Fort [PDF]

Greater Dallas Planning Council November 14, GREATER 2014DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

John Terrell Vice President, Commercial Development Dallas/Fort Worth International Airport

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Texas & the Dallas-Fort Worth Population is Large

Sources: U.S. Census Bureau, Table 5. Estimates of Population Change for Metropolitan Statistical Areas and Rankings.

2

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Business Overview Operations

 A major component of the U.S. aviation infrastructure  The central North American location is within 4 hours of any major city in the U.S., Mexico and Canada

 The world’s fourth busiest and fastest growing  More than 1,800 flights daily to 200 worldwide destinations  Recognized as the best airport in its class for customer service

 Focal point of the Aerotropolis

3

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW Airport Overview Jointly owned by the cities of Dallas and Fort Worth, DFW Airport has built a huge infrastructure and still has room to grow.

4

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Host Cities

Coppell

Euless Irving Grapevine

Grapevine

Coppell

Irving

Euless

5

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW: Connecting The World

Commercial Development opportunities play a key role in DFW’s future  $36.6 million in revenues for fiscal year 2013.

6

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW Land Use Plan Supports goal to be more competitive in the global travel market by developing a multifaceted center of commerce.



Approximately 6,600 acres of developable land



More than 5,200 gross acres of property will emerge into multiple centers of development



Strategic location between Dallas and Fort Worth and proximity to a network of highways provide commercial developers with numerous key advantages

7

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW Land Use Plan Core Business Operations

RUNWAYS

AVIATION MAINTENANCE FACILITIES

TAXIWAYS

12,000 acres maintained for core business operations

CARGO DEVELOPMENT

AVIATION RELATED USES

8

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Commerce Park

Developable Land Area DFW Investment Developer Improvement Jobs Salaries

432 acres $37M $247M 3,219 $131M

Annual Revenue to DFW Airport

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Aviall, Inc. at International Commerce Park (ICP)

EXPANSION BENEFITS  Largest Grown its independent business exponentially: provider of new aviation parts and related aftermarket services  Increase its taxable business personal between million and $60 Wholly  Increasing owned subsidiary sales fromof$506 The Boeing millionproperty in Company 2001 value to $3.22 billion $25.5 in 2010 million  Relocated toexpansion ICP in November 2001 square feet to 564,000 square feet, with 630,800  Facility from 239,000  Increase Freeport inventory value between $225 million and $580 million square feetfoot of additional  245,000 square corporatespace headquarters and global distribution center  Additional $20.6 million payroll annually 10  move Employees from 340 adding an additional 300 jobs  The to ICPincreased doubled the size of to its800, previous space  Between 200 and 500 hotel room nights annually

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Dallas Cowboys Merchandising at International Commerce Park

11

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Southgate Plaza

12

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Southgate Plaza

 Retail, Restaurant, Hotel, and Office  Modern architecture and sustainable design  Vertically dense and walk-able

 Rental Car Facility proximity  Integrated Flight Information Display System (FIDS)

13

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Southgate Plaza Hyatt Place Conceptual Images

14

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW as an Airport City

Types of development  Hotels

Hyatt Regency DFW Adjacent to Terminal C

Grand Hyatt DFW Inside International Terminal D

15

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Paradise 4 Paws High end dog and cat resort and daycare facility.

16

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Grapevine 1100 Acres Economic Analysis Transform DFW Airport from a “facilitator” to a “driver” of regional tourism

The ‘1100 Acres’

‘Themed’ Destination

17

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Founders’ Plaza Center adjacent to the Airport Observation Area

    

Southern termination of Texan Trail enhanced corridor Viable development opportunity with approximately 200,000 vehicles per day Mixed Use envisioned as Freeway Commercial Hospitality, Entertainment, Retail and Themed developments Educational, Office and Industrial 18

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Founders’ Plaza Center Site Concept and Renderings

19

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Initiatives Passport Park  Southern DFW Gateway  Mixed use development

 Convenient Access to SH 183  Highly Visible from SH 161  500,000± Square Feet Retail  Office and Warehouse components

20

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

 Approximately 1,800 acres on the south west side of the Airport  Two 18-hole championship golf courses  Premier opportunity for corporate campus office  Abundant green space and surrounding water features

21

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

• • •

Terminals A, B, C and E Re-life – 30 year investment 60-70% required to replace aging infrastructure and meet DFW core obligations Address Regulatory and Code requirements Improved Ticketing, Security Checkpoints, and Baggage Handling systems to enhance operational efficiencies

• •

New vertical core with high capacity elevators Curbside enhancements could include: • • •

• •

New entry canopy Cover pedestrian crossing at main entrances Signage

Garage refurbishment at Terminals B, C and E Garage replacement at Terminal A 22

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

• 5 levels • Roughly 7,700 parking spaced • Counting System • Elevators • 3 million square feet • Improved lighting and signage • New Roadway system • ADA accessible on most levels • Emergency Call Boxes

23

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

• Reconfigure ticketing areas • Incorporate new selfservice technologies • Provide premium check-in • Increase passenger flows • Create sense of place • Increase natural light • Consolidate and expand checkpoint • Incorporate TSA future technology requirements • Rolling out improved technology to improve passenger flow • Systems back-up support

24

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

• Part of DART’s Orange I-3 Line • Station is located between International Parkway and the Northbound Service Road adjacent to Terminal A • Began operational service in August 2014 • Similar TexRail station is located adjacent to Terminal B

25

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW as an Airport City Mass-transit rail service is now operating at DFW’s terminal area to optimize connectivity.

DFW AIRPORT A/B STATION

26

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW as an Airport City In 2006, DFW signed an historic agreement with Chesapeake Energy Corporation to drill for natural gas on its 18,000 acre-property.

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

The Future of DFW Airport Five major highways converge at the Airport, making it one of the mosttraveled sectors in the Metroplex. Two major roadways projects are underway near the Airport – The DFW Connector and the North Tarrant Express projects.

28

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Tax Sharing Agreements History 

Since 1999, DFW has successfully achieved tax-sharing arrangements as a result of inter-local agreements and legislation collaboration with the Owner Cities.



“The Cities of Dallas and Fort Worth and the Board agree that as a result of this Agreement, development opportunities within the Property which are consistent with the development policies of the Board, shall be encouraged.”

Benefits 

Generates tax revenues for the Owner Cities



Increases economic development and creates job opportunities



Provides an equitable distribution of tax revenues (Dallas, Fort Worth and the host city)

Quote Source: Interlocal Agreement

30

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Business Model Analysis Tax Sharing Arrangements

Coppell

Euless Tax Share Agreement Irving Tax Share Agreement Grapevine legislative tax-sharing arrangement Coppell Tax Share Agreement

Grapevine Irving

Euless

Total annual tax contribution to taxing entities +/- $63,000,000

31

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Business Model Analysis Development Districts Map

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Total Stabilized Annual Cash Flow (2038) 1

Total Cumulative Revenues

NPV of Revenues at 8%

$261,315,703

$15,431,436,527

$2,268,021,502

Total Stabilized Annual Cash Flow (2038) 1

Total Cumulative Revenues

NPV of Revenues at 8%

Fort Worth

$40,355,493

$1,927,528,913

$376,916,759

Dallas

$64,922,557

$3,190,144,169

$599,570,167

All Other Taxing Entities

$411,743,765

$19,136,862,314

$3,713,842,881

TOTAL REVENUES

$778,337,517

$39,685,971,924

$6,958,351,308

Revenues To: DFW

Revenues To:

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Economic Development Council (IEDC) 2013 Investment Attraction Strategy

 Target Industry Study  Market Trends  Site Selection Factors  Sector Targets

 Targeted Geography    

Direct Air Routes Growth Rates U.S. Investment Trends Logistics / Synergies

 Communication / Collaboration    

Owner Cities Regional / Economic Developers Regional Businesses Universities

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Economic Development Council (IEDC) 2013 Conclusions of Study

 It will be critical for DFW Airport and the Dallas-Fort Worth region to approach strong industry/sector and geographic targets identified in Study

 DFW Airport should play a strong leadership role as it has natural relationships, synergistic business objectives and prime assets  DFW Airport and its Owner Cities should jointly communicate the benefits of the region and airport

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Economic, Fiscal and Developmental Impacts

 Detailed examination of impacts from:        

Airport Operations Commercial Airlines Operations Concession Sales Impacts Visitor Spending Business Activities of Airport Tenants Regional Business Impacts of Air Cargo Total Economic and Fiscal Impacts of Recurring Operations Future Development of Airport Land

Headquarter Relocations to DFW 2010-2014

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Annual Economic Impact

$31.6 Billion

Jobs Supported

143,000

Annual Supported Payroll

$9.4 Billion

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

DFW Global Business Ventures

 International Airport Partnerships  Foreign Trade Zone Program  International Trade Alliances

39

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Airport Partnerships DFW Airport seeks to gain best practices through information sharing, collaboration, and working relationships with airports around the world.  Airport Management/Operations  Customer Service  Sustainability  Route Development  Marketing Opportunities  International Awareness

40

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Airport Partnerships  Shanghai Airport Authority (China) – Oct. 2008

 Taoyuan International Airport (Taiwan) – Dec. 2011  Seoul Incheon International Airport (S. Korea) – Sep. 2012  Singapore Changi Airport Group (Singapore) – Sep. 2013  Beijing Capital International Airport (China) – Sep. 2014  Moroccan Airports Authority (Morocco) – Oct. 2014 41

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Airport Partnerships Friendship Cooperatives, Sister Airport Alliances, Partnerships, MOUs  To boost global awareness of each airport, and produce opportunities for passenger and cargo service  To enhance cooperation, share knowledge, and improve practices  To share best practices in customer service, operations, safety, technology, air service development, sustainability, amenities, etc.  To promote marketing cooperative opportunities  To exchange expertise in areas of firefighting, rescue and evacuation operations, to ensure operational and safety excellence

42

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Airport Partnerships DFW Fire Training Research Center – a World-Class Fire Training Program

43

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Foreign Trade Zone Program DFW’s On-Airport FTZ  2,400 acres/971 hectares on-Airport  Pre-designated as FTZ  Companies can simply activate with Customs

 45 buildings, 10 million sq. ft. of warehouse space is FTZ-designated

 New industrial development underway  FTZ acreage can easily be moved to accommodate companies

Note: DFW serves as Grantee of FTZ No. 39 serving Port of Dallas/Fort Worth

44

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Foreign Trade Zone Program  Physically located within U.S., but treated as outside U.S. Customs territory – enabling U.S. firms to successfully compete with foreign counterparts  Economic Benefits:  No duty on imports until they leave FTZ for domestic destination  No duty on items brought into FTZ and exported (these items never enter Customs territory)

 Manufacturing FTZs can elect lower duty rate – component part or finished product  No state and local personal property tax  Imported inventory, or  Domestic inventory held for export

 Other logistical and process savings 45

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Trade Alliances Free Trade Zone Alliances  Dubai Airport Freezone Authority (UAE) – Mar. 2012  Farglory Free Trade Zone (Taiwan) – May 2013

46

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Trade Alliances Free Trade Zone Alliances  To expand trade and business through effective, collaborative and innovative approach to free trade zone management  To exchange expertise to benefit business and develop new opportunities in the global markets  To support existing and future air service between countries  To share best practices, participate in joint marketing opportunities

47

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

International Trade Alliances Trade Alliance with Aeropuerto Internacional de Monterrey (OMA MTY)  Agreement signed on February 27, 2014  Purpose: To increase air cargo flow between the airports, around the world  OMA comprises thirteen airports, of which Monterrey is the largest  Strategic location – industrial heartland of Mexico  Creates opportunities for increased cargo traffic between Central and South America and Asia through DFW  Capitalize on synergies resulting from air and truck service between DFW and Monterrey  Stimulate commercial development opportunities by identifying new developers and companies with cargo needs 48

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Commercial Development Website: www.dfwairport.com/landhere Translated into 80 Languages

49

GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Greater Dallas Planning Council November 14, GREATER 2014DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

John Terrell Vice President, Commercial Development Dallas/Fort Worth International Airport