COMBINED WORK SESSION/SPECIAL MEETING AGENDA
ATTENTION IN-PERSON AUDIENCES AT CITY COUNCIL MEETINGS HAVE BEEN SUSPENDED UNTIL FURTHER NOTICE The meetings will continue to be live streamed on the city's website (https://www.flagstaff.az.gov/1461/Streaming-City-Council-Meetings) PUBLIC COMMENT PROTOCOL The process for submitting a public comment has changed and public comments will no longer be read by staff during the Council Meetings. All public comments will be taken either telephonically or accepted as a written comment. Public comments may be submitted to publiccomment@flagstaffaz.gov If you wish to address the City Council with a public comment by phone you must submit the following information: First and Last Name Phone Number Agenda Item number you wish to speak on If any of this information is missing, you will not be called. We will attempt to call you only one time. We are unable to provide a time when you may be called. All comments submitted otherwise will be considered written comments and will be documented into the record as such. If you wish to email Mayor and Council directly you may do so at council@flagstaffaz.gov. WORK SESSION |
1. | Call to Order
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this work session, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).
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2. | Pledge of Allegiance and Mission Statement
MISSION STATEMENT The mission of the City of Flagstaff is to protect and enhance the quality of life for all.
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3. | ROLL CALL
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4. | Public Participation Public Participation enables the public to address the council about items that are not on the prepared agenda. Public Participation appears on the agenda twice, at the beginning and at the end of the work session. You may speak at one or the other, but not both. Anyone wishing to comment at the meeting is asked to fill out a speaker card and submit it to the recording clerk. When the item comes up on the agenda, your name will be called. You may address the Council up to three times throughout the meeting, including comments made during Public Participation. Please limit your remarks to three minutes per item to allow everyone to have an opportunity to speak. At the discretion of the Chair, ten or more persons present at the meeting and wishing to speak may appoint a representative who may have no more than fifteen minutes to speak. |
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5. | Beautification and Public Art Commission Update | ||||||||
6. | Commission on Diversity Awareness Update | ||||||||
7. | Commission on Inclusion and Adaptive Living Update | ||||||||
8. | Discussion: Possible strategies and timelines for the re-implementation of the pay-to-park and permit programs for the ParkFlag District including the Downtown and Southside areas. | ||||||||
9. | Priority Based Budgeting Public Engagement Plan | ||||||||
10. | Adjournment | ||||||||
SPECIAL MEETING
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1. | Call to Order
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the City Council and to the general public that, at this work session, the City Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the City’s attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).
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2. | Consideration and Approval of Lease Amendments: Amendment of Flagstaff Airport Leases to extend rent abatement for a minimum of three (3) months or a maximum of six (6) months, due to the ongoing economic impacts of the COVID-19 pandemic; and provide direction related to rent abatement for hangar permittees. | |||||
STAFF RECOMMENDED ACTION: | ||||||
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3. | Public Participation | |||||
4. | Informational Items To/From Mayor, Council, and City Manager; future agenda item requests | |||||
5. | Adjournment | |||||
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5.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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TITLE: | |||||
Beautification and Public Art Commission Update | |||||
DESIRED OUTCOME: | |||||
Deliver an update to Mayor and Council on the Beautification and Public Arts Commission with time for questions and feedback. | |||||
EXECUTIVE SUMMARY: | |||||
Mayor and Council requested periodic updates from Boards and Commissions to occur during special work sessions during months that contain five Tuesdays. | |||||
INFORMATION: | |||||
Goal CC.5: Support and promote art, science, and education resources for all to experience. Council Goal: Economic Development: Grow and strengthen a more equitable and resilient economy. Council Goal: Community Outreach: Enhance public transparency and accessibility. |
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Attachments: | BPAC Update |
6.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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TITLE: | |||||
Commission on Diversity Awareness Update | |||||
DESIRED OUTCOME: | |||||
Deliver an update to Mayor and Council on the Commission on Diversity Awareness with time for questions and feedback. | |||||
EXECUTIVE SUMMARY: | |||||
Mayor and Council requested periodic updates from Boards and Commissions to occur during special work sessions during months that contain five Tuesdays. | |||||
INFORMATION: | |||||
Council Goal: Community Outreach: Enhance public transparency and accessibility. | |||||
Attachments: | CODA Presentation | ||
Survey Results |
7.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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TITLE: | |||||
Commission on Inclusion and Adaptive Living Update | |||||
DESIRED OUTCOME: | |||||
Deliver an update to Mayor and Council on the Commission on Inclusion and Adaptive Living with time for questions and feedback. | |||||
EXECUTIVE SUMMARY: | |||||
Mayor and Council requested periodic updates from Boards and Commissions to occur during special work sessions during months that contain five Tuesdays. | |||||
INFORMATION: | |||||
Council Goal: Community Outreach: Enhance public transparency and accessibility. | |||||
Attachments: | CIAL Presentation |
8.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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TITLE | |||||
Discussion: Possible strategies and timelines for the re-implementation of the pay-to-park and permit programs for the ParkFlag District including the Downtown and Southside areas. | |||||
STAFF RECOMMENDED ACTION: | |||||
Listen to strategies and options, and discuss the most favorable methodology and timeline for the re-implementation of the pay-to-park and permit portions of the ParkFlag program.
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EXECUTIVE SUMMARY: | |||||
The pay-to-park and permit portions of the ParkFlag program were suspended by emergency proclamation on March 16, 2020, in response to the Covid-19 pandemic. ParkFlag staffing was reduced by half, and remaining staff has worked to maintain carry-out zones for businesses, enforce Title 9 of the Parking Code (ie ADA parking, parking in bike lanes, unsafe parking, etc), sanitize high-touch public spaces in the Downtown, plant flowers, and prepare sanitizer wipes for outdoor tables. The City has received numerous requests to bring back the pay-to-park and permit program in the ParkFlag District. After discussion with the Downtown Business Alliance (DBA), their Master Plan consultant Progressive Urban Management Associates (PUMA), and other stakeholders, staff is bringing this information and these options forward for Council discussion. The number of options and possibilities for re-implementation involve significant detail. Thus the intention is to address the discussion in three focus areas.
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INFORMATION: | |||||
ParkFlag Parking Management Program priorities are: 1) the management of parking in both the Southside and in the Downtown to enhance the resident experience and to further the prosperity and activation of the Downtown commercial area and, 2) the generation of revenues for use in developing more parking inventory and to pay for necessary enforcement. February 2020 changes to ParkFlag program: In February 2020, Council approved several changes in the ParkFlag program. These changes were not fully implemented because affected programs were suspended in March. The Council directed the following reduced paid parking hours, designed to be easier to remember: Sunday - Thurs: 9 AM - 5 PM Friday and Saturday: 9 AM - 8 PM Council also approved reducing the cost of employee permits from $45/month to $10/month. Plans are moving forward for two new surface lots providing parking inventory before the end of the year. ParkFlag since March 16: ParkFlag has been operating with half staff, but has been helping the community by::
Parking inventory counts have shown occupancies in the 70-90% range. Optimal parking is often understood to have occupancy of 80% which allows for the public to have access to available spaces but with a high number of people in the space. In fact, a number of businesses have mentioned that it has gotten back to or worse than before the program was originally implemented. Discussions with PUMA and the DBA have led staff to believe that re-implementation of the pay-to-park and permit parking earlier rather than later would be beneficial. PUMA reports that all other communities they are working with have re-implemented their pay-to-park programs already. While not everyone appreciates the parking program, it has been, and will continue to be, beneficial for the prosperity of the district. Further discussions with DBA and a brief presentation to the board in late June with a request for feedback showed some diversity of opinion on how and when to start the program back up, but to wait a bit longer than August. Changes to the course of the pandemic and the business cycle are quite concerning and hard to predict, but the return of visitors and students along with other changes are leading to the need for managed parking. While not comprehensively surveyed, Southside residents who have been asked, or who have reached out proactively, have generally stated they would prefer parking management sooner rather than later. Since the ParkFlag program was suspended in March, the program has been losing almost $100,000 a month in revenue. This revenue is used to pay for ParkFlag operational expenses. Also, a portion of the monthly revenue is set-aside for inventory development (often referred to as the lock-box). The lock-box fund has $700,000 in reserves and would be close to, or above, $800,000 if not for the pandemic. While the program funding is not the main reason to re-implement, it is important to note that lack of revenue will make it difficult to not only build additional parking, but also to pay the debt service and other long-term costs that are the City's responsibility. More extended lack of revenue could also lead to further program reductions which will make it much more difficult to re-implement. ParkFlag - The Initial Return While some businesses have asked for ParkFlag to return as soon as possible, others feel it is important to wait until the pandemic is over or until a time in the Spring. Major concerns expressed have been that parking needs to be managed and that the current situation is detrimental to residents and businesses, but that the business environment remains fragile and some businesses feel a concern that local residents may be less likely to come Downtown if the pay-to-park portion of ParkFlag returns. Some options include:
1. Implementing the current program in October is simple and effective. It allows parking to be effectively managed and follows the Administrative Guidelines and previous Council policy. It may have an impact on local participation at businesses in a time when the Summer crowds are less significant and the expanded use of the right-of-way is being removed. 2. Implementing the current program at a later date is also simple. It uses the current model but waits until a future date to avoid any possible unintended impacts on business. One consideration is that without revenue the ParkFlag program will not be able to continue sustaining its infrastructure and make its necessary debt payments indefinitely. It is believed funds can sustain the program until March 1 if we begin collecting full revenue at that point. 3. Implementing the program with the free time period in October works to begin effectively managing the parking inventory and correcting parking behaviors while continuing to welcome locals downtown with a free parking time period. People will still need to use the kiosks, but a free portion of time will be provided with additional time requiring payment. This will begin to generate revenue again, but will not likely be enough to sustain the program long term. 4. Implementing the program with a free time period at a later date also seeks to manage the inventory, but allows for another period of time with ParkFlag suspended. This could be through the holiday shopping season or even into the Spring. This would potentially support shopping as Fall and the holidays approach and avoid the perception that ParkFlag re-implementation results in declining sales which may have naturally occurred in the Fall regardless. According to current recession plans the program would need to be implemented by January 1, 2021 to avoid risking structural financial concerns. ParkFlag Ongoing 1) Should the Council choose to implement in October as the program is the program is anticipated to be self-sustaining. 2) Should the Council choose to implement at a later date the program should be self-sustaining if that re-implementation occurs in the Spring prior to fund balances becoming too low. There is risk of structural financial concerns if the program has not been re-implemented before March 1. 3) Should the Council choose to implement in October with a free time period, the funds will provide additional time before the program has structural issues, but likely additional changes would be required at some point to be self-sustaining:
In summary, there are numerous options for how and when is best to re-implement the ParkFlag program and many factors involved. Many stakeholders believe management needs to occur as soon as possible. Others fear it will harm their already fragile business. It is not clear when the pandemic will no longer be a factor, but until then Fall and Winter will have reduced business for the Downtown because the weather will impact outdoor seating. Resources exist to continue without revenue into the Winter, but the ongoing costs and the debt cannot be maintained indefinitely and projections show significant concerns if the program does not return before March 1. |
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Attachments: | ParkFlag Council Presentation 92220 |
9.
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CITY OF FLAGSTAFF | |||||||||||||
STAFF SUMMARY REPORT | |||||||||||||
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TITLE | |||||
Priority Based Budgeting Public Engagement Plan | |||||
STAFF RECOMMENDED ACTION: | |||||
Give feedback on the PBB Public Engagement Plan and approve staff to proceed with the deployment of the community input survey.
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EXECUTIVE SUMMARY: | |||||
In May of 2019, the City of Flagstaff embarked on a journey to implement Priority Based Budgeting (or PBB). PBB is a leading best practice in municipal government budgeting and allows cities to re-envision how they utilize their budgets. Specifically, PBB enables cities to measure investments in priorities, create programmatic insights, and identify opportunities for future action. PBB also offers an array of opportunities for public engagement in the city’s budgeting process. In order to achieve a greater public understanding of PBB and involvement in the City’s budgeting process, the PBB Project Team has drafted a 3-part plan to elicit meaningful and diverse input from Flagstaff residents. 1. The first phase of the PBB Public Engagement Plan will be comprised of animated videos that provide an educational overview of what PBB is and how it will improve the City's budgeting process. These videos will be disseminated widely to the public and will help to create a foundational knowledge of PBB within the community. Council will be able to view a clip of these videos during the Council meeting. The final videos will be completed by the end of September. 2. Building on this foundational knowledge, the second phase of the PBB Public Engagement Plan is comprised of a community input survey intended to both inform and provide an opportunity to update the objectives under each of the seven Key Community Priorities that the Council established in September of 2019. This survey will be hosted on Community Forum and will allow residents to suggest edits to existing objectives or suggest new objectives to be added. An extensive dissemination plan has been created for the survey, including a Community Forum announcement, social media posts, an email to over 180 community organizations (the full Community Stakeholders Email Distribution List is attached to this agenda item), business license holders with an email on file, municipal billing customers with an email on file, the distribution of paper copies of the survey accompanied with stamped and addressed return envelopes and a newspaper advertisement. The survey will also be translated into Spanish. Staff has also made edits to the objectives to reflect prominent recent events and significant Council discussions (i.e. Council’s declaration of a climate emergency, discussions on policing practices, and general considerations of equity). These edits will be detailed for Council’s approval during the meeting. In order to prioritize the objectives, Staff first needs to launch the PBB community input survey, gather feedback from the public, and take the updated objectives back to Council for approval (scheduled for November 10). After final approval of the updated objectives, the Council can prioritize the objectives and this data can be used to further guide budgetary decision-making. 3. Utilizing the updated objectives, the third phase of the PBB Public Engagement Plan will entail a small group of Flagstaff residents participating in the “peer review” process of PBB. This step will enable participating residents to sit alongside staff and collaboratively review, and if necessary, change, the scores of each City program. These scores make up the dataset used to prioritize the City’s programs and services rendered to the community. It is envisioned that the PBB Public Engagement Plan, comprised of the three phases specified above, will provide Flagstaff residents with multiple avenues for education on and participation in the City’s budgeting process. PBB is also part of a longer journey to Higher Performing Governance. After the implementation of PBB, City leadership envisions creating a strategic plan and continue to expand the use of the PBB tool in the alignment of budgeted dollars with Key Community Priorities and Objectives. |
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INFORMATION: | |||||
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Attachments: | Presentation | ||
Community Stakeholders Email Distribution List | |||
Council Approved Priorities & Objectives |
2.
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CITY OF FLAGSTAFF | |||||||||||||||
STAFF SUMMARY REPORT | |||||||||||||||
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TITLE: | |||||
Consideration and Approval of Lease Amendments: Amendment of Flagstaff Airport Leases to extend rent abatement for a minimum of three (3) months or a maximum of six (6) months, due to the ongoing economic impacts of the COVID-19 pandemic; and provide direction related to rent abatement for hangar permittees. | |||||
STAFF RECOMMENDED ACTION: | |||||
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Executive Summary: | |||||
On June 2, 2020 City Council approved rent abatements for all our airport lessees for rent abatements from April 1, 2020 to September 30, 2020, and approved rent abatements for hangar permittees. After consultation with the Airport Commission, the Airport Manager approved rent abatements for all hangar permittees during this time period as allowed by City Code. Many tenants and hangar permittees are still experiencing financial hardship due to the COVID-19 impacts on the airline industry. Flagstaff Pulliam Airport has seen major decreases in enplanements which has continued to impact our commercial airlines, rental car tenants, Transportation Security Administration (TSA) staffing levels, fuel sales, and more. Air service is still down over 65% on average per week. An example of the hardship is noted through a recent article on American Airlines where the airline is looking to cut service to 30 communities. American Airlines recently announced it will be cutting services in 15 cities to help with the revenue short falls. One way it is determining what city will lose service is lack of enplanements. The Flagstaff Pulliam Airport is currently having short falls on filling seats, but have shared with our airline partners the work we do to market the airport and fill seats. This has been a plus in our relationship, as well as the rent abatement that was already offered to our partners. Please note that government agencies were and will be excluded. As drafted, lease amendments will require pass through of the rental abatement savings to the subleases known to be operating their businesses at the Flagstaff Pulliam Airport. All proposed lease amendments will be attached prior to the September 22, 2020 Council Agenda, along with a sample rent abatement for hangar permittees. |
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Financial Impact: | |||||
If rent abatement for six (6) months (maximum) is approved, City staff estimates the Flagstaff Airport will not receive airport lease revenues of approximately $400,000 and hangar/general aviation revenues of approximately $220,000. If approved for three months, we are basically taking these figures and cutting them in half. As you know, the Flagstaff Pulliam Airport will be receiving and $18.1 million CARES (Coronavirus Aid, Relief, and Economic Security) Act federal grant which can be used to pay for airport operational expenses. City will have increased operation expenses as a result of the rent abatements. The $18.1 million CARES ACt grant award amount Flagstaff is receiving was derived from the fact we offer commercial airline service. Our commercial service is met through our airline partners, American and United Airlines and involves the increase in our overall emplanements we experienced in 2019 and hope to experience in the future. Other smaller airports in Arizona, that only do not have commercial air service, also received monies, but they were not in the realm of millions. With that said, it is important to note that having this commercial service currently has helped the Flagstaff Pulliam Airport with receiving the larger grant amount. The Flagstaff Pulliam Airport plays a critical role in offering a multi-model transportation system in our community for both leisure and business travel. It is vital to sustain our community business partners future with air service that includes multiple destinations. This grant funding will help us pay for staff wages, benefits, terminal upgrades, hangar improvements, and much more. Staff is brining forward the rent abatement extensions at this time as it is crucial to airport tenants in determining next steps and services they can or can't offer at the airport moving forward. |
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Policy Impact: | |||||
A decision to abate rents (including "minimum annual guarantees" and encompassing fees) is a local decision. Rent abatement will be tied to the changed circumstances caused by COVID-19 public health emergency.
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Connection to PBB Key Community Priorities/Objectives & Regional Plan: | |||||
Goal: Transportation and Other Public Infrastructure: provide Airport infrastructure to enhance tenant and patron experience and secure second airline. | |||||
Has There Been Previous Council Decision on This: | |||||
Yes. at the May 19, 2020 City Council meeting staff proposed that the City abate rents for American Airlines, United Airlines, the rental car agencies, and the cafe operation out of the Flagstaff Airport. At that meeting the City received public comments from several of our hangar permitees, who pay to park their private airplanes at the Airport. Some expressed that their businesses were also suffering, and some expressed that the hangars need repairs. As a result the Council postponed the rent abatement discussions to June 2, 2020 and request that staff consider more rent abatement options. Also per Council direction the proposed lease amendments no longer include a provision allow the City Manager to extend the rent abatement period. At the June 2, 2020 City Council meeting, City Council approved a 6 month rent abatement for all airport tenants and for hangar permittees. |
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Options and Alternatives: | |||||
Taking into consideration business request and the continued slow return of passenger enplanements, staff is requesting City Council look at the following options. Option 1: Approve the COVID-19 Rent Abatement for an additional three (3) months only to all airport tenants. Option 2: Approve the COVID-19 Rent Abatement for an additional six (6) months only to all airport tenants. Option 3: Not approve the COVID-19 Rent Abatement for all airport tenants. |
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Background and History: | |||||
On January 31, 2020 U.S. Secretary of Health and Human Services declared a public health emergency as a result of The COVID-19 pandemic; on March 11, 2020 Arizona Governor Douglas Ducey declared a state public health emergency, and on March 15, 2020 Flagstaff Mayor Coral Evans declared a local public health emergency. In April 2020 airline passenger traffic through the Flagstaff Pulliam Airport practically ceased due to COVID-19 pandemic, causing an associated decline in flight revenues. Though there has been a small increase in passengers flying in and out of Flagstaff Pulliam Airport, the aircraft are operating at or below 39% load factors. This is not a prolonged sustainable business plan for our airline partners. On April 4, 2020 the Federal Aviation Administration ("FAA") issued "Information for airport sponsors considering COVID-19 restrictions or accommodations" which states that "a decision to abate rent... is a local decision" and provides guidance for any abatement. The Guidance that airports are "encouraged to consider the business situation of the tenant; the changed circumstances created by the public health emergency; the desirability of having solvent tenants that can resume normal operations when the emergency ends; The availability of other governmental or insurance relief that such relief; and possible subsequent conditions that, if triggered, would end the abatement. " The FAA Guidance also "encourages sponsors to carefully balance and consider the equites between all airport users." |
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Key Considerations: | |||||
The City of Flagstaff Economic Vitality Division has been working for years to secure a second airline for our community as well as increase routes overall. This has been accomplished through attending several airline conferences, asking for airline corporate meetings, creating three major marketing campaigns that wer both inward and outward facing, and working wth our top 20 employers on their continued growth. All these factors played into receiving and additional route to Dallas/Fort Worth and a seasonal route to Los Angeles from American Airlines and ar Route to Denver with United Airlines joining our airport family. It's important to keep these routes intact and to continue our outreach to secure additional routes with these partners. Our rental car agencies support the airlines daily and increase their hours of operation and fleet to accommodate these changes in our routes and schedules. This second rent abatement will provide much needed relief to our current tenants so when the circumstances improve, the Flagstaff Pulliam Airport can go back to normal operations and support our local businesses with much needed air service, creation of jobs, and revenues. | |||||
Community Involvement: | |||||
This rent abatement will assist our goal in keeping our tenants solvent to ensure that the airport can remain open and operating safely. The airport will continue to be ready to assist our local businesses, residents, and visitors ongoing. | |||||
Attachments: | Enplanements Report 2020 | ||
Flagstaff Pulliam Airport Rent Abatement Discussion | |||
Aircraft Storage Permit | |||
Lease Pulliam | |||
Lease Pulliam II | |||
Lease Pulliam III | |||
Lease Pulliam IV | |||
Lease Pulliam V | |||
Lease American | |||
Lease United | |||
Lease Wiseman I | |||
Lease Wiseman II | |||
Lease Thompson | |||
Lease Guardian I | |||
Lease Guardian II | |||
Lease Avis Budget | |||
Lease Hertz | |||
Lease Enterprise | |||
Lease Alamo | |||
Lease Air Cafe |