when the jays task with undertake? It looks like the Boeing project. We invested 153 million dollars combined of our capital and our debt caring capacity into this project today, depending on where they are in the face, the program to creating somewhere between 35500 It's going to scale up to 800 jobs. Why do I tell you this? It's because our primary goal is to invest in aviation airport. Infrastructure runways, taxiways hangers, the investment, those runways, taxiways, those hangars generate the economic impact in the security that we're looking for within our community. Some say reciprocal relationship is we put money into the infrastructure. That infrastructure is what allows companies like Boeing and lsi to come to Jacksonville and grow their presence. So when I was here last year, the persistent question was asked, which is what is your plan for Cecil? I've thought about that felt last year. That MAY mean that I need a hobby. But nonetheless, I have thought about it in great detail. So I want to share with you some of the planning studies that we've done at Cecil Cecil is the most intentionally planned and developed airport that we have within our system. Here's a look at some of those plans. So in 1998, we do the strategic master plan which was partnered with the city with the highest and highest and best use announces plan. And we did. The Cecil Airport master plan. The value that that created for the organization. Not only city is we're allowed to take the facility from a derelict brecht base converted into a compliant functioning General Aviation Airport. We took 1.1 million square feet of hangar, shopping office space converted to be leased and then least all that space out within that time from 2010 to 2018, we do the space for conceptual plan. The east side roadway at all and the approach stormwater floodplain analysis during this period. We grew our footprint for 1.0, 1 million square feet to around 1.6 to 1.7 million square feet of shopping office space for flights. Tarell aside Mantech. We undertook what was required for Cecil to get a cup, a commercial launch license to start competing long term and the commercial space industry. Then from 2018 through 2021, we do the not aeronautical playing with the spaceport development plan in the airport space. A master plan. What we do during that period at that time we started undertaking construction for Boeing because the entire west side of Cecil plus the additional hangars that we had built had already been leased. We knew that the next logical step is on the east side of the runways. We undertook construction for Boeing. We also took was called in on aeronautical use plan Cecil's essentially city within a city. So with continues to grow, need not aeronautical support facilities, things like restaurants, gas stations, cleaners, hotels, any think that you would see outside of a functioning military base or large-scale airport? You're seeing that coming under way with the construction of the gate gas station granite. That's on the city side. But it is the start. We're making progress to get there. So now we end up where we are today in 2023, would do the Rocket Motor Test and feasibility study because there is a great demand in the state of Florida for rocket motor testing. We believe this esos well positioned for that and we're taking the steps to make that a reality. And we end up where we are here today. The comprehensive plan for Cecil, which is what's required to take the next logical step to launch Cecil's future. So in APRIL, this year, we entered into a contract with Reynolds Smith and Hills, our son aged to undertake a comprehensive development plan for the east side of Why do we choose our son age? Our Son h is widely recognized within our industry as a leader in comprehensive planning engineering of large-scale industry airports and commercial service airports. But more important. They have the engineering and regulatory expertise to help us navigate the hurdles. With that we will talk about. So what's the scope of the plan? First and foremost, we're going utility inventory for future requirements. When auto comes online, all the power that is feeding in to see. So we'll be at max capacity. We will need to have additional power coming in there. To operate those large scale. Heavy industrial sites. We are working with j. J is well aware of that. We're getting ahead of that. So we're not behind that schedule. Environmental inventory. That's one of the biggest hurdles we have to get over. If you're aware of. Cecil Cecil has a lot of environmental issues we've successfully navigated. We also have wetlands flood ways and flood plains that we have to overcome stakeholder interviews put this is extremely important. We took time to sit down with all of our stakeholders and all of our tenants cease on asked them a couple of basic questions. Where's your business going over the next 5 to 10 years to see. So have the infrastructure in place today to beat that. If not, what infrastructure do they need? When do they need that infrastructure to come online? You can't go anywhere if you don't know where you need to go. Forgive the pun. Land, use plan what you're doing. Large-scale development need to figure out which property you have and how much can actually be developed. Primary site plan, which essentially how and where you could put the boxes inside that development scale and an epa road map. We will talk extensively about me but need the stands for the national Environmental Policy Act. Some of you MAY be aware of it given your past lives. It is one of the most powerful pieces of federal legislation passed and the last 60 years and for any federally obligated facility such as an airport, a military base or a federal institution. You have to navigate nepa as a result of future development. It's a federal law. You cannot overcome it. Rough order of magnitude cost. How much is all this development going to cost? I will not have that number until OCTOBER because the detailed level of planning that we're doing and last but not least the implementation plan. So lets get started. This is the project area approximately 3,000 acres. One of the questions I get a lot both personally and professionally is we have all this property Cecil, weren't you doing more with it? It's a legitimate question. What people don't realize is much of this 3,000 acres of property is not actually developable for the reasons that we will go through. However, we have a very good plan to overcome those hurdles. First and foremost is what we call archaeological and historical sites. When Cecil transition to the j through the brac process. That is something called a dei U.S. Environmental impact statement through the e I s these areas that are identified here. I love this technology about here. Our high probability historical and archaeological sites because of that through nepa you cannot build on the sites and full disclosure. We have not gone in there and around because once you start put around, you might find things that are really historically significant. So we're taking that off the for lack of a better term to scale for future development. These areas here in here, our future sites for Rocket Motor test and says I like to say when you do rocket motor testing, you have to have what's called clear distances. Sometimes when you test a rocket, things go awry and they go, So you want to make sure that you don't have it have its structures in that area. And then also for obvious reasons. At the end of each runway, we have call or PCs where way protection zones. I'm just setting the stage where we're going to show you the areas that we don't have. Now. This is the biggest hurdle that we have. Much of Cecil is actually wet and much of Cecil 6 to 8 months out of the year is actually under water for 2 reasons. The area in the Burgundy hash work areas what's called a floodway. Floodway allows flood waters to go from higher elevations in the north flow south to the West and ultimately dumps of the Black Creek, the Army Corps of Engineers who has jurisdiction authority over floodway floodplain center close to water says you cannot develop in that area because essentially they look at it as a river. It's nature's way of moving floodwaters adjacent to a floodway. You have what's called a floodplain. The purpose of the floodplain is that access overflow basin for the floodway. Also to protect personal property and people you can develop in a floodway. However, it is extremely difficult and costly to do said. If you look at this red line here, this is what we call approach road. This is the road that we've built from 100 and 3rd down to the spaceport to not only open a future development for Boeing, but also to have vehicle connectivity to spaceport. We built that road through that floodplain area. We brought in 8,000 dumped truckloads of dirt just to build a 2 lane road as a colleague of mine like to say, we brought enough dirt to cover the entire state of Rhode Island just to build that road. So for the development that we're doing, it's not the ideal site. Now, Jason, you also have wetlands. You can develop in a wetland, as I like to say, if you could not developing a weapon, the entire state of Florida that we know and love today would not be in existence. However, when you're developing wetlands, you have categorize that. What when you have to determine what's the quality that wetland you have to pay into a wetland mitigation banking, which is not a problem is fully allow within law. But we have to go through that process. We also have to look at auto. This is about 125 to 150 acres. Please don't quote Me. Refer This is the auto site that we all know and love are very excited. We have to take this off the plan. Auto will most likely start construction sometime in 2028. They planned to start actually working on aircraft around 2030. So what does that leave? At least 1159 acres, a future developable property from support Cecil from the original 3,000 acres that we start with. So what does that look like? What looks like this, the area to the north right here is Adam, the most important element of this plan. It's this area right here. Called Taxiway Echo. If you look through our capital project where the process of designing that now I'm estimating that are going to be the neighborhood of 30 million dollars. But in my world, we have something call enabling projects. That is the most important enabling project that we have to undertake to open up the property for future development, fully leverage the east side of Cecil that actually way will allow access to a 12,500 foot runway that we all know from auto. But more importantly, it will also open up this entire site right here for future development. Our strategy has been very intentional about developing. See. So we want to ensure that this is the last what I call large-scale megasite so we can do a couple things we can allow Boeing to expand be we can attract another large operator that needs the assets that Cecil provides. However, the hurdle that I have to overcome in a perfect world. My boss, the cfo and the board would give me the authorities start taking down that property on a speculative basis because the intent is to prepare that property for Boeing to expand or the next large airspace operator. However, I have a federal hurdle that we have to navigate is called purpose in need back to the pup. The poll which the faa is bound by federal law to apply to which makes us have to apply by has something called purpose in need. It is as simple as it states. The purpose. What do you ultimately trying to accomplish by taking this property down on a speculative basis for us is to continue the pace of development at Cecil where it becomes tricky from a legal standpoint is what is that need legally that need needs to be that you are trying to solve an immediate issue or problem in that moment. Meaning you have to have someone that has either a letter of intent or least they're ready to sign. They need to start develop it. They will not let you do it on a speculative basis as it relates to taking down property and doing initial civil work. However. There's something called a programmatic environmental assessment. What a programmatic environmental assessment does it essentially gives us a shovel-ready site on a very large scale that we can market to large scale aviation companies around the world with a programmatic ea does is the faa with myself, colleagues and others need near says, look, we know given the pace of development at this particular airport, there is a proven track rate track record in history of large-scale aviation development. That development has come organically from the airport that you operate. It has also come from others outside the industry. We need to be able to position you to keep that level of development going. How do you do that? The programmatic eas just that. What you do is you do a detailed level of diligence, preplanning to look at flood ways. Look at flood Plains. Look at wetlands. You maximize the available uplands that you have for development. You give the faa. This right here. Which is essentially a conceptual site plan that you agree in a programmatic way in a phase way. You're going to start taking property down. What is the benefit to What is the benefit to the city of Jacksonville? We essentially have a shovel-ready site. We haven't taken down temper, but we have a theoretically permitted site that the faa has agreed given the metes and bounds that you're going to operate in. These are where you can put the boxes. And this is the general orientation of the box that allows us to work with Boeing in particular and say, ok, as you grow your presence at Cecil or as we're at the Paris Air show, we're meeting with operators. This is the program that we're going to put in place when what is the benefit? It creates it cuts off about 6 to 7 months of development time. We all understand that time heals deals. We need to be able to compete on a global scale that gives us a competitive advantage over operators and other states around the world. The programmatic ea does that. We have short-term and midterm opportunities that we also need to capitalize on. And how do we do that? Well, this is a 43 acre site that actually sits on what I refer to as the city side of the former base. What you're looking at here is the former barracks facility. The Jacksonville Aviation Authority. He's already had high-level preliminary conversations with the mayor's office about purchasing this property at fair market value. Why do we want to purchase this property? We want to delineate this property into 2 areas. The first areas for spaceport development, the second areas for traditional fixed wing development. Let's talk about space port. Ultimately, what we want to do is we want to create a site or multiple sites on theoretically half of this parcel the space port operators that don't need to launch on a regular basis, but they support launch activity. They build satellites there in space, logistics. They need a fix presence. They want to be in Florida. Hypothetically they don't need to be the cape, but they need to be a close proximity to either the Cape or launch complex that we haven't Cecil. We will delineate half of this property is a space territory through space, Florida. Just a couple of advantages. It opens up those operators to unique financing structures that they MAY not ordinarily have that debt can be tax free. We can also work with space, Florida to get the money needed to build out the infrastructure. But because I showed earlier because of the spaceport is now and the constraints that we have with flood ways in flood Plains. It gives us a plan developable property that we market in build-out to keep pace with the man. The 2nd half of the property will be dedicated to what I call traditional aviation fixed wing services. We would build that property out for the same thing. But for drifted alleviation, these are companies that are doing engine were components, workbench, work, avionics, work. They don't need direct access to the runway, but their prime contractor that they're working with. Keep going back to Boeing. Has direct access to the runway they need shops space. That's in a close proximity to what we're doing. We will work with fdot to build at the facility and build that property out. The second piece of property that we would like to purchase again at fair Market value is 8 acres across the street from hernias. Is an amazing company. They are. Developing propulsion systems right now that will take weapons and aircraft to Mach 5 and above. They have already demonstrated that their technology and their engineering can go from subsonic supersonic. Now they need to make the next big leap, which is supersonic to hypersonic in order to do that. This is their least right here. What they want to do is they want to build out the infrastructure adjacent to the engine simulate kind of in flight airflow, hypersonic speeds. They want to maximize that footprint blame and they want to use that footprint for admin engineering facilities, storage things of that nature. But they need that space. They don't have enough space right now. So the next logical leap is to go across the street. We have the expertise. We have the capital. We have the will to develop that property. You have the property we would like to buy that property to maximize that site on the benefit of her misses again. They can delineate their operations, but they can be in close proximity to each other because they don't want to separate operations throughout that either the base of the city. So now I've spent a lot of time talking about what we're going to do. It's been a lot of time talking about why we need to do it. This is our plan of action and milestones what we're actually going to do, the timeframe that we're going to do it first and foremost to see some comprehensive plan. The final report will be given to us in OCTOBER of this year. Couple of months still doing a lot of detailed planning. Interesting read if you're into those things tax away echo. I cannot stress this enough. This is the most important piece of architecture that we're going to build to unlock the future development of seats on the side. The design in the ea are already in process. We did that for a reason. We did not want dea to hold up the design process and we're running on parallel paths. We will start construction estimate and q 2, 2028, the programmatic ea which we discussed and we'll start having conversations with the faa and q one of 2027. That's about 18 to 24 month process. I will tell you this. There was no way on GOD's green Earth that I was gonna stand in front of this body and talk about a programmatic ea with not at least teeing it up with the faa heated up with the faa. It's going to be uphill climb. That's my job. I get paid to do those things. So they know what's coming and they agreed to the level of detailed planning that we have done. What I would ask at this body. One of the things that helps move the faa in a certain direction. It's about call unity, a voice and unity of mission. As we get through this process, I or my colleagues MAY reach out to you and say, look, we need help from this body. We need help for the mayor's office so we can collectively speak as a voice to talk about with Cecil is with Cecil has been indeed to have space for future development to keep pace with the band. They just like to see that unity. There's no harm in doing it. It MAY help them sway that again. It shows unity of what we're trying to do for a very unique facility. Taylor processing facility. We didn't talk a lot about this. Sorry. I was playing with your screen to much a given this technology start playing with it. So the payload processing facility that is in our budget. The purpose of that currently, the spaceport, we have a fabric anger. Fabricating was always meant to be temporary. The payload processing facility. We will build a permanent hangar at the spaceport built to accommodate hearts on a launch vehicles. We will also have adjacent to that facility was called pay load processing facility that we will be able to scale that over time. The purpose of that is as those vehicles and those payloads get prepared to launch the get prepared there. They go into vehicle to go into space. They do what they're going to come. They land back. That payload is taken off its processed in there and then put on a truck or some sort of traditional vehicle and taken to a research facility. You need that infrastructure to fully leverage the horizontal spaceport 6 ul. Rocket motor test. And we talked about that currently the rocket motor test and that we have in place right now at the spaceport is operationally restrictive, meaning we're doing rocket motor testing. We have to shut down certain parts of the airport to accommodate that rocket later testing in case the rocket motor goes been. We're going to move that facility over to the southwest side of the airport. The intent is so we could have a fully operational industrial airport or doing fixed wing activity, rotor wing activity, mro activity, commercial space activity, rocket motor activity. It's the best use for that facility. And it's also a line that for what we have to do, operations for the airport. Re-entry license number. You're very aware of that. That process is in motion right now. We are working with the faa were going through all the environmental requirements to do that. We should have the reentry license like you. 3 of 2028 in the land purchase. Ultimately that is in your court. You with a property owner like any other land transaction. You guys will determine the pace in which you want to run. However, we are very interested in it whenever you're ready to enter those conversations, we are more than willing to have that conversation with the city about the purchase. I think you understand why we want to purchase it. So here's your target audience. What is the benefit by doing all Our target audience is the U.S. Department of War Space, Florida. The commercial Space Federation, Boeing Embraer. What I mean by that by going through the programmatic ea as the Jacksonville Aviation authorities Beaty teen Jack. She was chief executive officer board members. Others are out there shopping Cecil. We have a site that a shovel ready as I like to say when we're meeting potential large-scale operators. One of the things I like to say is you ever a runway to 12,500 feet. I got that. Direct access to that runway. I got that. You need a site that a shovel ready. By the way, I've got that. Here's your least. Please sign. Let's execute. That's the benefit that it creates for us. It gives us a site that we can actually market. You can have all the property in the world. Just look housing development. If you don't have the infrastructure in place to actually execute the transaction of selling the lots. In this case. We're not development. You have is a good idea. But we are giving us a plan that we can actually execute on. So what is my ask of you? Any time we give a presentation to a very distinguished body like this, always have an ask. I ask if he was quite simple. That we continue to align the narrative of what Cecil is and what Cecil should be. There's no doubt in my mind that we have excellent aligned with the city of Jacksonville, Jax us, a j about with Cecil is what's required to fully leverage Cecil. We also have good alignment with our state delegation. We're having ongoing conversations with our state delegation about what's going on and see some of the need to continue to invest in Cecil. But as I like to say, we're not the kid that wants to eat all the chocolate bar. We're actually making a very good business case to them to show the return on investment through economic impact, job creation for the investment that they are in there. Why? Because they're competing with other state legislators for advocacy awareness in cash throughout the state. We want that advocacy that awareness net cash to continue to come to Cecil, to grow that asset and last but not least the federal delegation. This is the most important led to the still, in my opinion in the last 18 months, we've really made active push with our federal delegation partners, people that represent us in Congress. The 2 senators and state of Florida. Why are we doing that? Because these federal elected officials said on subcommittees and committees that allocate federal dollars and dare I say, Federal Department of work contracts to do work that Boeing is doing. We want them to know the ac. So has the infrastructure to do that. We have a very well educated well position, veteran workforce that can do the work. Jacksonville Aviation Authority has the will and the commitment to invest in Cecil to keep those contracts coming to locally grow our economy. But more importantly to position Cecil as a national asset, not just a local asset. So with that CHAIRMAN, Lehman members of the committee, I have said a lot. I do appreciate your time. More importantly, I appreciate your interest and Cecil interest in the j. And thank you. Thank you. And that's a great presentation. We certainly thank you for the time you and the team put into that. >> And I think we can say that we've shown that we definitely want collectively help support Cecil development with that. A number of people in the queue. I have some questions as start off our council PRESIDENT That okay to committee members. >> Thank you. Chair Lane and Tony. Fantastic plan amazing presentation. You nailed it. And when when it comes to you mentioned a minute ago, state delegation working to create a space strategy and Jay-z, part of it, I'm actually the only non state legislature. That's part of that delegation. We met last week and were meeting at Kennedy Space Center next week. And what's really fundamentally important about that, the reason there, including me is because Cecil figures very prominently in that state plan. The plan they're trying to build for both space in airspace. And comes up all the time so that that underscores the importance of Cecil not just to the city of Jacksonville but to the entire state and frankly, to the nation and its airspace plan. I also echo like your land and your call for unity collaboration, particularly with the faa. It's really all I've ever asked for. And I concluded last year's budget hearing with a, quote, new spirit of cooperation. And I think we're seeing that today, which is fantastic. Thank you. 1, 2, quick questions that you mentioned, 2 parcels you want to acquire glad to help facilitate that deal. If you think it's helpful moving Cecil forward, those 2 parcels, would you put them behind the airport security perimeter once you acquire them become part of Cecil Airport week. >> They they would become part of the perimeter. See, so the level of security would depend on kind of what they're doing. So obviously the level security have on is different in in my world called landside. But regardless we would have a security perimeter around there. We would have appropriate landside roadway access, individual sites, cetera. And then we work with those operators who depending on what they do and how they do it, have their own security requirements. And I've spoken with her concur with your. Comments about how they want to expand their testing capabilities how it helped them have that other the >> Plot of land. So I'll do whatever it takes to help facilitate that deal. And I've already had discussions with Office Economic Development. So did not know that. Thanks please get that one done. Actually agree with you on that. My last question and then I'll stop taking everybody's time. What is your plan? You mentioned that team when you show the pictures from farmer, what is Cecil's? How big is to be the team people waking up every day talking to aerospace defense companies that coming. >> The the head count. Pt teams about 10, but they do a referee k as a whole. We have a chief development officer that his primary role is to market all 4 properties also kind of going some potential restructuring at Cecil to really unleash Matt is Alexa. Matt is the face of Cecil. Thank you. I mean, I love the wind that guy up and he just goes, yes. >> So where I'm going is so, you know, we're having ongoing regular conversations are chief Abd with site selectors. We work exceptionally closely, which actually was. We don't have don't mean this is about what we don't have to market Cecil, meaning that people want to be at Cecil. We just need to keep that conversation going need to have the right people in place to do that. To me, Matt is key on that. Jake Union j is an absolute expert and large scale land development. You put those 2 together. I absolutely have. No fear that we will get to where we want to the green I'm at Kino is an absolute asset to the city of Jacksonville and j. And if if. >> No one knows Matt Matt is actually Cecil Airport space port director and actually sits on the board Space, So we have a really in there as we continue to develop the statewide space strategy and phony. Thank you for the benefit of you and the members of the committee. Just so, you know. Duval County is number 2 behind Brevard and overall investment from space for so just say, you know, that's where we're sitting at us, the position that we have. We're just positioning ourselves well for the future. Absolutely. Thank you, sir, for the plant. Thank you, sir. Council, vice PRESIDENT. You're in the q. Did you have something to say? Ok, then go to Councilmember Freeman. Thank you. Thank you, MR. Chair and chair at the Tony correct? Yes. All right. Thank you for the presentation. Very meaty Tim, a delicate one. By time you give me about 1000 bikes at one time. >> I definitely have more comments questions to make very agnostic in road here. Can't we just all get along was my first thing that are table. Top of my paintings tightened was hoping to get in before the council PRESIDENT Because my line of question is not coming from any of the rhetoric or the discussions in the past is coming solely off of my recent experience. And I'm sorry, I everybody, you blurt. There you go. Coming off of my recent experience and a site visit the Cecil. And so I wanted to speak to it from me nasa perspective and my take away from it when I'm surrounded by other state representatives. There's our state senators are other leaders. What I learned about the opportunities we have here in Jacksonville. I cannot speak to the Internet knowledge that some other colleagues have when it comes to recruiting companies. I can only speak to the timeline. So one of the questions that and you hit on a lot of the things which is great. They mention tour that I was on. They were going to Miami Homestead. They're coming Jacksonville and they're going to Brevard. I believe you kind of gave him a roadmap of 2029. Was the latest date that I saw something on there. One of my questions that I ask one of the few questions asked during that presentation was who's our competition? How far ahead of us are? They are? How far behind are we? Because what I saw at that presentation where jobs and workforce and I saw opportunities for our region that we are so intimately and that's not the right term. But we are prepared for it. A priority of mine is going to be transportation, port transportation, all things of that nature because of the advantage geographically we have is as a city. And so when Mayo Clinic talked about doing scientific studies in the 0 gravity space and how sales react differently. I if they're injecting and again, this stuff hits home for someone like injecting a potential life-saving drug that in space. Multiplies at a greater rate, which each the cancer cells, then it does here on earth. But yet when it comes back, which was the company you talked about that is working on landing. And we talked about the range and all of those things. And it seemed like Cecil seemed to be one of the best in my opinion locations outside of the site in New Mexico. Mean fallen tamale footprint. They got one a Phoenix one in Minnesota and one here. So when I'm tying it to the medical tourism, which is something that's big here. They had it mapped out to about 46 minutes, unable to get some life-saving drugs that were just created in space. And I think the time. Ma'am, I bring this young draw, but it was a matter of minutes. I'm going to to get from because the space station's going the way, correct. And I do want to ramble, but I really want to put this in the atmosphere. You're gonna have people that are not engaged at the local level and whatever kind of, you know, d'amours in hand battles you're having. You mentioned administration and council. Just look at the last 3 years. And you tell me that you feel truly that administration counts are going to do something that could expedite the process. All right. So I love we've got start transitioning us in the places that we can still do good for people. And we were talking about cancer treatment and lifesaving things that can be done. I really implore encourage you all to figure out this piece. In the make something like this become a reality for our region because it's not gonna benefit just Jacksonville gonna benefit our state. It's gonna benefit our country and it's going world because cancer not isolated to Jacksonville. So that's all I really want to put on there. You talked about Boeing, amazing tour. They're going to be the graduation of some class at fscj him. Please too many acronyms. By the way, anybody her bd. I asked me what is beaming business development. Okay. I'm the guy that I'm not afraid to ask you what acronym means because they all jump around in my head. All right. Now, so glad my daughter was here that I can share with the world so that people want to me sometimes when I don't quite make a lot of sense. But what I will say is this one thing that Boeing said it in heart trying hard. Everybody in that class, right? 25 of them. But the next her was that there is a waiting list for fscj correct. And I think that number I'm just gonna say surpasses 15, 70 kind of jumps out of my I hold on. I got a waiting list. We're talking about Boeing in the great things. How can we feel that? Because we have people just from the y yes study that we did. And those dollars, 5.2 million and I hope no one tries to take them because those dollars going hit the street ages 16 to 21 better their elder employable. Go to college and on the military. So 300 million dollar economic impact. I'm like man. I hope somebody is trying to reach them and tell them about the program at Fscj the 70,000 done ramblings by all state address today. Been too much air in case another council member comes also a pub with them so they can get a chance to sit up here. But I want to share that has been would you like for me to answer some of those questions? If you have anything you want to add to looking to small bites when do get going. Lot to unpack there. Let's start with subject. So if you believe you are at our last airspace, Working Committee, one of the things that we discussed in proposed was forgive my core tier efforts. Developing a coalition of the willing. It does mean, you know, we cannot build that facility for them. I have reached out to different airports around the country, how they have been successful at doing. This is a couple of they can put the capital and we can give them least credits. I don't think they have capital to do that. I think help this community can be successful at it is the council fscj or state delegation. The j b will fse be willing to go to Tallahassee on a regular basis and start advocating? >> For money through the Department Education in the Department of Commerce. One of the things that I hope we've demonstrated that this council today is we're really good at making business cases. Absolutely. As what might he make that business case to show the value that it creates for Cecil and the need for that investment at the state. If the land purchase goes through, you've got an ideal location for them to do it. We're absolutely willing to work with them because that need aligns with strategic vision that this organization has for Cecil. Let's go back to commercial space. I agree wholeheartedly with you and the conversation I had with people that are far smarter than myself when they do that drug research in what's called 0 jury environment, the crystallization of the drug have no idea what that means. It determines the lifespan of that drug. You accelerate the lifespan that drop from 7 days to 21 days because the crystal structures that occur and low 0 g environment the hurdle we have to get over is how do we incentivize and how do we accelerate the development of horizontal space right now, the commercial space market ballpark in don't quote Me somewhere. Like 626 or 650 billion dollars run. 98 1% of that is for Tuchel. Watch. Vertical launch really right now. It's kind of getting everything up. Their operators who are in the development of horizontal launch. We need to accelerate that for a couple reasons because the launch cadence of vertical launch is going to reach mass capacity here pretty soon that alone market forces will drive the acceleration of cars on the launch. And we're trying to be in parallel with that and put all the infrastructure there. Mayo was right as the researcher will be a key partner in accelerating that. I hope that answers your question. MR. CHAIRMAN, thank you to great job and And one thing that is Pete Myers. I was listening as I walked out of a representative for Charlotte. >> was another Representative we're going to do this. I mean, like competition for this is going to be big. And so I know we have a competitive advantage. And I just want to make sure that I least record saying if anything that is dealing with the rift between counsel and is going to slow down this. Let's try to figure out a way to get beyond that because I think we can really do a lot of good things for our world. So thank you. Water the bridge. Councilmember Miller. Thank MARCH air through the chair. Tony. I also thank you for the wonderful presentation. Very helpful. I must say that. Probably fortunate. >> decided the council PRESIDENT, very fortunate because of my other other life to know a lot more about Cecil than I would otherwise, are just doing this service here. I'm going to go in a couple of details here. If you don't mind in this in this presentation. Well, let me say to go off something that Councilmember Freeman past present Freeman just just said. I too just want to say whatever MAY have happened. Okay. It's it's back there. Let's move on. So let's move on together. Let's find ways to get to yes. Together versus starting at no before we even find out what the question is, I'd rather we just do that. Let's put that behind Let's move forward together with these these partners of the of the willing that you referred to and in this spirit of seeking unity. Absolutely. And anything I can I can do to help with that. Anything. This body, I'm sure can do to help with will will happen because the potential is there. The possibilities are there. And I'm excited about those possibilities. Every time I go out the