WEBVTT 00:00:00.000 --> 00:00:10.000 So it's 1102, Brian's going to be a little bit late, can you ask me to go ahead and start if that's okay. 00:00:10.000 --> 00:00:18.000 It is welcome, Economic Development Partnership Board, it's Wednesday, January 14th. 00:00:18.000 --> 00:00:25.000 We do have Saturday which is the forum, so we'll call it 1102. 00:00:25.000 --> 00:00:33.000 Do we have any members of the public that wish to speak? 00:00:33.000 --> 00:00:48.000 Seeing none, we'll proceed to first item consideration will be item A, EVP 25-038. 00:00:48.000 --> 00:00:54.000 Consider approval of the meeting minutes for November 25th, 2025. 00:00:54.000 --> 00:00:58.000 Hopefully everybody's had a chance to review those. Any questions? 00:00:58.000 --> 00:01:03.000 We have a motion from Rick and a second from Amy. All in favor say aye. 00:01:03.000 --> 00:01:13.000 Aye. Opposed? Same sign. Motion carries. 00:01:13.000 --> 00:01:24.000 All right now to item B is EVP 25-039. Consider approval of the 2026 meeting scheduled for Economic Development Partnership Board. 00:01:24.000 --> 00:01:28.000 Brittany is going to discuss that. 00:01:28.000 --> 00:01:35.000 For sure. So this is a similar schedule from last year. The only thing that we did add is we will cancel the meetings if there are no voting items. 00:01:35.000 --> 00:01:51.000 We know that forum is difficult to obtain sometimes and we're very busy, but we'll try to host meetings as best as possible. Any concerns? 00:01:51.000 --> 00:02:09.000 Okay, so having given that we've seen a motion to approve those meeting schedules. Rick, second by Leo. All in favor say aye. Motion carries. 00:02:09.000 --> 00:02:22.000 All in opposed? Motion passes. All right moving to the work session we'll call item A, EVP 25-042. 00:02:22.000 --> 00:02:28.000 Receive a report and hold a discussion regarding the Denton Enterprise Airport Master Plan update. 00:02:28.000 --> 00:02:43.000 And the chair recognizes, or last year, Ryan Adams to present. 00:02:43.000 --> 00:02:51.000 Ryan Adams, Airport Director for Denton Enterprise Airport and I'm glad to be back here talking about this subject. I think I was here maybe a year ago. 00:02:51.000 --> 00:03:02.000 Perhaps longer giving this body just kind of a preview of what we were going to do with the airport master plan. And as of last night, our plan has been approved by the city council. 00:03:02.000 --> 00:03:12.000 So we are pretty much substantially complete with this project. But what I'd like to do today is kind of give you an overview what the project shows, what it says, and what it means for the future of the airport. 00:03:12.000 --> 00:03:17.000 And then if you have any questions, I'll stand for those for as long as you'd like. 00:03:17.000 --> 00:03:28.000 A couple quick notes about the master plan. It was performed by our planning consultant, Kauffman Associates. It was an 18 month long project. 00:03:28.000 --> 00:03:35.000 And the goal of this plan really, more than anything, it's not a strategic plan. It is more of a facilities plan. 00:03:35.000 --> 00:03:41.000 What infrastructure and facilities our airport will need to meet future demand over the next 20 years. 00:03:41.000 --> 00:03:50.000 And the FAA actually requires us to do this plan every, to renew it, to update it every 10 years to make sure that we're keeping it up to date. 00:03:50.000 --> 00:03:55.000 If we don't, they won't give us money. So that's a pretty strong incentive to do that. 00:03:55.000 --> 00:04:02.000 And at the end of this presentation, you will see some very big financial numbers. Don't have a heart attack. 00:04:02.000 --> 00:04:07.000 Those numbers are the totality of all the possible projects over the next 20 years. 00:04:07.000 --> 00:04:12.000 However, no airport will ever do all the projects in the master plan. 00:04:12.000 --> 00:04:18.000 The projects listed in the plan are meant to be thought of as a menu so that as the market demand shifts, 00:04:18.000 --> 00:04:25.000 we have different responses in terms of what facilities we provide. 00:04:25.000 --> 00:04:30.000 The main rule is that if it is in the plan, it is eligible for FAA funding. 00:04:30.000 --> 00:04:39.000 So we wanted to make sure that we took a broad approach to include everything we might possibly want to do over the next 20 years in this plan. 00:04:39.000 --> 00:04:43.000 It's a pretty simple process when you lay it out. Really, it's three phases. 00:04:43.000 --> 00:04:47.000 We take stock of what we have at the airport right now. We do an inventory. 00:04:47.000 --> 00:04:54.000 And then our consultants do a forecast of what the aviation demand will be across the next 20 years. 00:04:54.000 --> 00:04:59.000 Looking at that demand, we say, all right, where are we deficient in our facilities? Where will we not meet that demand? 00:04:59.000 --> 00:05:03.000 So we determine what our requirements will be over the next 20 years. 00:05:03.000 --> 00:05:13.000 And then we come up with different alternatives. What might that look like from a development standpoint? 00:05:13.000 --> 00:05:18.000 And then the third phase, we boil that down to a recommended development concept. 00:05:18.000 --> 00:05:26.000 We develop airport layout plan drawings that are filed with the FAA, and we bring it to council for their approval. 00:05:26.000 --> 00:05:30.000 And then after that, it will go to the FAA for their final approval. 00:05:30.000 --> 00:05:37.000 Throughout each of these phases, we have tried to engage the public. We've held public workshops four different times. 00:05:37.000 --> 00:05:43.000 We've held planning advisory committee sessions four different times. 00:05:43.000 --> 00:05:51.000 And that advisory committee was fairly large, but it was meant to kind of have a good cross-section of stakeholders in the airport. 00:05:51.000 --> 00:05:56.000 Therefore, everything from staff to the advisory board to economic development. 00:05:56.000 --> 00:05:58.000 Oh, yeah, go ahead. Is Vicki leaving? 00:05:58.000 --> 00:06:00.000 Vicki. 00:06:00.000 --> 00:06:02.000 She's leaving for an event. 00:06:02.000 --> 00:06:04.000 Right, one, two, three, four, five, six, seven. 00:06:04.000 --> 00:06:05.000 We still have quorum. 00:06:05.000 --> 00:06:06.000 We do? 00:06:06.000 --> 00:06:07.000 Well, you're... 00:06:07.000 --> 00:06:08.000 Is this Aaron's quorum? 00:06:08.000 --> 00:06:09.000 No. 00:06:09.000 --> 00:06:10.000 We want a quorum. 00:06:10.000 --> 00:06:11.000 We can say a little bit longer. 00:06:11.000 --> 00:06:12.000 Hold on. 00:06:12.000 --> 00:06:17.000 I'll go right to the last slide. Here it is. 00:06:17.000 --> 00:06:21.000 How many commas is it? 00:06:21.000 --> 00:06:22.000 It's a lot of digits, right? 00:06:22.000 --> 00:06:25.000 She's just tricking you. She just... 00:06:25.000 --> 00:06:30.000 That's a power room. She just got up and walked out right as I started. 00:06:30.000 --> 00:06:32.000 I've already heard this from Ryan. 00:06:32.000 --> 00:06:33.000 Did you close your teeth today? 00:06:33.000 --> 00:06:37.000 I did not, no. 00:06:37.000 --> 00:06:41.000 We'll be sitting a lot closer to me here in a couple of hours. 00:06:41.000 --> 00:06:45.000 I know. 00:06:45.000 --> 00:06:57.000 Rick's heard this one before, but he's here. 00:06:57.000 --> 00:06:58.000 And the verdict is? 00:06:58.000 --> 00:06:59.000 I'm sorry? 00:06:59.000 --> 00:07:01.000 And the verdict is? 00:07:01.000 --> 00:07:03.000 I think she's going back. 00:07:03.000 --> 00:07:04.000 Okay. 00:07:04.000 --> 00:07:05.000 I'm sorry. 00:07:05.000 --> 00:07:08.000 If she can't stay, then we would have to make her leave. 00:07:08.000 --> 00:07:10.000 Who would get here at like 11? 00:07:10.000 --> 00:07:11.000 Ryan. 00:07:11.000 --> 00:07:12.000 Ryan. 00:07:12.000 --> 00:07:17.000 Ryan will be here shortly, but we need her to stay until he gets here. 00:07:17.000 --> 00:07:19.000 Or we can recess. We'll have to recess. 00:07:19.000 --> 00:07:20.000 I'm sorry? 00:07:20.000 --> 00:07:32.000 We'll have to recess until... 00:07:32.000 --> 00:07:42.000 It doesn't count as a quorum as she voted for it last night. 00:07:42.000 --> 00:07:44.000 So I'll let her be up here. 00:07:44.000 --> 00:07:47.000 We have to say that she wasn't going to leave early for a little bit. 00:07:47.000 --> 00:07:53.000 She's going to stay until after the airport plants that are going to listen to it, and then potentially UNTs. 00:07:53.000 --> 00:07:57.000 And then Brian, does anyone want to talk to him to see if he's going to arrive? 00:07:57.000 --> 00:08:09.000 He told me at 1130 in that text that he thought he'd be here by then. 00:08:09.000 --> 00:08:10.000 I'm sorry? 00:08:10.000 --> 00:08:15.000 If she stays for the airport, we're going to finish the airport one, then recess until Brian gets here. 00:08:15.000 --> 00:08:18.000 That may be the best compromise. 00:08:18.000 --> 00:08:20.000 What if she could just stay here until Brian gets here? 00:08:20.000 --> 00:08:21.000 That would be best. 00:08:21.000 --> 00:08:25.000 If she could stay the whole meeting, that would be best. 00:08:25.000 --> 00:08:49.000 That's the goal, right, it's about the whole meeting. 00:08:49.000 --> 00:08:55.000 I didn't want to ask about your presentation when you told them to show stop. 00:08:55.000 --> 00:09:22.000 I didn't want to ask about your presentation when you told them to show stop. 00:09:22.000 --> 00:09:42.000 Okay. 00:09:42.000 --> 00:09:45.000 Well, let me tell you what happened. 00:09:45.000 --> 00:09:51.000 I have a friend who I hung out with my birthday for this weekend in Galveston. 00:09:51.000 --> 00:09:57.000 She left some things in my car and she's driven up from this soda. 00:09:57.000 --> 00:10:00.000 She told me to leave them on my porch. 00:10:00.000 --> 00:10:03.000 I thought I would have to leave them on the porch. 00:10:03.000 --> 00:10:06.000 So I was trying to hurry up and get home because she's at my house. 00:10:06.000 --> 00:10:10.000 Anyway, I told her to come here. 00:10:10.000 --> 00:10:13.000 So my car is there on the floor. 00:10:13.000 --> 00:10:15.000 I'm sorry. 00:10:15.000 --> 00:10:17.000 You were really early. 00:10:17.000 --> 00:10:19.000 Yeah, I was running, I was running. 00:10:19.000 --> 00:10:23.000 So we were talking about our Planning Advisory Committee that helped us out with the process. 00:10:23.000 --> 00:10:28.000 A lot of folks on the committee, a lot of community stakeholders, a lot of airport stakeholders, 00:10:28.000 --> 00:10:36.000 trying to get a lot of our larger tenants on that committee as well as some of our educational partners, 00:10:36.000 --> 00:10:42.000 one of those being Dr. Coleman with North Texas, University of North Texas. 00:10:42.000 --> 00:10:50.000 So I'm going to give you a stepping right into the process of what we found with the master plan in terms of our forecast. 00:10:50.000 --> 00:10:52.000 There's a lot of stuff going on in this slide. 00:10:52.000 --> 00:10:56.000 I'm going to zero in on those two graphs to the right. 00:10:56.000 --> 00:10:59.000 But in a nutshell, we are anticipated to grow. 00:10:59.000 --> 00:11:05.000 Our total annual operations over the next 20 years will grow by about 1.9% per year. 00:11:05.000 --> 00:11:10.000 Our base aircraft, that's the aircraft that called City of Denton Enterprise Airport home, 00:11:10.000 --> 00:11:15.000 that will grow by about 2.8% per year over the next 20 years. 00:11:15.000 --> 00:11:22.000 And the biggest finding with our base aircraft particularly is that that will be in larger aircraft. 00:11:22.000 --> 00:11:28.000 We'll see the most growth in larger aircraft, twin engine aircraft, jet engines. 00:11:28.000 --> 00:11:37.000 And so we want to make sure that we accommodate that growth as much as we can over the next two decades. 00:11:37.000 --> 00:11:41.000 Here's a good graph of where our operations are expected to go. 00:11:41.000 --> 00:11:47.000 As you can see, we have grown considerably since 2004, from 2004 to 2024. 00:11:47.000 --> 00:11:53.000 Anyone at the airport operating at the airport right now will say it's a busy airport, and it is. 00:11:53.000 --> 00:11:58.000 It is quite congested at times, so the demand is only going to go up. 00:11:58.000 --> 00:12:04.000 So we are going to look for ways where we can accommodate that demand however we can in terms of operations. 00:12:04.000 --> 00:12:07.000 And I'll share operations or takeoffs and landings. 00:12:07.000 --> 00:12:14.000 So we have a little over 200,000 takeoffs and landings in our last full calendar year. 00:12:14.000 --> 00:12:22.000 So we'll go from about 212 give or take in 2024, and we're expecting a demand for about 323. 00:12:22.000 --> 00:12:29.000 So a little over 100,000 more takeoffs and landings over the next 20 years. 00:12:29.000 --> 00:12:37.000 Base aircraft, we've been somewhat, I don't want to say steady, but consistent over the last 10 years 00:12:37.000 --> 00:12:41.000 in terms of the amount of aircraft that are currently based at the airport. 00:12:41.000 --> 00:12:48.000 Our base aircraft won't really go up unless we have places to park those aircraft, hangars, ramps. 00:12:48.000 --> 00:12:52.000 So that will kind of come in fits and sports as we develop. 00:12:52.000 --> 00:12:56.000 The demand will be upwards of 700 base aircraft. 00:12:56.000 --> 00:13:01.000 We're currently sitting at about 400 in 2024. 00:13:01.000 --> 00:13:05.000 That will come primarily, our expectations, through the development of the west side of the airport, 00:13:05.000 --> 00:13:08.000 the area on the west side of the runways. 00:13:08.000 --> 00:13:15.000 When that begins to develop, we'll see a lot more space for those base aircraft to call it home. 00:13:15.000 --> 00:13:20.000 Now I'll say we had a little over 400, 2023, 2024. 00:13:20.000 --> 00:13:31.000 We just did our base aircraft count, and we are at, I wrote down the number, 492 aircraft based at the city of Denver. 00:13:31.000 --> 00:13:40.000 So we're already starting to grow, and we are trying to maximize every piece of pavement and hangar we have right now. 00:13:40.000 --> 00:13:48.000 So this is probably the key part of our demand analysis is our critical aircraft summary. 00:13:48.000 --> 00:13:57.000 So we determine what aircraft, the largest aircraft that we will have at least 500 takeoffs and landings a year. 00:13:57.000 --> 00:14:01.000 So what size aircraft do we need to build our facilities for? 00:14:01.000 --> 00:14:05.000 So we have a 737 that comes in every now and then. 00:14:05.000 --> 00:14:09.000 We don't need to build our facilities, build our runway for that type of aircraft. 00:14:09.000 --> 00:14:11.000 We can accommodate it in other ways. 00:14:11.000 --> 00:14:17.000 If we're going to get regular traffic from larger aircraft, we do need to update how we design our facilities. 00:14:17.000 --> 00:14:22.000 And our existing critical aircraft is what you see here on the left, the Challenger 600. 00:14:22.000 --> 00:14:26.000 Because we're going to see more and larger aircraft over the next 20 years, 00:14:26.000 --> 00:14:34.000 we are stepping up in our critical aircraft type toward what you can see more in a Gulfstream 650. 00:14:34.000 --> 00:14:40.000 So wider, heavier, and that's what we'll start to develop our facilities with that in mind 00:14:40.000 --> 00:14:49.000 because we expect over the next 20 years to be seeing those heavier, wider, longer aircraft at our airport. 00:14:49.000 --> 00:14:53.000 So we didn't mention this in our council presentation. 00:14:53.000 --> 00:14:58.000 We get the question all the time about cargo, we get the question all the time about commercial service. 00:14:58.000 --> 00:15:02.000 In a nutshell, there are a lot of ways for our airport to be successful. 00:15:02.000 --> 00:15:05.000 Commercial service is not the only one. 00:15:05.000 --> 00:15:09.000 Right now you have two commercial service airports in the North Texas region. 00:15:09.000 --> 00:15:15.000 DFW, Love Field. You can buy a ticket for any one of those airports, fly to wherever you want to go. 00:15:15.000 --> 00:15:19.000 There is a third one coming online. That's McKinney. You've probably heard of that. 00:15:19.000 --> 00:15:26.000 They are investing significant capital into bringing commercial service to their airport. 00:15:26.000 --> 00:15:33.000 Based on the growth projections for DFW, there is probably enough people, enough what we call "implements," 00:15:33.000 --> 00:15:39.000 so potential passengers, to require or necessitate a third commercial airport. 00:15:39.000 --> 00:15:42.000 It will probably be more regional in nature. 00:15:42.000 --> 00:15:48.000 Over the next 20 years, there's not enough "implements" or potential passengers to have a fourth commercial airport. 00:15:48.000 --> 00:15:54.000 So unless McKinney just decides to do it about face, I don't think they will, 00:15:54.000 --> 00:16:00.000 and no other airport is interested in our region, it does not make financial sense, 00:16:00.000 --> 00:16:06.000 it does not make planning sense for us to go down the direction of the commercial service airport. 00:16:06.000 --> 00:16:10.000 It just doesn't pencil out in terms of the financials. 00:16:10.000 --> 00:16:14.000 We also looked at, and we actually had a third-party consultant do a cargo study, 00:16:14.000 --> 00:16:22.000 and while we do have small cargo at the airport, machine parts, we have medical cargo, 00:16:22.000 --> 00:16:28.000 we're not likely over the next 20 years to be a significant hub for larger cargo operations. 00:16:28.000 --> 00:16:32.000 The reason being is you have a line that's right down the road to handle those larger operations, 00:16:32.000 --> 00:16:37.000 and then you also have DFW, which still does a significant amount of cargo operations. 00:16:37.000 --> 00:16:41.000 Now, I'll say that with two caveats. 00:16:41.000 --> 00:16:45.000 That can change over the next 20 years, and so it's something we will keep an eye on, 00:16:45.000 --> 00:16:51.000 and in fact, in our plan, we have some dedicated space for a cargo hub. 00:16:51.000 --> 00:16:55.000 The other thing is UAS-related cargo, 00:16:55.000 --> 00:16:59.000 which I would say there's probably more questions than answers in that space right now, 00:16:59.000 --> 00:17:10.000 but we could become a hub for that autonomous advanced air mobility carrying aircraft, 00:17:10.000 --> 00:17:12.000 yeah, cargo carrying aircraft. 00:17:12.000 --> 00:17:18.000 So that remains to be seen, so we've not heavily invested in a lot of cargo facilities, 00:17:18.000 --> 00:17:22.000 but we know that can change, and it could be different than what we view cargo as today. 00:17:22.000 --> 00:17:27.000 So we're keeping our eyes open and our minds open for that. 00:17:27.000 --> 00:17:30.000 So this right here is a lot. 00:17:30.000 --> 00:17:32.000 This is our airport as it is now. 00:17:32.000 --> 00:17:33.000 I'll point out a couple things. 00:17:33.000 --> 00:17:36.000 So you can see this is our west side right here. 00:17:36.000 --> 00:17:38.000 It is not developed at all. 00:17:38.000 --> 00:17:39.000 It's just pasture. 00:17:39.000 --> 00:17:41.000 We use it for hay. 00:17:41.000 --> 00:17:42.000 This is our east side. 00:17:42.000 --> 00:17:44.000 So Airport Road comes and terminates right here. 00:17:44.000 --> 00:17:47.000 So north is this direction. 00:17:47.000 --> 00:17:48.000 We have a main runway. 00:17:48.000 --> 00:17:54.000 We have a parallel runway built in 2019, and we are almost built out on the east side. 00:17:54.000 --> 00:17:57.000 You see a few patches of grass that can still be developed, 00:17:57.000 --> 00:18:04.000 but we will soon be entering kind of a primarily redevelopment mentality with the east side. 00:18:04.000 --> 00:18:07.000 These areas right here are runway protection zones, 00:18:07.000 --> 00:18:15.000 so we cannot have any development there because they need to be kept clear in case an aircraft undershoots or overshoots the runway. 00:18:15.000 --> 00:18:20.000 And then the next slide is what I'll be showing you are the concept plans for our development. 00:18:20.000 --> 00:18:23.000 So I'll walk through a little slow, just kind of get some highlights. 00:18:23.000 --> 00:18:28.000 But what this is going to be is it's a concept plan. 00:18:28.000 --> 00:18:35.000 It is really how we could probably develop, but it's not an exact way we're going to develop. 00:18:35.000 --> 00:18:38.000 So hangar sizes and positions and locations will change, 00:18:38.000 --> 00:18:46.000 but it is a good approximation of how we plan to develop both the east side, the west side, and the runways. 00:18:46.000 --> 00:18:48.000 So I'll go there next. 00:18:48.000 --> 00:18:57.000 Before I do that, are there any questions on what I've talked about so far? 00:18:57.000 --> 00:19:04.000 So this is our recommended development concept for pretty much the air operations area of the Air Force. 00:19:04.000 --> 00:19:09.000 So we are not going to be extending our main runway in length at all. 00:19:09.000 --> 00:19:15.000 Big reason, you have a significant barrier there in the creek, and a significant barrier there in the creek. 00:19:15.000 --> 00:19:19.000 We will probably stay at 7,002 feet on our main runway. 00:19:19.000 --> 00:19:25.000 The great thing is that to handle our critical aircraft and even larger aircraft, we don't need more length. 00:19:25.000 --> 00:19:27.000 What we would need is strengthening. 00:19:27.000 --> 00:19:34.000 So we can always add deeper, stronger pavement to that runway to handle heavier and larger aircraft. 00:19:34.000 --> 00:19:43.000 We are proposing potentially in our 20-year plan to extend our west parallel runway by about 1,000 feet. 00:19:43.000 --> 00:19:47.000 Now, what we do that in the next 20 years, it depends on if we need to, if the demand is there, 00:19:47.000 --> 00:19:50.000 but it's in our plan so that we can do that if we want to. 00:19:50.000 --> 00:19:56.000 And what that will do, that will allow us to have larger aircraft that need an extra 1,000 feet. 00:19:56.000 --> 00:20:01.000 If they can't land on a 5,000 foot runway, it will allow them to use that runway. 00:20:01.000 --> 00:20:06.000 That would actually come into really good use of what we found two summers ago 00:20:06.000 --> 00:20:11.000 when we completely rehabilitated and reconstructed our main runway. 00:20:11.000 --> 00:20:14.000 There were airplanes, there were aircraft that could not come here 00:20:14.000 --> 00:20:19.000 because they could not, for those 40 days we had it shut down, they could not land on this runway. 00:20:19.000 --> 00:20:25.000 So having a larger secondary runway just allows us to be able to continue our operations 00:20:25.000 --> 00:20:32.000 if the main runway is ever down or if we just want to have more operations at the airport. 00:20:32.000 --> 00:20:39.000 If we extend it, we will have larger spaces on either side of that runway that we will need, 00:20:39.000 --> 00:20:45.000 but we just go and get that land that's actually already city-owned, so that won't be a very big problem. 00:20:45.000 --> 00:20:51.000 A couple things that we'll also need is a taxi lane on this side of the parallel runway 00:20:51.000 --> 00:20:53.000 so that we can start building over here. 00:20:53.000 --> 00:21:00.000 Right now, anyone who wants to build on the west side of the airport can, they can build, 00:21:00.000 --> 00:21:06.000 but they can't connect to the one runway right now because there's no concrete there to connect them to the runway. 00:21:06.000 --> 00:21:11.000 So that will be a big priority for us, especially as we start to see development on the west side 00:21:11.000 --> 00:21:16.000 when the Loop 288 connects right across this area right here. 00:21:16.000 --> 00:21:21.000 And we're looking to add more pavement just so the aircraft can get on and off the runway a lot faster 00:21:21.000 --> 00:21:26.000 if you have more outlets between the runway and other pavement. 00:21:26.000 --> 00:21:28.000 Did you have a question, Councilmember? 00:21:28.000 --> 00:21:30.000 I do have a question. 00:21:30.000 --> 00:21:32.000 Yes, ma'am. 00:21:32.000 --> 00:21:38.000 Is this something that we're looking to do earlier rather than later, 00:21:38.000 --> 00:21:43.000 and what's the determination of when you're going to think that it's time? 00:21:43.000 --> 00:21:47.000 That's more of a mid- to long-term project. 00:21:47.000 --> 00:21:52.000 Right now, we have, and I'll show you kind of the project prioritization here in a couple slides, 00:21:52.000 --> 00:21:58.000 but that one, I would say, is probably maybe a 10- to 15-year project, not anything in the short term. 00:21:58.000 --> 00:22:01.000 It depends on how bad somebody wants to bring money to town. 00:22:01.000 --> 00:22:04.000 Also that. 00:22:04.000 --> 00:22:11.000 If you know any billionaires that want to come operate out of here, we can make it a lot faster. 00:22:11.000 --> 00:22:17.000 So that was our air side, and then our land side. 00:22:17.000 --> 00:22:23.000 What we expect to do, as I mentioned, we are going to have kind of hitting a redevelopment phase. 00:22:23.000 --> 00:22:31.000 So we have several patches of vacant property here, there, right there that are still vacant, 00:22:31.000 --> 00:22:33.000 and they will develop when they do. 00:22:33.000 --> 00:22:41.000 We have several areas that are currently developed here, there, that we are going to have to redevelop over the next 20 years. 00:22:41.000 --> 00:22:48.000 Very uncommon knowledge, but the airport, the city then owns all the land on the airport. 00:22:48.000 --> 00:22:58.000 We get development by leasing that land for a long time, 30 or 40 years, at a very, I'll say, cut rate, pennies on the dollar. 00:22:58.000 --> 00:23:06.000 And the promise is that, hey, we will give you this land for a long time at a low rate if you build a hangar and operate there and breathe life into this airport. 00:23:06.000 --> 00:23:14.000 But as those leases terminate, we start thinking about, all right, how can we redevelop this land to get better use out of it? 00:23:14.000 --> 00:23:21.000 This airport really hasn't done that that much, but now that we are running out of land on the east side, we will do a lot more of that. 00:23:21.000 --> 00:23:28.000 And our goal is really to accommodate larger hangars for those larger aircraft where we can and more ramp space, 00:23:28.000 --> 00:23:34.000 because, again, we anticipate our base aircraft and our operations to go up over the next 20 years. 00:23:34.000 --> 00:23:40.000 So you see a lot more ramp space and a lot larger hangars than we currently see across the airport. 00:23:40.000 --> 00:23:43.000 We have some large hangars. They are not everywhere. 00:23:43.000 --> 00:23:50.000 We are mostly smaller hangars, and you will see that mix start to change a little bit as we get demand for larger hangars. 00:23:50.000 --> 00:23:56.000 And on the west side, this is probably our area of greatest opportunity. It is a blank slate right now. 00:23:56.000 --> 00:24:00.000 Our goal is to create a little bit of separation as we develop. 00:24:00.000 --> 00:24:07.000 You would like to see over the next 30 years, this will take a long time, more of our smaller aircraft on the west side, 00:24:07.000 --> 00:24:13.000 because that smaller runway is right there. They don't have to cross the main runway to get to that small runway 00:24:13.000 --> 00:24:19.000 and house more of our larger aircraft on the east side, right next to that larger main runway. 00:24:19.000 --> 00:24:24.000 We have a lot of plans. It may turn out like this. It may not. We'll see. 00:24:24.000 --> 00:24:30.000 But I will note that because Loop 288 is coming in, should I be pointing at this one? 00:24:30.000 --> 00:24:39.000 Because Loop 288 is coming in, we have reserved a land along the highway for non-aeronautical purpose. 00:24:39.000 --> 00:24:46.000 You are probably better off putting a Wendy's here than a hangar to take advantage of that proximity to the highway. 00:24:46.000 --> 00:24:50.000 We have other areas where we have non-aeronautical land. 00:24:50.000 --> 00:24:55.000 This is that truck loading staging area that I mentioned in case cargo picks up. 00:24:55.000 --> 00:25:01.000 And then we have a big plot of, could be anything, across from the highway. 00:25:01.000 --> 00:25:04.000 So we won't be able to put aircraft here. They won't be able to cross the highway. 00:25:04.000 --> 00:25:07.000 But one thing that you could put there, vertical operations. 00:25:07.000 --> 00:25:17.000 We have plugged in the potential for a vertiport to house any type of drones, UAS, advanced air mobility. 00:25:17.000 --> 00:25:23.000 They can operate on this side of the highway because they do not need to connect to a runway. 00:25:23.000 --> 00:25:26.000 So that's one potential option for where we could put it. 00:25:26.000 --> 00:25:36.000 But we wanted to make sure it was in the plan so it's easier for us to get these projects approved if it's in the plan. 00:25:36.000 --> 00:25:39.000 And so, Council Member, you were talking about the project priorities. 00:25:39.000 --> 00:25:46.000 If you can see, the green items are short-term, hopefully in the next five, six, seven years. 00:25:46.000 --> 00:25:56.000 The blue items, or purple, kind of color white, blue items are mid-term, maybe 2020, 2030 to 2035. 00:25:56.000 --> 00:26:02.000 So about 10 to 15 years out. And the red items are right now long-term projects. 00:26:02.000 --> 00:26:09.000 Now, again, if someone walks through the door and wants to develop the entirety of the West Side, we are likely not going to say no. 00:26:09.000 --> 00:26:15.000 So these projects will shift. The priorities will change. We will look at this every single year, if not more often. 00:26:15.000 --> 00:26:24.000 But what this gives us is just a menu of all the things we can do to this airport that are going to allow us to be able to meet that demand that I showed you earlier. 00:26:24.000 --> 00:26:32.000 And because they are in the plan, we are funding-eligible for the FAA. The FAA will fund projects that they approve at 90%. 00:26:32.000 --> 00:26:40.000 So if you have a $20 million project, the city, the airport, only has to kick in $2 million. 00:26:40.000 --> 00:26:49.000 FAA takes care of that, which is a huge benefit, but those projects have to be in the plan. 00:26:49.000 --> 00:26:54.000 So again, a big price tag for all those projects, and these are all $20, $25. 00:26:54.000 --> 00:27:05.000 However, FAA kicks in 90% for any approved projects, and a lot of these projects will also be potentially funded by private sector. 00:27:05.000 --> 00:27:13.000 If someone wants to come in and build a ramp so they can park their aircraft on it, they'll fund it. So that's what the city does not have to pay for. 00:27:13.000 --> 00:27:22.000 So this is just a number to kind of give the scale between the different sections, short-term, intermediate-term, and long-term. 00:27:22.000 --> 00:27:27.000 Again, it's non-binding. This is just our menu of options. They are subject to change. 00:27:27.000 --> 00:27:36.000 But whenever we evaluate developments, we will evaluate them against whether or not they substantially conform to this master plan. 00:27:36.000 --> 00:27:43.000 So our next step, the council has already approved our master plan. Thank you, councilmember. 00:27:43.000 --> 00:27:50.000 We will submit everything to the FAA. They run a little slow, so we'll probably get final approval from them in six months. 00:27:50.000 --> 00:27:56.000 And that is our growth plan, essentially, for the next 10 years until we update this plan again. 00:27:56.000 --> 00:28:03.000 There is a website if you want to see these photos, but larger, or you want to read the actual plan. 00:28:03.000 --> 00:28:10.000 It is dto.airportstudy.net. I wish I could have changed that. It does not roll off the tongue. 00:28:10.000 --> 00:28:16.000 But it has all the documents. It has everything about the plan there, and especially the documents. 00:28:16.000 --> 00:28:20.000 That's where you can go and you can get the large versions of the graphics I just showed you. 00:28:20.000 --> 00:28:28.000 And you can take a look at where we see in concept the airport going over the next 20 years. 00:28:28.000 --> 00:28:32.000 So that's a lot of words for me. I'm happy to answer any questions that you guys have. 00:28:32.000 --> 00:28:39.000 One additional comment. This is the fourth or fifth plan that Kauffman and Associates has done over the last 40 years. 00:28:39.000 --> 00:28:45.000 So it's an engineering firm that is familiar. They've done a really good job in the past. 00:28:45.000 --> 00:28:52.000 We've grown a lot with them, so I have great confidence that they've continued to do the really good work they've done for a long time. 00:28:52.000 --> 00:28:57.000 And I think the community can have confidence in this plan, too. 00:28:57.000 --> 00:29:04.000 We basically kind of in the past followed that plan pretty closely. 00:29:04.000 --> 00:29:10.000 Quick question. So we're working on a few projects out at the airport. 00:29:10.000 --> 00:29:16.000 We're fairly involved out there as far as using the airport and those things. 00:29:16.000 --> 00:29:21.000 And so Ryan and I were working on a project, and we were talking about budgets and those kind of things. 00:29:21.000 --> 00:29:30.000 So you guys know me well. I showed up to his budget meeting at the end of the year, and I wish Vicki hadn't left yet. 00:29:30.000 --> 00:29:40.000 But the budget we give our airport is wildly underfunded in my personal opinion. 00:29:40.000 --> 00:29:49.000 When I attended their budget meeting and then reviewed it all afterwards, I understand it's not a cash flow for the airport, right? 00:29:49.000 --> 00:29:57.000 It brings a lot of regional value that's hard to put a value on, right, for what we do because we're competing against the lines, right? 00:29:57.000 --> 00:30:02.000 These guys, any time they're trying to get anybody here, I have a business we're trying to put on the airport right now, 00:30:02.000 --> 00:30:09.000 which is probably going to come, about 85, 90 percent sure, which is what we want. 00:30:09.000 --> 00:30:17.000 We want aviation businesses on the airport, ultimately, that have flights and their businesses serving on the airport. 00:30:17.000 --> 00:30:23.000 How we're funding the airport right now is counterintuitive to what some of our goals are. 00:30:23.000 --> 00:30:34.000 And so I would just like this committee to think about, maybe we make one of our action items for this year, is how do we focus some EDC incentives? 00:30:34.000 --> 00:30:38.000 Because it's the redheaded stepchild right now in a lot of ways. 00:30:38.000 --> 00:30:42.000 So how? No, it's true. I mean, I look at your budget, all the numbers, right? 00:30:42.000 --> 00:30:45.000 The numbers tell the story. We put our money where it's important. 00:30:45.000 --> 00:30:48.000 And I understand there's lots of incentives and things. 00:30:48.000 --> 00:30:59.000 But I think it would be important to us as a board to look at how do we incentivize good aviation businesses at the airport right now? 00:30:59.000 --> 00:31:02.000 We just have our normal incentives that are offered there. 00:31:02.000 --> 00:31:08.000 But if we want the bigger jets and we want the businesses there, we have to give these guys some tools to market that. 00:31:08.000 --> 00:31:15.000 I sat down with these guys at a great business that an aviation company needs to put on an airport. 00:31:15.000 --> 00:31:20.000 And he put on any airport. Just his proximity where he lives didn't work. 00:31:20.000 --> 00:31:26.000 And kind of like we are in a lot of other incentives, we're a little handcuffed on what we can do to bring funds there. 00:31:26.000 --> 00:31:33.000 And I would encourage us for 2026 to take a look and say, is there any special incentives? 00:31:33.000 --> 00:31:38.000 If we like, we have requirements for overall incentives for the city. 00:31:38.000 --> 00:31:46.000 Could we put together some special incentives now that we have a clear master plan to say we want these kind of businesses, these kind of jets? 00:31:46.000 --> 00:31:50.000 You know, U.S. aviation just I saw sign a huge contract for a training school. 00:31:50.000 --> 00:31:56.000 The student pilot is great out there, but you look at these landings, it's kind of BS because of how many students. 00:31:56.000 --> 00:32:01.000 They're real landings, but they're students, you know, doing work in the pattern, a lot of them. 00:32:01.000 --> 00:32:07.000 So I think that which is great for the airport, we're selling fuel, we're doing all the things we need to do out there. 00:32:07.000 --> 00:32:10.000 But I think as this board, we could really look at it. 00:32:10.000 --> 00:32:21.000 And now that we have a clear master plan, how do we give these guys some tools to recruit exactly the bigger jets, the businesses to the airport? 00:32:21.000 --> 00:32:28.000 So I would recommend and propose we make that a priority to help figure that out. 00:32:28.000 --> 00:32:37.000 When we had that group in here about six months ago that showed some plans, I didn't know whether at that point in time they'd ever talked to the airport before. 00:32:37.000 --> 00:32:40.000 But the truth is, you're absolutely right. 00:32:40.000 --> 00:32:51.000 The city council gives the airport no credit for the businesses that come in here and the jobs that come in here and all the cash flow that comes in here that wouldn't be here without that airport. 00:32:51.000 --> 00:33:01.000 And so you're right on the budget, the airport cannot sustain all by itself what we need to do to continue to raise prices and do some of those things. 00:33:01.000 --> 00:33:07.000 Yeah, we need to stay competitive, but we don't need to be having a game. 00:33:07.000 --> 00:33:09.000 But they need the people right now. 00:33:09.000 --> 00:33:11.000 So I think you're right. 00:33:11.000 --> 00:33:16.000 I think that the budgeting process for this entity is pretty screwed up. 00:33:16.000 --> 00:33:21.000 The only thing I would say to you that I disagree with is that we're pennies on the dollar on our rent rates. 00:33:21.000 --> 00:33:38.000 Because if you go look at a performer, not you, when we go put a performer together to say, hey, we want to put a business here and it's the performer because you pay taxes and insurance on top of that lease rate, it's not cheap. 00:33:38.000 --> 00:33:45.000 Which I understand we're trying, what his job is, is to get the most income we can for the airport and their biggest thing is fuel and lease rates. 00:33:45.000 --> 00:33:49.000 That's their two levers, or two of the bigger levels of leverage. 00:33:49.000 --> 00:34:00.000 So I would say as this board, we meet with you on a separate meeting, a work session, and say what kind of incentives do we need to put together to be able to bring those businesses. 00:34:00.000 --> 00:34:02.000 So I propose that. 00:34:02.000 --> 00:34:12.000 At one time, and I don't know if it's still in policy anymore, there was a policy for a business personal property rebate on jets being phased in. 00:34:12.000 --> 00:34:36.000 And we also look at how can we market ourselves as a benefit to Alliance rather than a competitor to Alliance to get some of their tier two and tier three vendors and suppliers or support system for businesses that are facing around Alliance. 00:34:36.000 --> 00:34:42.000 I think those are a couple of good ways to take a look at it. 00:34:42.000 --> 00:34:50.000 Maybe you could prepare something for us to say, hey, these are my biggest restraints of getting businesses, like the one we're working with, right? 00:34:50.000 --> 00:34:56.000 Ryan and I have had some heated conversations over this issue with his hands tied, right? 00:34:56.000 --> 00:35:12.000 And so I would say if you could put together something to say, hey, here's my restraints of what's holding us back from an economic development standpoint to kind of give us a start to come up with some ideas to say how can we help, right? 00:35:12.000 --> 00:35:16.000 Because that's part of our job on this board. 00:35:16.000 --> 00:35:28.000 I think it's a great idea, and Ryan and I have been discussing what types of recruitment shows we want to attend. We're going to exponential in May, which is the UAS scrum show. I think we're sort of debating who's attending, but we're talking to them. 00:35:28.000 --> 00:35:34.000 We talked to a business on the airport last week to learn more about their challenges. 00:35:34.000 --> 00:35:50.000 So we're getting there, and I agree with you. I think there needs to be more of a focus on recruiting aviation to the airport. And I think now that the master plan is completed, and Ryan, our team, and whoever else should be involved, we're going to work strongly together to recruit businesses. 00:35:50.000 --> 00:35:57.000 But I think for our board retreat, which we're hosting pretty soon, that would be a good topic of discussion. 00:35:57.000 --> 00:36:10.000 And for my part, I appreciate y'all's comments. The airport, we are a city enterprise, but we do compete. So we have to be responsive to the market. We cannot just set a rate and walk away. 00:36:10.000 --> 00:36:27.000 And I think that Brittany and I have worked very well together, but I think she would agree that we probably just really not hit more than the tip of the iceberg in all the ways that the airport can benefit from an extra emphasis on economic development. 00:36:27.000 --> 00:36:33.000 And I look forward to going and doing a deep dive and going far down that road. 00:36:33.000 --> 00:36:50.000 I'll make one other comment that I'll be done about the airport is the way we host businesses coming into the town for non-airport, we do a pretty good job of when we bring businesses in. 00:36:50.000 --> 00:37:04.000 I think we could put together a little better plan to say, this is when we have a new business that wants to come to the airport, of how we present to them. I think there could be some work done there. 00:37:04.000 --> 00:37:16.000 And because we have a great facility there, we have a great runway, and a lot of things to offer. I think when we have a real business, we can probably... 00:37:16.000 --> 00:37:31.000 The study, sorry. The study, obviously, is based on projection of 20 years of what we know and what we see. But you mentioned briefly a little bit of the unmanned aircraft, which is a new territory, is developing as we speak. 00:37:31.000 --> 00:37:36.000 So I think that's what I understood, right? There's an aspect of it that you're considering. 00:37:36.000 --> 00:37:51.000 Yeah, and so when you look at that, it's not really a market yet, but is it something that we can get a competitive advantage on? There's a saturation for cargo, for people, for all these other things that we're trying to compete for a second or third tier. 00:37:51.000 --> 00:38:06.000 Can we, at the same time, try to pursue something that we may strategically place ourselves better in that area? Because you said this is a la carte. We've got the next 20 years a la carte. And they do, too. 00:38:06.000 --> 00:38:15.000 But they have only so much space that they haven't developed. I just went to the airport this morning to drop my wife, and I realized how many overpasses they've taken off, and you're going this way and that way. 00:38:15.000 --> 00:38:28.000 And I'm like, holy crap. They're now having to build on top of themselves. Again, going back to, I guess, with the competitive advantage, to talk to some of those firms that do the unmanned aircraft in development. 00:38:28.000 --> 00:38:34.000 When you think about surrounding areas, it's a little bit of that. Yes, you want to get the hangars. You want to get the hangars. That's part of your money. 00:38:34.000 --> 00:38:47.000 But I can deploy a thousand more unmanned aircraft that I can, people, in some aspects, depending on how far AI can go in that process. 00:38:47.000 --> 00:38:56.000 So it's worth considering as a pillar that may become a pillar. Does that make sense? It's not really something you can build on yet, but don't underestimate it. 00:38:56.000 --> 00:39:04.000 The AI is moving way too fast for us to underestimate. It really snaps in a really good corner of the market. 00:39:04.000 --> 00:39:17.000 Well, a couple of things on that. That's a great question. So AAM, AI, and just advanced air mobility, that was not really a part of the master plan. 00:39:17.000 --> 00:39:22.000 And that's only because the FAA says, hey, if we're going to fund this plan, you need to do these things and nothing more. 00:39:22.000 --> 00:39:39.000 However, a couple of things that are in the mix. In addition to Brittany, she mentioned earlier, we're going out to these drone specific conventions and meetups to try to engage with these original equipment manufacturers who create this stuff. 00:39:39.000 --> 00:39:49.000 We are also part of the North Central Texas Council of Governments proposal for, I'm going to say EIPP, and I cannot remember exactly what it stands for, 00:39:49.000 --> 00:39:55.000 but essentially a government program to test all of that technology here in DFW. 00:39:55.000 --> 00:40:01.000 And we'll be one of the first airports that are part of those notes if it gets approved. 00:40:01.000 --> 00:40:10.000 So what the COG wants to do is take a number of airports across DFW, including the big ones, and start doing operations between them. 00:40:10.000 --> 00:40:22.000 It'll start out unmanned, and then it'll go to piloted and then potentially piloted with passengers. So we will create those notes, see what issues come up with trying to coordinate all this. 00:40:22.000 --> 00:40:36.000 And the great thing is, is as part of this program, FAA will give exemptions. They will give a regulatory breathing room for us to test those out with the hope that we get some good data and say, FAA, when you deploy this nationwide, here's what you might do. 00:40:36.000 --> 00:40:51.000 And we're also finishing up a project with UNT, that's more of an economic study, kind of saying, the question was, hey, if we were to put a vertiport indent, would it be profitable, and where should we put it? 00:40:51.000 --> 00:40:59.000 And so they're finishing that study up right now, and when that's done, I can provide that to this group. They'll probably have a report or something that we can add it to. 00:40:59.000 --> 00:41:19.000 So I think about is, do we want that at the airport, right? My opinion is that maybe something the airport manages and runs, but as a pilot, one of my big fears is without ABSB on all these drones coming in on final approach, somebody's out jacking around, you know, even today, it's a huge concern of mine. 00:41:19.000 --> 00:41:37.000 So it may be something just to challenge our thinking, it may be another part of town that the airport manages and runs as a profit center, but maybe it's not on the airport, because that's a huge concern when I'm coming in on approach on any airport, not just some kid out flying a drone around that I don't see. 00:41:37.000 --> 00:41:53.000 And so that may be just something to think a little, because the city owns property in other areas that may have maybe a better location for that than on the airport. It will probably be just projecting ahead and just what I know of the topic, it will probably be both. 00:41:53.000 --> 00:42:12.000 However, if we have land where we can determine whether this is a benefit, if it's not a benefit, it goes off the airport. But if it is a significant benefit, even a significant economic benefit, I think it'd be in our best interest to test drive to see how it goes. 00:42:12.000 --> 00:42:24.000 When that happens, to your point exactly, it would be start very, very slow. FAA, air traffic control, everybody's in agreement on how we're going to do this, because safety is the number one thing. 00:42:24.000 --> 00:42:31.000 And the second it's not safe, we shut it down. So you're absolutely right. There'd be a lot of concern before you even bring anything into the air. 00:42:31.000 --> 00:42:44.000 I'm going to close this out as the last comment question just for a second. You have a consultant who's looking at that very topic, is that not correct? 00:42:44.000 --> 00:42:53.000 Then the city have a consultant looking to study that topic. That's the UNT study I was mentioning, yes. 00:42:53.000 --> 00:43:00.000 Perhaps more in the future. Yeah. Great. Thank you, Ryan, for your time. Thank you so much. 00:43:00.000 --> 00:43:14.000 We're going to call on item B, EDP 25-043. Receive a report and hold discussion regarding the upcoming Mobility Summit that you recognize as Dr. Terry Pollan to present on this item. Welcome, Dr. Pollan. 00:43:14.000 --> 00:43:21.000 Well, good morning, everybody. I wanted to give you an update on where we stand with our Denton Mobility Innovation Summit. 00:43:21.000 --> 00:43:29.000 It's coming up on March 26th. It's going to be at the Monroe Pearson building. Now, you might be going, why didn't we hold it at UNT? 00:43:29.000 --> 00:43:36.000 I really wanted the focus to be on forming an innovation ecosystem in the Denton area. 00:43:36.000 --> 00:43:44.000 And I thought we could do a better job of drawing entrepreneurs in, venture capital, into a more Denton-centric area than UNT. 00:43:44.000 --> 00:43:50.000 Also, I didn't want this to be viewed as a UNT event. And so that's why we're doing it there. 00:43:50.000 --> 00:43:56.000 And we've put together quite a bit of program. It's still being developed a little bit. I'll just give you a couple updates on it. 00:43:56.000 --> 00:44:00.000 First of all, we're going to have the mayor give an opening to the session. 00:44:00.000 --> 00:44:08.000 Then we're going to have Allison Malek. She's going to be our keynote speaker. Allison was a co-founder of Maine Mobility. 00:44:08.000 --> 00:44:18.000 And so she's got lots of insights into what it takes for autonomous vehicles, rideshare services done with autonomous vehicles. 00:44:18.000 --> 00:44:23.000 She also worked with General Motors in their electric vehicle program. 00:44:23.000 --> 00:44:30.000 Then we're going to have several panels. One of them is going to be on urban freight mobility. We'll have Peterbilt, Kepsico. 00:44:30.000 --> 00:44:40.000 Just got notice this week that Senator Hagen, who would like to participate. So as the owner of Titus Transport, he'll be on that panel. 00:44:40.000 --> 00:44:50.000 Then we're going to have another panel focused on innovations and logistics. That'll be moderated by John McCarey, who's our director of the Murphy Center at UNT. 00:44:50.000 --> 00:45:01.000 Speakers on that are going to be largely venture capital. What are they looking for? What innovations do they see coming down the road, especially in the area of urban mobility? 00:45:01.000 --> 00:45:13.000 The other key thing I want to emphasize while you're hearing me talk about venture capital, companies, entrepreneurs, is that we want to bring together everybody that's part of an innovation ecosystem. 00:45:13.000 --> 00:45:25.000 So we need, of course, the academics. We need government. We need entrepreneurs. We need the venture capital and then largely those companies that are the customers of those innovations. 00:45:25.000 --> 00:45:34.000 Then we're going to have another panel focused on aerospace, aerospace workforce. Ryan, who is just up here, he'll be moderating that panel. 00:45:34.000 --> 00:45:45.000 We're also doing one of what we call spatial intelligence. And the person that I've invited to give a presentation, many of you may know him, Dave Cox. He is a UNT alum. 00:45:45.000 --> 00:45:58.000 He's one of the most successful entrepreneurs I know. He's the CEO owner of Rural. When you hear this guy speak, he talks about combining artificial intelligence with digital twins. 00:45:58.000 --> 00:46:12.000 And the things that it really opens up your view of what is possible in terms of driving innovations and improvements in a logistic setting. 00:46:12.000 --> 00:46:23.000 Then we'll have a fireside chat with a team of defenders and Stultz. They'll be talking about some of the innovations they're doing, also why they picked Denny as the location. 00:46:23.000 --> 00:46:34.000 And then we're going to have an evening reception pitch session over at Stoke. It's a way of also promoting the entrepreneurs and small businesses that are located there. 00:46:34.000 --> 00:46:45.000 So again, we're doing this on March 26th at the Monroe Pearson building. I would really appreciate your circulating this, save the date out to everybody. 00:46:45.000 --> 00:46:53.000 We really would like to have a great attendance. That's another reason I wanted the Monroe Pearson building in that we have a large room to hold the event in. 00:46:53.000 --> 00:47:01.000 We're going to have another room where we're going to have entrepreneurs and small businesses setting up tables so they can promote their innovations. 00:47:01.000 --> 00:47:17.000 And also I want to emphasize this is part of a National Science Foundation grant that we received. So we're doing this in conjunction with the University of Texas, Arlington, Dallas College, Southeastern Oklahoma State, SMU, and of course, UNT. 00:47:17.000 --> 00:47:25.000 Also, if you're interested, we're doing another one of these summits up in Oklahoma City on January 29th. 00:47:25.000 --> 00:47:40.000 Just today confirmed that the Lieutenant Governor of Oklahoma is going to be our opening speaker. We've got a great program, much more focused on aviation and defense logistics because we're right outside Tinker Air Force Base at Rose State College. 00:47:40.000 --> 00:47:47.000 But if you'd be interested in going to that, you know, be, you know, again, it's open to the public. We'd enjoy having you there. 00:47:47.000 --> 00:48:01.000 Any questions? What time? This one here? It's going to start at about eight thirty, probably eight thirty to nine, have kind of just like a meet and greet, shake hands, that type of thing. Nine o'clock will be our kickoff. 00:48:01.000 --> 00:48:10.000 And we'll probably end right about four o'clock and then we'll invite everybody to go over to Stokes for a little session. Thanks. 00:48:10.000 --> 00:48:18.000 We're excited for their event. We're very, very thankful that Dr. Pollan has chosen to host us and to work with us. 00:48:18.000 --> 00:48:28.000 Okay. Well, if you do have any questions, you can reach me at my email. It's just simply Pollan, P-O-H-L-E-N at UNT dot E-D-U. 00:48:28.000 --> 00:48:35.000 And then let's see, I think the registration is on the state of the date, isn't it, at the very bottom? 00:48:35.000 --> 00:48:43.000 I'm not seeing it, but we can. What we'll do is we'll send a note out to all of you with the information. 00:48:43.000 --> 00:48:49.000 Okay, great. Well, thank you very much. I told you to keep it short. 00:48:49.000 --> 00:48:57.000 All right. Now to item EDP 25-044, receive various staff reports. We'll start with the record report from Rippey. 00:48:57.000 --> 00:49:07.000 Happy New Year, Board of Directors. We see your faces today. I'm going to run through this for the sake of time. We had a very productive Q4 last year. 00:49:07.000 --> 00:49:17.000 As you may recall, we had a few of our projects that were featured in the regional news outlets and local news outlets. 00:49:17.000 --> 00:49:27.000 Hill would announce their groundbreaking for the landmark development. City Council approved their nevartis incentives for their expansion. 00:49:27.000 --> 00:49:37.000 So congratulations, Board of Directors. They are still finalizing details of their site, but hopefully we can hear an announcement soon. 00:49:37.000 --> 00:49:45.000 But it was featured in the Dallas News and a lot of the major news outlets cooked it up. They also feature in the Fine Arts Theater and Locate Logistics. 00:49:45.000 --> 00:49:55.000 So Locate Logistics is one of the largest South Korean logistics firm and they opened up a warehouse here in Denton and they're operating it for iHerb, 00:49:55.000 --> 00:50:01.000 which is one of the largest retailers, online retailers of vitamins, more health and wellness products. 00:50:01.000 --> 00:50:14.000 And so they have implemented over 200 robots to move their products. So anytime that someone orders, I can go order online, it will automatically be processed and packaged, which is pretty cool. 00:50:14.000 --> 00:50:20.000 I will know that there are several employees that work there. I think there's probably close to 100 in the warehouse. 00:50:20.000 --> 00:50:25.000 We just posted this on Facebook. If you're curious to see what folks have to say, go on there, read the comments. 00:50:25.000 --> 00:50:35.000 But there were plenty of dogs that were created with this investment. Partner events. We attended a variety of UNT events, including the UNT Research Day. 00:50:35.000 --> 00:50:42.000 We also attended the UT Texas Talent Accelerator Regional Meeting and UNT Save the University Breakfast. 00:50:42.000 --> 00:50:48.000 I served as a judge on the Murphy Center's business competition. 00:50:48.000 --> 00:50:57.000 There were three companies of students that submitted proposals and this is the winner in the top right, Neoflex. 00:50:57.000 --> 00:51:02.000 I was very outstanding by the four students there. They're all biomedical engineering degree students. 00:51:02.000 --> 00:51:09.000 Most of the stuff they talk about is over my head, but they invented a catheter for women, 00:51:09.000 --> 00:51:17.000 which is something that I didn't know didn't exist. So I'm very excited for them. I hope that they can really grow their business. 00:51:17.000 --> 00:51:27.000 Partner events. We had a variety of events that we led, including a downtown Halloween tour for the Denton County economic developers. 00:51:27.000 --> 00:51:32.000 So this started as a small group of local economic developers that would get together to hang out. 00:51:32.000 --> 00:51:43.000 And once we told them we would host it in the month of October, several other cities reached out to attend because they wanted to learn more about how Denton created 31 days of Halloween. 00:51:43.000 --> 00:51:48.000 And so Kristen led that tour as long as our other team members we helped coordinate it. 00:51:48.000 --> 00:51:58.000 That picture on the right, we had the city of Sanger, Little Elm, a few other local cities, Aubrey as well. 00:51:58.000 --> 00:52:05.000 And then Kristen also had a follow up tour for the city of Garland team to tour 31 days of Halloween activities. 00:52:05.000 --> 00:52:11.000 Our group hosted the economic development fund wellness workshop. This was a first part series prior to the board retreat. 00:52:11.000 --> 00:52:17.000 Thank you to those board members that were able to attend. And for those that we missed, you'll get a recap during our board retreat. 00:52:17.000 --> 00:52:28.000 But we had quite a few folks attended. We invited all of our boards, economic development boards, and our city council members and other stakeholders that were involved. 00:52:28.000 --> 00:52:39.000 So thank you again. That was a really great event. They covered beginner basics to advance and I think everyone was able to take away something from that event. 00:52:39.000 --> 00:52:50.000 Kristen also hosted a downtown city services meeting with our community services, police and parks department. This was a follow up to several other safety meetings for downtown with the ambassador program ending at the end of the year. 00:52:50.000 --> 00:53:00.000 Many residents concerns that their safety and cleanliness may change. And so that was a meeting to address how the city will move forward. 00:53:00.000 --> 00:53:10.000 Kristen and Matilda also hosted their own training session for AMX small business grant opportunity. This is something that they host every year. The AMX provides every year. 00:53:10.000 --> 00:53:16.000 But Kristen and Matilda took it upon themselves to host training sessions for those downtown businesses. 00:53:16.000 --> 00:53:24.000 Also, most notably, we partnered with the state governor's office, the economic development division to host a governor's summit. 00:53:24.000 --> 00:53:36.000 Their division host these summits across the state of Texas and we applied. I think Jamie applied as well for the summit and Tracy Irby with Texas Women's University's Entrepreneurship Center. 00:53:36.000 --> 00:53:41.000 They decided to host to have this summit as the all women's focus event. 00:53:41.000 --> 00:53:56.000 Marilee Kick was the main keynote and she's the owner of Buzzballs. So she's a model entrepreneur story. She started making her own Buzzballs in their backyard and then she grew to a big manufacturing facility. 00:53:56.000 --> 00:54:05.000 It's in every convenience store across the United States. It's pretty cool. So I want to show you this two minute video. It's really quick. 00:54:05.000 --> 00:54:16.000 I'm happy to welcome you to the governor's business summit here in Denton. Women focused. What a great crowd we have and we're sold out. We just love that. 00:54:16.000 --> 00:54:28.000 The governor's business summits are very important because it brings the access to all the tools and resources that you need as a small business owner to different communities throughout Texas. 00:54:28.000 --> 00:54:39.000 This event is really important for women business owners. It brings women together. They can network with each other as well as get resources to take back to their communities. 00:54:39.000 --> 00:54:53.000 Small businesses are the backbone of every single community in the state of Texas and it is so important that we help make sure that small businesses get off the ground and thrive. 00:54:53.000 --> 00:55:07.000 Oh, there have been some great panels today. We also had Marilee Kick here as the keynote speaker who did such a great job telling us how you have that simple dream and how it can grow into a billion dollar business. 00:55:07.000 --> 00:55:21.000 Well, it isn't a straight path. You go left. If it doesn't work, then you go right and you go up and you go down and you're an entrepreneur. You jump through things to make things happen. So that's just part of the journey. 00:55:21.000 --> 00:55:31.000 If you want to tell people about your business or grow your business, scale your business, they have to know about your business showing up consistently and you have to continuously show up and be there. 00:55:31.000 --> 00:55:46.000 All of the state resources and the tips that were provided from the Texas Workforce Commission and all the different forms that we need to know and even some of the free grants and funding that's out there available for our businesses that we don't know about because we're in our business. 00:55:46.000 --> 00:55:55.000 And it's really just one, women supporting women and two, gaining knowledge and information about resources to further thrive in our business. 00:55:55.000 --> 00:56:10.000 It's definitely encouraging to see other powerful women and share their experience and kind of motivate us to continue moving forward. So that was a very extremely educational and I was very glad that I came and I learned a lot. 00:56:10.000 --> 00:56:18.000 Regardless of what state you're in, in terms of your stage of business ownership, I think it is so important to attend a summit like this. 00:56:40.000 --> 00:56:54.000 Welcome to training that we attended. Clay Parker, our business improvement specialist, attended the OU Economic Development Institute. It's a second phase above the basic economic development course to start obtaining certifications for economic development. 00:56:54.000 --> 00:57:05.000 So I'm really proud of him for attending that. Erica also attended a few webinars for finance, CDFA development finance broadcasts, and CDFA webinar series development for financing tools. 00:57:05.000 --> 00:57:10.000 And Kristen attended the Texas Main Street Reinvestment Numbers workshop in Mesquite, Texas. 00:57:10.000 --> 00:57:27.000 And then we also attended the Texas Downtown Association Conference, which I will have Kristen come up here and talk about how the event went. 00:57:27.000 --> 00:57:47.000 Thank you. So yes, I had the opportunity to attend the Texas Downtown Association Conference, which we as economic development are members of, and we actually received the 2025 President's Award for best promotion for 31 days of Halloween. 00:57:47.000 --> 00:57:58.000 So what that award is based on is economic vitality throughout your community, as well as just community involvement. So we were really excited to attend that and receive that award. 00:57:58.000 --> 00:58:09.000 And then part of that is you have the brothers and economic development director in there and then all of our, our whole community that it took to put this 31 days of Halloween initiative together. 00:58:09.000 --> 00:58:22.000 So a couple of stats that I wanted to share with you today. So we reached out to all the downtown businesses to kind of get an impact, economic impact survey back to see how 31 days of Halloween impacted their business. 00:58:22.000 --> 00:58:34.000 So out of our businesses, 54 businesses participated, and 56% of those businesses saw a huge increase in their business from 2024. 00:58:34.000 --> 00:58:45.000 This Saturday was the busiest day of the week for everyone. One of the key things that we wanted to find out this year was what our peak hours were for our businesses. 00:58:45.000 --> 00:58:51.000 We've already started those conversations with our businesses for this year, believe it or not. 00:58:51.000 --> 00:59:02.000 But five to nine p.m. was the busiest time for our businesses. So what that means is our staff, can they stay open later to accommodate the extra traffic that's coming downtown. 00:59:02.000 --> 00:59:16.000 And then, of course, our businesses reported higher weekly revenues throughout October compared to 2024 foot traffic obviously was very high 84% of participants that they saw more visitors. 00:59:16.000 --> 00:59:29.000 And one of the key things to is, I think sometimes we think about downtown is kind of just, just the square, but I met with several businesses that are off this where and they saw huge increases to their foot traffic as well. 00:59:29.000 --> 00:59:41.000 And some of these people, you know, went into their business for the first time, so it might not be a sale today that they had in October, but they saw what was available online purchase, they'll come back and see that business. 00:59:41.000 --> 01:00:03.000 And then out of our businesses, 78% of them participated in a promotion event or offered a seasonal menu item. So we hope to increase that this year, but there were over 300 events related to 31 days of Halloween. So we've already started planning for this year. So we hope to have an even bigger 31 days of Halloween. 01:00:03.000 --> 01:00:17.000 This year. Thank you. There's a lot of work that goes on behind the scenes. I know Kristen worked really hard to coordinate what the businesses are common and parts of this effort for sure. As well as the local vendors that have been doing this for quite some time. 01:00:17.000 --> 01:00:34.000 Our current stats for Q4, we at the end of December, we had 25 active projects with a pipeline of 3800 potential jobs and 5.9 potential capital investment. We had six new leads. The sources were from one local partner, three from a broker, one from the website and one that was direct. 01:00:34.000 --> 01:00:45.000 We had three incentive applications for our city incentives, but then we also had three additional state incentives that are applications that we help businesses apply for. 01:00:45.000 --> 01:00:58.000 Going to recruitment visits, we had three that we posted and we also had to reclassify quite a few leads because sometimes they don't ever, sometimes they're not expanding. Sometimes they just need general business support and so we want to count those. 01:00:58.000 --> 01:01:16.000 And so we moved for those leads to cold to transfer business support to that. We lost 1 that we moved back to active and 1 that we won without incentives and clay reached out to 281 businesses for recruitment outreach attempts and that's via email. 01:01:16.000 --> 01:01:35.000 And for our downtown stats, we had 6 VRE visits. We had 5 leads lost 1 that's now moving forward with the project 3 moved to cold and 1, 1 without incentives and then we had 6 new downtown leads. That's for the downtown reinvestment grant and then we also had 10 recruitment outreach attempts. 01:01:35.000 --> 01:01:54.000 For the RFI stats, we received 24 from the state governor's office in the Dallas regional chamber. We submitted 13. We did not submit on 10. We had 0 lead conversions. Out of the ones that we submitted, the potential capital investment in that pipeline is 1.1 billion dollars and 9600 potential jobs. 01:01:54.000 --> 01:02:00.000 So for a total for FY25, we submitted 64 RFIs for the year. 01:02:00.000 --> 01:02:06.000 Some music and film. I'll hand this off to Matilda Wieden, economic development specialist. 01:02:06.000 --> 01:02:24.000 You may have noticed we had a busy quarter last quarter. You can see in this photo that some of us got to visit a film set that was downtown, but we issued 1 commercial permit in November and 3 student permits and then 1 commercial permit in December. 01:02:24.000 --> 01:02:34.000 When I say commercial, I don't mean like television commercial. I just mean basically not student. So it could be a movie. It could be TV. It could be a commercial. 01:02:34.000 --> 01:02:58.000 If you're wanting to see things that have been filmed in Denton, Wan Man season 2 episode 3 has a little snapshot of Denton and then a movie that was filmed in 2024 finally came out called Ruthless Atonement. It's available for free on Tubi or you can pay for it on Amazon Prime and support the local filmmakers. 01:02:58.000 --> 01:03:15.000 Looking ahead, back when I made this, I was looking ahead and I already made adjustments to our permit application to add some more automation and clean some things up where there was some loose ends and just things that I've learned throughout the process and cleaned it up a bit. 01:03:15.000 --> 01:03:36.000 In a couple weeks, we have the Dent Black Film Festival. They're premiering a movie documentary style film about Quaker Town on Thursday, the 28th, I believe, that Thursday and that should be really interesting if anyone wants to go. 01:03:36.000 --> 01:03:58.000 It's about Quaker Town, Denton history, and then they're going to have like a big red carpet celebration as well, I believe. And then music, every year the Grammy nominations come out and there's always UND alums, so we're very proud that there's three UND alums in the Grammy nomination. 01:03:58.000 --> 01:04:16.000 I'm really proud of Matilda because she's working hard on ensuring that Denton is a great place to film their commercial videos or just movies in general. So when Landman came to shoot this, that was my first time on a set and they brought on several semi trucks and trailers to prepare for a two minute scene, which is crazy. 01:04:16.000 --> 01:04:33.000 We got to see Billy Bob drive by and with the other actors, I don't know her name, unfortunately, but still Billy Bob. So he was able to wave at us, but it's important because when Matilda is coordinating that, she's coordinating with all the other departments, with police, with fire, to ensure that they're aware of what's going on. 01:04:33.000 --> 01:04:49.000 And so overall, I think the Taylor Sheridan group is satisfied with us because they did come back and shoot the Madison up here. Hopefully that wasn't announced already, but we have an upcoming event. 01:04:49.000 --> 01:05:13.000 We have a No More, Grow More market research for your business workshop. Matilda is hosting that one. It's talking about reference solutions with the free library tool for lead generation. So any business that registers in the state or several other platforms, if they have a NAICS code, you can go on their search by NAICS code and get their information, which is good for lead generation, not so much if you're on the other side being contacted. 01:05:13.000 --> 01:05:25.000 On February 3rd, the American Cancer Society will host a Bright Edge Texas Innovation Summit. And so we met them through UNT. And so there will be several Ventricopolis firms there and healthcare firms. 01:05:25.000 --> 01:05:41.000 On February 10th, there's a Small Business Connections with Denton Public Library that we're hosting with them, I believe. And on March 26th, as Dr. Terry Pollan said, we have a mobility summit. So that is it. And I'll hand this off to Matilda. 01:05:44.000 --> 01:05:53.000 Oh, I'm so sorry. One more. We have a board retreat coming out. We did finalize two dates. 01:05:53.000 --> 01:06:07.000 So put this on your calendars. Well, we need to confirm. We did finalize two different sets of dates. So February 3rd and February 4th, we will post those back to back, either from 8 to noon or 1 to 5. 01:06:07.000 --> 01:06:21.000 Most people, we have a quorum for those dates and then March 23rd and March 24th. March 23rd would be from 1 to 5 PM and March 24th would be anytime throughout the day. 01:06:21.000 --> 01:06:28.000 So if any of those dates do not work for you, please let us know so that we can confirm and send those meeting invitations out. 01:06:33.000 --> 01:06:42.000 Okay, I promised to go fast. This report is going to cover July, August, September of 2025. 01:06:42.000 --> 01:06:55.000 I changed up the way the residential permit value looks. It's not a big messy chart anymore, but we just have a comparison of Q3 from this year and Q3 from last year and then the year to date. 01:06:55.000 --> 01:07:13.000 So $239 million residential permit value and I looked up why it's such a big difference and it looks like there was less stuff permitted last year at this time, including apartments. 01:07:13.000 --> 01:07:30.000 There was five this year, one last year during that time period. And then the year to date for last year, they did not include that, was $292 million, so roughly half. 01:07:30.000 --> 01:07:44.000 Commercial permit values. It's the same setup. And then I did the year to date as well for last year. So this up here is 2025, 2024 was $243 million. 01:07:44.000 --> 01:08:03.000 And then when I looked up why last year, the new target on university was permanent during this quarter and then about three big industrial projects, building projects were permitted within that quarter. So that's the reason for the big difference there. 01:08:06.000 --> 01:08:19.000 Sales tax, I apologize. It's kind of confusing. It's still the same month period. It's just sales tax is recorded in a fiscal year, so that's why I put that note up there, but it's still July, August, September. 01:08:19.000 --> 01:08:39.000 And then I did make a mistake that three should be a five, but this year we were up a little bit, pretty much the same, just 20,000, maybe 40,000 difference. I can't read. It didn't go down, so it's fine. 01:08:39.000 --> 01:08:57.000 And then the year to date for 2024, just like the commercial permits, I didn't think too much of it, but year to date for 2024 was 57. So that should be a 558 in the last year. 01:08:57.000 --> 01:09:22.000 Unemployment rate. This one's very interesting. As you can tell, there was a huge spike in August. When I did my research to find out why it looks like a lot of that is attributed to increase in claims, which the Texas Workforce Commission recorded a 92% increase in claims, which is unusual. 01:09:22.000 --> 01:09:44.000 And that was a huge fraud case of unemployment claims, but also hiring growth slowed. So between those two things, the rates in Texas jumped up a lot, but they went back down after they kind of settled out the employment fraud situation. 01:09:44.000 --> 01:09:59.000 Also, just to know if you remember last quarter when I reported this, the new administration was saying that they were going to change how they report some of this, so that also is kind of attributable to some of the changes. 01:09:59.000 --> 01:10:21.000 Next I have the cost of living. Same as always, the first slide is Texas, and then the next slide will be nationwide. It's pretty much the same. Cities are the lowest and highest, but Denton has gone down to 95.2 compared to 95.8 last quarter, and 97 in the first quarter. 01:10:21.000 --> 01:10:36.000 As a reminder, 100 would be average, so we are still below average in affordability. Something that is keeping us a bit higher is utilities, and then our goods and services are just kind of on par right now. 01:10:36.000 --> 01:10:51.000 The goods and services are things kind of like dry cleaning, or I'm trying to think of, I'm sorry, I forgot. 01:10:51.000 --> 01:11:05.000 Next slide is the US. So again, like always, these two usually fluctuate for the lowest, and then there's the Manhattan, which is always the highest cost of living. 01:11:05.000 --> 01:11:24.000 This time I put, there's a calculator that comes with the data set, and this time I put in like an estimated salary, so I said if an individual makes $65,000 in Denton, Texas, how much would things change if they moved to Manhattan? 01:11:24.000 --> 01:11:41.000 Your cost of housing would increase 464%, and your groceries would be 20% more. On the flip side, if you moved from Denton, Texas with a $65,000 salary to Decatur, Illinois, your housing would be 45% less, and your groceries would be about the same. 01:11:41.000 --> 01:12:04.000 Your salary would need to be about 144,000 in Manhattan to have the same take-home pay as Denton, and your salary, if you lived in Decatur, Illinois, would need to be about 50,000 to be the same purchasing power and things like that for $65,000 here in Denton. 01:12:04.000 --> 01:12:21.000 Which I thought that was fun. I like playing around with that calculator sometimes. Next we have the median home price. Housing prices have dropped. This is due to higher inventory and less sales over this quarter. 01:12:21.000 --> 01:12:36.000 I changed up some of the commercial real estate with Clayton Health. Here's the industrial citywide. These statistics in the middle are combined for lease and for sale. 01:12:36.000 --> 01:12:44.000 Same for the retail. Combined stats for lease and for sale. 01:12:44.000 --> 01:13:02.000 In downtown, we did split it up, but the middle section is combined, so we have five lots, 16 buildings for sale, $133,000 per feet available for lease during that time period of July, August, September. 01:13:02.000 --> 01:13:15.000 And that's it. Does anybody have any questions? 01:13:15.000 --> 01:13:30.000 I don't believe we have anything at this moment. We do have, we may potentially have a project to bring before you, but if not, we'll let you know, and I'll contact you Brian to see if you want to hold a meeting or not. 01:13:30.000 --> 01:13:42.000 If anyone got any future agenda items that we need to discuss or proposals for future agenda items, that's pretty clear. 01:13:42.000 --> 01:14:04.000 I think the airport conversation needs to be echoed. There's a lot of opportunity there. 01:14:04.000 --> 01:14:17.000 If not, with the board retreat, I think that would be a good session to host so that we can have some of those conversations. We had a council in December because we weren't going to be before, and we had to come in early. 01:14:17.000 --> 01:14:29.000 Those are the type of conversations that I'd like to have, especially with our incentive policies. We have to update our incentive policy this year, and so we want to throw everything in that ordinance in one round. 01:14:29.000 --> 01:14:48.000 So with that, we want to highly encourage the February 4th, 3rd and 4th, if available, just because it's going to drive the timeline for the year. 01:14:48.000 --> 01:15:05.000 I don't know if I'm available for this. Are you available on the 3rd and 4th? Yeah. 01:15:05.000 --> 01:15:22.000 Alright, we'll surf back on that. 01:15:22.000 --> 01:15:37.000 Alright, does the board have any other business to discuss or suggestions on what they wish to discuss in the next meeting? 01:15:37.000 --> 01:15:52.000 Hearing nothing, our next EDP board meeting is scheduled to be on Wednesday, February 11th at 11. Please let staff know you're able to attend. It's a bit your notification of absence online. 01:15:52.000 --> 01:16:07.000 If you have any other business, I'll adjourn this meeting at 12/18. Thank you. Happy New Year.