Cleveland council committee approves multiple Port Control leases and adds FAA-funded airport projects to capital plan

The Transportation & Mobility Committee of Cleveland City Council on Feb. 5 approved a set of emergency ordinances allowing the director of the Department of Port Control to renew existing contracts and enter new leases at Cleveland Hopkins International Airport and to amend the airport capital improvement program to add two FAA-grant projects.

The committee approved emergency authority to: (1) exercise the second renewal option on lease CT3001LS2023010 with Prime Flight Aviation Services Inc. for about 500 square feet of office space under Concourse C to support wheelchair operations, ground handling and maintenance; (2) exercise a second option on contract PS20230167 with Recess Creative LLC for marketing, promotional and advertising services for Cleveland Hopkins and Burke Lakefront; (3) enter a new triple-net lease for Building 208 at 5851 Cargo Road with Prime Flight for office, garage and maintenance space with a one-year initial term and four one-year renewal options; and (4) amend LS20240021 with Aircraft Services International Inc., d/b/a Menzies Aviation, to clarify where heavy maintenance and disabled-vehicle repairs may occur on the airfield.

In a separate emergency ordinance the committee added two projects to the FY24–FY25 airport capital improvement plan to allow the airport to pursue FAA grants: a Taxiway Victor extension on the airfield’s west side to facilitate corporate hangar development, and a complete reconstruction of the airport wildlife fence. The assistant director told the committee the fence project covers roughly 10 miles of perimeter and estimated the cost in the tens of millions; the assistant director described the overall package discussed with the FAA as approximately thirty million dollars and said the standard FAA/local funding split of 75% federal and 25% local would apply.

Committee members asked for additional details during the legislative portion. Council members questioned how lease rates are set; the assistant director said terminal and nonterminal lease rates are set under the master airline use-and-lease agreement or by third-party appraisal for nonterminal property and that a final appraisal for the cargo-area lease had not been completed. On the Recess Creative contract, the assistant director said the contract cap is “approximately $1,100,000” and that a significant portion of the contract budget can be used for air-service incentives administered through marketing activities allowed under federal rules. When asked about the local funding match for FAA grants, the assistant director said matching funds are typically drawn from the airport discretionary funds established under the airport’s master lease with the airlines; the assistant director said that discretionary pool is set at $12 million per year under that lease.

Committee members also raised nonlegislative operational items. Council members asked the assistant director whether the airport was planning adult changing stations for passengers with disabilities; the assistant director said the master plan will include adult changing stations and that staff had identified one bathroom where an adult changing station would be installed as soon as possible while the agency studied additional locations.

All ordinances presented in the legislative portion were approved by the committee “stands approved” with no roll-call tallies given in the transcript. The assistant director said the director is authorized to exercise renewal options in existing leases where provided by the approved legislation, and that some nonterminal lease rates will be set after a third-party appraisal is completed.

The committee moved on to the informational Cleveland Moves briefing following the legislative approvals.