Phoenix Sky Harbor International Airport West Ground Transportation - PowerPoint PPT Presentation

Phoenix Sky Harbor International Airport West Ground Transportation Center Parking Concession and Hotel Development Concession Opportunity May 22, 2018

Participants City of Phoenix James E. Bennett, A.A.E., Director of Aviation Services Aviation Charlene Reynolds, Assistant Aviation Director and Department Procurement Officer Jay DeWitt, C.M., Deputy Aviation Director City of Phoenix Community and Eric Johnson, AICP, Deputy Economic Development Director Economic Development Department 3

Agenda 1. Introduction and Airport Overview 2. Phoenix Economic Overview 3. Airport Parking Opportunity Overview 4. Airport Hotel Opportunity Overview 5. Project Progress to Date and Site Overview 6. ProcurementOverview 7. Questions and Answers 8. Site Tour 4

WELCOME AND OVERVIEW James E. Bennett, A.A.E, Director of Aviation Services

City/Airport Structure  The City of Phoenix owns and operates Phoenix Sky Harbor International Airport (PHX) and two general aviation airports, Phoenix Deer Valley Airport and Phoenix Goodyear Airport  The Airports are operated as a self-supporting business enterprise by the Aviation Department  The Phoenix City Council adopts ordinances establishing rates and charges to be paid by tenants and users of the Airports  The City Manager, appointed by the City Council, is responsible for all City Departments, including the Aviation Department 6

City/Airport Organizational Structure Mayor and City Council Municipal City Manager Court Assistant City Manager Acting Deputy Deputy City Deputy City Deputy City City Manager Manager Manager Manager Budget & Information Convention City Clerk Aviation Arts & Culture Research Technology Center 7

Air Service Is Critical for Phoenix MSA  Geographic location of Phoenix results in a heavy reliance on airline travel  Phoenix-Mesa Gateway Airport is the only other commercial service airport in the MSA and is located 30 miles SE with 20 average daily departures Road miles from the Airport to: Tucson 117 Las Vegas 292 Los Angeles 371 Albuquerque 477 Salt Lake City 656 Denver 809 Dallas/Fort Worth 1,056 8

Airport Capital Improvement Program

Capital Improvement Program FY 2017-2023 Capital Investment Spending ($ millions) Total Costs (including prior spending) Terminal 3 Modernization $590 Terminal 4 S1 Concourse 310 PHX Sky Train Stage 2 745 Other Terminal & Airfield Improvements 430 TOTAL $2,075 10

Terminal 3 Modernization Program 11

Terminal 3 Modernization  In lieu of a major investment in Terminal 2, the Terminal 3 Modernization program was developed  Improved Terminal 3 will greatly enhance Airport revenue producing opportunities  Modular approach that delays debt financings until demand dictates, and design and construction risks are mitigated  Through May 2018, Terminal 3 development on-schedule and on-budget  Developed based on LEED Silver Standard Phase 1 Phase 1 Complete Renovation of Central Processor Phase 2 Terminal Processor New South Concourse Phase 3 Renovation of North Concourse and addition of concessionsnode Phase 2 South Concourse Phase 3 North Concourse 12

Terminal 4 S1 Concourse Addition and Facility Improvements  A new $310M concourse with 8 gates is planned for Terminal 4, which Southwest Airlines has committed to utilize  This project, tentatively scheduled to open in Q1 2022, will complete the full build-out of Terminal 4 13

PHX Sky Train Stage 2 – Rental Car Center Station

PHX Sky Train Stage 2 Major Components RCC Station Future Terminal Station West GTC Station Future Taxiway Crossings 16

PHX Sky Train Stage 2 Milestone Schedule 2016 2017 2018 2019 2020 2021 2022 Facilities Design Facilities Construction System Design Train System Installation System Testing Opening Mid 2022 May 2018 17

ECONOMIC OVERVIEW Eric Johnson, AICP, Deputy Economic Development Director

Phoenix City/Metro Rankings Phoenix 11 th in best Phoenix ranked #4 best Phoenix Metro in CBRE’s Tech-Thirsty list: Phoenix top 10 for big cities to live No. 2 high-tech metro for young Startup Activity job growth professionals – Business Insider, 2016 – Kaufmann Index, 2016 – Forbes, 2017 – CBRE, 2016 Arizona ranked among the Phoenix Sky Harbor Phoenix #8 in the top 10 cities for Top 20 Metro in America for #1 forbest top 5 states Transit Accessibility future jobgrowth airports with the largest job growthof – Access Across America,2014 – Forbes, 2016 2014 – USA Today,2016 – AZ Tech Beat, 2014 Phoenix is #1 Arizona State University ranked Phoenix ranked 10 th among Phoenix gained 10 places to #1 in U.S. #17 bestcity top 25 hottestcities for in terms of growth for Innovation in the U.S. for Jobs startups in finance industry jobs, 2 nd year in a row – Forbes, 2016 – Forbes, 2014 – Fortune, 2016 – US News, 2016 Phoenix (Phx-Mesa-Glendale) is the Phoenixranked 6 th for Best Phoenix ranked 11 th leadingtech #1 city for swiping financial jobs from the big boys City for Sports Travel market on Wall Street – Hotels.com & SeatGeek, 2015 – Forbes, 2014 – CBRE, 2016 19

Demographics 1.6 M 800,989 2.3 M 33.4 4.1% Population Workforce Regional Median Unemployment Workforce Age Rate Sources: U.S. Census – 2016 ACS 1yr Estimates BLS – March 2018 20 20

Large Diverse Employment Base #1 in the Nation for Entrepreneurial Activity (Fast Company) #2 in High-Tech Software/Services Job Growth (CBRE) Top 10 Major Employers 1. Banner Health – Health Care 2. Honeywell – Aerospace 3. American Express – Financial 4. Wells Fargo – Financial 5. Bank of America – Financial 6. Fry’s Food Stores – Retail 7. JP Morgan Chase – Financial 8. Walmart – Retail 9. U Haul – Advanced Business Services 10. Amazon – e-Commerce 21

Job Creation Target Industries: Advanced Business Services Emerging Technologies International Business/ Trade Manufacturing Bio/Life Sciences Software 22

Technology Growth By the Numbers 318% Increase in Central City technology companies (1) #2 For high-tech job growth (2) #4 Best metro for Young Professionals (3) #11 Leading Tech Market (4) Sources: 1 – City of Phoenix, CEDD (2012-2017) 2 – CBRE, Tech Thirty 2016 3 – Forbes 2017 4 – CBRE, 2016 Scoring Tech Talent 23

International Business Development Top 5 Export Commodities Exports 20.3 % Electronics Products 2013-2017 Transportation Equipment Electrical Equipment $14.4 B. Machinery $14.3 B. Fabricated Metals $14.3 B. Top 5 Export Countries $13.8 B. Mexico $12.7 B. Canada South Korea China Trade with Mexico is up more than 150% UK since 2010 to $8.04B. 24

Phoenix’s Competitive Advantage Aerospace and Defense Big Data Circular Economy / Sustainability Cybersecurity Entrepreneurship Financial Services Healthcare / Bioscience Software Development Web Development Phoenix’s Competitive Advantage 25

Phoenix Has a Positive Outlook  Phoenix population of 1.6 million; 64% growth since 1990  Robust real estate recovery; median sales prices up 10.0% (Feb 2018 vs Feb 2017) 1  Phoenix MSA represents: 67% of the State’s population 2  70% of the State’s employment 3  70% of Arizona’s personal income 4  4.1% unemployment rate 3  Sources: 1 – Zillow, Feb 2018 2 – U.S. Census, 2016 ACS 1year estimates 3 – U.S. Bureau of Labor Statistics, March ‘18 4 – U.S. Bureau of Economic Analysis 26

Tourism and Forward Major Event Calendar  Phoenix Convention Center activity for the remainder of 2018:  30 Groups (over 1,000 attendees)  101,550 Attendees  164,318 Contracted Room Nights  Phoenix is home to Mega Events (2015-2017)  $1.3 billion economic impact  $1.7 million visitors to downtown Phoenix  Upcoming Major Events  2019 WWE Royal Rumble  2023 Super Bowl (bidding)  2023-2026 NCAA Final Four (bidding) Sources: ASU’s WP Carey School of Business & Phoenix Convention Center 27

PARKING OVERVIEW Jay DeWitt, C.M., Deputy Aviation Director

Parking Opportunity Overview  Sky Harbor currently provides approximately 22,500 public parking spaces and 3,500 employee spaces  The public parking spaces are divided between premium / terminal garage and economy products  Approximately 13,000 employees are permitted to park in designated employee lots throughout the airport  Total gross parking revenue ( gross = public + employee, before taxes ) for Fiscal Year 2016-17 was $86.1 million on approximately 3 million public transactions 29

Historical and Forecast Traffic Source: City of Phoenix Aviation Department, 2017 Bonds Official Statement (2017 OS). 30