RFP's

Did anyone read the story in today's Telegram in regards to the RFP for the two old schools. Here is one line:

There has been a concerted effort to advertise and attract qualified developers from across New England,” Mr. O’Brien said. In an effort to reach a broader audience, Ms. Jacobson said the RFP has been advertised in the Boston Herald, New England Real Estate Journal and Banker & Tradesman, in addition to the Telegram & Gazette and Central Register.

I commend the City of Worcester on these efforts, but only wish the same marketing effort had been put into ORH.

136 Days

On this snowy day couple of thoughts:

1. 136 days left in the current operating agreement. MassPort is a done deal--long-term lease at a nominal amount with an option to renew with some revenue sharing.
2. why are we trying to put these two parcels of land out for RFP now with so much uncertainty?
3. A St Pete's flight from Allegiant out of ORH would not only have attracted Tamps fliers, but Fort Myers and other popular destinations on the Gulf Coast like Naples, Port Charlotte, etc
4. Assuming the current $70,000 goes to IMG, we will paid them approximately $270,000!!! We would have been much better off juts writing a check to Allegiant keeping them here and hitting 10,000 passengers, which means 1,000,000!!
5. Can I say it again for the 100th time.. Losing Allegiant was a huge loss.
   

January Board Minutes

Can you believe that there is not one mention regarding the fact the current operating agreement with MassPort is ending soon and how are the negotiations going in the Airport Board Minutes?

Or any mention in the board minutes as to how IMG is doing in their recruitment efforts to date?

IMG

We spent $100,000 on their initial report that, which amongst other things, identified 6 or 7 airlines that would be perfect for ORH.

We then spent another $100,000 to retain them to help us retain and recruit an airline. To date all I know is that they put together two packages, but have no idea to whom or how it went.

Now they another $70,000 to

• advise the city which airlines could be successful at ORH. Let me get this straight we have paid them over $200,000 and they still do not know which airlines would be successful at ORH.
• hire another company to do route analysis for top ten markets. We have spent $200,000 and have not done this yet.

Lets forget about the first $100,000 that we paid for the report. Can anyone tell me exactly what we got for the second $100,000 before we spend another $70,000 on IMG???

City Council Meeting

Tomorrow night, we have a city council meeting will anyone ask:

1. How is IMG doing on their recruitment efforts, specifically what happened with the two airlines that "packages" were being prepared for?
2. Why are the January Board Minutes still not on the airport web site?
3. How exactly has the Department of Transportation Grant monies been spent?
4. If we are not, why are we not talking to the other potential suitors for ORH other then MassPort?
5. Why are we putting the 2 parcels of land out for RFP now when the future management of ORH effective 7/1/7 is not known?
6. Has Coordinates Corp, the subject of the November 2006 Board Meeting, moved their jet and the 5 full-time employees (as explained in the Board Minutes) to ORH yet?
7. When will the results of the Master Plan be released?
8. Does anyone care at the airport about the deplorable conditions at ORH that have been reported on this blog at some of the City owned facilites?

Avports

Web Site

Currently, AvPorts provides airport management services at Albany International Airport (ALB), Atlantic City International Airport (ACY), Republic Airport (FRG), Teterboro Airport (TEB), Tweed New Haven Regional Airport (HVN) and Westchester County Airport (HPN). All of the airports managed under contracts with AvPorts are certificated by the federal government under Federal Aviation Administration (FAA) safety standards.

Stewart Again

Mid Hudson News Story, please note the section in bold about a company to run the airport.. Why don't we add AvPorts to the list of potential companies to run ORH under a long-term lease:

Stewart-Port deal firms up

Stewart Airport – The Port Authority of New York and New Jersey any day now hopes to be signing its deal with National Express to buy the remaining 93 years on the lease to operate Stewart Airport in Newburgh. When the Port announced its plans last month, it said the deal should be signed by mid-February. The bi-state agency also said it would name a company to run the airport for it on an interim basis until a more long-term selection could be made. While the Port said no company has been chosen yet, industry sources point to AvPorts as the leading contender. Based in Baltimore, Maryland, the company is no stranger to the northeast US area. It currently manages Albany International Airport, Atlantic City Airport, Republic Airport on Long Island, Teterboro Airport in New Jersey – another Port Authority-owned airport, Tweed New Haven Airport, Westchester County Airport and the 34th Street Metroport in Manhattan. A New Jersey Assembly committee last week approved the purchase of the airport; the whole Garden State legislature and governor must approve the deal, which is not expected to be a problem since Stewart is being groomed as a reliever airport for the three metro passenger jetports. The Port Authority is planning to take over Stewart in early November.

TF Green Buying ORH

Besides MassPort, we should definately talk to the authorities that run Bradley, TF Green and Manchester. As I have said before look no further then Stewart and the steps that are being taken there. Here is a part of the story from the Times Union:


TRENTON, N.J. -- New Jersey moved closer on Thursday to allowing the Port Authority of New York and New Jersey to buy Stewart International Airport in Newburgh to help ease congestion in the region's skies and airports. A Senate transportation panel approved changing New Jersey law to let the Port Authority to enter into a $78.5 million, 93-year lease of the airport 60 miles north of New York.

It was the first legislative approval for the plan, which still requires consent from the full Assembly, Senate and Gov. Jon S. Corzine.The Port Authority hopes to take over operations at Stewart by October. About 300,000 passengers used Stewart last year, but transportation officials said it could handle 1.5 million and ease pressure on LaGuardia, John F. Kennedy International and Newark Liberty International airports. Those airports handled more than 100 million passengers last year, a total projected to reach 150 million by 2025.

The legislation would match New Jersey law with New York law to authorize the Port Authority to buy or build two new airports -- one in each state -- outside the agency's district, which extends for a 25-mile radius from the Statue of Liberty. Bill sponsor Sen. Paul Sarlo, D-Bergen, mentioned the Atlantic City International Airport and Trenton Mercer Airport as potential purchases by the Port Authority in New Jersey, but Shawn K. Laurenti, the Port Authority's government and community relations director, said nothing is imminent.

"I don't think there's any interest in pursuing an airport in New Jersey at all," Laurenti said.
Sen. Henry P. McNamara was unconvinced that New Jersey won't need another airport and expressed concern about giving the Port Authority the ability to establish one.
"If New Jersey is going to continue to grow, the need is going to happen here also to where you're going to need something to alleviate Newark," said McNamara, R-Bergen.
Sarlo said he at least hopes using Stewart will ease congestion at Bergen County's Teterboro Airport, which has become one of the nation's busiest small airfields. Teterboro Airport has been a longtime sore spot for neighboring residents, who have complained of aircraft noise, exhaust odors and incidents involving planes running off runways.

Tampa

Too bad Allegiant was not flying to St Pete's. Sanford was more a vaction destination for the kids, while Tampa is perfect for the adults. Great alternative to Myrtle Beach. Tons of golf courses, better weather, many restaurants, etc. Another missed opportunity for ORH.

Tampa

I am off the for the week-end to do a little golfing in Tampa with some college friends. I can not help but think how nice it would have been to fly Allegiant to St Pete's, but good thing we did not waste our Small Community Air Service Grant monies on an airline. Wonder if we are holding some of the monies after three years, if we have to give it back? Bet you the consultants can come up with a bill for the balance.

Instead of flying out of ORH, I am up at 3:00AM for a drive to Boston. I will try to post some blogs.

IMG Update

Checking back on a 1/2/7 blog in regards to IMG there had been an update for about three months in regards to IMG that read:

"Additionally, IMG is preparing route analysis for two prospective airlines. City staff are working closely with MassPort officials to review and make additional recommendations on these packages. Following the finalization of the packages, MassPort and the City will meet with representatives of the targeted airliness to determine interest in locating at the airport."


Tonight here is the IMG update from City Council minutes:

"IMG will continue to provide the City with analysis of potential carriers and the creation of specific marketing packages and strategies for those identified airlines. The City and Massport are focusing efforts on identifying and recruiting airlines that employ more efficient aircraft and service popular destinations which were identified through the locan and FAA-conducted surveys of passengers preferences."

1. Were the two packages finished?
2. Were the two airlines met with?
3. What did they say?

National Express

The way I figure it is that National Express is going to make a hell of alot of money when the sell the remaining 93 years of their original 99 year lease to the Port Authority of New York and New Jersey. Why not call them and ask them if they want to try and do it again at ORH???

While we are at it. If the Port of New York and New Jersey is going to dish out 79$ million to buy the remaining 93 years of the lease from National Express, maybe they would want to throw a few bucks at ORH?? Airport for Sale!!! Call all the airport authorities--TF Green, Bradley and Manchester.. Lets get top dollar for ORH...

Actually I got a better idea. Lets take the money left from the Department of Transportation Small Community Air Service Grant, put together an RFP for a consultant to hold community meetings and conduct a survey to decide what we should do.

Today's Editorial

You got to laugh, here it is. . Can you say its a done deal. Wonder if the Airport Board Minutes has anything on this--I doubt it. Let us not forget past Editorials within the last 3 months:

• December 12th, 2006, regarding to the Master Plans. "The action plan, scheduled to be issued in its final form early next year, charts a realistic course toward realizing the airport’s potential in the region’s air transportation network."
  
• November 28th, 2006, regarding the Land RFP. "The initial request for development proposals is a significant step in the right direction."

Evidently the Land RFP was not a step in the right direction and the Master Plan realistic course toward realizing the airport's potential was not so realistic. Stewart lease is worth 79 million, ORH lease will be about 79 million short of that.

120,000

For those anonymous bloggers, who suggest the blog consists of 3 or 4 people, we just passed the 120,000 page download yesterday. Thats alot of downloads for 3 or 4 people.

Putting the Airport out to Bid

Ten years ago Stewart and Worcester were pretty similar airports. Today we read about Stewart and leases for 79 million, while Worcester bleeds money and will be leased to MassPort for what I guess will be a nominal amount. What was the difference? Management!!! In 1998, the State of New York privatized Stewart and leased it to National Express. You can read about it on the website under the privatization tab.

Over the past two years on this blog, I do not know how many times we have said SELL ORH and that the City of Worcester knows how to run an airport no more then it knows how to run a Civic Center (or a hospital). Now it seems everyone agrees with us. Unlike others, who try to rewrite history, look at #13 in our list of recommendations:

13) Invite airport management companies to Worcester and review the possibility of putting together an RFP whereby we lease the entire airport to a private management company.

In fact Bob Nemeth stopped by my office last January, 2005, after the web site went live on the airport and we discussed various matters concerning the airport. I told him that we should look into privatization of ORH like Stewart had done with National Express (there is a section on the web site about it towards the bottom). Mr Nemeth did not know what either privatization or wifi (another recommendation) was, so I had to explain both to him. In the end, he told me to submit my idea to the airport commission for their review.

Take a look at the Board Minutes and hit the February,2005 minutes, check out number 7 under new business. The Airport Board minutes says thanks for the recommendation but that IMG was looking into it already. What did IMG say about privatization in their $100,000 report?? Answer: Nobody would be interested in the airport so we should forget about recommendation #13,

My question has been all along is how can IMG say that without trying? IMG , by the way, are the same guys we have paid an additional $100,000 to recruit and retain a commercial airline--how they doing on this?? As Harry Tembenis, Jahn and many others have suggested there are possibilities and what do we have to lose to try? Is there not a fiduciary responsibility to get the highest possible return for the tax-payers?

Instead of attempting to sell the airport (long-term lease or outright sale), we spent monies on consultants and surveys that one of our own airport board members, Mr Nemeth, now says was a waste of time and is getting us nowhere. Think about it, had you ever heard of Stewart International Airport in Newburgh, New York, before reading this blog?? I did not, but now you read about a 79 million dollar lease from the Port of New York??

Lets hope Bob Nemeth has a part 3 to his recent story on the airport, as to why we never looked aggressively for a buyer other then MassPort. Eventually when we lease ORH for a nominal amount to MassPort, will this be fair market value??? Don't get me wrong, I personally believe that MassPort will be a huge improvement, but what did we leave on the table??

Stewart Deal

Entire story

Here are parts:

The board of the Port Authority of New York and New Jersey authorized a $78.5 million deal to assume a 93-year lease of Stewart International Airport in Newburgh, 60 miles north of the city. "We can turn that sleepy, underutilized facility into a dynamic transportation hub that will allow us to meet the incredible growth and demand for air travel," said the Port Authority's executive director, Anthony Shorris.

The Port Authority, which would explore adding more parking and a new passenger terminal, is expected to take over operations by October, pending the approval of both the Federal Aviation Administration and the state's transportation department......

JetBlue Airways Corp. recently decided it would begin daily nonstop flights to Florida from Stewart. A competitor, AirTran Airways, also has launched service to Georgia and Florida from Newburgh, and has been flying to similar destinations from Westchester County.

Gov. Eliot Spitzer gave the Stewart plan a high profile by mentioning it in his first State of the State speech earlier this month, and he reiterated his support for expanding the airport in a statement this week.

"We will continue to make major investments at JFK, Newark and LaGuardia, but eventually we are simply going to run out of room. Stewart International Airport will provide much-needed relief for our three major airports, greatly reduce delays and help us prepare for inevitable population and passenger growth," the governor said.

Unlike other New York airports, hemmed in by thick urban development, Stewart has plenty of room to expand. It sits on 2,200 acres, compared to LaGuardia's 680, Kennedy's 4,930 and Newark's 2,000.

Stewart International

Harry Tembenis just sent me a story about Bradley and how Stewart is starting to provide some real competition. Stewart is example of another secondary airport, like Rockford that has been able to succeed. In recent months they have landed JetBlue and Airtran, along with the other three airlines that they already had.

Who owns Stewart? Stewart International Airport is the nation's first privatized commercial airport and operates under a 99-year lease agreement with the New York State Department of Transportation. National Express Group operates Stewart International Airport and is the United State's subsidiary of the National Express Group, PLC, in the United Kingdom. Click here to go to the National Express Group website.

The most interesting part of the story that Harry sent me is the following:

The Port Authority of New York and New Jersey last week announced a $79 million deal for a long-term lease at Stewart, which served 300,000 passengers last year. The authority wants to expand it to relieve congestion at JFK, LaGuardia and Newark Liberty International airports, and to promote economic development of the Hudson River Valley.

The authority expects to assume control of the former Air Force base by October, pending closure of the deal and bureaucratic approvals.A new exit off I-84 leading directly to the airport - already under construction - is expected to open in September. The airport is also seeking money to build an international terminal.The authority has not defined a timeline or a budget for Stewart's expansion, but says it would accommodate private jet operators, cargo haulers and passenger airlines.


$79 Million when an airport is run successfully!!! Who knows maybe the authority that owns Bradley or TF Green would see the value of ORH, but again we will never know??

SkyValue

Here is how we could have utilized some of the DOT grant monies to help Allegiant, by sudsidizing flights, when they had low bookings versus spending the monies on IMG. Story on SkyValue from the Post-Trib:

There are few items you could buy for $1 these days: a candy bar, fries or a burger from a special menu at a fast-food restaurant. But on Sunday and Wednesday, you can add a flight from Gary to several sunny places in the United States as well.

In an effort to increase passengers flying on SkyValue USA, a $1 one-way fare is being offered on flights to Mesa, Ariz., Las Vegas, St. Petersburg and Orlando for flights leaving Gary/Chicago International Airport either Sunday or Wednesday, Feb. 7. The $1 fare is also good for flights returning from those destinations to Gary on Sunday or Feb. 7.

However, the $1 price tag is based on the purchase of a round-trip ticket. Return flights begin at $79, but could reach nearly $200 depending on the return date. Gabrielle Griswold, senior executive vice president of SkyValue, said the promotion is expected to be repeated throughout the year as the airline continues to build a strong customer base.

"We've had tremendous response, and people are very pleased with the regional airports," she said, adding that the $1 fares will be offered sporadically when flights are expected to have few passengers. SkyValue is attempting to lure customers from Northwest Indiana and Chicago, who typically turn first to Midway Airport, said SkyValueCEO Darrell Richardson in a prepared statement.

"Repeated business and bookings are so strong, we know if you try us, you'll be back," Richardson said. "Our special promotion is to attract a larger audience of passengers who may not be aware of SkyValue's affordable air service and the convenience of the Gary/Chicago Airport as an alternative to Midway and O'Hare."

WoMag Story on Land RFP

http://www.worcestermag.com/archives/2007/02-01-07/city_desk.html

Why the Land RFP Failed.

Most of this is from a prior post on December 1st when I guessed at most we would get was one bidder. I was wrong--we got none, but here goes again.

Don't get it.... We are putting out an RFP (Request for Proposal) that:

• Asking someone else to build a first class General/Corporate Aviation facility on a 4.5 acre parcel owned by ORH
  
• Proposer does not own property but pays a ground lease of approximately 48,000 per year for 20 years, with an option to renew the lease for 10 years
  
• In addition to the rent, the successful proposer will have to pay a portion of their collected parking fees and fuel flowage fees to the City of Worcester not to mention of portion of labor, parts and restaurant sales
  
• During course of the lease any sub-letting of the successful proposer needs to be approved by the airport commission

I really do not see how any can recoup their investment in a facility like this with these terms. Honestly will be surprised if their is many actual proposals requiring a $10,000 deposit submitted.



Here is an addition:

How can we expect anyone to invest in this when the future management structure of ORH 149 days from now (July 1st) is not known. For now we should just hold off on any RFP until the management is finalized.