It was in Chicago.

It was something like seven hundred fifty thousand square feet of like office space.

He bought it dirt cheap during the second world war because nobody was don't use it.

And then in nineteen fifty-five, he sold it for like he bought it for like five million dollars.

He sold it for like nine million dollars.

And that was nineteen fifty dollars.

So that's like eight hundred million dollars.

Okay.

Good evening.

We are here for the special committee on the airport.

I am Councillor Leo Shoket, Chair.

And tonight we have my colleagues in government, War Two City Councillor Scott Pemberton, and Counselor at large, Mr.

James Roy.

Thank you.

No, this meeting is being live streamed and recorded.

City Council and Committee meetings can be viewed on the City of New Bedford's homepage under quick links, then meetings.

Tonight's agenda.

Yep.

I have two letters to read into the record, Mr.

Chair.

This is from Councillor Lopes.

I am writing to inform you that I am unable to attend tonight's committee meeting due to a work-related commitment.

Please read this letter into the record to make my colleagues in the public aware of the reason for my absence.

This letter is from Councillor Sean Oliver.

I am writing to inform you that I am not able to attend tonight's committee meeting due to a prior commitment.

Please read this letter into the record to make my colleagues in the public aware of the reason for my absence.

Motion to receive and place on file.

So moved.

All those in favor say aye.

The ayes have it.

Number one.

Okay.

One is a communication, Mayor Mitchell to the City Council submitting the lease extension and the amendment on behalf of the New Bedford Airport Commission and Sand Piper Air Incorporated.

Building two referred here on March 26, 2026.

Written motion, Council Choquette requesting the airport manager's cost service appear before the special committee on the airport to discuss the status of continuing upgrades to the New Bedford Municipal Airport in FY 2024-2025.

And that was referred here on the 13th of February 2025.

One 1A and 2 are before you.

Motion received in place on file.

Both I so moved.

All those in favor?

Aye.

Okay.

Um so I'd like to start off by hearing from our airport director, Mr.

Scott Service, if you could please come up.

Thank you.

Good e good evening, Mr.

Director.

Thank you for coming in.

Um as a Ward One counselor and chair of of the airport committee.

I I like to have you come in from time to time.

Give us an update on how things are proceeding at the airport.

Um, you know, it's it's it's an often not overlooked, but most people who you know tend to not use the airport kind of forget it's there.

So we we obviously want to make sure that you know you have a voice here and can keep us abreast of what's going on.

And you always have great briefings, so I figured I'd bring you in for April here.

And thank you.

You have the floor, sir.

Thank you.

Um I will just go straight to it of agenda number one.

This is the uh sandpiper lease.

They have an existing lease with us that expires March 31, 2031.

They had recently renewed the lease for Sandpiper 1, a separate building, and they're looking to have this one in conjunction with that one.

So two separate buildings, two separate leases, but run on the same timeline.

So we're looking to replace that lease that's expiring in 2031 with a new lease.

Um it will be backdated to November 1st, 2022, so they can run concurrently.

It's an initial term of 30 years with two five-year options, provided they make a minimum of a $300,000 investment in the building.

Um that is a $300,000 investment in the building that is approved by the airport commission.

So it can't just be them saving up receipts.

They've got to come in and do capital improvement projects because the buildings are starting to get out on the older side.

And if they don't renew their lease, they turn it over to the airport, and we don't want to be left with buildings that are in disrepair.

So we require them to have investments in the building's infrastructure.

Um the lease is adjusted every five years for the airport leasing policy, which either will go up based on appraisals done by an independent appraiser or a previous five-year CPI increase.

So that's the synopsis of the lease for them.

Um the only changes from the airport or sorry, the sandpiper one lease was this property does not have a fuel farm.

So we took out the requirements for fuel farm insurance.

We added in the prohibitive acts of having a fuel farm.

They can change that if they so choose, but they would have to then go through the process to amend the lease for that.

We did leave in all the environmental concerns for fuel delivery, because though they will not have a fuel farm, fuel trucks will fuel airplanes on their aprons, and we wanted to make sure that they had the insurance and all the safe precautions that are required for that, so that environmentally we're not left hanging out with uh a problem in the future.

So that was item number one.

Any questions on that?

Colleagues, any questions for director service in particular?

Pretty standard lease?

Yes.

Yes.

Okay.

We standardized the lease probably three years ago for the new format and most of the conversations we have with everybody is except for like fuel farms and fuel deliveries and services they provide as a standard lease that they all sign.

You know, if you're opening a hangar, then we prohibit certain acts like commercial activity and such.

If they're having an FBO fixed-based operator, then they allowed to have commercial acts, but you know, they have to carry the extra insurance that would go with it.

So it's almost a duplicate of the Sandpiper 1 lease.

Okay.

Thank you.

Um without any objection from my colleagues, I would like to ask a question.

Um how many haners and or you know structures does Sandpiper Air already lease from us, if any, or is it?

Uh they have two hangars, Sandpiper One, which is um the smaller building and Sandpiper 2, the larger building and the larger apron space.

Sandpiper one has the fuel farm associated with it.

That was the lease that was previously approved.

Sandpiper two has the larger apron space and is used to receive the private airplanes and GA folks that fly in, they have the bathrooms and the front end stuff, and they also do aircraft maintenance.

Okay.

Also um, and I apologize, Mr.

Director, if you already mentioned it, but what is the car, the price per square foot that we're charging for this?

Price per square foot, I believe is 30 cents.

I wish my mortgage company had that similar mortgage for my house.

That would be great.

Yes, yes, 30 cents per square foot, and then that's readjusted every five years, either based on a new appraisal or based on a cumulative CPI increase from the previous five years.

Okay.

And in your opinion, is that is that a compet, you know, is that a adequate price?

Um competitive.

Yeah, we had an appraisal done back, I believe, in 2020 that set that price so that we brought everybody to the same standard.

Okay.

Excellent.

Um you've answered all my questions.

Um once again, my colleagues have any questions.

No.

Yes.

Oh, Council Roy.

How much you know, like new hangar comes?

More more airplane traffic, right?

How much more traffic do we expect to see with with um you know with the increased activity?

Uh so this is an existing hangar.

Okay.

So other than folks flying in to have their airplane fixed that they can't fix at other airports, which would be very hard to predict.

Okay.

It shouldn't add a whole lot of activity to things.

Great, thank you.

Yeah.

And so that where that haner is currently located.

That is on a different area.

That's up right near the main airport building, correct?

Uh airport terminals right here.

Yep.

Our maintenance building is over here.

This is Sandpiper 1.

This is Sandpiper 2, their second building that they're renewing the lease from.

Okay.

That's off at the uh airport road.

Okay.

Excellent.

Okay.

Um thank you, Scott.

I have no further questions if my colleagues are satisfied.

I would like to have attorney David Goratowski please come up to the podium.

Sure.

Thank you, Scott.

Thank you, Mr.

Director.

Good evening, Attorney Grotowski.

Yes, Mr.

Just wanted to, you know, get your opinion.

So this, I mean, by your your legal standards, this is a pretty standard lease, right?

You didn't see anything out of the ordinary or anything.

Well, yeah, I mean, I don't see anything out of the ordinary.

It's just a matter of what policy you determine for these if you think they are appropriate, um, the amounts of the that they're the amount that's in there, the whether Sandpiper is the right fit for that.

Um the the only one um the one issue that I'm I I thought I don't know the answer to that came up is in the lease there's this the taxes have to be paid by um Sandpiper.

Um so the lessee pays the taxes, but right under that in the in the in the lease there's a provision that says in lieu of taxes they can pay a franchise fee that is equal to up to equal to up to 100 percent of the of the taxes.

So I'm not sure under and it's at the lessee's option.

So I'm not sure what the what I don't know is what the um advantage would be or why the lessee would choose to pay a franchise fee in lieu of taxes rather than the taxes if they're the same amount.

So I'm not sure why that provision is in there.

Um maybe I don't know if the solicitor's office knows or or Mr.

Service knows, but that was the only the one thing that stuck out to me that they are required to pay the taxes on the property, but um I'm not sure why that's in there if um if they can choose a franchise fee in lieu of taxes that are the same.

I'm not sure now that it's municipal property, I'm not even sure whether it has a value that we assign a tax property tax to it.

So those are just some of the things that came out when I was looking at it.

But other than that, I don't see anything uh unusual about it, only those that tax issue that I I wasn't clear, and maybe the people who drafted it and negotiated the lease may have further um um information about how that why that's structured that way, because I don't know.

But that's one thing I think that the council may want to know because someone could ask you what is the taxes and what is the franchise fee and how does that work?

That I think it's something maybe you want to get an answer to before you approve it.

That's the only thing I could think of.

Right.

Council Royal.

I think that was my question.

Um do you do we know who the franchise fee gets paid to?

Like is it is it?

Um let me see if I can find yes.

And what it happened what happens now?

Are they are they paying what are they paying?

Are they paying the franchise fee?

Are they paying or are they choosing to pay the taxes?

Okay.

So yeah, it says on if it's page 20, it's it's paragraph O, it's entitled taxes.

It says the lessee must pay as they become due and payable before becoming delinquent all taxes.

Um real estate taxes, both general and special assessments, lawfully charged.

Um then that's part one.

So it basically says less he sh must pay the taxes.

Um I don't know whether this property has a tax has a value under the assessment for taxes, because if it's city property, I'm not sure that it has that.

Um then on number two it says at the lessee's option, lessie may pay in lieu of taxes established under Chapter 59, Section 2B entitled Taxation of Public Land Lease for Commercial Purposes, a franchise fee equal to an amount up to 100 percent of the real estate taxes as established by the taxing authority, which I guess would be the city.

Um abatement or reduction on grounds of overvaluation.

So I guess my first question would be is this as city property a taxable um entity?

We're not taxing the airport.

Right, that's why I'm not sure what that that's in there for and what all that means.

And if we are assigning a value to it for commercial tax purposes, because it's being its tax at a commercial rate, what would be the issue of them choosing a franchise fee and would we negotiate some different amount than the taxes owed?

Because it says up to 100 percent.

Would we negotiate some fee in lieu of taxes lower than that?

I'm not sure.

So I don't I don't know the answers to that, but I I'm just looking at it and thinking there's some reason it's in there.

Um and that might be just something you might want to inquire before it goes the council ultimately approves it.

I don't know if they have the answers to that tonight, but before the council ultimately approves it, I think maybe we get some answers about what that is, because of course everyone is sensitive about taxes these days, um, especially with you know budgetary issues and things.

So I thought it might be something that you guys want to make sure you're aware of before just so you have the answers.

That's all.

Thank you, attorney.

Thank you, Attorney Gortowski.

Um Director Service, would you like to come back up and maybe shed some light on our conundrum?

Um Sandpiper does pay taxes to the city of New Bedford.

All of our tenants do pay taxes.

I'm gonna guess that the franchise fee part of that is for entities like Massport, where they own a vast sum of land and they operate kind of like a uh their own entity where they pay taxes on the entire land that is there, so then they would then charge their subtenants a franchise fee to be reimbursed for those taxes at the same rate.

Um that would not necessarily apply in this case because they do pay taxes.

Um even our tenants that are wholly inside the fence with no street access do pay property taxes and they pay their commercial rate for property taxes.

Okay, so either way they are gonna pay taxes.

It's not like a uh a fork in the in the lease where it's may or may not up to 100 percent, may be up to 100 percent of the taxes.

Okay, they're they're they're public facing, and if something happens and you know you pay taxes for emergency services.

If you need please fire EMS and that, and this is a very public-facing company that would you know need to pay taxes for all those, never mind the maintenance of the roads and everything else and their duty to the community.

Okay.

Thank you.

Uh recommendations?

Motion to refer out to the full city council.

All those in favor?

Aye.

Okay.

That's for approval council.

That's how you do it, right?

Yeah, I don't think we've ever done this one before, but motion to yeah, for approval.

Right.

Yep.

Mm-hmm.

Okay.

And that's just the order, obviously.

So moved.

Yeah, you have said the order and the attachment references the lease have to attach it.

Okay.

Okay.

Okay.

So moved.

And now about two.

All right.

Now for the laser light show, Mr.

Director.

It used to pop up one at a time.

No, it just scrolls, but that's okay.

Maybe I'm using a different format.

Um we're proceeding forward with plans for the air traffic control tower.

Um currently we're in negotiations with Mass DOT Aeronautics, and the developer, or I'm sorry, the designer for the 10% design of the air traffic control tower.

Um this part will determine the ground that's underneath it, what type of construction, whether they can do um the formed concrete structure, or if it's a steel structure, if it's has a poor foundation.

Um, the look of the facility.

The picture you're seeing of the tower is just a concept picture.

That is not what it will look like.

It's just kind of give you an idea.

That's a similar tower to similar height of what we're building.

This is not going to be an enormous building that stands, you know.

I believe that one is 54 feet to the roof and 84 feet to the top of an antenna.

So it's it's not going to be that tall of a building.

Um, we have done early concepts on the roadway in for a circular roadway and then an area on the side.

That if the fire department needs to come through a gate and there's some emergency, they'd be able to then you know get a ladder truck up and do what they needed to do.

So that 10% design is gonna determine most of kind of what it looks like, that roadway and what we need for that.

Most of the facilities that a tower is gonna have are set by the FAA.

They have a minimum standard.

That'll be the minimum standard that we're most likely gonna follow for this.

We're not gonna be putting in a steam room or a gym or anything crazy.

I'm sure they would like it, but um that's not what we're gonna pay for for them.

Just in case you aren't all aware of where aviation way is of Jones Street, Lang Street, Aviation Way, which is an unapproved roadway.

Rear control tower would go over here.

It would leave future domains with future hangars on this side and that side.

This one will require a parallel tax so we can come out to it to service them to come in and out.

Um that's just kind of our future plans for our airport layout.

But we're hoping that the air traffic control tower will promote some development in that area.

Because right now the biggest drawback to that is utilities.

You'd have to bring all the utilities down either from Jones Street or Lang Street to that site.

So by placing the air traffic controller there, they have a good view of the airport.

Modern amenities.

We're the sixth busiest airport in the state.

After Logan, Worcester.

We go back and forth with Hyenas, but we we passed them last year for operations.

Second half of this project that we'll be entering is working with the design team in Mass DOT.

We're trying to finalize the scope for the 10% design of the terminal building.

This is again is just a concept picture of new terminal building here, rerouting the access roads so that people are just transiting can come through here.

Folks from the parking lot of the playground do not have to walk to the main traffic back and forth.

We have not determined the size of the building, nor the amenities that will be in the building.

We've got a minimum wish list.

So they will pay for some of that stuff.

So we haven't made any hard determinations because originally this project was planned at a 95% state, 5% local share.

And we don't want to try to include so many wants on the in this project that this turns into an 80-20 split and makes it very expensive, the city of New Bedford.

We want to try to figure out how we can keep that cost most effective.

Next project we have is Taxiway Bravo Relocation.

This will be just from Taxiway Alpha is the terminal buildings here.

Taxiway Alpha Crossing 523 up the taxiway kilo.

The pavement condition is at about a 50 PSI.

That's a PCI pavement condition index as gauge so it's available for reconstruction.

They're going to be moving it closer to runway 1432 to meet the modern day design standards.

So that's we are in the environmental permitting stage.

Next year we will be in the design stage.

The year after that would be construction for that.

That hopefully will open up some space in the future.

The other project that we have.

This one has a straight plow, which is an example of what the truck would look like.

We're looking for more of the V plow on the front of it.

So we're looking to expand our fleet a little bit for operators that do not need a CDL that can help remove snow.

And uh the new snowblowers to replace a 1998 Oscosh that we can no longer purchase parts for.

So it still runs, and we'll keep it as a backup for as long as we can.

But without being able to get parts for it, we wouldn't have made it through 37 inches of snow without that.

It's got the airport.

The airport takes care of its own snow.

Yes.

So the rest of the city, from what I understand, and no, he's James.

Um we don't have a snow budget.

We have an overtime budget.

We don't pull from the snow budget, we don't pull from city resources.

We have the equivalent of 31 miles of streets, except they're now runways, taxiways, and aprons.

We have four full-time airport technicians, one part-time, one manager, and one assistant manager.

Comparatively, how that compares to other airports, Pierre Airports and ours, we have one-fourth of their staffing.

I'm not asking for new people.

I understand the constraints.

That just means you have four times the fund.

We have four times the fund, sure.

But this equipment allows us to move snow.

And with that 37 inches of snow.

I'm not going to say it was easy, but we opened four or five days sooner than Hyannis, sooner than in Tucket and sooner than Martha's Vineyard.

We were the first airport in southeastern Massachusetts to open after that snowstorm.

Because we have the equipment.

So replacing that with a new machine ensures that we'll have something because our trucks, we've got some good sized trucks that can push snow, but they couldn't push three feet of snow in one pass.

We needed something to open that up.

Just lost my train of thoughts.

That's okay.

Before you jump back in there, could I have one of my colleagues make a motion to receive and place on file the uh presentation?

Motion to receive and place on file the airport 2026 briefing.

Okay.

Okay.

Thank you.

So moved.

Okay.

Sorry, Mr.

Director.

That's okay.

Um the reason we're getting the snow equipment removal now, um, equipment now is um we got some BIL money that is 95% FAA, two and a half percent state, two and a half percent local.

So we can purchase 1.1 million dollars worth of equipment for snow removal for a local share of about 27,000.

And the airport can pay the local share of 27,000 dollars.

So for the taxpayers, this is zero.

But for the airport, it's gonna replace two key pieces of equipment.

Again, the old snowblower from 1998 and the previous truck that filled this little red truck that actually will paint painted yellow when we purchase it.

Um that was a 1983 Chevy K-30 that we're replacing with that.

Which um I don't even think it has an AM radio.

But that is that is the end of my presentation, unless there are questions on things.

I did not include on this, you know, costs for new terminal tower.

We we had early, early estimates for tower terminal, but until we determine exactly what footprint we have and everything else, so we go through the 10% design.

We're talking theory more than realism of what the cost of those buildings would be and what the funding would be, and I think that would be a better conversation once we have those numbers so that everybody knows exactly what the airport will ask to bond to pay for those and you know what we get for that money.

Okay, um so just for the benefit of me, my colleagues they may not have heard or seen the presentation before.

And also for anybody who's watching this who's curious where the money is coming from.

Could you tell us again, you know, that I think it was what 76 million total and like 73 million would be coming from state and federal sources, and we the city would only have to come up with three million.

Sure.

So the initial estimation for it was about 70 million dollars.

Um that was three meters three years ago.

Um if we apply the normal escalator, that would be about 76 million dollars in today dollars.

Um of the projects that we're not going after right now is the RF SRE, and that's the fire station slash snow removal.

That's our maintenance building.

Um we'll be holding off on that part of the project.

So that's 16 million off of that.

That brings us down to 60 million.

Um, about 20 million for a tower and about 40 million for a terminal.

The split on that for initial assessments, assessments from the state of Massachusetts and the Secretary of Transportation was a 95% state, 5% local.

So for about $3 million local share, we would leverage $70 million or $67 million worth of state funding.

And again, those are just the early estimates based on a square footage of how big the buildings they thought would be required for this.

Again, that subject attains.

That's why really when we get that 10% design, that's that key moment where we'll have actual numbers of how much it will cost for each building and be able to do the math and figure out whether it's the right move or not the right move.

Okay.

All right.

Again, any of my colleagues, do you have any additional questions?

I don't share no.

Okay.

Council Parmida.

No, he actually uh answered all the questions in his presentation, so thank you.

Quick uh presentation.

You answered what I was gonna ask.

So thank you.

Yep.

Okay.

Well at that time, uh could I entertain a motion to refer out for no further action?

I make uh motion to refer out no further action.

Second.

All right, uh all those in favor?

Aye.

Right.

So moved.

Um now the agenda that uh we have come to the end.

There is nothing further pending.

Motion to those in favor?

Aye.

Aye.

So moved.

We are ending the meeting at 706.

Thank you very much.