Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Building 63 Build Out Finance And Planning topic
No spam. Unsubscribe anytime.
Commission asks finance subcommittee to produce ROI and demand analysis before Building 63 build-out RFP
Summary
Commission members agreed to have the finance subcommittee assemble a financial return-on-investment analysis and for staff to provide demand data before deciding whether to issue an RFP to build out four units in Building 63.
Commissioners asked the finance subcommittee to compile a financial analysis and return-on-investment (ROI) case to guide a decision on whether to proceed with a build-out of Building 63 at Grosse Ile Airport.
Manager Janelle said designer Daniel Bogg prepared construction drawings for roughly 1,900 square feet to build four additional units in Building 63. Janelle reported a rough construction estimate of about $350,000 under the latest drawings. Commissioners did not vote to start an RFP; instead they asked the finance subcommittee to assemble vacancy, inquiry and revenue figures and to calculate an ROI so the commission can present a financial case to the township if external funding or a township commitment is needed.
Commission member Greg Bridal urged the finance subcommittee to document how prior investments returned revenue, noting that FAA and MDOT consider local financial commitment and retained earnings when evaluating grant applications. Bridal said a demonstrated financial investment and retained earnings make the airport more competitive for runway and taxiway grants. "It reaffirms to the FAA and MDOT that Grosse Ile is committed to the success of the airport as a community-friendly facility," Bridal said. He recommended the subcommittee present both historical returns and projections before moving forward with solicitations for construction pricing.
Commission member Hornby agreed to lead or assist the finance subcommittee on the analysis. Manager Janelle was asked to include data on space demand and inquiries in the subcommittee’s report. Commissioners said they want a clear funding path — whether through retained earnings, township support, or external grants — before authorizing contractors to prepare competitive bids.
No RFP or contract was authorized at the meeting; the commission’s next step is the finance subcommittee report, to be brought back to the commission for a decision.
