So we've got uh the owl working, so we can call the meeting of the airport commission to order on July 7th.

It is 2 o'clock p.m.

And um we start all of our meetings with an open comment period and we just have um the mayor's office intern here.

I don't think he has any comments.

So um so we will uh just say that we have a quorum and all the order.

Um do you need anything more than just noting it's a quorum?

Um maybe we'll just know who's here who's absent.

Do you want to go around?

Yep.

Mr.

Dombrowski here, Mayor Norton here, Mr.

Reed here, President Shubrink here, Ms.

Elms here.

Mr.

Holton, yeah.

I'm not believed absent last night.

Yeah, good.

Thank you.

All right, so we have a forum, and uh I believe we want to change the order of the agenda.

So uh Mr.

Reed.

Yes, ma'am.

We'd like to remove um item 7B um from today's agenda.

We'll bring that back at a later date.

Okay, so with that removal, do we have a um a move to accept the agenda with the absence of 7B?

So move.

Second and moved and seconded.

Any other discussion?

Seeing none, all those in favor signify by saying aye.

All right.

Any opposed.

Okay.

Uh we don't have any items on the consent agenda today, so we can move on to the reports.

We have um 5A is the airport financials for May of 2026, and who's gonna do that?

Okay, okay.

Okay, all right.

Thank you, Mayor.

Um we're doing all right.

You know, if we're comparing it against last year, the highlights are the major differences are that we received some COVID grants by this time last year.

Uh timing of our marketing grant.

Um, we have the uh taxes paid um by this time, and winter was a little bit more expensive uh last year or sorry this year than last year.

So that's what makes up the major differences on the financial spot last year.

Any questions?

No, I think we we knew we were gonna have the impact uh with the COVID money stopping, and so that's anticipated, expected, and yeah.

All right, perfect.

And then any other questions, otherwise we will file one of those.

Uh and then we have the airport operational marketing data.

So it's interesting.

Yep.

So moving on to the uh organizational objectives there.

Our employments are up, and so are our available seats, even though our daily flights are are still down and not where we want them to be.

We are still hoping to get united later in this year to bump that number up to where we want it to be.

Um speaking of employments overall for the year, we're still up nine percent, uh, even though May was down a little bit with American uh having some lower numbers than they have in the past.

And you can also see that in their load factors.

Um the delta load factor, we're right bumping up against that 80.

We're we're we're trying to break that 80 percent, but we're at 79.

Uh the American did drop um below the 80.

We got 80 a couple months ago, but right now we're at about 72 percent.

But that is reflected in their all-bone numbers as well.

Okay.

I have a question.

Katie can you can you speak to how we've gone up?

It looks like a pretty dramatic uh percentage up from uh 2025 or the overall employment.

So for the loan factors, you mean for Delta, yeah, in particular.

Yeah, I think that's just the re-in re-engagement by mayo employees.

That's that's pretty impressive.

Yeah, agree.

Okay, yep, and then the uh rental car activity.

That's that's up.

However, the uh parking lot is down slightly over last year.

Uh my concerned with those numbers.

Um we're still doing excellent in the parking lot this year.

Um the international passengers were starting to recover there a little bit.

It's you know, trending upward.

Uh we had been below our averages, but now we're actually getting back to our um seasonal averages for both passengers and flights.

Um our low led gas is down a little bit from last year, but our jet um a yeah uh fuel is up.

And um increased usage of our ground transportation such as Lyft and Uber.

Uh, I don't have the local pack to numbers for May yet, but um just Uber and Lyft are awesome.

And then we'll I'll turn it over to Mary for the marketing report.

Um is our big month with um party and our ground party painting um for the GA implementation.

So you'll see those uh pieces of content really performed well.

Um we also continue to see our month over on the growing uh in our audience numbers, uh taking sort of that two to three percent increase in environment.

Um so I feel really comfortable with that.

We had our biggest growth in TikTok, uh, which is largely due to Corey's presence on um TikTok in the way in which she was sharing some of the promo information that we had about that record party, which was uh June first.

So um all of that is as expected, and then um our search volumes continue to rise.

So we're really happy with um, you know, we have just under 8,000 searches a month um on our night airport widget, which will come up later because that's part of what we desire to pay the couple grant dollars for, be able to have that functionality on our website.

Um but we're really happy with that.

Of course, the inbound searches are greater than any of the outbound searches.

That's sort of nodding to this time of year with the slow in our traffic replication destinations and that sort of thing.

Um, so all of that's um going pretty smoothly.

We're going to pull back some of our marketing spend now that the penny plot party has happened and some of our early spring travel um has happened to sort of split our budget and wrap back up sort of late summer, uh early fall.

So you'll see uh the next couple of months numbers reflect that.

June will be great because we have the parking lot party and all of things for Kennedy.

Um but we're right now pulling back a little bit in the late June, July month and then late August.

We'll start that back up.

So just to sort of set the expectation that the next couple of months you might see month over month decreases totally and to try to even out our activity up in here.

And I'm open to any questions.

Okay, seeing that we'll file those as well.

And uh we don't have all business, but we do have some new business items.

So the first one is the 7A grant acceptance and bid award for corporate hangar area site development project.

Yeah, um I'll I'll I'll I'll kind of give a preamble here, but then we've got um uh Matt Wagner with Meet and Hunt and Brent Um for um minor uh discussions if necessary.

Um 7A and 7B are related.

This is um um again acceptance of grants from Mindot Aeronautics, as well as um kind of a unique financing of the infrastructure that needs to be built to support the uh eventual building of the United Therapeutics hangar.

Um again, unique in that a lot of this will be funded through um funding by United Therapeutics itself in combination with um a million dollar grant from MINDOT for this particular agreement and then a few local dollars.

Um with that, I'll turn it over to to Matt, kind of walk you through some of the specifics as it relates to the project and the financials, and then um I think uh a comment by Brent at the end on the awarding of the um um contract.

Thanks, John.

So yes, John mentioned there were um two bids received for the project.

Uh they were both within about $4,000 of each other, which is very close on a $6.7 million project.

Um very tight bids, um, very competitive project um with tight timelines that the contractors have to hit, and therefore we had a lot of stringent bid requirements.

Um going through the bids, um, there were two areas that um the low bidder um L4 construction did not meet the requirements of the specifications.

So um after consultation with the city, their bid was deemed as being non-responsive.

Um so the recommendation um is to go forward with um the only responsive bid, which was Math Lake's construction.

So they came in at um 6.689 million, um, which was about a percent below our engineer's estimate for the project.

That's great.

Yeah, okay.

I think if you look at the breakdown here for for this uh project in particular, again, you know, six point what'd you say, Matt?

6.68.

6.68 million.

Uh 1.525 um is is a combination of grants from MINDAT Aeronautics.

Um, and then uh 4.6 will be paid for by United Therapeutics.

And then there's portions of that that need to be um expended locally.

They're they're adjacent but not actually driven by that project, uh, though bid at the same time, and that's um a little over half a million dollars that would come from uh airport reserves.

Questions anyone?

We've worked with them before, like yeah, Mathewitz, yeah.

You know, I think again, you know, not to continue to draw attention to it, but you know, we are going with the bidder that's four thousand dollars higher just based on anomalies uh uh of the bid submitted by L Corp at the point.

That's the reason we pulled it during the last discussion.

Alison?

And did you communicate that with Al Cornel?

Or is this the communication?

No, no, um we didn't we didn't for the others amazed that they're that close.

That's pretty remarkable for a project this size.

Yeah, yeah.

Mathewitz is already on site um on other projects at the airport right now.

Okay.

Um someone like to make a motion.

No, yes, I think I would move to award a contract to Mathewitz construction company in the amount of six million six hundred and eighty-nine thousand four hundred and forty dollars and forty-seven cents and adopt a resolution accepting the the grant and authorizing execution of grant agreements with the Minnesota Department of Transportation.

I would second that.

Second, any other discussion or questions.

All those in favor, signify by saying aye.

Aye.

Any opposed?

Wonderful.

And we're going to skip over the 7B for this month.

And no D.

I need I need 7B.

7D is the one we're canceling.

Apologies for my 7B.

Yeah, particulation.

Yeah.

So 7B is grant acceptance and professional services agreement with Maiden Hunt to provide construction administration services for the corporate hangar area site development project.

Yeah, so again, related back to the previous item.

This is the construction administration that would be provided by uh Meaden Hunt.

Um again, this will be um um in a in a similar fashion.

The the grant total amount, uh the bulk um of a little over half a million will be but funded by United Therapeutics.

Um the balance of 150,000 will be from airport reserves concerns or a motion.

I have a question.

What is the grant in action two for this one grants?

Accepting the MINDAT grant.

I'm not seeing any min dot funding in the fiscal section.

Is it the same one that's that's the carryover from 7A maybe?

No, there's dollars involved there.

That's like a million dollars.

You're asking for the breakdown of the task order.

No, he's asking for the grant amount that's assigned to this well.

We're I don't the action is asking for us to accept a grant, but I don't see anywhere in the fiscal where the grant is paying towards the fee.

That is correct.

Uh there is no state grant portion for the fee.

It's just the breakdown between therapeutic sensitive.

So we would strike that as just the first straight seven B number two.

Yeah.

And so someone will move.

I would move uh authorizing the professional services agreement with mean hunt for this project and the amount of six hundred and seventy-two thousand dollars, six hundred and seventy-two thousand five hundred and ten dollars and fifty cents.

Second second.

I'll second.

Alison, second it.

Can I answer a question?

Do we have to accept the um United Therapeutics funds somewhere?

Is that why it's a grant except things?

No, that's by legal agreement um through um our um land lease with um United Therapeutics that they will pay for the um improvements to the property to support their hangar build and are allowed to recoup that through their lease rates of 75% of lease.

You with the last item you had mentioned that Brendan was going to save something at the end.

I don't remember.

I think I was just related to if necessary, the Al Core uh bid.

Yeah, and I was just gonna clarify sort of the the reason that we would be awarding to Mathowitz, who is not technically the lowest dollar bidder, but is the lowest responsive bidder.

And um, I think Math's July 1st letter clarifies that.

So I don't I didn't feel like I needed to say that's thanks for allowing me to go back to the previous item.

Thanks for allowing me to go back to the previous item.

Okay, so on 7B, we've had a motion and a second to um move item one.

Um if there's no further questions, I'll call or all in favor signify by saying aye.

Aye.

Any opposed.

Okay.

And then we are still keeping 7C, which is Mindot Office of Aeronautics Air Service Marketing Grant.

You guys are in the grant business.

There are, yeah.

Um, and I definitely want to turn this over to Mary.

Um this is our uh annual um um grant from Mindot as it relates to air service marketing.

Um it's part of our you know, budgeting process and um can count these dollars towards our ongoing marketing with that.

Turn it over to Mary if you have any um questions, but our very standard grant for us.

It's part of our poll, it makes up a portion of our marketing budget.

Um the state awards $300,000 across the state.

So they did it up to each of us a certain amount.

So we are eligible for around $70,000.

It's $69,263, and then we have to come up with uh a 30% um match to that 70% of the whole.

So uh we of course spend well over that 30% value.

Um so it helps us sort of like fund some of our ongoing expenses with our agency.

So creating um graphic design, ad campaigns, video production, things that we use and distribute on our content channels, and then the fly my airport widget, which I mentioned earlier, having that functionality that has a subscription fee that allows us to have that direct working on our website.

We also use uh customer relationship management database or a piece of software that helps us with email marketing, social media marketing, some of our reporting.

Um, that is also something that we use this grant to help sort of supplement the subscription fee, and then we also use it to help pay for um Jack Penny or Golera the Shanks or service uh consultant fee.

So it covers a pretty decent amount of money.

And I guess I can take questions, but it's pretty straightforward.

Do you know how we uh how we rank among other airports in the state with these grants?

I think we're we're it's based on passenger employment.

So this only goes to air uh airports that have air service and it's up and down, it's usually interrears.

Um, but we're still back on the upswing recovering from COVID.

So we're behind a loose as we went into COVID, we were getting the the lion's share of the dollars uh for marketing.

So now we're number two as it relates to marketing dollars.

I will move the item.

Thank you.

Uh and uh it is to uh receive and is this that oh that's five B, sorry.

Adopting a resolution.

Oh, here we go.

Uh uh and move to adopt a resolution accepting the air service marketing grant and authorizing the corresponding grant agreement with the Minnesota Department of Transportation Office of Aeronautics to provide reimbursement for eligible airport limiting expense.

Right a second.

Second and moved and seconded.

Any further discussion or questions?

Same none.

All those in favor, signify by saying aye.

All right.

Any opposed.

And that passes.

And so um, we don't have any other action items this afternoon.

Um 70 that's a D was pulled.

And um, do we have any other business or comments before we adjourn?

Yeah, turns down here.

Okay.

I would I would just maybe make one comment on in regards to the Jazby.

Um just to put on um Chair Schubrink's uh um radar.

We did um send it up to Mindot and they identified some uh one of the maps that needs to be slightly changed, and there's one portion of the the actual ordinance wording that needs to be changed.

It's very minor in nature, but if you go back and you look at the ordinance, I'm sorry, at the statute, uh it makes clear uh a change, even that small should be brought back before the Jazby for an approval.

So it would be our anticipation to convene one more JASB meeting uh just to make sure that the process is followed to the T.

Um, that likely maybe will occur within the next couple of months, but just wanted to put that on on your radar that we will we will likely have one more public hearing with the JASB, and that should be it.

Okay, and then does that come back here or council?

I would think it goes to any.

Oh, it's its own.

That's right.

Sorry.

Yeah.

I knew there's something weird.

So yeah.

So that one of the he's above us.

Yeah.

So Jazby is Jasby is the final authority.

But then we will have to send we will send it back to Mendot.

They will have another 90-day review period.

Um, but we're hoping that goes by quick.

Legal just changes the ordinance through the ordinance change process right like with the company.

Yes.

And I wouldn't have one other item if we're done with discussion.

I think it's just maybe for an awareness.

Um I believe it comes before council on the 20th for discussion.

It's in relationship to the proposed quarry that's just off the north end of the airport.

And um I've been unable to really get the FA to make any real comments um on the um fact that they could be using uh explosives to loosen the stones.

Um so I don't really have the best answer other than I probably would be uh you know uh tell council and commission to use extreme caution, you know, you're responsible for this.

Um I as I'm struggling with the right answer for for council, other than you should use extreme caution if you're going to think about approving um this as an item because you have you've taken grant assurances that you signed that says you will uh protect the airspace around um the airport, but that's coming before council for discussion on the 20th.

I I'm unclear what is it that is coming before us and it's it's uh a question about authorizing a quarry.

Um and then um um it's about 2800 feet just to the north of our um one of our runways, runway uh two one.

Um again, you know, I think the the big issue is you know the use of explosives for that and you know I think it it's worth at least educating yourself on a little bit.

Is it something that the airport commission should take a position on?

I don't know, Brent.

I you know it's through planning and zoning at the moment.

It it so um it's coming, it will come to the council via a conditional use permit.

It already went through planning and zoning commission, um, but ultimate authority is is with council.

So I think zoning discussed this issue.

They did.

They they are recommending denial.

Um, but I I think John's point is is um when that agenda is published.

I think the airport would appreciate a a close review of of those particular materials that will be set for a public hearing July 20th on that council meeting.

Thank you.

Staff recommended denial and it was a 7-0 vote of the correct and and the struggle there is just getting the FA to comment on something.

I think I don't have the best answer as to why they're not commenting, but it's you know, the use of explosives within um an approach area.

Um carries concerns.

Yeah, okay.

Appreciate that heads up.

And that was in the general area of where the crash got in question.

Um crash was further to the east, but you know, if you take a center line view of runway 321, which is the north-south is the run we were working on right now.

This lies literally 2800 feet to the north of that.

And so I think you know, aircraft are pretty vulnerable in that position at the moment.

Um, you know, 150 to 250 feet off the ground.

Um I think you know, long term, you know, I don't know how that would affect the utilization of the airport.

I just think it's a lot.

It's you know, affects your grant assurances.

Okay, shake the heads up on that.

There's nothing further, we can adjourn at two 26.

You take a motion.

I'll make a motion being here.

Second.

Then move and second it.

Thank you.

Yeah, are we done reporting?