Passenger Facility Charge Public Notice. February 14, 2018
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1 Passenger Facility Charge Public Notice February 14, 2018
2 Overview The Memphis-Shelby County Airport Authority intends to submit a new Passenger Facility Charge (PFC) application for a project at Memphis International Airport. Pursuant to Section (b) of the PFC regulation, this notice of opportunity for public comment provides: Project description Project justification PFC level PFC revenue to be collected Proposed effective and expiration dates Contact information 2
3 PFC History 1992 Authority received approval to impose a $3.00 PFC and began collections 1996 Authority closed out all PFC applications and stopped collecting PFCs PFC Program at the Airport Approved PFC Application # Total Impose Only Collection Authority Total Use Collection Authority Status I-OO-MEM $10,434,000 Closed C-OO-MEM $36,210,000 $41,754,000 Closed U-00- MEM $ 4,890,000 Closed C-OO-MEM $ 7,056,000 $ 7,056,000 Closed TOTAL $53,700,000 $53,700,000 Total PFC Revenue Received $53,011,501 Remaining approved collections $0 3
4 Current Project Concourse B Modernization Project Redesign, reconstruction and expansion of the main stem and southeast leg of Concourse B Relocation of all airlines temporarily to Concourses A and C Modernized Concourse B will contain the following features: Designed to modern seismic standards Wider corridors and larger gate areas New moving walkways Upgraded public restrooms 4
5 Details of Proposed Application PFC Level: $4.50 per eligible enplaned passenger is being requested PFC Revenue to be Collected: $99,078,627 Charge Effective Date: September 2018 (The proposed PFC application will become effective 60 days after the receipt of the Final Agency Decision which Authority estimates will be in July 2018) Estimated Charge Expiration Date: March 31,
6 Excluded Class On-Demand Air Taxi Commercial Operators (ATCO) and Foreign Air Carriers (FFC) Number of passengers enplaned by these classes of carriers in CY 2016 was 1,488 which represented less than 0.08 percent of total annual enplanements at the Airport Burden of collecting fees would be greater than the revenue being collected Carriers belonging to these classes in CY 2017 included: Aero Jet Services LLC Executive Air Charter of Boca Raton Reliant Air Charter, Inc. Tulip City Air Service, Inc. Ultimate Jetcharters LLC Aeromexico Blue Jet Sp Z O O London Air Services Limited TAG Aviation Vistajet Limited 6
7 Project Justification Concourse B was constructed in 1960s and building structures and major systems are approaching 60 years old low ceilings and narrow passageways cause passenger congestion Concourse was originally designed to accommodate a mix of smaller jets which historically served the MEM market With the downsizing of Delta s operation in 2012 and 2013, Authority took the opportunity to re-evaluate its terminal needs and developed the Project to: Modernize Concourse B while preserving overall gate capacity at MEM Enhance competition by having all of the gates able to accommodate Boeing 737 aircraft Bring facility up to modern seismic and other standards 7
8 Project Description Currently airlines are located on Concourses A, B & C 8
9 Project Description All airlines will relocate to Concourses A & C Reconstruction of B will commence Boarding level of existing concourse (spine and southeast leg) will be demolished to the floor International arrivals will still use gates B42 & 43 Ticketing lobby will not be impacted 9
10 Project Description Early 2021, airlines will relocate back to Concourse B Final work will be completed on A & C 10
11 Project Description Mid 2021, project will be complete and Concourses A and C will be closed 11
12 Estimated Project Cost Estimated Cost Concourse Design $ 12,220,781 Concourse Construction 131,136,138 Contingency 9,992,394 Concourse Soft Costs 23,709,593 Sub-total 177,058,906 Electrical Upgrade 11,092,199 Tenant Relocation Pre B Work 4,950,272 OPS Build out DL, SW, AA, UA 3,060,000 FIS Configuration 540,000 Jet Bridges 24,125,171 Total Project Cost: $ 220,826,548 12
13 Contact Information and Public Comment Period In accordance with 14 CFR Sec , the public is given the opportunity to comment on the proposed application for 30 days; February 15 through March 16, Comments or question should be sent to: Forrest Artz Chief Financial Officer Memphis-Shelby County Airport Authority 2491 Winchester Road, Suite 113 Memphis, TN address: 13
14
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