[PPT] - Dallas/Fort Worth International Airport GREATER DALLAS PLANNING PowerPoint Presentation

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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

November 14, 2014

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Texas & the Dallas-Fort Worth Population is Large

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

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014 3

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

Business Overview

Operations

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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.

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Host Cities

Euless

Irving

Coppell

Grapevine

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DFW: Connecting The World

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

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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

f highways provide commercial

developers with numerous key advantages

DFW Land Use Plan

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

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RUNWAYS TAXIWAYS AVIATION RELATED USES CARGO DEVELOPMENT AVIATION MAINTENANCE FACILITIES

12,000 acres maintained for core business

perations

DFW Land Use Plan

Core Business Operations

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International Commerce Park

Developable Land Area 432 acres DFW Investment $37M Developer Improvement $247M Jobs 3,219 Salaries $131M

Annual Revenue to DFW Airport

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EXPANSION BENEFITS

Increase its taxable business personal property value between $25.5 million and $60

million

Increase Freeport inventory value between $225 million and $580 million
Additional $20.6 million payroll annually
Between 200 and 500 hotel room nights annually

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Commercial Development

Aviall, Inc. at International Commerce Park (ICP)

Grown its business exponentially:
Increasing sales from $506 million in 2001 to $3.22 billion in 2010
Facility expansion from 239,000 square feet to 564,000 square feet, with 630,800

square feet of additional space

Employees increased from 340 to 800, adding an additional 300 jobs
Largest independent provider of new aviation parts and related aftermarket services
Wholly owned subsidiary of The Boeing Company
Relocated to ICP in November 2001
245,000 square foot corporate headquarters and global distribution center
The move to ICP doubled the size of its previous space

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Commercial Development

Dallas Cowboys Merchandising at International Commerce Park

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Commercial Development Initiatives

Southgate Plaza

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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)

Commercial Development Initiatives

Southgate Plaza

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

Southgate Plaza

Hyatt Place Conceptual Images

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Hyatt Regency DFW

Adjacent to Terminal C

Grand Hyatt DFW

Inside International Terminal D

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DFW as an Airport City

Types of development  Hotels

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Paradise 4 Paws

High end dog and cat resort and daycare facility.

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‘Themed’ Destination The ‘1100 Acres’

Transform DFW Airport from a “facilitator” to a “driver” of regional tourism

Commercial Development Initiatives

Grapevine 1100 Acres Economic Analysis

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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

Commercial Development Initiatives

Founders’ Plaza Center adjacent to the Airport Observation Area

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Commercial Development Initiatives

Founders’ Plaza Center Site Concept and Renderings

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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

Commercial Development Initiatives

Passport Park

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Approximately 1,800 acres on the south

west side of the Airport

Two 18-hole championship golf courses
Premier opportunity for corporate campus
ffice
Abundant green space and surrounding

water features

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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

perational 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

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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

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Reconfigure ticketing areas
Incorporate new self-

service 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

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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

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DFW AIRPORT

A/B STATION DFW as an Airport City

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

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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.

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

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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

Tax Sharing Agreements

History

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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

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

Business Model Analysis

Tax Sharing Arrangements Coppell Tax Share Agreement

Euless Irving Grapevine Coppell

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Business Model Analysis

Development Districts Map

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Revenues To: Total Stabilized Annual Cash Flow (2038) 1 Total Cumulative Revenues NPV of Revenues at 8% DFW $261,315,703 $15,431,436,527 $2,268,021,502 Revenues To: 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

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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

International Economic Development Council (IEDC)

2013 Investment Attraction Strategy

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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 International Economic Development Council (IEDC)

2013 Conclusions of Study

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GREATER DALLAS PLANNING COUNCIL – NOVEMBER 14, 2014

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

Economic, Fiscal and Developmental Impacts

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Headquarter Relocations to DFW 2010-2014

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Annual Economic Impact

$31.6 Billion

Jobs Supported

143,000

Annual Supported Payroll

$9.4 Billion

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DFW Global Business Ventures

International Airport Partnerships
Foreign Trade Zone Program
International Trade Alliances

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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

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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

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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
pportunities
To exchange expertise in areas of fire-

fighting, rescue and evacuation

perations, to ensure operational and

safety excellence

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International Airport Partnerships

DFW Fire Training Research Center – a World-Class Fire Training Program

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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

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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

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International Trade Alliances

Free Trade Zone Alliances

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

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International Trade Alliances

Free Trade Zone Alliances

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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

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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

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Capitalize on synergies resulting from air

and truck service between DFW and Monterrey

Stimulate commercial development
pportunities by identifying new developers

and companies with cargo needs

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Commercial Development

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

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