Hutchinson Regional Airport Request for Proposals for Hangar Lease RFP #15-163

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1 Hutchinson Regional Airport Request for Proposals for Hangar Lease RFP # INTRODUCTION The City of Hutchinson is issuing a Request For Proposal (RFP) for the private or commercial use of the Hangar #680 (commonly referred to as Hangar 4) aircraft storage hanger at the Hutchinson Regional Airport (KHUT), located in Hutchinson, Kansas. The ultimate goal for the RFP is to enhance the aeronautical and economical value to the Hutchinson Airport and the community which it is tied too. The Hutchinson Regional Airport is situated on 1860 acres in the City of Hutchinson (population 42,000) in Reno County (population 64,200), approximately three miles East of downtown Hutchinson. KHUT is located approximately 45 miles north west of Wichita and 60 miles south west of Salina. The airport is located 2 miles north of Kansas State Highway 50 and 1 mile from State Highway 61. PROPOSED SCHEDULE The following is an anticipated scheduled of events concerning the RFP process: Activity Distribution of RFP Pre-Response Site Visit (optional) Deadlines for Submittal of Questions RFP Response Deadline Evaluation by Committee Notification of Award of RFP Finalize Negotiated Contract Commence Hangar Lease Date September 29 th, 2015 October 7 th, :00 pm October 23 rd, :00 pm 12:00 pm October 26 th, 2015 November 4 th, 2015 November 5 th, 2015 December 1 st, 2015 December 8 th, 2015 AIRPORT OVERVIEW AND AVAILABLE FACILITY The Hutchinson Regional Airport is a Part 139 Commercial categorized as a general aviation (local service) airport with approximately 40,000 annual operations and 38 based aircraft, including 4 multiengine turbine aircraft. Airside facilities include Runway 13/31, a 7004 foot by 100 foot asphalt runway primary instrument runway, runway 4/22, a 6000 foot by 100 crosswind, and 17/35, a 4400 foot x75 foot crosswind runway. All runways are serviced by parallel taxiways. The Hutchinson airport features 9 different visual and instrument procedure into to the airport. The airport also has a manned control tower active 365 days a year, from 7:00 am to 11:00 pm daily. The airport offers a privately operated full service FBO repair station that also manages the community aircraft storage of aircraft. Wells Aircraft is the regional Cirrus Aircraft Service center and also provides RFP # , pg.1

2 full service fueling (Jet A and 100LL). A 100LL self-serve fueling station is located on the airfield as well. Eight t-hangars owned and managed by the airport are currently full with plans to build 10 additional t- hangars in the future. Midwest Malibu Center is located at the north end of the airport and specializes in maintenance, repair and upgrades of the PA-46 series of Piper aircraft. The airport also features a popular restaurant, The Airport Steakhouse. The Steakhouse is considered one of the region s best restaurants. The RFP provides an excellent opportunity for any existing business or prospective Consultant/Firm interested in basing an aircraft or expanding aviation-based business in central Kansas and the midwest region. The facility that would be available for lease includes the following: AIRCRAFT STORAGE HANGAR The hangar was constructed in 1960 and is 5,880 square feet with 500 square feet of attached office space. The structure is metal frame with steel sheeting. The hangar is accessed by 12 rolling doors and is currently not heated. The attached office space is heated and air-conditioned. Water and gas are available, however sewer is not connected. Non paved parking is available next to the hangar with aircraft ramp access. There is approximately 7000 square feet of aircraft parking apron available with access to taxilanes. RFP # , pg.2

3 PROPOSAL TERMS The Hutchinson Airport is soliciting competitive written proposals. The Hutchinson Airport intends to select one (1) consultant/firm to enter into a lease of the Airport facility. The available airport facilities for the selected tenant will include those mentioned in the previous section titled AIRCRAFT STORAGE HANGAR *Appendix A for projected lease rates. PROPOSAL REQUIREMENTS In order to be considered responsible to this RFP, each proposal shall conform to the following requirements: 1. Technical Proposal a. Submit two (2) copies of the Technical Proposal in a sealed envelope or package. b. The Technical Proposal shall incorporate identification information necessary to provide sufficient background information regarding the Consultant/Firm as detailed below. Name, address, , telephone, fax number and state of incorporation (if applicable) Full Name, address, and title of each officer in the Consultant/Firms business. If a corporation, include the same of all board members. If applicable, a list of references including names and telephone numbers, for financial and business experience is recommended. A detailed description of your intended use for the hangar. What would the Consultant/Firm do to maximize the use of the space available for aeronautical purpose? If proposing upgrades to the facility, what would be considered suitable for Airport investment into the facility for your business plan?* (See Note) c. The Technical Proposal shall address the evaluation criteria set forth in this RFP. Include a description of the Consultant/Firms understanding of this RFP. In addition, detail the Consultants/Firms capabilities to perform the work listed below in items I-IV, where item I is required services, and services within item II-IV are strongly desired: I. Hangar Storage: II. Flight Instruction: III. Aircraft Rental: IV. Other Services that could be Provided: The airport STRONGLY desires the operator to provide additional services, including: Aircraft Paint Shop Aircraft Propeller Repair Aircraft Upholstery Shop Aircraft Restoring and Refinishing Shop On-Demand Aircraft Charter Aircraft Sales RFP # , pg.3

4 2. Required Submission Information a. All responses shall be submitted by Noon (12pm) on October 26 th, 2015 b. Clearly indicate the following on the outside of each of the two (2) sealed envelopes or packages containing the Technical Proposals and Financial Information. I. Name and Address of the Prime Consultant/Firm II. Due date and time 12:00 pm, October 26 th, 2015) III. Envelope Contents (i.e. Technical Proposal or Financial Information) IV. Aircraft Storage Hanger Number 4 c. Responses should be submitted to: City Clerk, PO Box 1567, Hutchinson KS EVALUATION CRITERIA Criteria Understanding the Scope of the RFP Response to Section 1c, Item I (Required Services) Response to Section 1c, Items II-IV (Other Services) Qualifications, Demonstrated Experience and References Financial Capability and Resources Points QUESTIONS All questions related to this RFP shall be forwarded to Pieter Miller, Hutchinson Regional Airport Manager, in writing to 1100 North Airport Road, Hutchinson, KS or via to pieterm@hutchgov.com. Questions must be received no later than October 23 rd, Questions and answers will be provided to all proposal holders. AIRPORT VISIT (OPTIONAL) All interested parties and potential Consultants/Firms may attend an optional site visit to review the details of the Airport and ask any questions required. The optional site visit will occur at 2pm, October 7 th. The Hutchinson Airport reserves the right to provide answers to any questions in writing and to provide those answers to any and all interested parties. CONTRACT REQUIREMENTS The Consultant/Firm awarded this contract shall, upon notification of award, apply for registration with the Kansas Secretary of State's Office to do business in the State of Kansas, if not already so registered. The Hutchinson Airport will NOT execute a contract until the consultant is registered with the Secretary of State s Office. The Consultant/Firm awarded this contract shall procure and maintain, during the term of the agreement, insurance of the types and minimum limits set forth as determined by Hutchinson Airport and outlined in the written agreement between City of Hutchinson and the Consultant/Firm. Such insurance shall show on their face that the Consultant/Firm is a named insured and must RFP # , pg.4

5 include the City of Hutchinson, its officers, agents, employee and volunteers as Additional Insured under its policies and must be endorsed to the applicable policy. All proposals become the property of City of Hutchinson upon submission. The cost of preparing, submitting and presenting a proposal is the sole expense of the proposer. The City of Hutchinson reserves the right to reject any and all proposals received as a result of this solicitation, to negotiate with any qualified source, to waive any formality and any technicalities or to cancel this RFP in part or in its entirety if it is in the best interests of the airport. This solicitation of proposals in no way obligates City of Hutchinson to award a contract. RFP # , pg.5

6 EXHIBIT A SCHEDULE OF RENT AND CHARGES Rents, fees, and charges shall be as follows for the term of this lease. The City of Hutchinson will consider long term leasing. (10+ years) Base Rent. A. The base rent to be paid by LESSEE to LESSOR is calculated as $_1.13 annually per square foot within the Demised Premises, and it is agreed that there are 5,880 square feet within the Demised Premises. B. Accordingly, the rent during the primary term of this Lease is $ 6, annually, which shall be paid in monthly payments of $553.70, payable in advance, on the first day of each month until paid in full. Rent Modification. Beginning and on the 1st of January of every year thereafter during the remainder of the term hereof, the base rental amounts set forth in Exhibit B hereof (as the same may be modified from time to time under this Contract or any amendment approved to this Contract) shall be adjusted by the percentage annual increase in the Consumer Price Index Urban Wage Earners and Clerical Workers (CPI-W)(U.S. City Average, all items indexed)( = 100) for the full year one year prior to the calendar year of adjustment (i.e. from January 2013 to January 2014 for the calendar year beginning January 1, 2016) or such other commonly and mutually accepted replacement should such index be discontinued or materially altered during the term hereof. Additional Rent. A. None *NOTE: The City of Hutchinson will consider proposals for reduction of lease payments in lieu of tenant performed hangar upgrades and remodel. Ex., future tenant proposes to install new hangar heating system, airport would consider reducing monthly lease payment over the lease term in amount of the tenant invested improvement. RFP # , pg.6

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