City of Laredo, Texas Airport Advisory Board, 13 May 2020

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From YouTube: Airport Advisory Board Meeting 05/13/2020

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Airport Advisory Board Meeting 05/13/2020

A

B

Just one thing that we have, we have to.

A

Call in from her office I think over there.

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A

Will go right into the staff report, your hand you want to or I can discuss. He says we looked at. You start through your packet. He'd go back. Your first one he'll hit is the in plane deployment report. Obviously you can see this story that that's being told here. We have a small presentation, a little farther on in here to talk about some of the financial impacts, but you can see where we started to go into the covin 18.

A

We were actually up moving into a good year and, as everybody knows, there's whatever inaugural flight to Mexico City. But you know things changed, obviously on a national on a world level and you can see as March started to hit. Obviously as we get into April- that's not reflected on here. Yet as we compile those numbers but we're anticipating passenger traffic to be down about 95 to 97 percent us off the board, so we've seen obviously the flight reduction and what the d-o-t you know levels are allowing with Airlines to take care, Zak's funding.

A

So really what it comes down to today. As we see an American flight, a United flight once a day where we were you know typically 7 to 8, depending on this Allegiant was operating, Allegiant hasn't been operating through the month, they're required to start operating again.

A

There are some new rules coming, though, from the DoD about possible exemptions, but we anticipate this Friday or it's Friday to be the may switch a schedule back, maybe Thursday good enough to be the first allegiance flight in which, over a month, so obviously nobody's traveling to Las Vegas when everything shut down but I think we're seeing some positive signs that the casinos are starting to put plans together to open. You know by the end of the month into the first incision. So you know we continue to check these numbers.

A

There's a lot of experts saying a lot of different items, but obviously our our traffic numbers reflect what's kind of going around the nation people are, you know, sheltering in place and they're, not traveling, except for so, as we move forward into cargo growth landing weights, you see the same reflection and go into March. We take a severe dip. You know reflective, obviously what's happening I'd only here, but in Mexico when they closed the automotive plant. You know obviously I have to explain everybody how significant that is for our cargo operators here.

A

So you know we start to see that downward trend in March 64% down we're expecting that even further into April.

A

Once again, the same with with the airline's we're seeing some positive signs are as Mexico putting plans together by the end of the month to open, auto manufacturing, so we're hoping to see that return, our FedEx and our UPS carriers we've been talking to them. They seem like they haven't been as infected as much and they've been running their normal schedule from both those carriers, the FIS. We also have ultra-super here as well for a little bit later on talked about, but you know same story traffic down. All these numbers are tracking similar in fashion.

A

You know, we've seen across the board right, you don't have passengers, you don't have cargo, you don't have activity. People are sheltering in place. We start to see these numbers reflect lower. So it's kind of the story today, like I, said we're seeing some positive signs, but hopefully moving forward. We'll see these numbers start to return same with the page two, it's the same air charter, private passengers. You know we're looking into that. You know 70 80 90 percent down. Not it's not just Laredo! You know aviation airspace says as we look at today.

A

The same would you you know, go back towards the the FIS operations here. You see you know. April is in here ninety percent reduction for year, two year of activity over there, thanks Tori, you know, and then we look at the fuel flow activity report down 53 percent. We do see, obviously, that we have the government operation, so fresh air and marine their their mission has not changed.

A

We have the military, National Guard here, they're still flying to the same frequency, but obviously there's been a significant impact and fuel flow and shares here for no planes, obviously going to be down. The distribution hasn't changed. Much right. Signature is still our main fuel supplier here at the air, with Barker being in secondary I. Think the only doing in-house for their own aircraft delinquent report I think we've been successful. When you look at this number, considering the economic factors, I mean obviously like most airports.

A

These days we have both their nautical impact, which we've seen and the non aeronautical right we've been sheltered in place. We've closed down things like the restaurant within the terminal, and if you look here where we see you know past, you amounts it's really around those those confidently affected right, not all suffering is equal. At the moment, some companies we've actually been approached to do some leases with synoptic company. So you know, there's there's some some economic trend here that are better, but, generally speaking, we've seen a reduction in everything.

A

Less passengers, less people, renting cars I mean you've, seen a parking lot today, we're letting the autumn enterprise even stage their vehicles in the parking lot. So it just goes back to limited activity. You know and we're balancing that I hate to say any time in my life to tell people not to travel, but I think you know obviously there's appropriate measures taken. But the message that we've been trying to give is that we're here, l see myself alejandro everybody in the department has been working hard to offset.

A

What we see in the economic impact here with the a.

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Little bit further about that impact as we move along here, but any questions I believe that's the last page here on the report.

A

You plan on extending and giving a little bit more leniency, so we do. We actually have a plan here that we'll put up for everybody to kind of take a look at what we would propose that we can do for you know the dependents here at the airport.

C

A

With the cares, Act there's been a lot of questions from the tenants of what we can do for them and we have put together plans or your review and and potentially now and move into city approval, but I know.

C

D

I know that you know because of this public situation. Do you know if I like I know the small businesses like me, a Laredo and I, don't know about the other ones, but maybe Laredo duty-free and all do you know if they applied for the PPP loan they.

A

Have to contact with them, we don't know, obviously their status. They don't know at this point. You know we all know. We see the Nationals, where you know the funds initially and dry, and then there was more funds distributed to it. So I know that some of these tabs, some of them you know, have not, but we have not at least I, have not been told anybody has been successful in obtaining a grant or a loan.

E

For example, with the local restaurant here for the terminal I understand, they did apply.

E

Within days, and so they weren't able to be in that first round, I believe they're, finding potential funding so they're waiting to hear more.

E

D

Just wanted to, let you all know, and especially since you all- are businesspeople right now, actually and right after this meeting. I'm gonna tag on to a like we're part of now come out of San Antonio National Association of Latino community asset builders, and we are working to reach out to the to the local businesses for those who might have not applied or they're. You know, I know the first round. It went pretty quick, we were lucky to apply for it and we did get it also the Eid el we applied for that.

D

But just so you know, but I'll have more information for you and I'd like to share with you that NeighborWorks Lorado is going to be doing some outreach on I know. It's not gonna, be it's a short project, because I think the deadline is June 30th we're going to try to get the word out there. So if you.

D

Refer them to us, but I'll provide you with.

A

A window to ensure that the payroll and rent, so you might want to clarify that ensure that we use some more funding, is right and I think when we get into a little bit later on and talk about the economic incentive package when LCA myself has formulated, really focuses on a deferral program versus a waiver program to exactly that point, because we don't know what their financial impacts will look like as grants or loans come in and but as far as the staff reports I we do have I mean. Everybody is aware that mr.

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lebra day is out. We do have RS and H on the line and I, don't know if John option and you can give us a status report on the cargo eleven twelve thirteen and fourteen measure.

F

So phase eleven and twelve are they're all part of one grant and they're both completely 100% complete for this far construction and have been reopened.

F

We just the final paperwork record drawings and closed our report to the FA, but they are open and complete from a construction standpoint, phase 13 we're at about 30 to 35 percent complete at this point. That's more on the south east side of the cargo apron kind of where that old asphalt was that's. What they're working on right now and that's anticipated to be complete towards the end of April. So about a year from now that one should be complete and then phase 14.

F

We are at our 90% design and looking to get that one bed here. It should go out for advertisement for the first advertisement on June, 2nd with a bid opening June 25th and then we'll be looking for an F, a grant, sometimes in sometime in August and September.

F

I was gonna say as far as the budget on that one I think we're looking at approximately about a you know: 15 to 16 million dollar project, there's various and alternates in that one, so we're gonna maximize as much FAA funding as we can get into that one flexibility of a war to be based on the FAA funding that becomes available. So that finishes up these there's a little bit on the south side, and that is an expansion to the north.

F

So that should finish up pretty much everything that's anticipated as far as the cargo, a for an expansion so from an FAA funding standpoint that should be the last phase and.

A

As we talked to the FAA, the conversation has been it with a Care Act separate, so the funding for those projects should still be separate from that which is good. So the 18 and a half million is separate from what we see in the construction that the cargo, laborers and I know we had a slowdown. It was only a few days, I believe where marine construction was not here correct. They have been employees home, but other than that. It picked right back up and we're on track.

F

Correct they they did shut down, but I think it was less than a week. They started to get some covert illnesses and but yeah they started up. I. Think the Monday after that. So from a schedule standpoint we are on schedule.

A

There any questions on the cargo construction project.

A

We're having technical difficulties that were rolling through at the moment, I.

B

Think it's trying to share something yeah.

E

A

So another component with is Johnny. You can talk, maybe a little as well. The 20/20 grants as part of the cares. Act are 100% funded by the FAA, where typically it's ninety ten, and that should be on top of of what we've been secured here as an airport correct. The grand.

F

Crack tract so yeah that the the phase- thirteen this is let's face. Thirteen face 14 is the one that we're going out for bid and correct. That should be a hundred percent funded as most FA 2020 grants are now eligible for. But yes, that's, that should be separate discretionary money aside from the eighteen million dollars and care Zack money that that the airport got so we're still in line for a discretionary funding for this project and yes, the good news that it could be at a hundred percent funding. So.

A

That's important there's a five hundred million as far as the cares act for fiscal year, twenty twenty grams at the FAA, so this is the number, but if it was four million and we took four hundred thousand from our operating revenue to match the ten percent, we won't have to do that for that grant for the 2020 as long as that, it's gonna be equitable through all the airports, but as long as the money is still there and available for the conversations we've had so far is that will be another positive impact to the budget.

A

There's time frames that are kind of hard to meet.

E

Followed in regards to grant everything they're trying to get that money out part.

A

Of our conversation with the FAA, which I think as an advisory board and as the city that we've done successfully is we've championed that message to the FAA that we're not slowing down with our CIP, where a lot of communities have stopped and said: hey, wait, a second, let's hold off, and now that puts the FAA into position when they said okay. Well, if you know ex city is not going to commit money to there's ap, but Laurie knows are going to do it.

A

You know we haven't slowed down, we haven't stopped and our projects are continuing online. Lc myself, ah resonating over in constant contact with you, know the suppliers with the construction company to make sure that our projects are on track and making that commitment to the FAA that we are committed to our CIP over the next five years, which I think puts them at ease, and is this opportunity to get these extra funds that you know? Maybe some other cities are feeling a little apprehensive about at the moment, so that I think.

A

As long as we continue that message, we haven't seen a slowdown in our our activity. With the construction, and it will give us an opportunity to get some extra funding.

E

This entire time, there's been a great team. You know, there's within the boundaries are following the.

A

Less than a week that they know ream construction had sent their employees home I think was around John three four days and as far as we know, it's not a big attack or any impact to the process.

E

F

Yeah I would say it really has an effect of the schedule, so we're still looking towards yeah they April to to get phase. Thirteen done.

A

Consideration will their contagion fight to hold them accountable to make sure they go capisci plan to continue working it? They do have another circumstance. So we, when it did happen when there was the conversation, I think the FAA has when we talked to them.

A

There has been an official stance on leeway, but you know: we've talked about this with the noise program and when we first had to shut down but hey, if they're out for two three weeks, can we look at an extension to that project, because it's also a hard thing, especially when you start talking at that point when they weren't here you know, city government officials are really focusing on staying at home and not going out. So it's it's hard to put that on.

A

To you know the construction company, but the conversation that we've had with the FAA has been very supportive and I think you know obviously nothing's guaranteed, but if we were to run into a situation where, for some reason the construction company had to go out from some resolution with the FAA on essentially, but you know, knock on wood I feel, like we've kind of turned, that a little bit and really where we saw those three days of slow or no activity was during. You know that really did apex.

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This is that any more questions on the construction.

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If we may the item and regard items, we have supervisor for.

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And they've been a support and has been continuously working, 24/7 non-stop they're, essential employees, their employees and and I think it's very valuable that you get to hear from his band. What they're seeing right now.

C

A

Morning, everybody, that's why paper from the airport.

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So I created some spreadsheets to compare private aircraft traffic from this calendar year.

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And so we can look at the margin or the starting up looks every. If you look at the numbers from 2019 in February, when 147 private aircraft and in 2020 we had 180 aircraft private aircraft, and so that was an increase actually of 22.4% and March.

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Looking at an increase, we had 122 in 2019 and 164 in 2024 an increase of 34.4%.

A

Then in april that's the that's when it really hit his heart, 19 and emic, and they throw up 2019. We had 143, we had a hundred forty-three private aircraft and in 2020 we had only 19, which brings us down to a negative eighty six point: seven percent.

A

Cargo, of course, it's more there's a lot more information, because we have a part cargo in Bowen cargo and then we also have the joint inspections with us at the Mexican custom. So if we we look at the month of of January, we did. We did see a decrease starting in January, but that was probably because.

E

A

So we had some factors that affected the traffic, such as strikes in Mexico and then the the finalization of the USM us MCA and then in February. It wasn't that bad March.

A

When all this started, we see that a cardinal number go down to the negative, sixty three point: five and then in April the numbers went practically low, where we see a decrease in ninety point: eight percent of air traffic right now in May.

A

Just recently, we started seeing an increase. I mean there was some some days and some or some shifts were. We had three shifts 8:00 to 4:00 4:00 to 12:00 and midnight to 8:00 and sometimes you'd see one plane. Private wing is almost all. Cargo is almost down to nil, but we're starting to see a little bit of an increase in traffic.

A

We'll see two three planes per shift: the cargo traffic is still haven't, picked up, we've had a few empties go south bound and, and we've seen a I think you also wanna mention that we have seen some shipments or medical equipment that one of the Mexican carriers, Dan, say: I meant brought to distribute to.

A

Then we also exported a shipment of fabric to makes more medical mask, which is okay with CBP. We are on the lookout for any PP being exported to out of the country, so that didn't fall under PPE, because if they weren't it was just the fabric but had any actual PPE. We would have had to notify Archana plan and then find out if who would be authorized to be exported.

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Basically, he was saying he stated there.

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Any type of equipment would be authorized for exportation and.

E

And I think it's important to know that, although there's been some of you who have already know, there's travel restrictions or in and out of the country, tourism is basically non-approved. It's only essential trouble for or even the bridge, but also through air, it the same apply so the work that the staff is doing a CBP and it's very important items. Cargo are considered essential, so that hasn't been restricted and by the movement of EPA's and and that's why Cargill is critical to.

C

E

And I think that's why we've.

C

E

The difference in the different radiation.

A

Well, no there's a proper state, a consideration that uh see the big numbers be dropped, but no automotive shut down the plant. So that's a big factor. They're open reopening here, I believe next week. So that's a that's a positive, so we shall the flow. The movement as well, because they're one of the five major item that are allowed.

A

They could into consideration that but I know that maybe we could do a push to maybe include the because that's not on the list and I think that's a huge opportunities if they loop or because I mean within time of crisis, I. Think it's an opportunity for us I think we should take advantage of that. You.

C

A

Peepees just add a little bit more on that there is a process. Guidelines have been sit down, I know, Mexico and Canada have not been affected. They're more working on the Chinese. There is a literature station, a hit submit to FEMA, so I mean there's kind eyes, but I'm sure you can do with a cuttlefish, their work on them because they are scrutinizing. There are verifying all the products ensuring that we have the.

A

Magicians were we were all been affected, so I know you guys are right there, keeping everybody out and.

E

Keeping a face.

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E

A

You two workers here at the airport, my partner and my team. We're not exposed look at the bridges where, as always the airport, we strive to give excellence or provide excellent service not only to represent our report.

E

And to safety in security, it's not in the agenda, but I just wanted to recognize and I.

C

E

To take this opportunity to recognize all of our law enforcement officers that work at our Airport continuously they've been very dedicated through this time they made all of their portfolio has been working through it all they're, essential staff and and they've been very, very supportive of keeping everyone safe and secure. The airport still continues to work, nonetheless, no different than any other day on the 24/7 basis. Even administration might be a little bit different for the non-essential been here every day.

E

So I just want to take this opportunity to. Thank you.

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G

A

Yeah so consider recommendations. The mayor and city council thought the city manager to submit for grant application to the Federal Aviation Administration and the estimated amount of 18 million five hundred six thousand six certain 92 for the Laredo International Airport and authorizing the city manager to all necessary documents, program budget. There's all things from the award offer purpose of this grant provide funding for which the airport funds may be used as found in the office of airports. Revenue policy such as Airport operating expenses to include payroll, airfield safety, airport security and terminal maintenance.

A

No local match is required, federal grant funding is available under the corona virus. Aid relief and Economic Security cares act 2020, it's just kind of retro. We went through this process. City manager has signed, the grants of funds have been loaded for airport use, it is a reimbursement program. We do have a presentation as we go down a little bit farther here about the impact, the financial impact here and and the cares Act funding itself. But I will say you know thank you to the team here at the airport and the airport Advisory Board Chairman.

A

We were successful, very successful and federal funding. The airport's actually received more federal funding than Brownsville McAllen and Corpus Christi combined. So it does give us I. Think some opportunity is help here, a little bit with some of you know the economic issues that we're seeing with our tenants- and you know well- allow us to kind of move forward with with our operating expenditures, as we have been in the past, so I mean obviously you've seen the impact upfront here from the coronavirus.

A

But working with you know, Congress and coiours office with everybody in this room. I think that you know we're all doing a really good job to keep the there's a pandemic to a place where maybe we could see something for the airport to come out of it bro and in this case, for the resolution.

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G

Good, this is Adrian.

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And if we, mr. chairman, could table number two, we've talked to purchasing and there's a couple other requirements they're requesting of us, though we want a table two and come back to it for next month. Well, the motions in table 2, who I mean item she was going table it for next month.

A

Literally one motion so we'll go ahead, and so this is to consider a recommendation to the mayor and city council to authorize the city manager to establish guidelines for covin nineteen economic relief program or concession and lease agreements located at the Lorado International Airport I need is available and the airport operations fund from the FAA Care Act ramp, and what we would like to do, mr.

A

chairman, is go through a presentation on the Cova 19 update and then go into what on the screen share and what you have a person there was, this economic incentive tactics would look like or our tenant okay, so you know we touched on this and we looked at the report earlier.

A

This has also been given to city management, where 42 percent down in April for total revenues collected 38 percent down on commissions for car rental, 62 percent down on cargo, landing fees, 33 percent down on passenger landing fees, 54 percent, down of fuel flow fees and 1 million. Two hundred and thirty six thousand seven hundred ninety-two dollars revenue down here today as an impact of Koba thinking and as we talked about before, not necessarily something that's unique to Laredos and is happening across the country.

A

So the expenditure report you can see in the bottom right there you know obviously lt's point earlier. You know we were federally obligated to continue to operate. You know we do have essential services coming in. We have families coming in to people that have been impacted by koba's 19. We do feel of us a one-way trucking right. Interstate commerce, though we're here we're operating, but we have to operate in a safe environment. I know. Mr.

A

chairman, you were in this morning you've seen the plexiglas has been putting up the hand sanitizer stations, the the bottom line picture is actually a company that came in and and did a sanitizing of the tire terminal foreign. You can see the expenses here of what we've done today as a city we're taking these and we're collecting them by each department and giving them to the city's finance department for potential.

D

To be seeing something because I don't see anything okay,.

D

Adrian and enjoyed our y'all seen the presentation I. Don't.

B

A

E

You should be seeing a blue screen that says expenditure report up atop, no.

D

Idle, it's going back and.

A

Before with the numbers they guy read verbatim what you see on the screen here, yeah.

D

We saw that I heard that I.

A

Just wanted to highlight, if you haven't done it yet, if you haven't gone to our new website, our new website take off we're still waiting the cost comparison calculator to be headed to that. But you know we're promoting this message. You know stay strong, we'll make it through and that as a an airport where the communities that we're here and we're ready for when people want to return to travel or even today, for those essential need, but we are promoting this message along. It is on our way.

A

If you haven't had a chance to look at the new website, I would suggest it's a lot better than where we were eight thousand times better. So if you have it, please take a look and.

E

That also, we've included a new social media pages, we're trying to have fun a lot of the day to day activity and messages that are coming in information, up-to-date information regarding colbus, please follow us on Facebook and Twitter, and and whatever your social media preferences, because that's really where you're gonna get the day-to-day information, as is happening, and it's really important, because there is a lot of changes.

E

The Airlines keeps changing their hours and as we progress and it's still subject to change, they're really reviewing their flight times on a weekly basis, and so there's going to be a lot of movement. So we encourage everyone to please keep up with that information. So.

C

E

Different outlets that we provide the official a website and the official social media.

A

So we're talking about this, you can see the expenditures as I was saying it's it's stuff that we are collecting each one of these items. We're coating it as a coronavirus, expense and sending it along to finance for the city as a collective total to potentially get FEMA reimbursement. But the cares Act does allow us to submit expenses that we've had for that month. We can't submit for lost revenue, so we can submit for expenses. So with the cares Act it's not an eighteen and a half million dollar check.

A

That's given to us, it's a reimbursement program up to eighteen and a half million so I'll see if myself are working to maximize that, and we don't see any potential pitfalls, we're collecting that full eighteen and a half million through operating expenses.

A

So Congress inquire announce the eighteen and a half million dollar grant or Rado International Airport. Another important note here is everybody on the call knows, typically where a ninety and with the grant this is a hundred percent with no local match grant will allow airports like ourselves, utilize the operational expenses for the maintenance personnel continue to maintain taking during operation capital improvement, basically anything that we spend today as an expenditure and utility bill, a staff member contracts.

A

We can get reimbursement to the cares Act and that should be pretty close to immediate with the FAA there's not a month. Two months, three months wait process to get reimbursed.

E

Retroactively all the way back to January twentieth of 2020. So right now we're working with finance.

E

And we're looking.

E

Really good opportunity and nothing but supportive and and they're really working hard with us, so those monies can get back to the communities and to.

F

C

E

In an expedited basis,.

A

So to the motion itself, what we wanted to talk about was the economic relief program proposal that we're putting we put together for your review and to the points that were made earlier about doing you know: do we know what other funding sources local entities may have been? You know trying to obtain, or when we started to look at that, we started to talk to other airports across the country. You know we're getting a lot of requests to waive rent.

A

We, our plan, doesn't have anything in there about waiving rent or tenant. What it really focuses on is a stimulus package of the fur dress, so each section here everybody's a little bit different, which is why see? You know a little bit of a different program for each depending on whether you're, a restaurant or you're, a passenger or advertising concession, but, and and everybody on the call can see this right. We're talking sense.

B

A

You know it's big, you know the restaurant fringe. You know, rather than then waving that rent that we would work with them on an individual basis. This is a car Bloch, everybody gets, you know an incentive of deferred run and you basically have to show to us as an airport, that you know you're in hard economic times that you're suffering. So the restaurant, for instance, has been closed for the last month and a half permanently.

E

A

March, and so obviously you know they furloughed their employees they're not here at all. What we would look at for them is a deferral rent up to five months, and then we would put in a 12-month installment plan, so they would pay back those months with no interest to the airport over a 12-month period, following that, at the end of their contract.

A

At the end of the rest, Burt contract with the airport, we would go through the advisory board and through City Council to extend their lease at the current terms for the amount of time that we deferred. You know the rest on this case. If they got five months deferral, we would add that at the end of their lease contract to give them time to recuperate, so it's fun potentially that they've missed by being closed here. So it's not a full-out waiver they're still obligated to pay to the airport.

A

I think this falls in line with what we've seen in the industry and also what we've seen here in the community. You know we don't want to find I think ourselves in the position where you know, because you're an airport etic you get. You know red waves, but if you're with a city in your city, tenant that you're not getting your rent late, so I think this finds a happy medium.

A

It helps with some of the suffering that we've seen out there, but it's fair and we can put across the board with all of our tenants, because everyone has a little bit of a unique different circumstance of what they're requesting I guess. They leave it to the floor for questions.

A

Pvp area put some kind of claws or aggressive stance there, because some of that funding is to be used for ransom. So the question again is or the PPP funding is there? Yes,.

F

A

So I think when we look at the deferral program, it's because we're not waving that it can take a step back and we don't have to necessarily be as aggressive to say. Oh you got a loan now pay us your rent with the program in pay as your rent. In this you know program, obviously things that we would take into consideration when we look at approving an individual tenant are have they been in good standing. You know if they're, not in good standing. Obviously that's something that we would take into consideration before.

A

We would approve any type of a.

E

Case and they do have to submit a request in writing. It's not an open blanket. It's not an open chat either right.

A

E

Really it's an economic tool of relief package that we're trying to put together for our community, and you know- we've been working Jeff and I on a weekly basis, sometimes three times a week with a different Airport around the country, a small-sized airports with our jobs and in this falls in line with what Jeff mentioned as an industry standard. In there there is still federal requirements that you know requires to still follow certain protocols.

E

So this package, it's meant to still I'm with that, we'll still be able to help the community and what we wanted is for the businesses to come back to work, if you know eventually to not just normal, but also progress from you know, a new better and you mentioned PPE I mean they're still, gonna have to follow safety standards. I mean back to work as they come progressively start opening back up like the restaurant. You know right now.

E

There is city ordinance that, even though it's not mandatory and there's no fines, no or like the governor says we're not wearing a mask for city facilities. You still have to work and for restaurants. I think a lot of also the customer trends are very important, because a lot of people I think feel more comfortable if they make the waiters is wearing a covered face. You know things like that. All of those things are being taken into consideration, but in different and organizations that work on an airport terminal.

F

As well as outside,.

E

The aprons those have been taking a lot.

G

E

Precautions themselves, hand sanitizing, you know not approaching the pilots of it, work for sometimes not even having the interaction with the plaintiffs anymore or having them be more self-serve. If you will so a lot of all these things, I think it needs to just make business sense common sense. If you will.

A

E

A

And you know, even if for something worth coming down the road, we could even look at amending as you go and you're chairman of adding in some language that you know we can start to assess. You know late fees if the terms are not agreed on.

C

A

Sure that you know people are actually following through with the logic, but you know we've had tenants, ask us, for you know, rent waivers for six months and then we've had a tenant ask for in a twenty five twenty percent off on on our red cell. But we start talking about a waiver program. I think that's where we really start to go down that rabbit hole of okay. Now we really need to manage your money.

B

A

Know why are you doing potentially something with a grant or are you letting employees go? It's so I think the deferral program allows us to give people some ease.

G

A

Rest and it allows us it still operates if we have the cares, Act funding for the interim, so we have those funds to help with the expenses today and give a little bit of reprieve. Without saying you don't have any the obligations are still there. It gives them some opportunity to recuperate potentially the lost time.

E

The funding that I stopped there as well so.

E

Not everyone everyone's hurting in different ways, but not some are not hurting as much as others.

G

E

The the diligence of providing that financial.

E

Because maybe they did get.

C

E

Award or natural pardon they're, okay right I mean it goes.

A

Back to right now, us even in the middle negotiation for potential newly. So if somebody in this current climate is looking to get into at least obviously this package, does it make sense for them and I think this gives us the opportunity to narrow it down on an individual basis? I'd, you know really what that impact was for them, because we know all of us is being here with when we see these numbers who's really being impacted at the.

C

A

Is out there, but this will give us some tools to be able to dive into that a little bit and give people an opportunity for a little bit of relief without waiving.

C

Their obligation.

A

To city clarity on they're not to sit third, is that recommending a more aggressive approach? I just know that there's certain guidelines that they can get waive did they do it they've made famous which qualify for the payroll and especially with a with a rent within at eight months at a week, time frame just to let them know that or whoever they if they get to the end and they haven't. You know all that money they could applied support of the rent, and there were that. You know they.

A

They can give that a little relieved or PPP the favor Protection Plan allow them to go ahead and I have to pay that money back to the government. You know kind of benefit the smaller people, especially the one to move you yeah other questions and any other questions on the the deferral package. Let.

G

Me ask this: this is Adrienne what about the ones the tenants that are delinquent now? How would this package fall into those entities that are delinquent right.

A

Honestly, announcing I have talked about this a little bit, I think on the ones that are and we're.

C

A

If we're having already in a legal conversation with them about the illiquid see before we went into code, 19 I, don't see why they would all there's, there's, obviously something that was going on before you know. We got into this environment, so I think that goes back to those individual cases as an airport.

E

C

E

G

It thank you so.

D

So just to be on the clear, so you're you're deferring months, you're, deferring rents for five months.

C

A

Five hundred.

D

A

Up to five months, if we would, when we look again on a macro level, those individual businesses, we would do it at Pearl potentially up to five months, but it could. You know if we start to see a turnaround and traffic as Walter talked a little bit about you know with maybe like an FB. Oh, it may be more of like a three-month deferral and I think that's a conversation, but no no more than five. Then.

D

Now, what that you put on there up to because I'm reading it as five months and I mean if you counsel but.

D

Okay, so after the so, let's say: let's assuming yes, it's five months so those five months, they're still old, because you know they're occupying the lease, so they won't start paying back and this will be in installments until October.

D

Oh ten thousand dollars a month just on there you know, so those five thousand dollars would be paid back in twelve monthly installments, starting in October yeah. Okay, all right I just wanted it that.

A

Clear right, right, absolutely yeah and, like I, said I think when you look at and it's not carte blanche, everybody gets us if this is approved today and then through City Council's, it's a program that allows a tenant to call us and say I'm having problems I'm having issues I can't you know the city told me to close, then we know that some of our non inaudible tenant gives us some some tools in our toolkit to help them to look at their particular history to say: okay, they have been a good tenant.

A

They've been a good tenant up to this point, what's the least look like and then we would obviously go through these same motions they're here to send the lease on a particular point. So when you look at who we would do this with it's, not you know we're gonna be done as a does. Everybody would be fully aware, and we would come back to amend the lease type of situation to add that time and at the end, which would run through this process and the same down with City Council.

A

So decisions obviously wouldn't be made in the vacuum here about who we're deferring or but really it's an opportunity, I think for us with those tenants that are hurting- and you know in particular when I look at like a FedEx or UPS I. Don't the activity that I've seen I, don't necessarily think that they would be a part of this program. You know they've continued with their normal aircraft and, if anything, with the online orders there I think globally. Ups is up, 20% I, don't know what they look like a nun local level.

A

We been trying to get a little bit of a deeper dive into that, but I wouldn't see necessarily the UPS or FedEx me. Apart of, isn't me. Obviously they would be open to come and talk to us if they're having issues, but if.

E

I may I think definitely the reasoning of starting, for example, sober I think we all can understand that, just because people start traveling again doesn't mean they're, gonna start traveling in June, and what are the numbers that we were looking at before the pandemic started activity is still lower. I. Think it's going to take time for the industry to recuperate from this I think, there's a lot of states that still have restrictions on traveling, or you know, activity on that part of your city.

E

So when we talking air travel, if we can't look at it as if it's just narrato is back open, Texas is open and we're good to go. When we're talking about passenger air travel or activity at an airport, we have to understand that there's a lot of other variables that we need to take into account.

E

So, although right now we're competing in operations for travel, you see it right now, where you know, there's been restrictions on probably in quarantine when they're coming into Texas from out of state or when you know the passenger confidence to get into an airplane, we're taking all those things into consideration and there's a lot really.

E

Jeff and I have been really breaking our heads and and and and really working with all our stakeholders and really working with the industry and our peers and the different Airport directors and and the Association that were part of to really come out with a comprehensive plan to make sense for our community for our Airport and our needs, because you know just so simple the restaurant. If they come back and open in July, it doesn't that they're gonna be ready to start paint on an installment plan in July.

E

First, it's going to take time for them to be able to make do with their payroll and and come back and actually on a positive. So we think that give them some time reasonable amount of time to come back, work, be able to make their expenses continue operations and provide a service and then start making their installments at a reasonable time and- and it coin-sized also with our fiscal year over in four.

A

E

So we think that gives them enough time to start bringing back operations without breaking them. Back to the last thing, we wanted to come back and work, but in the process get in the hole we don't we don't want them to do that either right.

A

We want to find a happy medium where the delinquent report doesn't grow to the extent, because you know the numbers obviously is being it paints a bleak moment right now and I think we're starting to see some indicators that some stuff is coming back as like Walter said, but we want to help everybody here and help our tenants be able to get back up and and give them that that boost without waving that obligation, but giving them the responsible ones giving them the time they need.

A

So we don't end up in a position where you know we have a lot of businesses here in Detroit.

B

Every it's George, I think I think this is a good proposal, because it's.

B

Very evil, because for five months, if you don't give these people a window or a door to come back and open up without having an extended amount, pay up, you know the past fees. They won't be able to talk enough, and all these, like the car rental, the restaurant, he I mean.

B

B

You know this will be something we need to do in order to help.

A

Detailed information- or maybe it's a report that he provided just.

F

A

Great appreciate that anybody have any information. I would.

D

Just like to make something and I know with all this getting ready for that with the Technic. The IT part of of our of our meeting here I did want to I, know a little late, but I know that mr. livadas wife passed away and I just wanted for the record to show that we we had a moment of silence because of her passing.

A

The beach I know what you do here at the end.

C

A

A

Vice chair, I think you're gonna jump underneath another meeting I know Ashley said your quick invite where you still able to join us right after that. Yes,.

D

That training I had two staff members regroup with them at four o'clock: I'm good, okay,.

A

Thank You Samantha and John Q right.

D

Motion to adjourn I second thank.

A