R2008-010 2008-01-14RESOLUTION NO. R2008-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, DECLARING ITS NON-BINDING INTENT TO PURCHASE THE
PEARLAND REGIONAL AIRPORT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Council has learned that the owners of the Pearland
Regional airport ("Airport") intend to sell the facility prior to the end of 2008. The City
Council has determined that the purchase of the Airport by the City can provide the
residents of the City with the following advantages:
a) Control of the Airport would be in the hands of a public entity that
would be more responsive to concerns of residents; and
b) The Airport is in a favorable financial position, so users of the Airport,
not residents, would be responsible for bearing all costs associated
with the Airport; and
c) Assets of the Airport would include land needed for the future
extension of Pearland Parkway; and
d) The Airport would be utilized as a tool for economic development.
Section 2. The City Council hereby declares its intent to purchase the airport
contingent upon the following:
a) The Federal Aviation Administration provides the City an Airport
Improvement Grant(s) in order to acquire the airport.
b) The City's share of the Airport Improvement Grant matching funds are
available to the City and do not come from the General Fund.
c) An agreement is reached with the current manager of the airport to
allow for a smooth transition over a period of at least two years.
d) No other information becomes available that the City Council believes
makes purchase of the airport inadvisable.
Section 3. That it is understood that numerous contingencies exist relative to
the City's purchase of the Airport, and the City retains the right, at anytime prior to
purchasing the Airport, to cancel the transaction without penalty.
PASSED, APPROVED and ADOPTED this the 14 day of January, A.D., 2008.
f.c,�
�'�"�"'"'!�'os• TOM REID
s
':m � MAYOR
. �
ATTEST:
�
. /� .��� /I .1 _ /! i
� ,' ' � � r 1,
1 :�' �' �
APPROVED AS TO FORM:
C� / 1 . �
DARRIN M. COKER
CITY ATTORNEY
/ •®—",,,,,„,..\\
a(
\ _�` \j i
t''T E - X AS'' -
January 15, 2008
«OWNER_NAME»
«ADDRESS_I»
«CITY», «STATE» «ZIP_CODE»
Dear Pearland Resident:
This letter is being sent to you because you live or own property near Pearland
Regional Airport (PRA). The Pearland City Council has requested that I inform you that
the City of Pearland is engaged in discussions with the owners of the airport. These
discussions have resulted in the City Council approving a resolution expressing its intent
to purchase the airport. A copy of the resolution is attached.
The City Council took into account a number of factors in considering purchase
of PRA.
As you may know, a number of improvements have been made to the airport over
the past 10 years. These improvements include a newly constructed runway, taxiway and
apron area. All of these improvements were funded, in part,by grants from the Federal
Aviation Administration. A condition of receiving FAA grants is a commitment by the
owner of the airport on which grant funds are spent to continue to operate for a specified
period of time. In the case of PRA this time period is 20 years from the date on which
the last federal grant was received. The last federal funds received by PRA were in 2007,
so the airport must continue to operate until at least 2027. In the event that the current
owner sells PRA, the purchaser must agree to operate the site as an airport for the
required time period.
The current owners of PRA have indicated that they will sell the airport prior to
the end of 2008. The City Council believes that the best way to ensure that PRA is
operated in a manner that is not detrimental to its neighbors is to have it owned and
operated by an entity that would be responsive to affected citizens, rather than a private
company that may or may not consider the concerns of surrounding property owners.
The airport can be purchased by the City at little or no cost to city taxpayers.
FAA grants for 90% of the purchase price will be obtained, and the current owners will
work with the City so that the cost not covered by grants will be waived.
3519 LIBERTY DRIVE.PEARLAND,TEXAS 77581-5416 0 281-652-1600 o www.cityofpearland.org
Another important consideration to the Council is the financial position of PRA. Current
revenues combined with new revenues from planned facilities on the airport will result in
PRA being self-supporting beginning in 2008. Taxpayers who do not utilize the airport
will not be required to participate in the cost of operation. The Council anticipates
annexing PRA shortly after purchase is completed so that airport tenants will pay a fair
share of overall City costs for all City services. In addition, annexation will give the City
zoning authority over any private business activities conducted on the airport. Airport
annexation will be accomplished in a way that no residential properties will be included
in the annexation.
Assets of PRA that will be purchased, if the transaction is finalized, include land
adjacent to the airport that will be needed for a future extension of Pearland Parkway.
Acquisition of the land along with the airport will result in the FAA paying 90% of the
cost of the property, reducing future costs to Pearland taxpayers for extension of the
Parkway.
The City Council also believes that owning and controlling the airport can be a
tremendous economic development asset. Proximity to a reliever airport that can
accommodate small business aircraft is a factor in some businesses locating in a
community. The existence of a publicly owned facility in good condition(like PRA is
today) can be one of many tools used to attract business.
• If the City completes the transaction and purchases the airport, the City Council
anticipates that the City will continue to implement the current Master Plan for PRA.
This plan calls for extension of the runway from its current length,of 4,300 feet to a
length of 5,000 feet. Of the total extension of 700 feet, 300 feet would occur on the north
end of the runway, and 400 feet would occur on the south end.
In summary, the airport owners have indicated that they will sell the airport. FAA
officials have confirmed that there is a 20-year obligation to operate PRA as an airport.
The City Council believes that City purchase is the most advantageous to Pearland
residents because:
1. It gives control of the airport to a public entity that is more likely to be responsive
to residents than a private owner;
2. Purchase can be accomplished in a manner that requires users of the airport to pay
for both the purchase and operating cost;
3. Assets purchased will include land that can be utilized for a future extension of
Pearland Parkway; and
4. The airport can be utilized as an additional tool to promote economic
development.
It is important to note that the final decision to purchase the airport has not been
made. Over the next few months, the City and owner of the airport will continue
discussions regarding City purchase of PRA and a final decision will be made by the City
within the next few months regarding whether or not to finalize the transaction.
Sincerely,
Bill Eisen
City Manager
cc: Mayor Reid
Council
Pearland lV egial wl Airport
Pearland.Regional.Airport(PRA)was constructed as Cloverfield Airport in 1940.:In 1950,the
Federal Aviation Administration(FAA) approved Clover Field's application and:recognized the
airport as opened to the public as a privately owned public use airport. In 1986,. Clover Field was
recognized and designated by the FAA as a reliever airport to Houston Hobby. The FAA.
recommended size for a Reliever Airport runway is 5000 feet A Reliever Airport is designed to
alleviate congestion and delays at major airports by relocating smaller aircrafts operations to small
airports such as Peatland Regional.
Pearland Regional Airport has undergone a transition over the past ten years. Prior to 1997 the
airport had been neglected for many years and the infrastructure was in great need of repairs:
Since 1998,a significant change has occurred with most of the infrastructure reconstructed. A
new parallel taxiway was constructed;the main runway was widened and extended to 4313'feet
significant water retention ponds were added;the ramp/apron was doubled in size and all the
taxilanes were reconstructed. Current plans call for the runway to be extended to 5000 feet in
within two to three years. In the past, the runway was to be extended to the North by 700 feet
which would have taken the runway safety zone past Dixie Farm Road. Those plans were
modified in 1999 to extend the runway 300 feet to the North and 400 feet to the South: As a
result,the runway safety zone to the North would be approximately 300 feet short of Dixie Farm
and thus makes the Airport more community friendly and allows for safer operation from that
direction. In 2006,Pearland Regional was recognized and selected by the Texas Department of
Transportation Aviation.Division as the Most Improved Airport in Texas.
In addition to the reconstruction of the airport significant strides have been made to ensure the
growth of the airport was community friendly and that the PRA would be an economic catalyst
for the City of Pearland. Today,PRA is responsible for over$17 million in total economic output,
216 full-time jobs, and more than$5.7 million in payroll.
The airport will continue as a general aviation airport catering to flight schools, helicopter
operators, recreational pilots, private and commercial light aircraft operations and very light jet
operation& The airport is not capable of handling cargo or commercial passenger operations. As
a Reliever Airport, Pearland Regional has received over$12 million in FAA airport improvement.
grants and thus is obligated to remain as an airport for 20 years from the date of it's last grant.
Clover Acquisition Corporation(CAC),the owners of PRA,began marketing the airport to
potential buyers in November 2007. However,given its strategic geographical location to
Pearland and.Houston, CAC has given the City of Pearland the first opportunity to purchase the
Airport. Should the City decline to acquire the Airport, CAC will immediately pursue other
public or private buyers for the airport. The Airport operates as an enterprise fund and revenues
generated from the airport must be used for the maintenance and operations of the Airport. The
Airport is:expected to be profitable in 2008.
Clover Acquisition Corporation