Presentation on theme: "Flight Plan To The Future Ad Hoc Committee P3 Report Overview April 8, 2013."— Presentation transcript:
Flight Plan To The Future Ad Hoc Committee P3 Report Overview April 8, 2013
Ad Hoc Committee Charged by Authority board to: review, assess, recommend viability of implementing P3 model investment management development jobs
Ad Hoc Committee Members Seven-member committee Community and business leaders Three current Airport Authority board members David Bochnowski, President Peoples Bank, GCIAA board member, Chair Ad Hoc Committee Cornell Collins, Attorney, GCIAA board member Carrie Hightman, Executive Vice President and Chief Legal Officer, NiSource Inc. Marion Johnson, Pastor Mt. Moriah Baptist Church, Vice President GCIAA board Bo Kemp, Chief Executive Officer, J Gari and Assoc., Advisor to Mayor Freeman- Wilson Mamon Powers, Jr., President and Chief Executive Officer, Powers and Sons Construction Company Harley Snyder, Chief Executive Officer, HSC, Inc.
Primary Assessments Formally Explore Public-Private Partnership (P3 ) P3 that maintains public control Does not privatize the airport P3 to provide private sector innovation, capital access P3 in partnership with public control Seek Proposals from Market Authorize Ad Hoc committee to seek proposals from market Request for Qualifications and Proposals for a P3 would define workable framework for a P3 model for Gary Ad Hoc committee to report proposal findings to Authority
Review of U.S. airports currently using variations of P3 models Legal structure, operational performance standards, expected outcomes Range of simple management arrangements to complex management, investment relationships Discussions with FAAs manager of airport compliance FFA P3 compliance requirements Federal involvement through the process Timing for federal review P3s uniquely different, structured on community needs & goals Discussions with financial and investment community Key components and behaviors for successful P3 arrangements How We Arrived At Assessments
Key P3 Pillars Airport ownership remains with the Gary/Chicago International Airport Authority. Robust job creation and economic development in the region. Long-term, strategic community-regional partnership. Ability & willingness to maximize capital investment dollars into the airports growth, and development of property adjacent to airport. Development of a sustainable Gary/Chicago International Airport – environmentally, economically and socially.
Expected P3 Outcomes Employment of local residents Strong community partnership Innovative, professional, competent management Capital investments in public infrastructure and local development Financial self-sufficiency of airport
Primary Recommendations Formalize City-Authority intergovernmental agreement. Establish objectives for the public private partnership. Maintain current ownership and governances by Authority. Create ability for private capital investment in airport and residual land. Test and engage the market. Expand and continue the role of the Ad Hoc committee. Establish an exceptional team of expertise.
Market Conditions Help Shape P3 Conceptual Framework Initial P3 term and Management Fee Structure: Based on market response Value to the public-private participants Ability to meet/exceed minimal expectations of City-Authority
Partnerships Minimum Expectations Minimally, private sector entity to provide: Highly competent and innovative management team Five-year management plan that establishes annual operating performance measures. A five to ten year investment plan to include aviation and non-aviation development. Demonstrated financial capacity (equity and/or debt) at a minimum of $100 million. Plan for community outreach and engagement Demonstrated ability to work in a public environment with multiple stakeholders. Demonstrated ability to work with an appointed board.
Next Key Steps With approval of Authority board, Ad Hoc committee will provide oversight to: 1.The Ad Hoc committee will provide oversight on behalf of the Gary/Chicago Airport Authority Board and the City of Gary to: Create a formal process to test the market seeking qualifications and interest in P3 by May 2013. Formally test the market with the agreed upon process by June 2013. Review and evaluate market responses by July 2013. Seek binding proposals from a short list of best qualified and responsive participants by August 2013. Provide final recommendation of P3 model and private entity partner to the Airport Authority Board and City of Gary for approval by August 2013.
NEXT KEY STEPS 2. Facilitate the process for the city and airport authority to codify its joint agreement through an intra-local memorandum of understanding by May 2013. 3. Engage highly qualified professionals to support execution of process. Hawthorne Strategy Group for communications JClark Consulting Group for project management and P3 model advisory Legal services and financial advisory services April 19 Ad Hoc committee meeting will recommend legal/financial providers Team of professionals to work within a success-fee model. Compensated by private sector P3 provider, not the Authority/City.
NEXT KEY STEPS 4. Immediately work with airport management to ensure understanding and transitional process by April 2013. 5. Ad Hoc committee to develop and execute a joint P3 communications strategy with the City and Airport Authority by April 2013.