Council votes to continue negotiations for new KCI terminal with Edgemoor; sets timeline
Dec. 21, 2017: The City Council has approved a substitute resolution that authorizes continued negotiations with Edgemoor and establishes a timeline for completing work on the MOU, including Council input in the next draft and updating the public as this process moves forward. Mayor Sly James released a statement stating “I’m proud that we’ve ended 2017 on such a high note and look forward to 2018, when we’ll continue our work to build a terminal as world-class as our city.”
At the Dec. 14, 2017 City Council meeting, councilmembers voted 9-4 against approving the proposed Memorandum of Understanding (MOU) with Edgemoor Infrastructure. Additionally, the Council introduced a resolution (171017) that now goes through the council committee process to determine next steps for the KCI terminal project.
On Nov. 7, 2017, Kansas City, Mo. residents voted in favor of building a new single terminal at KCI, with 75% saying yes to the project.
The next steps involved finalizing an MOU (Memorandum of Understanding) with Edgemoor Infrastructure, the developer selected through the city’s procurement process. The City Council did not approve the MOU at a Dec. 14 meeting. Edgemoor conducted several design open houses to gather community input for the terminal’s final design. The plan calls for constructing the new terminal at the site of the closed Terminal A, with the new terminal opening by the end of 2021.
Read the City’s news release for quotes from Mayor Sly James and City Manager Troy Schulte.
A City Council majority voted on Thursday, Sept. 21, 2017, to approve the recommendation of Edgemoor Infrastructure & Real Estate as developer for the proposed KCI terminal. Edgemoor has been engaged in community outreach to local, small, disadvantaged, minority, veteran and women-owned businesses. Read the news release for more information.
What’s next: Negotiation of the MOU (Memorandum of Understanding); public vote on Nov. 7.
After thorough research and deliberation, the City’s procurement selection committee recommended Edgemoor Infrastructure & Real Estate LLC as the preferred development team to design, build and finance the new terminal at Kansas City International Airport. The announcement was made Sept. 6, 2017.
Selection committee members recommended Edgemoor as the best overall proposer due to its experience with high-profile airport projects nationwide, its collaborative approach to the design process, and a plan that would deliver the terminal at the best price.
Next, the City Council was asked to vote to accept the recommended proposer. That was followed by the negotiation of a Memorandum of Understanding between the City and the preferred proposer. The MOU required a vote by the City Council.
Read the KCI Terminal Modernization Program Proposer Recommendation presented by the Selection Committee to the City Council.
View the Edgemoor financial proposal and Edgemoor qualification proposal. Other proposals: JLL (financial | qualification); KCI Hometown Team (financial | qualification); KCI Partnership (financial | qualification)
Mayor Sly James issued a statement on the selection.
Read the selection news release for more details.
The City Council on Aug. 24, 2017 unanimously approved an ordinance seeking approval from Kansas City residents to build a new passenger terminal at Kansas City International Airport.
The terminal project was included on the ballot on Nov. 7, 2017.
“The ballot language provides the flexibility the city needs to move forward on this important project,” said Fourth District Councilmember Jolie Justus, who serves as Airport Committee Chairperson. “We’ve had a great deal of community input, and now, as promised, we are asking KC voters to make their voices heard on airport redevelopment.”
A “yes” vote, with a simple majority, would provide approval to demolish existing terminals as needed, and approval for construction of a single terminal to serve the airport.
While the ballot sought voter approval to move forward with the project, it did not specify exactly which development team or financing method will be used. The City Council worked to make those decisions, so that voters would know details of the project before the election. All financing will be paid back through airport revenues.
Voters saw this question on the ballot:
Shall the City of Kansas City be authorized to construct a new passenger terminal at Kansas City International Airport and demolish existing terminals as necessary, with all costs paid solely from the revenues derived by the City from the operation of its airports and related facilities, and without the issuance of general airport revenue bonds unless such general airport revenue bonds have received prior voter approval?
Read the news release for further details.
The City of Kansas City, Missouri, is continuing to move forward through the established procurement process. Recent steps include hearing presentations from all four competing proposers on Monday, Aug. 14, 2017. The selection committee has been analyzing and discussing those proposals during multiple meetings, as well as updating residents and the full City Council during public meetings.
The four proposers competing to build a new KCI terminal have submitted answers to the questions asked by the selection committee. These answers will help provide an apple-to-apples comparison of the financial plans.
The selection committee will meet again Friday, Aug. 18 for a third session to analyze the submitted proposals.
Separately, the Airport & Finance and Government Committee approved a citizen petition initiative requesting a November vote to build a new terminal. Last week this committee passed out two other versions of potential ballot language. These three versions are now before the full City Council for a decision.
The City previously received financial plans from the four proposers who had responded to the Request for Qualifications and Proposals to build a single terminal at Kansas City International Airport. The Aug. 10, 2017 4 p.m. deadline was second of the current RFQ/P process, which is being administered by the city’s Procurement Division of the General Services Department.
The RFQ/P requests a financing plan that would paid for by airport revenue, with no funds coming from the City’s general fund. The City will continue to own and operate the airport.
August 10, 2017 Airport & Finance and Governance Joint Committee meeting:
Review the August 8, 2017 presentation to the City Council about selection committee’s process.
July 27, 2017:
The City of Kansas City, Missouri, received four proposals to build a single terminal at Kansas City International Airport. The July 27 4 p.m. deadline was the first of two for the current RFQ/P process, which is being administered by the city’s Procurement Division of the General Services Department. The proposers, in alphabetical order, are: Burns & McDonnell KCI Hometown Team, Edgemoor Infrastructure & Real Estate LLC, JLL (Jones Lang LaSalle Midwest LLC), and KCI Partnership LLC (AECOM Capital).
Airport Terminal Development Proposal Selection Committee
The selection committee has six voting members:
- Troy Schulte, City Manager
- Jolie Justus, City Council, Airport Committee Chairperson
- Jermaine Reed, City Council, Transportation & Infrastructure Chairperson
- Pat Klein, Aviation Director
- John Green, Aviation Department, Chief Financial Officer
- Phil Muncy, Deputy Director of Aviation for Planning and Engineering
Non-voting attendees include industry experts, the City’s finance and legal teams, outside counsel, and city council members.
Request for Qualifications/Proposals
The City has issued Addendum No. 2 to the original Request for Qualifications/Proposals (RFQ/P) – Design, Construct and Private Financing of KCI. This addendum specifies an extended timeline, answers questions that have been posed and updates several other areas in the original RFQ/P.
City Manager Troy Schulte has opened the solicitation process for qualified companies interested in designing, building and privately financing a single terminal at Kansas City International Airport.
The City will continue to own and operate the airport.
Public hearing archives:
Public hearings have been held to discuss the proposed new airport terminal.
View the second public hearing.
The third and fourth hearings were streamed live and are archived on Facebook.
The RFQ/P asks for proposals that:
- Design, build and privately finance a 750,000 square foot terminal
- Provides at least 6,500 spot parking garage
- Includes 35 gates, but is expandable to 42 gates
- Reflects the design approved by airlines a year ago
- Reflects the financing approved by airlines
- Utilizes local construction workers
- Pays prevailing wages
- Meets or exceeds the City’s MBE/WBE goals as well as workforce development or job training for local workers
- Ensures the City retains ownership and operation of the airport
- Includes 1% of the cost dedicated to the arts
A privately financed airport terminal idea is believed to be the first-of-its kind in the nation. An innovative model, the airport would receive financing through private investment, paid for by airport usage fees, with no funds coming from the City’s general fund, taxes, or existing bonds. The company selected would develop the design at their own risk.
The RFQ/P was due on July 27, 2017 by 4 p.m. CST. Proposers will have additional time, until Thursday, Aug. 10, 2017, to submit financing details. Companies submitting proposals should be prepared to present a formal presentation to the selection committee in Kansas City, Mo.. The best proposal will be selected after reviewing all of the proposals.
The winning bidder will still have to develop a Memorandum of Understanding (MOU) with the City — a process that allows both parties to continue their due diligence prior to a public vote. Even during this process, the City will conduct public meetings to provide updates and answer questions.
For quotes from Schulte, Mayor Sly James, Councilwoman Jolie Justus and Councilman Jermaine Reed, see the original news release.
Previously the City had displayed a Memorandum of Understanding (MOU) and a Frequently Asked Questions (FAQ) related specifically to the Burns and McDonnell proposal to design, build and privately finance a new single terminal at Kansas City International Airport (KCI).
The City has now opened up a Request for Qualifications/Proposals (RFQ/P) process to solicit bids from any qualified company. Because the City has opened a competitive bidding process, it has removed the MOU and FAQ specific to the Burns & McDonnell proposal.