I see that.

Good afternoon, everyone, and welcome to the land use public safety and community development committee meeting for August 14th.

We will begin with a Pledge of Allegiance.

So today we have Andrew Moore Airport Manager and Sean Dempsey Assistant Manager up here.

Andrew can sorry, the mics.

Okay.

It's with high flying hangers.

The proposed project is something that we've been working for for towards for about twenty years.

It's been our on our Airport layout.

It's been on our airport layout plan for quite a while for hangar development in the midfield.

So as a little bit of background to help you kind of understand where we're at with the airport, we generate about eighty percent of our operating revenue off of leasing about a quarter million square feet of space.

So for that reason, we've been a little hesitant to pursue any building projects.

After that, we spent probably three or four years having development meetings, meeting with different people, and we eventually distilled down and came across this group who we found that was a very good partner to go forward with a project like this.

And some of the reasons were that we felt like they had a very well developed plan.

They understood the market and the industry of the users and those who would who would um you know want these type of hangars.

Um another big part of it we found is they understand the cost to build hangars at a federally funded airport where they're leasing the ground.

Um we also felt with our previous uh uh development experience um that they could be someone that could complete a project like this.

So for that reason, um we're presenting to tonight.

We're confident this is the best and uh best use for the land out there.

Um and uh it would also best serve the current and future uses of uh Frederick Airport.

So I put a lot of information in the background.

I did that intentionally because this this lease that we have up here is very dense.

So uh if you have any questions on that, um I can answer them now, or we have the developer who will give a presentation about the project.

So you can tell me which one you want to do first.

Should we hear from the developer then?

Okay.

Come on.

Thank you.

Thanks, Sean.

The proposed development.

All right, can you all hear me?

All right.

Uh Councilmember Russell, Councilmember Kazemchak, am I saying your name right, ma'am?

All right, wonderful.

And council member McShane, um, thank you for having me today.

My name is Kendrick Dane, and I'm the chief legal officer for our family business, high flying hangars.

Let's see, is this my clicker?

We started our company five years ago.

Um, we're all passionate aviators.

Um, and when we bought a little aircraft to teach my little brother how to fly, we quickly found out that the entire nation is suffering from an aircraft hangar storage to the tune of about 60,000 units uh nationwide.

Um our company was founded to plug a gap in the market that has existed for some 30 years now.

Every other aviation property developer is focused on um aircraft shelter for ultra-high net worth individuals and corporate operated aircraft, uh, leaving the rest of the you know, every man flying public um with no options.

Um our product caters specifically to that market segment.

Um back on this first slide here.

This is a picture of uh 31,000 square feet of recently completed aircraft shelter in the city of Albuquerque, New Mexico.

So we are on a mission to solve the nationwide hangar shortage crisis.

Um we view this project at Frederick as uh sort of a marquee for us.

It is a large development of 78 hangars.

Um as I understand it, you know, that should take some pressure off of this 11-year-long wait list.

And as a matter of fact, as we sit here today, uh we've secured reservation agreements and significant down payments for uh buyers for the all of the phase one units uh comprising a total of 44 units in phase one.

So this project will result in 235,000 square feet of new hangars at a ground lease rate of a dollar per square foot annually, uh factoring in three percent annual escalation over the 40-year lease term.

That will result in direct revenues to the airport of 17.78 million dollars in addition to um other fees that we pay the airport for uh services like snow clearing.

I think it's important to touch on the economic impact that um aviation and airports drive to their local communities.

Um aviation think tank ran a study in 2023 that stood for the proposition that uh each business aircraft is directly responsible for two and a half million dollars uh economic impact to the community once you factor in fuel sales, maintenance, cruise salaries, uh catering, Uber, rental cars, hotels, and all the things that that surround aircraft operations.

So we're very excited about the Frederick market because this is one of the fastest growing areas of the country.

This aircraft is the excuse me, the Frederick Airport is the closest airport to the DC flight restriction area without actually being under the cone.

So the airport's master plan forecasts significant uh increases in demand at the airport.

And those are the kinds of markets that we go to around the country.

Well, we have a picture of the site plan that you'll find uh at Exhibit A to the lease towards the back, but there's a one with a Google overlay here that I think is a little easier to digest showing what we're doing, well, proposed to do.

Um we've engaged in significant pre-engineering.