Commission approves four renovation options for vacant terminal office to use in marketing
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Summary
City staff presented four rough cost estimates for refurbishing a 163-square-foot former FedEx office in the terminal. The commission approved using those options for marketing to prospective tenants, with the expectation a tenant would likely pay for improvements.
The Airport Industrial Park Advisory Commission voted to approve four design-cost options to market a vacant office space in the airport terminal, staff said at the Aug. 18 meeting.
Staff presented four preliminary options and cost estimates for the 163-square-foot former FedEx office and adjacent space. Estimates provided by a contractor (T. R. Orr) ranged roughly from $68,000 for basic refurbishment to about $74,000 for a similar scope that adds an extra door; an option to remove a wall and merge the space with the pilot lounge had a roughly $72,000 estimate. Staff emphasized the figures are very rough and would require an as-built, detailed bidding process to firm costs.
Why it matters: Staff said marketing multiple build-out options would help during lease negotiations: if a prospective tenant signs a letter of intent, the tenant would likely carry out improvements rather than the city, and staff can provide the cost estimates as a starting point. Commissioners said that spending airport funds for those improvements would not be their preferred outcome unless necessary.
Details presented by staff included site constraints that drive costs: low drop ceilings (just over 6 feet in places), aging drywall, exposed electrical and HVAC above the ceiling panels, mismatched hallway finishes, and a nonstandard exterior door that swings interior and is shorter than standard. Staff identified primary cost drivers as replacing drywall and interior paint, electrical and HVAC upgrades, ceiling work, new flooring to match the terminal, and bringing the exterior door and frame up to standard.
Staff said there are potential tenants interested in the space; the city normally obtains an appraisal before setting a rental rate and typically waits for a letter of intent (LOI) before ordering detailed tenant-improvement bids. Commissioners asked whether the office would retain access to the pilot's lounge under various options; staff clarified option 1 does not provide lounge access and is the least expensive.
Formal action and next steps: The commission moved, seconded and approved a motion to accept the four options for marketing and planning purposes. Staff will use the options and the contractor's rough estimates to market the space; if a business signs an LOI, staff will seek an appraisal and proceed to detailed bids or require tenant-funded improvements.
Ending: Commissioners noted the city has previously declined to fund similarly costly improvements when payback periods were long, and several said tenant-funded build-outs would be the preferred path forward.
