[CALL TO ORDER]
          [Consider/Discuss/Act on a Request by the City of McKinney for TIRZ Funding for the Mckinney National Airport, Air Service Marketing Program and Incentives; and Accompanying Resolution of the TIRZ 2 Board]
          [00:02:40]
          ALLOCATED OVERHEAD THAT IS GOING BACK TO THE GENERAL FUND TO COVER SOME OF THE ADMINISTRATIVE COSTS, PRIMARILY FROM THE FINANCE DEPARTMENT IN THEIR ACCOUNTING OF THE FUNDS. 
          SINCE THE TOURS NUMBER TWO WAS ADOPTED AND CREATED IN 2010, THERE'S ONLY REALLY BEEN FOUR REC RECOMMENDATIONS FOR FUNDING AND FOR PROJECTS THAT HAVE BEEN FUNDED, AND I HAVE THOSE HERE ON THE BOARD. THE FIRST WAS $3 MILLION IN 2018 FOR ACQUISITION OF 190 ACRES ON THE EAST SIDE OF THE AIRPORT IN 2022. THERE WAS $2 MILLION FOR THE CREATION OF THE EAST SIDE PLANNING IN 208 MILLION FOR PROVIDES ACCESS TO THE NEW ENCORE WIRE HANGER, AS WELL AS THE SOON TO BE CONSTRUCTED T HANGAR AND THE DPS HANGAR. SO IT OPENED UP SOME DEVELOPABLE LAND THERE, AND WE'RE STARTING TO SEE THOSE PROJECTS UNDER CONSTRUCTION. AND THEN FINALLY, MAY 6TH OF LAST YEAR WAS THE $8 MILLION FOR A PORTION OF THE CONSTRUCTION COSTS FOR THE COMMERCIAL TERMINAL. AND THEN WE WANT TO ALWAYS BEFORE WE MAKE ANY RECOMMENDATIONS OR REQUESTS FOR FUNDING OF ANY PROJECTS OUT OF TOURS TO WANT TO MAKE SURE YOU UNDERSTAND WHERE WE ARE, THE FINANCIAL POSITION OF THE TOURS, SO THAT YOU'RE NOT MAKING DECISIONS IN A VACUUM. YOU UNDERSTAND KIND OF WHERE WE HAVE SPENT MONEY. ANYTHING THAT'S UPCOMING THAT WE'RE PLANNING TO SPEND MONEY. AND THEN OF COURSE, THE FUND BALANCE. SO BEGINNING FUND BALANCE OF THIS YEAR WAS $4.1 MILLION. THE REVENUES BUDGETED FOR THIS YEAR $4.3 MILLION. 
          WE'VE SEEN THAT GOING UP OVER THE LAST SEVERAL YEARS. THAT'S A COMBINATION OF INCREMENTAL PROPERTY TAXES AND SALES TAXES ALONG WITH SOME INTEREST DOLLARS, THE BUDGETED EXPENSES. 
          YOU CAN SEE THERE'S VERY LITTLE BUDGETED TO COME OUT AND THESE FALL IN THOSE ADMINISTRATIVE COSTS. IT'S ABOUT $50,000 WITH A PROJECTED ENDING FUND BALANCE OF $8.4 MILLION. SO WITH THAT, I'M GOING TO TURN THE MICROPHONE AND CLICKER OVER TO KEN. CARLY, WHO'S GOING TO WALK YOU THROUGH TONIGHT'S PROPOSAL, WHICH IS THE AIR SERVICE INCENTIVE PROGRAM OVERVIEW, 
          [00:05:01]
WHICH IS A MARKETING PROGRAM FOR THE TERMINAL. THERE YOU GO, KEN. THANK YOU BARRY. GOOD EVENING TO BOARD MEMBERS. I'M KEN HARLEY, THE AIRPORT DIRECTOR. WITHIN THE FIRST TWO PROJECT PLAN. AMONG THE PROPOSED USES IT DOES REFERENCE CONTINUE TO PREPARE FOR COMMERCIAL PASSENGER SERVICE. SO WE FEEL LIKE TONIGHT'S PROPOSAL DOES ALIGN WELL WITH THE WITH THE PROJECT PLAN FOR TOURS TWO. AND AS BARRY SHOWED YOU THE THE FOUR PROJECTS, YOU'LL NOTICE THAT THREE OF THOSE FOUR HAVE ACTUALLY BEEN IN SUPPORT OF COMMERCIAL SERVICE. SO THREE OF THOSE FOUR PROJECTS THAT HAVE BEEN DONE SINCE 2013 WITH THE ACQUISITION OF THE LAND WHERE THE TERMINAL IS BEING BUILT AND THE GRANT FOR 8 MILLION FOR THE CONSTRUCTION, AS WELL AS 2 MILLION FOR SOME OF THE EARLY PLANNING DOCUMENTS. ALL WERE IN SUPPORT OF THAT AS WELL. SO WITH THE AIR SERVICE INCENTIVE PROGRAM, THESE ARE PROGRAMS THAT ARE WIDELY USED AT US AIRPORTS ACROSS THE COUNTRY. MOST AIRPORTS HAVE PROGRAMS TO TO SUPPORT NEW ROUTES, HELP TO REDUCE THE RISK OF ESTABLISHING NEW ROUTES. AND THEY TYPICALLY EITHER TAKE THE FORM OF WAIVING SOME OF THE OPERATING FEES FOR THE AIRLINES, OR THEY HAVE TARGETED MARKETING SUPPORT. AND FOR OUR PROGRAM, WE'RE LOOKING AT A FIVE YEAR PROGRAM IN TOTAL. 
          BUT WE'RE REALLY FOCUSED TONIGHT ON THE FIRST YEAR OF THE OF THE PROGRAM. IT WOULD TARGET BOTH YEAR ROUND AND SEASONAL NONSTOP MARKETS THAT WERE NOT SERVED WITHIN THE PRIOR 12 MONTHS. AND INITIALLY FOR US AND START A SERVICE THAT'S GOING TO BE EVERY ROUTE. 
          AND THEY'RE REALLY DESIGNED TO EXPAND CONNECTIVITY FOR NORTH TEXAS PASSENGERS AND STRENGTHEN OUR POSITION IN THE REGION. AND I SHOULD NOTE, TOO, THAT BOTH DFW AND LOVE FIELD ARE COMPETITOR AIRPORTS DO HAVE AIR SERVICE INCENTIVE PROGRAMS TO INCENTIVIZE THE ESTABLISHMENT OF NEW ROUTES. OUR PROGRAM WOULD CAP THE FUNDING FOR ANY ONE YEAR AT A MILLION, ALL IN ACROSS MULTIPLE AIRLINES, WITH NO ONE AIRLINE ELIGIBLE FOR MORE THAN $750,000 IN ANY 12 MONTH PERIOD. SO HOW THE PROGRAM WORKS, IF WE INTEND TO START SERVICE IN NOVEMBER, THAT'S WHAT WE'RE WORKING TOWARDS. WE WOULD PROPOSE AN EFFECTIVE DATE OF JUNE SO THAT AIRLINES CAN START TO MARKET NEW ROUTES. THESE WOULD BE FIRST COME, FIRST SERVE ROUTES, ONE INCENTIVE PER MARKET. SO THE FIRST AIRLINE IN TO ESTABLISH THAT MARKET WOULD BE THE ONLY ONE ELIGIBLE FOR THE INCENTIVES. AND AGAIN, IT'S MARKETING ONLY. WE WERE NOT. 
          OUR PROGRAM DOESN'T PROPOSE TO WAIVE ANY FEES ON THE FRONT END. THE AIRLINE DOES NEED TO BE. 
          HAVE A FULLY EXECUTED USE AND LEASE AGREEMENT WITH THE AIRPORT AND THE CITY AND BEING BE IN GOOD STANDING TO BE ELIGIBLE. AND FROM THERE WE WOULD EXECUTE THE AGREEMENT, RUN THE MARKETING PROGRAM AGAIN, ELIGIBLE OR IS ELIGIBLE FOR UP TO 24 MONTHS. SO THERE IS A SECOND YEAR OF ELIGIBILITY THAT WE'LL SHOW YOU A LITTLE BIT MORE DETAIL HERE IN A SLIDE OR TWO. AND THEN WE WOULD MEASURE THE PERFORMANCE METRICS TO UNDERSTAND HOW THE MARKET PERFORMS, HOW THE CAMPAIGN PERFORMED WITHIN THE MARKET. SO TAKING A LOOK IN SOME OF THE INCENTIVE INCENTIVES, IT TAKES TIME FOR OUR ROUTES TO DEVELOP. SO WE ARE PROPOSING THIS ACROSS TWO YEARS AND IT IS TIERED BASED ON THE FREQUENCY. SO FOR EXAMPLE, A TWICE TWICE WEEKLY FLIGHT IN YEAR ONE COULD BE ELIGIBLE FOR 50,000 DECREASING TO 25 IN YEAR TWO FOR A TOTAL OF 75 ALL THE WAY UP TO A ROUTE THAT'S RUN TWO TIMES DAILY, ELIGIBLE FOR $200,000 OF INCENTIVE FUNDING IN YEAR ONE, 100,000 IN YEAR TWO FOR A TOTAL CAN. FORGIVE ME FOR INTERRUPTING, BUT THE. IN THAT EXAMPLE, TWO TIMES DAILY, 200,000. THAT IS FOR REIMBURSEMENT OF MARKETING EXPENSES. THAT. THAT IS WHAT IT MUST GO TO. AND MY GUESS IS THAT'S PROBABLY A DOLLAR FOR DOLLAR. SO IF THEY SPENT 200, THEY COULD GET 200 BACK FROM US. 
          IF THEY SPENT 400, THEY COULD GET 200 BACK FROM US. CORRECT. THANK YOU. YEAH. FOR A TOTAL OF 300,000 ON THE HIGHEST EXAMPLE. AND THAT'S THAT IS THE MOST THAT ANY ONE ROUTE COULD GET OVER A TWO YEAR PERIOD. SEASONAL INCENTIVES ARE DISCOUNTED AND APPLY ONLY DURING THE FIRST YEAR OF SERVICE. SO IF IT'S A SEASONAL ROUTE, IT WOULDN'T BE ELIGIBLE FOR A SECOND YEAR. THERE'S KIND OF IN TERMS OF ADMINISTRATION, THERE'S KIND OF TWO OPTIONS HOW IT COULD RUN. THE AIRLINE CAN SELECT IF THE MARKETING CAMPAIGN WOULD BE MANAGED EITHER BY THE AIRPORT OR THE AIRLINE. MOST, MOST AIRLINES TEND TO MANAGE THE PROGRAM 
          [00:10:07]
THEMSELVES, AND IN THIS CASE, SHOWN AS OPTION A. IN THAT SCENARIO, THE AIRLINE WOULD CONTRACT WITH THE VENDORS, INCUR THE COSTS, AND THEN REQUEST REIMBURSEMENT FOR US. 
          WE WOULD, ON THE FRONT END, ESTABLISH WRITTEN APPROVAL OF THE MEDIA PLAN AND ALL THE CREATIVE BEFORE ANY OF THE COSTS ARE INCURRED. AND THEN WE WOULD BASICALLY RECEIVE THE INVOICES AS PROOF OF PAYMENT AND THEN MAKE THE REIMBURSEMENT. AND THE OTHER OPTION IS THAT THE AIRLINE OR CORRECTION, THE AIRPORT COULD BASICALLY WORK IN CONCERT WITH THE AIRLINE TO ESTABLISH THE PROGRAM AND CONTRACT DIRECTLY FOR THOSE SERVICES. THIS IS JUST AN EXAMPLE OF, YOU KNOW, A PROGRAM THAT WE WOULD LOOK TO LAUNCH AND HAVE SOME MEDIA COVERAGE. 
          IN. IN THIS CASE, YOU KNOW, YOU COULD LOOK AT SOMETHING LIKE THIS, AND INSTEAD OF LAKELAND, IT WOULD BE MCKINNEY. BUT JUST KIND OF SHOWING YOU AN EXAMPLE OF SOME OF THE MARKETING PROGRAMS THAT THESE, THESE INCENTIVE PROGRAMS SUPPORT. AND JUST TO SUMMARIZE, YOU KNOW, THE PURPOSE IS REALLY TO INCENTIVIZE AND HELP LAUNCH AND SUSTAIN NEW SERVICE, EXPAND THE CONNECTIVITY, HELP US STRENGTHEN OUR POSITION IN THE MARKET, NEW AND UNSERVED MARKETS ARE AWARDED ON A FIRST COME, FIRST SERVED BASIS. YOU HAVE TO RUN A MARKETING ON A ROUTE FOR AT LEAST THREE MONTHS TO BE ELIGIBLE. IF AN AIRLINE COMES IN AND THEY TRY A ROUTE FOR TWO MONTHS AND DECIDE TO PULL IT, THEY WOULD NOT RECEIVE ANY REIMBURSEMENTS UNDER THIS PROGRAM. THEY WOULD HAVE TO RUN IT FOR AT LEAST THREE MONTHS. AND AGAIN, SEASONAL INCENTIVES APPLY ONLY IN THE FIRST YEAR AND THEN THE CAP AGAIN, 1 MILLION OF FUNDS, AIRLINES COULD BE ELIGIBLE FOR ANYWHERE BETWEEN 15 AND 300,000 ON A ROUTE. AND AGAIN, NO ONE AIRLINE RECEIVING MORE THAN 750,000 PER YEAR. AND THEN IF THE IF THE IF THEY MEET THE CRITERIA FOR YEAR ONE, THEY CAN BE ELIGIBLE FOR FOR YEAR TWO. SO THESE THE PROGRAM WE'VE DEVELOPED DOES ALIGN WELL WITH THE INDUSTRY STANDARDS. SIMILAR SERVICE MARKETING AGREEMENTS EXIST ACROSS THE COUNTRY. WE FEEL THE PROGRAM DOES ALIGN WELL WITH THE PROJECT PLAN FOR TIERS TWO. AND SO WE'RE SEEKING FUNDING UNDER THE PROGRAM. ADDITIONALLY, WE ARE LOOKING TO APPLY FOR A GRANT, A FEDERAL GRANT UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM. 
          SO THESE ARE COMPETITIVE GRANTS THAT THE US DEPARTMENT OF TRANSPORTATION PUTS ON OR PUTS OUT. AND THEY'RE DESIGNED TO HELP SMALLER COMMUNITIES IMPROVE THEIR COMMERCIAL SERVICE. IT'S REALLY SUPPORTING TARGETED LOCAL. PERFORMANCE, SMALL COMMUNITY, THEIR SERVICE DEVELOPMENT PROGRAM TYPICALLY THINK THEY I THINK LAST YEAR THEY HAD ABOUT $12 MILLION AWARDED NATIONWIDE ACROSS 14 STATES. THEY CAN DO ANYWHERE BETWEEN 15 AND 25 AWARDS PER YEAR. WE'RE PROPOSING TO APPLY FOR $1.6 MILLION IN FUNDING AND SUPPORT IT WITH A $300,000 MATCH. THE FUNDS WOULD GO TO REVENUE GUARANTEES FOR HALF A MILLION EACH FOR TWO ROUTES AND THEN AIRLINE SPECIFIC MARKETING FOR TWO AIRLINES AT 300 EACH, AND THEN 300,000 IN GENERAL, AIRPORT MARKETING. SO ALL IN THE PROGRAM WOULD LOOK TO REQUEST 1.6 MILLION FROM TOURS TWO 300,000 TO MATCH THE GRANT, WHICH ARGUABLY IS THE WORST ACRONYM IN THE AVIATION INDUSTRY. IT STANDS FOR SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM. THAT WOULD BE A ONE TIME FUND. IT WOULD ONLY IF WE APPLY FOR THE GRANT, WE DON'T NEED IT. WE DON'T NEED THE MONEY. WE DON'T NEED TO USE THE MONEY. WE COULD LEAVE THE MONEY IN TOURS UNTIL WE APPLY FOR THE GRANT, OR WE COULD REBATE IT BACK OR REMIT IT BACK. THE AIR SERVICE INCENTIVE PROGRAM, A MILLION FOR YEAR ONE, AND THEN THE GENERAL MARKETING FOR YEAR ONE, ANOTHER 300,000 FOR A TOTAL OF 1.6 MILLION. AS BARRY MENTIONED ON THE FRONT END, THE TOURS TWO BALANCE AT THE END OF FY 25 WAS 4.1 MILLION. IT'S PROJECTED TO ACCRUE AN ADDITIONAL 4.3 MILLION THIS YEAR. TOTAL BALANCE AT THE END OF THIS YEAR IS PROJECTED TO BE 8.4 MILLION. 
          IF THIS REQUEST IS APPROVED, THE BALANCE AT THE END OF THIS YEAR IS PROJECTED TO BE ABOUT 6.8 MILLION. CAN ON THE GATSBY GRANT, THERE'S A MILLION FROM THE FEDS AND IT SAYS REVENUE 
          [00:15:05]
GUARANTEES. WALK ME THROUGH HOW AN AIRLINE WOULD ACCESS PART OF THAT MILLION. I DON'T UNDERSTAND THAT PART. YEAH, I WILL SAY THAT I'LL PROBABLY ASK ADAM TO MAKE ME HELP. HELP ME WITH THAT. AIR SERVICE REVENUE GUARANTEES ARE PRETTY POPULAR, I THINK, IN THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM, BECAUSE THE THE AGENCY KNOWS THAT THAT MONEY IS GOING TO GET SPENT. BUT I WOULD MAYBE ASK ADAM IF YOU COULD COME UP AND MAYBE TALK THROUGH A LITTLE BIT MORE ABOUT DETAILS ON REVENUE GUARANTEES. YES. EVENING, EVERYONE ON THE BOARD. SO ON THE REVENUE GUARANTEE, WE HAVE TO GO THROUGH THE EXACT PARAMETERS. BUT IF YOU THINK ABOUT A NEW FLIGHT PLANES, WHICH IS 100 SEATS, AS THEY START NEW SERVICE, THEY'RE TRYING TO PROMOTE IT, THAT IT TAKES TIME TO GROW THAT MARKET AND GET THE PEOPLE TO ACTUALLY IN THE SEATS. SO A REVENUE GUARANTEE WOULD WORK WOULD BE YOU WOULD SET A LIMIT WHERE THERE'S A TARGET. THE TARGET GOAL IS TO HAVE 70% OF THOSE SEATS FILLED. SO IF THE AIRLINE STARTING OUT IS ONLY ABLE TO FILL ABOUT 40% OF THOSE SEATS, THE REVENUE GUARANTEE WOULD GO HELP TO MAKE SURE THAT THE FLIGHT PAID FOR THE REMAINING 30 EMPTY SEATS, THAT THEY WERE TARGETING THE FILL. SO IT WOULD BE SPECIFIC FOR A SPECIFIC ROUTE AND FOR THAT AIRLINE TO DETERMINE WHAT IS ACTUALLY THE NEED FOR A REVENUE GUARANTEED IN ORDER TO MAKE SURE THAT THAT FLIGHT IS KIND OF COST NEUTRAL FROM, FROM AN OPERATION STANDPOINT. OKAY. AND WE CAN BE SURE IN THIS THAT WE ARE NOT ALLOCATING MCKINNEY TAXPAYER RESOURCES TO THAT. THAT IS ONLY THE WHAT I'LL CALL THE FOUND MONEY FEDERAL THE FOUND FEDERAL MONEY IN THIS THING. THAT'S THAT'S CORRECT. AS AS AN AIRPORT WITH LOCAL MONEY, THE RIGHT. WE CAN'T REALLY LOOK AT REVENUE GUARANTEES. THAT'S WHY WE'RE OFFERING A MARKETING INCENTIVE THAT FOCUSES ON TC, I THE ROUTE AND PROMOTING THE AIRPORT HERE IN THE LOCAL. THE LOCAL COMMUNITY. THE GRANT PROVIDES THE OPPORTUNITY TO DO SOMETHING LIKE A REVENUE GUARANTEE TO KIND OF HELP SUPPORT THAT. OKAY, I DON'T WANT TO BEAT THE HORSE TOO MUCH WITH THIS. GATSBY GRANT, WHICH IS COMPETITIVE, DOES NOT COME THROUGH FOR US. AND THIS WHOLE PROGRAM JUST WASHES AWAY. AND WE'RE BACK TO ONLY THE MARKETING SUPPORT FROM THE ASAP. IS THAT RIGHT? THAT IS CORRECT. 
          WE WOULD HAVE THE CHANCE TO APPLY AGAIN FOR THE NEXT THE FOLLOWING YEAR, BUT AT LEAST AT THIS POINT IN TIME, WE WOULD APPLY FOR THE GRANT. IF WE GOT IT, GREAT. IF WE DIDN'T, THEN AS KEN MENTIONED, THE FUNDS WOULD GO BACK INTO THE APPROPRIATION BUDGET. ADAM, WHO MAKES THE DECISION ON WHAT ROUTES THEY PREFER TO GUARANTEE OR NOT, LIKE ARE THEY TARGETING CERTAIN AREAS OR ARE THEY JUST KIND OF GIVING IT AWAY IF THEY'VE GOT IT? I MEAN, I THINK I'LL PUT IT THIS WAY. I THINK AN AIRLINE WON'T JUST PUT A FLIGHT IN BECAUSE OF A REVENUE GUARANTEE. I THINK THEY'RE THEY'RE NETWORKING TEAMS ARE LOOKING AT WHERE PEOPLE ARE CURRENTLY IN THIS CATCHMENT AREA FLYING AND WHERE THEY HAVE WILL HAVE THE MOST SUCCESS OF PUTTING THEIR AIRCRAFT. I THINK THEY HAVE A TARGET TO MAKE A BREAK EVEN NUMBER. SO WHEN WE TALK ABOUT MARKETING, YOU'LL SEE LIKE A NEW ROUTE TO ORLANDO AT $39 ONE WAY, WE KNOW THAT $39 IS PROBABLY NOT EVEN COVERING, YOU KNOW, THE SEAT CLOTH, YOU KNOW, IT'S PROBABLY $100 TO BREAK EVEN. SO THERE'S A COUPLE DIFFERENT THINGS THAT PLAY INTO THAT. BUT I THINK WHAT THEY'LL LOOK AT IS HERE'S THE ROUTE WE THINK WILL BE THE MOST SUCCESSFUL. BUT YOU KNOW, IT'S GOING TO TAKE TIME. SO THEY'LL THEY'LL PICK IF THEY'RE USING ORLANDO AS A BECAUSE IT'S A LEISURE DESTINATION THAT A LOT OF PEOPLE LIKE TO GO TO, THEY'LL LOOK AT IT AND GO, WELL, WE THINK WE CAN FILL AT LEAST 50 OF THOSE SEATS ON AN ONGOING BASIS BASED ON FOUR TIMES WEEKLY. CAN YOU HELP US PROTECT THE OTHER 20 SEATS UNTIL WE CAN GET THAT MARKET SHARE, BUILD UP AND THEN BE SUCCESSFUL ON OUR OWN FOR ANY OF THE DOLLARS THAT ARE BEING SPENT OUT OF THE OUT OF THIS PROGRAM, WHAT IS IT GOING TO BRING BACK INTO THE TOURS ITSELF? BECAUSE, YOU KNOW, I WHY NOT USE OTHER FUNDS FROM CDC OR CDC? YOU KNOW, WHY NOT DO FEE, YOU KNOW, EXCLUSIONS OR REBATES OR SOMETHING LIKE THAT TO FUND IT? BECAUSE JUST THE VERY NATURE OF IT BEING A TOURS FOR A TAX INCREMENT REINVESTMENT ZONE, WHAT IF WE SPEND, YOU KNOW, $1.6 MILLION? WHAT'S WHAT'S THE RETURN ON THAT? HOW ARE WE GETTING REINVESTMENT BACK INTO THE ACTUAL. YEAH, I GUESS I WOULD SAY, YOU KNOW, WHEN WE LOOKED AT THE ECONOMIC IMPACT OF THIS OPERATION AND WE LOOKED AT A STUDY THAT LOOKED AT BASED ON A LETTER OF INTENT, WHAT THEY PROJECTED FOR THE YEAR THREE OPERATIONS, THEY PROJECTED AN ADDITIONAL $400 MILLION OF ECONOMIC OUTPUT JUST FROM THEIR OPERATIONS ALONE BY YEAR THREE IN IN THE IN THE ECONOMY. AND I THINK WITHIN THAT, THAT WOULD TRANSLATE TO ADDITIONAL FUNDS COMING INTO TEARS. I'LL TRY TO ADDRESS THAT A LITTLE BIT. SO WITH A LOT OF THE PROJECTS IN A TAX INCREMENT REINVESTMENT ZONE, YOU CAN LOOK AT IT AND IT'S PRETTY, YOU KNOW, INPUT IS X, OUTPUT IS Y. SO YOU SAY WE'RE 
          [00:20:02]
GOING TO ASSIST THIS PROJECT TO BE BUILT. THAT CREATES THIS AMOUNT OF VALUE, THAT KICKS BACK THIS AMOUNT OF INCREMENTAL TAXES INTO THE TOURS AND IT REPLENISHES THE TOURS. AND SO YOU CAN, YOU CAN DO THE MATH FAIRLY EASILY ON THIS OR ON THAT TYPE OF PROJECT. WHAT WE'RE ASKING HERE IS AN INVESTMENT IN THE SUCCESS OF THE AIRPORT, WHICH GLOBALLY HAS THAT IMPACT, WHERE IT BRINGS THE ADDITIONAL KIND OF SPILLOVER DEVELOPMENT. BUT THE AIRPORT ITSELF, BEING A TAX EXEMPT PROJECT, DOESN'T HAVE THAT EASY MATH. SO WHAT WE'RE LOOKING AT NOW IS MORE OF A GLOBAL INVESTMENT INTO THE TOURS VERSUS A PROJECT SPECIFIC INVESTMENT THAT YOU COULD YOU CAN SAY, IF WE GIVE $1 MILLION, WE'LL EARN THAT MILLION DOLLARS BACK OVER THE COURSE OF SEVEN YEARS. SO WHAT SUCCESS AFTER, YOU KNOW, AFTER A YEAR, YOU KNOW, HOW ARE YOU GOING TO BE ABLE TO MEASURE THIS TO WHETHER WE KNOW THAT MONEY'S JUST BEING THROWN AT SOMETHING AND REALLY NOTHING'S COMING BACK INTO THE THE TOURS OR THE AREA, HOW DO YOU MEASURE IT? SO WE'RE GOING TO SET UP A, A REPORTING TOOL THAT WE CAN COME BACK TO THE TOURISM, TO THE CITY COUNCIL. SO THERE'S GOING TO BE A LOT OF DATA COMING OUT OF THE AIRPORT IN TERMS OF THE THE NUMBER OF FLIGHTS, THE DESTINATIONS OF THOSE FLIGHTS, THE OCCUPANCY, THE SEAT LOADS ON THOSE FLIGHTS AND REPORT BACK. AND IT MAY BE A CASE WHERE, YOU KNOW, WE'RE, WE'RE PUTTING MARKETING DOLLARS INTO IT AND WE'RE PUTTING REVENUE GUARANTEES. IF WE GET THE, THE GRANT AND WE SEE THAT THE SEATS ARE FILLING UP OR WE, WE, WE DON'T SEE THE RESULT. 
          AND THEN WE WOULD HAVE TO, YOU KNOW, FINE TUNE OUR EFFORTS IN FUTURE YEARS TO WHERE, YOU KNOW, IF WE'RE PUTTING MARKETING DOLLARS AND IT'S SUCCESSFUL AND WE DON'T NEED THE REVENUE GUARANTEES, THEN MAYBE WE BACK OFF OF THE REVENUE GUARANTEES AND DOUBLE DOWN OR FOCUS OUR EFFORTS MORE ON THE MARKETING SIDE. SO LIKE I SAID, WE'RE LOOKING MORE GLOBAL SUCCESS, AND THEN WE'RE GOING TO HAVE SOME MEASURES THAT WILL COME BACK TO YOU, BUT IT'S NOT AS CUT AND DRY AS OUR TYPICAL PROJECT WHERE, YOU KNOW, ENCORE WAS PUTTING IN A $100 MILLION PROJECT AND WE CAN CALCULATE THE REVENUE THAT'S GOING TO BE CAPTURED BY THE TOURS. IT'S JUST NOT AS CLEAN AS THAT. IT'S A LITTLE MORE NEBULOUS, I GUESS. JUST TO EXPAND ON SUCCESS, I THINK THE SHORT ONE OF THE THINGS IS IF THAT ROUTE STILL IN THE MARKET IN YEAR TWO, I THINK THAT WOULD BE AN EASY ONE BECAUSE I THINK THE AIRLINES ARE VERY THEY'RE ABLE TO MOVE THEIR PLANES PRETTY EASILY. SO IF AN AIRLINE IS A ROUTES WORKING OR IT'S HEADING IN THE RIGHT TRACK, THAT FLIGHT WILL CONTINUE TO BE SERVED AND CONTINUE TO BE IN THE MARKET OUT OF TKI. SO I THINK THAT WILL BE OUR FIRST INDICATION OF WHAT IS SUCCESS. AS BARRY MENTIONED, AS PART OF THE AT LEAST IN THE AIR SERVICE INCENTIVE PROGRAM, WE'RE GOING TO HAVE DIFFERENT KIND OF REPORTING REQUIREMENTS, YOU KNOW, LOAD FACTORS, THE PASSENGERS, WHAT DID THEY TARGET IN THE MARKETING? WE HAVE TO APPROVE THE ACTUAL MARKETING PLAN BEFORE IT GOES OUT. SO WE'LL USE HELP WITH SOME OF OUR MARKETING PEOPLE TO MAKE SURE THAT THE PROGRAM IS FOCUSING ON THE RIGHT AREAS AND THE RIGHT PEOPLE, BECAUSE YES, YOU HAVE TWO KIND OF MAJOR AIRPORTS SOUTH OF US HERE. TKI IS, IS A IS A BRAND NEW MARKET. 
          WE HAVE TO DO BRAND AWARENESS. WE HAVE THE AIRLINES HAVE TO KIND OF RESET, GET THEMSELVES WITH THEIR BRAND AWARENESS, AND THEN THEY'LL START TO CREATE THAT FUNNEL WHERE THEY'LL START BUILDING UP THAT PASSENGER BASE AND THEN KIND OF RECREATE THAT, THAT DEMAND THAT IS ONGOING. SO THE GOAL OF AN AIRLINE IS SOMEONE BOOKS A FLIGHT, THEY FLY THE AIRLINE, THEY HOPE IN THE NEXT 6 TO 12 MONTHS THAT PERSON BOOKS ANOTHER FLIGHT. AND SO AS PART OF THAT MARKETING DOLLARS AND INFORMATION WILL UNDERSTAND HOW MUCH ARE THEY RECAPTURING THAT PASSENGER OVER AND OVER AGAIN, EITHER ON A NEW ROUTE OR ANOTHER ROUTE THAT THEY MAY BE SERVING, SO THAT THEY CONTINUE TO BUILD SUCCESS. I THINK IT'S ALSO RELEVANT THAT, YOU KNOW, THE AIRLINES ARE GOING TO THEY'RE GOING TO SPEND MORE ON MARKETING THAN WE'RE GOING TO PROVIDE THERE. THIS IS ONLY A SMALL PIECE OF WHAT THEY'RE PROBABLY GOING TO SPEND ON MARKETING, AS WELL AS ALL OF THE OTHER COSTS. THEY HAVE TO COME IN AND ESTABLISH SERVICE SO THEY KNOW THEY'RE GOING TO LOSE A BELLOWS TOLD US THEY'RE GOING TO LOSE MONEY PROBABLY FOR THE FIRST TWO YEARS ON EVERYTHING THEY RUN OUT OF HERE. SO THIS IS REALLY JUST A WAY TO SHOW US TO HAVE SOME SUPPORT ON THE MARKETING EFFORTS THAT THEY'RE GOING TO BE DOING ALREADY ANYWAY. AND AS YOU SAW IN THOSE EARLIER IMAGES, YOU SEE THE AIRPORT'S PART OF THE BRANDING. SO AS PART OF THE AIR SERVICE INCENTIVE GRANT, TKI WILL BE PART OF EACH ONE OF THOSE ADVERTISEMENTS. THAT'S ONE OF THE REQUIREMENTS, ACTUALLY, THAT IS PART OF THE FAA. SO YOU'LL SEE YOU'LL SEE LAKELAND LAKELAND AIRPORT, AS KEN MENTIONED, THAT WOULD BE TKI OF THAT ROUTE WAS ELIGIBLE. SO IT'S ABOUT THE AIRPORT. IT'S ABOUT BRANDING THE AIRPORT AND THEN ADVERTISING THE ROUTE. AND THEN THE AIRLINES ALSO JUST KIND OF THE THIRD PART OF IT, YOU KNOW, PIECE OF THE PIE. SO I KIND OF REPEAT THE QUESTION, HOW DO YOU WHAT'S THE MEASUREMENT? WHAT DO YOU WHAT QUALIFIES AS A SUCCESS A YEAR FROM NOW, WHENEVER YOU COME BACK TO US AND ASK US TO CONTINUE ON WITH THE PROGRAM OR, YOU KNOW, ARE WE ARE YOU ASKING TO SAY THAT A LOT OF THE ROUTES WE INCENTIVIZED IN YEAR ONE ARE STILL AROUND AND, AND OPERATING 
          [00:25:05]
IN YEAR TWO? THAT WOULD BE A PRETTY STRONG MEASURE OF SUCCESS. AGREED. SO LIKE, IF THEY, IF WE, IF WE SUPPORT TEN ROUTES AND SEVEN OF THOSE ROUTES ARE STILL IN, STILL BEING SERVED OUT IN YEAR TWO, I WOULD ARGUE THAT'S, THAT'S A PRETTY SUCCESSFUL MEASURE. NOT EVERY FLIGHT IS GOING TO WORK, BUT THERE WILL BE SOME TRIAL AND ERROR. BUT IF YOU CAN KEEP A MAJORITY OF THEM AND THEY'RE IN THE MARKET THE FOLLOWING YEAR, I WOULD ARGUE THAT WOULD BE SUCCESS FROM TKIS PERSPECTIVE ON THAT, THE MARKETING PROGRAM HELPED ASSIST WITH THOSE FLIGHTS, AND THEN WE WOULD SEE THAT BECAUSE THAT WOULD SUPPORT THE YEAR $2 TO CONTINUE TO PROMOTE THE THE ROUTE. AND GOING BACK TO MR. SHELTON'S COMMENTS, WE DON'T KNOW. I MEAN, WE DON'T KNOW WHAT WE'RE GOING TO GET UNTIL WE ACTUALLY TRY IT. BUT I'M TRYING TO ASCERTAIN. IT'S LIKE, OKAY, WELL, WE HAVE TO PUT SOME MARKETING EFFORT INTO IT TO GET SOMETHING BACK. WELL, YOU KNOW, NOTHING VENTURED, NOTHING GAINED. BUT WHAT'S THE GAIN THAT QUALIFIES AS STRICTLY JUST HAVING THE FLIGHTS? OR IS IT AN AMOUNT OF PEOPLE, YOU KNOW, WHAT'S THE WHAT'S THE METRIC LOAD FACTORS. I THINK FOR AIRLINES, THEY TYPICALLY WANT TO SEE 80 AND 80% AND ABOVE. YEAH. SO YEAH 70. SO LOAD FACTOR WOULD BE ANOTHER HELPING HELPFUL TOOL, 70 TO 80% LOAD FACTORS BEING, YOU KNOW, CONSISTENTLY BOOKED. AND THEN FUTURE BOOKINGS WOULD ALSO SUPPORT THAT. AND THAT WOULD BE PART OF THOSE ONGOING DIALOGS BECAUSE PART OF OUR AGREEMENT UNDERSTANDS WHAT THAT FUTURE SCHEDULE IS. AND SO WE'LL KNOW RIGHT AWAY IF AN AIRLINE IS GOING TO PULL A FLIGHT OUT, BECAUSE THEY HAVE TO GET THOSE, THOSE THOSE ROUTES AND THAT KEEP THOSE SCHEDULES IN PLACE SO THAT THEY ENSURE THAT THEY CAN HAVE THE GATE CAPACITY FOR IT. THANK YOU. AIRLINES, THEY LOOK AT, YOU KNOW, ONCE THEY START TO ESTABLISH REPEAT CUSTOMERS, IF THE SAME CUSTOMER IS COMING BACK AND FLYING WITH THEM AGAIN ON THAT ROUTE, THEN THAT'S AN INDICATOR THAT THAT ROUTE IS STARTING TO BECOME ESTABLISHED. AND I THINK THE OTHER THING IS IF YOU SEE MORE ROUTES BEING DEVELOPED, THAT WOULD BE ANOTHER SIGN OF SUCCESS BECAUSE THEY'LL START HAVING THE INVESTMENT OF BRINGING THE CREWS, BRINGING THE PILOTS, INCREASING THEIR STAFFING. WE'LL SEE THAT KIND OF IN PARALLEL WITH NEW AND ADDITIONAL ROUTES. SO I FEEL LIKE WE'RE LIKE A BARBERSHOP QUARTET UP HERE ABOUT TO. A LITTLE AWKWARD. BUT SO ONE OF THE THINGS THAT KIND OF IN MY MIND, YOU KNOW, WE'VE BEEN WORKING FOR A LONG TIME TO BUILD AN AIRPORT. SO LIKE THE STRESS FOR THE LAST 6 OR 8 YEARS HAS BEEN GETTING TO THE PLANNING PHASE AND THE ENGINEERING PHASE AND THE FUNDING TO GET IT BUILT. AND, AND WE'VE KIND OF CROSSED THAT THRESHOLD. IT'S BEING BUILT. AND SO NOW OUR, OUR GOAL COLLECTIVELY IS NOT TO JUST OPEN AN AIRPORT. OUR GOAL IS TO OPEN AN AIRPORT THAT IS SUCCESSFUL AND SUCCESS TO ME AND TO THE CITY. AS THE PRIMARY OWNER OF THE AIRPORT, IS THAT IT BECOMES SELF-SUSTAINING IN THE RELATIVELY NEAR TERM. IF IN 3 TO 5 YEARS WE'RE GENERATING THE FLIGHTS AND THE PASSENGERS AND THE FEES FROM THOSE PASSENGERS IN THE PARKING DOLLARS FROM THOSE PASSENGERS TO WHERE WE WEAN OURSELVES OFF OF ANY OF THE TOURS OR GENERAL FUND OR OTHER SOURCES OF REVENUES. THAT'S WHAT SUCCESS MEANS TO ME. WE'VE GOT AN AIRPORT THAT'S SELF-SUSTAINING. 
          AND AT THAT POINT, THEN WE START TO TO BUILD THE AIRPORT. SO WE'VE CHANGED FROM KIND OF OUR, OUR DIRT AND, YOU KNOW, BRICK AND MORTAR GOALS TO OUR FINANCIAL GOALS. SO OUR GOAL IS TO PUT THE, THE REVENUE OR THE, THE DOLLARS INTO THE MARKETING AND INTO THE OTHER TYPES OF INCENTIVES THAT GET US TO THAT ULTIMATE GOAL. WE WANT THE AIRLINES TO BE SUCCESSFUL. AND WE, YOU KNOW, WE'RE PARTNERS WITH THEM. AND THAT'S IMPORTANT TO US. BUT ULTIMATELY, AS THE AIRPORT SPONSOR, OUR GOAL IS TO HAVE A SELF-SUSTAINING, SELF-FUNDED AIRPORT MOVING FORWARD. IT'S IMPORTANT TO I THINK THAT, YOU KNOW, TO RECOGNIZE THAT IN TERMS OF MARKETING, OVER TIME, IT'S GOING TO BE MORE FRONT LOADED, RIGHT? ALL THE ROUTES ARE NEW. 
          ALL THE ROUTES NEED TO BESE AWARENESS. THE PROGRAM IN YEAR 5TH MAY LOOK COMPLETELY DIFFERENT THAN IT LOOKS IN YEAR ONE. I WOULD BE HAPPY TO MOVE FOR APPROVAL ON THIS WITH ONE CAVEAT IS THAT Y'ALL COME BACK TO US IN MAYBE A YEAR PLUS THREE MONTHS, YOU KNOW, SO A LITTLE OVER A YEAR THAT WAY AND HAVE SOME KIND OF REPORT OR UPDATE ON THE PROGRAM AND, YOU KNOW, SHOW WHAT'S BEEN GOOD, WHAT'S BEEN BAD. YEAH, ABSOLUTELY. AND I FULLY EXPECT WE'LL BE IN FRONT OF YOU BEFORE THEN KNOWING WHERE WE'RE SEEING SOME, SOME SUCCESSES AND WHERE SOME MONEY MAY HAVE BEEN BETTER SPENT THAN, THAN WHERE WE CHOSE TO PUT IT. YEAH. AND I EDIT AND COMMISSIONER HILL, YOU FEEL FREE TO DISAGREE WITH ME, BUT YOU KNOW, WE'RE HOPING FOR A NOVEMBER OPENING ON THIS. SO, YOU KNOW, A YEAR FROM NOW IT ISN'T OPEN VERY LONG. YOU'RE IN THREE MONTHS ISN'T VERY LONG. BUT YOU KNOW, I AM A LITTLE CONCERNED ABOUT WITH THE STOPS 
          [00:30:02]
AND STARTS AT THE FEDERAL GOVERNMENT. WITH REGARD TO FAA, ARE WE GOING TO BE ABLE TO OPEN IN NOVEMBER AND DO THAT? SO I WOULD SAY 6 TO 9 MONTHS, 9 TO 12 MONTHS AFTER THE AIRPORT ULTIMATELY OPENS IS WHAT I'D BE INTERESTED IN TO GET SOME, YOU KNOW, REAL DATA IN HERE. IS THAT FAIR? OKAY. YEAH. AND ONCE THE AIRLINES MAKE THEIR ANNOUNCEMENTS OF ROUTES AND THEY START UTILIZING THIS PROGRAM TO PRODUCE MATERIALS LIKE THIS, WE WOULD FULLY EXPECT TO HAVE A FULL REPORT BACK TO YOU ON. HEY, THEY'VE GOT WE'VE GOT EIGHT DIFFERENT ROUTES THAT THEY'RE MARKETING AND HERE'S WHAT THEY'RE DOING WITH THE DOLLARS. BECAUSE THE WAY I THINK OF THESE DOLLARS, WE ARE GIVING DOLLARS TO THE AIRLINES. BUT THE EXPECTATION IS NOT ONLY ARE THEY PROMOTING THEMSELVES, BUT THEY'RE PROMOTING US. SO THEY'RE GOING IN. IF WE'RE FLYING TO ORLANDO, THEY'RE SPENDING DOLLARS IN ORLANDO TELLING PEOPLE, HEY, IF YOU WANT TO GO TO DALLAS, TEXAS, YOU SHOULD GO THROUGH MCKINNEY. THAT'S THE THAT'S THE IMPACT THAT WE STRUGGLE TO DO FOR OURSELVES. IT'S HARD FOR US TO REACH OUT TO ORLANDO AND HAVE A SIGNIFICANT MARKETING CAMPAIGN IN A IN A REMOTE LOCATION, AS AN AIRPORT SPONSOR AND AS A CITY, THE AIRLINE HAS A PRESENCE THERE. AND SO THEY'RE PUTTING THEIR MATERIALS, THEIR BILLBOARDS, THEIR SOCIAL MEDIA, THEIR, YOU KNOW, OTHER AD BUYS IN THAT MARKET THAT'S GETTING THE THE PASSENGERS NOT JUST COMING FROM HERE TO ORLANDO, BUT COMING BACK. ONCE THEY HAVE KIND OF FLESHED OUT WHAT THEY WANT TO DO AND THEY'VE GOT THE SOCIAL MEDIA CAMPAIGN AND THEY HAVE THE BILLBOARDS AND THEY HAVE THE AIRPORT MARKETING, WE SHOULD BE BRINGING THAT BACK TO YOU. SO YOU KNOW WHAT, WHERE THE DOLLARS ARE GOING. OKAY. ANY OTHER COMMENTS OR QUESTIONS? I WILL ACCEPT A MOTION ON THIS ITEM. I'LL MAKE A MOTION THAT WE APPROVE THIS ITEM. SECOND, DO YOU WANT US TO VOTE ON THIS THING OR RAISE OUR HANDS? THE SECOND WAS. THANK YOU, MAYOR COX. AND THERE WE GO. THANK YOU. ALL RIGHT. WE DON'T HAVE AN EXECUTIVE SESSION. THAT MOTION PASSES, BUT WE DON'T HAVE AN EXECUTIVE SESSION. AND I WILL ACCEPT A MOTION TO ADJOURN. SO MOVED. SECOND. ALL THOSE IN FAVOR? AYE. ALL RIGHT. IT IS
* This transcript was compiled from uncorrected Closed Captioning.