DEPARTMENT: Transportation and Capital Improvements
DEPARTMENT HEAD: Mike Frisbie
COUNCIL DISTRICT(S) IMPACTED: 3
SUBJECT:
Funding Agreement: Hangar 9 Museum (2012 Bond Project)
SUMMARY:
An ordinance authorizing the following items related to the Hangar 9 Museum Project, a 2012 - 2017 Bond Program project: (a) the execution of a funding agreement with Brooks Development Authority in an amount not to exceed $250,000.00 and authorizing payment; and (b) the negotiation and execution of a License Agreement for use of property, located at 8008 Inner Circle Drive, Brooks Air Force Base, to the City from Brooks Development Authority for a term of twenty years at a rate of $1 per year. Upon expiration of the license term, City will relinquish the use of the property back to Brooks Development Authority.
BACKGROUND INFORMATION:
Project Background
On May 12, 2012, San Antonio voters approved the 2012 - 2017 Bond Program, consisting of five propositions totaling $596 Million. The Bond Program funds will be used on various capital improvement projects, to address community infrastructure needs and improve the overall quality of life in San Antonio. As part of that program, $250,000.00 in Library, Museum and Cultural Arts Improvements General Obligation Bond funds were approved for the restoration of historic Hangar 9 Heritage Site at Brooks City-Base.
Hangar 9, built in 1918, was one of 16 original hangars built during World War I at Brooks Field. It is the last remaining wooden aircraft hangar in the U.S. Air Force and was last restored in 1969 as part of a community effort. It is included in the Texas State Historical Survey, entered in the National Register of Historic Places and is a National Historic Landmark. As part of its commitment to preserve the history of the former Brooks Air Force Base, Brooks City Base presented plans in April 2012 to completely refurbish and preserve the historic Hangar 9 building and surrounding area, which includes the grave-site of namesake Sidney Brooks. The proposed plan includes the development of a historic area around the property that could include various World War I and II memorials, an outdoor open space, a visitor kiosk and a community center. This facility is operated by Brooks City Base.
This agreement will be executed in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee set a 25% Small Business Enterprise (SBE) subcontracting goal and a 20% Minority/Women Business Enterprise (M/WBE) subcontracting goal. The Hangar 9 Museum has committed to 25% SBE and 20% M/WBE subcontractor participation.
ISSUE:
This ordinance authorizes the negotiation and execution of a funding agreement with Brooks Development Authority for Hangar 9 Museum Project in an amount not to exceed $250,000.00; and, authorize payments. Brooks Development Authority is contributing $100,000.00 towards the project.
This funding agreement will provide for Phase 1 of the restoration and rehabilitation of the Hangar 9 Heritage Site at Brooks City Base which will restore the outdoor plaza area to allow public access, and will provide amenities with informative displays to describe the significance of Hangar 9. The scope of work includes stabilization of the ground areas and retaining walls, and replacement of infrastructure to safely accommodate public access to the outdoor plaza area. Upon anticipated restoration completion in February 2016, the outdoor plaza area will be accessible and free to the public. Brooks Development Authority will operate and maintain the outdoor plaza area.
In order to provide funding needed for non-City owned facilities, as approved by the voters in the 2012 Bond, the City is required to have a long-term interest in the property. Therefore, a license agreement is being proposed as the means to fulfilling that requirement. This ordinance also authorizes the negotiation and execution of a license agreement between the City and Brooks Development Authority for the Hangar 9 Museum property located at 8008 Inner Circle Drive, Brooks Air Force Base, for a term of 20 years and a rate of $1.00 per year.
Staff recommends that the City Council authorize the City Manager and/or the Director of the Transportation and Capital Improvements or his designee to execute all documents and contracts, as needed, in connection with this ordinance.
ALTERNATIVES:
City Council could choose not to approve this action, however, considering the additional time Brooks Development Authority would need to identify alternative funding. This would adversely affect the timely completion and funding of this project. Further, the City would be unable to move forward with one of the Bond projects approved by the voters in 2012.
FISCAL IMPACT:
This is a one-time capital improvement expenditure in the amount not to exceed $250,000.00, authorized payable to Brooks Development Authority for Hangar 9 Museum Project. Funds are available from 2012 - 2017 General Obligation Bonds and are included in the FY 2014-2019 Capital Improvement Budget.
Under terms of the license agreement, the City of San Antonio would pay a $1.00 per year for 20 years.
RECOMMENDATION:
Staff recommends approval of an ordinance for the Hangar 9 Museum Project authorizing execution of a funding agreement with Brooks Development Authority in an amount not to exceed $250,000.00 and authorizing payment and the execution of a License Agreement for use of property located at 8008 Inner Circle Drive, Brooks Air Force Base, to the City from Brooks Development Authority for a term of 20 years at a rate of $1 per year.