) 
/Infra.struCt\lre . 􀁍􀁾􀀮􀀮􀂣􀀱􀁬􀁴Group, Inc. STEVEN A. STECKLER, President 4733 Bethesda Av'cnue. Suite 600 • Bethesda, MD 20iH 4 (301) 907-2900 FAX (301) 907·2906 cm.ail@l02730,304@compuserve.com
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MEMORANDUM To: Ron Whitehead, City Manager From: Randy Moravec, Finance Director Subject: Chronology ofTown's Relationship with AA TI In order to understand the relationship between
Addison Airport ofTexas Inc. and the Town, it is important to chronicle the relationship over the last sixteen years. This narrative was compiled from several hundred sheets ofcorrespondence
acquired during this period. 1976-77 I TOWN'S ACQUISITION OF AIRPORT: Addison airport had been in existence since the late fifties but did not become a viable enterprise until the Town
was approached by Henry Stuart in 1976 with an invitation to purchase the airport. There were several reasons which supported this transaction. First, general aviation ( airports are
successful only to the extent they receive federal funding for capital improvements. The Federal Aviation Administration generally only funds airports which are owned by governmental
entities. Second, rarely do private investors have the financial capabilities to fund general aviation operations. According to the Elected & Appointed Officials' Guide to Airport Issues
published by the American Association of Airport Executives: "The investment oflarge sums of money would be required to construct such a facility, an investment that would be substantial
for any private corporate venture. Ordinarily, the privately-owned airport in metropolitan areas which attempts to fornish such facilities is marginal in many ways." It goes on to say:
Unless the community owns the facility, it has na way to insure that an adequate terminal building is available and properly maintained" Mr. Stuart's proposal would be for the Town to
apply to the FAA for funds to purchase the airport. In return for providing the local share (FAA grants require a 10% local match), Mr. Stuart would receive from the Town a twenty year
operating agreement. Mr. Stuart's benefit from the transaction is obvious. First, by obtaining a long-term agreement, his company assumed much ofthe privileges ofairport ownership. Second,
he was able to leverage 10% private capital with 90% federal funds; something he could never have done as an individual. Third, as a shareholder of Addison Airport Inc., the owner of
almost 70% of the airport's property, he received a substantial sum from the airport sale. Finally, he would not have ( 
• >,) , , Memorandum to the City Manager (continued) November 19, 19981 to pay local property taxes on the value ofthe land and existing structures, This amount is not insignificant;
today that property is valued at $67,850,670 and at current tax rates a property C owner would have to pay $1,619,873 in taxes to local governments. The claim made by the Stuarts that
no taxpayer dollars have been used to support the airport is false. The federal money . used to acquire the airport was derived from taxes and the Town, school district, and county are
foregoing millions ofdollars in taxes by not having the property on the rolls. The operating agreement signed in December, 1976 was written solely for the benefit of Addison Airport
Inc. Unlike operating agreements which are now cornmonplace in airports across the country, the agreement did not define any level of performance which the company would have to provide.
As part of its analysis (explained later), the accounting firm of Deloitte Touche described the agreement as giving "carte blanche" to AATI in the operation ofthe airport. 1981-83 I
FAA SANCTION: Itwas only a few years after the operating agreement was signed that it became apparent the FAA was not satisfied with AA TI's operation of the airport. It was the FAA's
concern that AATI was conducting discriminatory practices in the dispensing of fuel at the airport. During this period, AATI required fixed base operators who sold fuel to pay a fuel
flowage fee to AATI. However, AA TI also sold fuel in competition with the FBO's but did not pay the fuel flowage fee. It was the FAA's opinion that this arrangement was unfair and discriminatory
to the airport's fixed base operators. The FAA demanded that AATI justify the fuel flowage fee by disclosing the company's finances. AATI denied this request. In the years following·this
dispute, the FAA refused to use federal funds to support capital improvements at the airport because the agency could not be assured that funds derived from the improvements would be
used to support aviation operations at the airport. 1983-85/FUEL FLOWAGE FEE LITIGATION: What had been a relatively minor dispute in 1981 grew to become an expensive lawsuit. In 1983
several fixed base operators sued AATI and the Town of Addison alleging unfair competition over the fuel flowage fee practice. Following months of litigation and negotiations, the lawsuit
was settled out of court in 1985. The result of the settlement was that AATI would withdraw from selling fuel at the airport but would continue receiving the fuel flowage fee from the
FBO's. AATI committed in the settlement to spend between $100,000 and $125,000 a year on capital improvements. Although this amount may appear substantial, it needs to be viewed in the
perspective that the fuel flowage fees generated over $500,000 annually. . 1988-89/EVALUATlON: On August 1, 1988 in a letter to Mayor Spruill, Richard Rogers, President of Million Air
(a fixed-hase operator), formally petitioned the Town to reduce the fuel flowage fee. Reasons cited in the letter were that money generated by leases and fuel flowage fees were not spent
to maintain and improve the airport, the 8% fuel flowage fee put Addison FBO's at a competitive disadvantage with operators at Love Field, and refusal of AA TI to allow FAA inspection
of its ( 2 
Memorandum to the City Manager (continued) November 19, 19981 finances led to the FAA's rejection of the Town's $2.9 million preapplication for federal assistance. Under the terms of
the 1985 agreement, Million Air's petition allowed the Town to conduct a review to determine whether the fuel flowage fee is "fair and reasonable, giving consideration to the costs,
expenses, and revenues incurred or generated at the airport, and such other matters, information or records which the Town deems relevant". The Town contracted with the accounting firm
ofDeloitte Haskins & Sells (now Deloitte-Touche) in October 1988 to conduct the fuel flowage fee analysis. In two studies conducted over the course of fourteen months, DH&S made several
findings: 1) The foel flowage fee was excessive and should either be reduced to 5.17% or assurance be received from AA TI that all funds generated by the fees be used to properly maintain
the airport. 2) There was an absence at AATI of any written polices and procedures affecting accounting practices, personnel policies, operational methods, etc. 3) There was excessive
staffing. 4) During the test period of1985-1988, the sole shareholder ofAATI (Henry Stuart) received annual dividends averaging $225,500 or 16.4% ofoperating expenses. The dividends
were in addition to Mr. Stuarts's compensation and benefits. In response to allegations made by Million Air and other airport tenants of the deterioration of facilities at the airport,
the Town contracted with EckroselGreen Associates, Inc. in December 1988 to perform a pavement evaluation at the airport. The study was completed in March, 1989 and made the following
findings: 1) Ofthe 137 pavement features inspected at the airport, almost halfwere in poor, very poor, or failed condition. 2) The airport was in need of approximately $2 million in
funds to adequately maintain pavement structures. 3) There was an absence at AATI ofany written standards, policies, or procedures regarding the maintenance ofpavement or drainage structures.
4) There was was an absence at AATI ofany construction history. Also in late 1988, the Town contracted with Wiss, Janney, Elstner Associates, Inc. to survey the condition of the "Tn
hangers on the airport's south side. That study concluded that while the buildings were in generally good condition, localized conditions of distress were noted at numerous locations.
The study expressed concern that certain conditions, ifnot addressed in the very near foture, could pose safety problems. ' 1990 I NEGOTIATION: The results ofthe 1989 studies combined
with the FAA's dissatisfaction with the operation of the airport convinced the Town that the operating agreement with AATI needed to be modified to allow the Town greater oversight of
the airport's operation. Following several months of negotiation, the Town and AATI agreed to an amended operating agreement. The primary purpose of the amended agreement was to allow
the Town to collect fuel flowage fees previously 3 
I, Memorandum to the City Manager (continued) November 19,19981 collected by AATI. These fees, amounting to approximately $550,000 per year would be used by the Town to fund its share
of maintenance at the airport as well as the local match for FAA capital project grants. The amended agreement also created the Upkeep fund through which all maintenance at the airport
would be conducted. Although the fund would be administered by AATI, the Town retained sole discretion for developing and adopting the fund's aunual budget. The fund would be supported
by contributions from the Town and AATI. The levels of contributions varied depending upon the fund's total budget. For a $500,000 budget, the Town's contribution would be 70%; for budgets
more or less than $500,000, the Town's contribution would be proportionately greater. 1990-911 REVIEW OF AATI'S MAINTENANCE PROCEDURES: The Upkeep fund began in October, 1990 coinciding
with the begiuning of the Town's fiscal year. Through quarterly reports submitted by AATI, the Town was able, for the first time in its relationship with AATI, to monitor the airport's
maintenance activities. The responsibility for supervising AAITs use of Upkeep funds was given to the finance director and city engineer. Review ofAATI's quarterly reports revealed a
haphazard management condition first discovered in the 1989 studies. AATI maintained no inspection reports which would identifY maintenance projects nor did AATI have any plan for directing
future maintenance activities. During a February, 1991 meeting with AATI officials, Town staff requested AATI develop short and longterm maintenance objectives for the airport. The response
by AATI officials at that time was that development ofan Upkeep plan was not a high priority. Another problem the Town had with AATI's maintenance operation was that its six full-time
employees were not capable of ( conducting an effective maintenance operation. Significant progress was not realized with the Upkeep fund until the time came to develop the 1991-92 Upkeep
budget. In July 1991 AATI submitted its proposal for the budget. Based upon their observations, Town staff recommended a budget which reduced Upkeep fund staffing, utilizing the savings
in salaries to conduct additional maintenance projects. Despite AATI's initial opposition to the Town's recommended budget, the company submitted a revised proposal which essentially
accomplished the Town's objective. With Council adoption of the 1991-92 budget, AATI discharged the least qualified maintenance employees and reorganized the function to be more productive.
In the following months, Town staff witnessed a more cooperative and responsive attitude among the maintenance crews. 1991-921 FAA CAPITAL PROJECT FUNDING: During the negotiation of
the 1990 amended agreement, FAA officials communicated their willingness to fund capital improvements if the Town assumed greater responsibility for the airport's operation. Within four
months ofthe agreement's inception, the FAA awarded the Town a $450,000 grant for security fencing. In September, 1991 the FAA funded $1.8 million in drainage improvements. The fullowing
year, the FAA provided $1.7 million for runway rehabilitation and medium intensity runway lighting. The Town is currently planning for the expenditure of $1.5 million next Spring for
east side taxiway improvements, lighting, and land acquisition for a west side taxiway. In the thirteen years preceding the 1990 amended agreement \ 4 
,., ( Memorandum to the City Manager (continued) November 19, 19981 the airport received no FAA money for capital improvements. In less than three years following the agreement, the
Town will have benefited from almost $5.5 million in improvements. Application for these funds and administration of the projects have been conducted by Town staffwith little involvement
from AATI. For the last few years, the Town has articulated its mission for the allPort: To make Addison airport theflnest general aviation facility in the country. Every action the
Town has taken since 1988 has been based upon this objective. The Town's relationship with AATI over the past sixteen years has been characterized by AATI's uncooperative attitude toward
the Town, the FAA, and the airport's tenants. It is my opinion this attitude has been detrimental to the Town accomplishing its objective. RCM:rm ( 5 
􀁾􀀻􀁲􀁾􀀠􀁃􀁉􀁔􀁾􀀠MANAGER'S DEPARTMENT (972)450-7000 • 􀁆􀁾􀀬􀁻􀀠(972) 450·7Q43 Post Office Box 144 Addison, Texas 75001-0144 5300 Belt Line ROAd AGENDA REGULAR MEETING OF THE ADDISON
AIRPORT BOARD APRIL 15, 1998 6:30 P.M. ADDISON MUNICIPAL COURTS BUILDING 4799 AIRPORT PARKWAY Item#1 Approval of the Minutes of the February 18, 1998 Meeting Item #2 Update on the Keller
Springs Toll Tunnel Item #3 Update on the Addison Airport 2001 Process Item #4 Discussion and Consideration of a Future Site for the Addison Airport Fuel Farm and Fueling Leases Item
#5 Presentation and Discussion of an Environmental Assessment on the Conditions and Regulatory Compliance on Addison Airport Item #eJ Presentation and Consideration of a Proposed Lease
Lengths, Lease Extensions, and Lease Renewals Policy for Addison Airport Meeting Adjourned. THE TOWN OF ADDISON IS ACCESSIBLE TO PERSONS WITH DISABILITIES. PLEASE CALL 450-2819 AT LEAST
48 HOURS IN ADVANCE IF YOU NEED ASSISTANCE. Posted April 7, 1998, 5:00 p.m. Carmen Moran, City S
ecretary : ! 􀀲􀀭􀁾􀁣􀀻􀁪􀁻􀀠􀁾􀁾􀀠 .! .3 rdf 􀁾􀁊􀀠􀁾YlJ!JL1,-􀁣􀁲􀁌􀁾􀀬􀀠o;:vr r3J 􀂻􀁾􀀠I: 􀁾􀁗􀁾􀀠􀁌􀁡􀁍􀀭􀁾􀁾􀀠􀁦􀀱􀀱􀁍􀁊􀁣􀀯􀁾􀀠􀁾􀀮􀁾􀀠􀁉􀁾􀀮􀀠􀁾􀀮􀁾􀀠􀁾􀀠􀀱􀁩􀀯􀀮􀁊􀀴􀁊􀀮􀀮􀁾􀁾
Town manager Rori Whitche:;d' tract. .' .' 􀀭􀀢􀀮􀀬􀀬􀁾􀀧􀀢􀀠--,...􀁾􀂭said officiitls are gmteful for " The 􀁖􀁩􀁾􀁰􀁩􀁥􀁳􀁩􀁤􀁥􀁮􀁩􀁡􀁲􀁩􀁤􀁡􀁩􀁲􀁰􀁯􀁲􀁴􀀧􀁰􀁲􀁯􀁾􀀠. 􀀢􀁾􀀧􀁾􀁾􀁾􀁽􀁾􀁾􀁩􀁾􀁾􀁾􀁸􀁾
􀀠stiJaitS' , ' .. '. ,-' . . " '. !(: 􀀨􀀻􀀧􀀻􀁾􀁴􀁩􀁉􀀡􀁕􀁾􀁤􀁾􀁾􀀿􀁾􀁪􀁦􀁾􀁧􀁾􀁾􀁾􀀬􀀠":.", -J".: ,,'" ,'--. : ..•. , ,',"-;' .., ,. '. ':. 􀁡􀁶􀁩􀁾􀀣􀁯􀁮􀀧􀀠􀁩􀁾􀁓􀁕􀁾􀁓􀁩􀀠􀁾􀁡􀁊􀁤􀀠􀁰􀁴􀀻􀁬􀁾􀁬
􀁥􀀠􀀩􀀺􀁾􀀱􀁾􀂭􀁾􀁧􀁾􀁷􀀮􀁾􀁰􀀺􀁴􀀠􀁩􀁾􀀮􀀭􀁣􀁱􀁾􀁱􀁰􀁾􀁾􀁐􀁈􀁧􀁐􀁾􀁑􀀱􀀮􀁩􀁰􀂭Iy' oWn',d Iluropean;rirpprIs'apd is gairiirig popuiil#ty here, EveIifu:i!ly,le said,ahlilidfiiI 9fcomp.nlies
will, _emerge aithe nation) leagmg'air. 􀁰􀁯􀁲􀁴􀁲􀁲􀁩􀀮􀁡􀁮􀁡􀁧􀁥􀁾􀀻􀀮􀀬􀀠􀁩􀀮􀁾􀀬􀂷􀁾􀁊􀂷􀀾􀀠...􀀻􀀮􀀬􀂷􀂷􀁾􀀺􀀼􀀺􀀮􀀠:'.: : , , 'There,isa theoIY lh<\\iustaS we 'are 􀁳􀁥􀁥􀁩􀁮􀁧􀁾􀁮􀁳􀀶􀁬􀁩􀁤􀁡�
�􀁾􀀡􀁬􀁩􀁊􀀱􀀬􀁴􀁨􀁥􀀺􀀠a\f, .service 􀁢􀁵􀁳􀁩􀁴􀁩􀁾􀀬􀁾􀁳􀀢􀁾􀀧􀀠.__ 􀀺􀁾􀁾􀁾􀀧􀁾􀁾􀁾􀁲􀀮􀀠'fonr U.S. carners-'-there might . >.,' ,.' ' S', .. .􀁾􀀠, .', .. sihjilarly be a 90!"0Ifdj.li
on ,,mong , 􀀺􀀺􀁾􀁩􀁾􀁾􀁾􀀻􀁾􀁩􀁬􀀻􀀩􀁾􀁾􀁇􀁩􀀻􀁾􀀧airport peopH: WlIonui. airportS,''' Mr. BiIseysaiQ. ' " ,', ' <[orwrurd in a ,"The Enropeaosare 􀁤􀁾􀁦􀁩􀁮􀁩􀁴􀁥􀁬􀁹􀀠􀁉􀁓􀁾􀁊􀁦􀁐􀁬􀁬􀁯􀁉􀁏􀀬􀁧􀁩
􀀮􀁰􀁨􀁥􀁲􀀢􀀠is whatwe are ' , in the,D:S'. is that lc$,not so e;isy,to Biils came in 'firiw. 'six gn;ups, ' sei ii/>"liit'.:. 􀁬􀁬􀁲􀁩􀁱􀁊􀁯􀁬􀁦􀁦􀁵􀁩􀁩􀁲􀁩􀁾􀁧􀁥􀁩􀁄􀁥􀁩􀁊􀀮􀁴􀀠'
, inCluding Ross'Perot Jr.'s Hillw6oo' .. < "way,ahead in this 􀁡􀁲􀁥􀁾􀁔􀁨􀁥problem 􀁜􀀡􀁾􀁾􀁾􀁾􀀻􀁾􀀡􀁾􀁦􀁲􀀡􀀻􀁾􀁾􀁾􀁾􀁾􀀺􀁩􀁾􀀻􀁦􀁾􀁾􀀺􀁾􀁾􀁪􀁴􀁾􀁾􀁲􀀺􀂣􀁾􀁾􀀻􀀻􀀻􀀠􀁨􀁥􀀻􀀧􀁤􀁾􀁡􀁩􀁤􀀺􀀠,
• , , " 􀁡􀁧􀁲􀁥􀁾􀁭􀁥􀁩􀁩􀁴􀁬􀀺􀀠becaUse ihere', are 'so Development "lid 1fa,mIDell Crow formallC"., ,'mauyfederalrestrictions,!stowhat Go." "', ','''"" , licularconcem.,' ,,' , ,you
can do,"he,said. "Btii:ifregwa-Staubach,and :the, Washington " 􀀢􀁩􀁾􀁶􀁥􀀠􀁧􀁾􀁴􀀠alot, ofcoiifidencein lions were,cha<iged, it cOuld be dif-, Groupsigned,ariincentive-ladenanything'Stauliaci("does,
", ,s;ud '[ereIit." " 􀁩􀁳􀀢􀁩􀁭􀀺􀀧􀁏􀁷􀀡􀁾􀁥􀁤􀀺􀀺􀀮􀁢􀁹􀁲􀁥􀁳􀁩􀀺􀀠. World WarII.· . ..', aiidperrormance-.based, 􀁣􀁤􀁮􀁩􀁲􀁡􀁣􀁴􀁢􀁱􀁡􀁲􀁤􀁲􀁩􀁬􀁥􀀻􀀢􀁢􀁥􀁲􀁄􀁡􀁶􀁩􀁤􀁾􀁥􀁵􀁧􀁥􀁲􀀮􀀠''Bul
The 􀁾􀁥􀁲􀁩􀁴􀁕􀁲􀁥􀀠'also isa first for "office', Mr. 􀁓􀁴􀁵􀂷􀁡􀁲􀁴􀁡􀁮􀁤􀁨􀁩􀁾􀁳􀁯􀁮..Sarn, sold with the town,ihat is expected tij'be when the time,comes;:we warit to' .Staubach
and Washington Group., "saidthe' airfield to Addison'in 1976, worth as Dluch as $1.2 mi1lionanim, .make sUre the [lease] renewals"are, Plaus call for Staubach to handle ,runwaY is.iorigeithanone
'. signiJlg ',24-yearcontra6t thai 􀁾􀁉􀀭􀀧􀀠ally. " ,:.., . fairalid' . ,,' it doesn't gouge people ,the airport's real, estate develop-􀁌􀁏􀁶􀁥􀁆􀁩􀁾􀁬􀁬􀁉􀀧􀁳􀁴􀁨􀁲􀁥􀁥􀁲􀁵􀁮􀁗􀁡􀁹􀁳􀀮􀀠,
. 􀁬􀁯􀁷􀁾􀁤􀀮􀁴􀁨􀁥􀁭􀀠to, operate the airport Fiew 'mo'de"I"s'" . '.,., mentarid leasing operalions. The PiiViteairportmanage'ment''has :,andkeep' 97 percent 'of, ihe gross ,Washington
!3roup's aviationdivi-. talien'offarowldthe ootid, bilt'ilie . revenue. That agreement expired 􀁁􀁤􀁤􀁩􀁳􀁯􀁲􀁩􀀧􀁬􀁥􀀳􀁤􀁾􀁲􀁳􀁨􀁡􀁤􀀠few 􀁭􀁾􀁤􀁥􀁬􀁳􀀠, 􀁾􀁾􀀱􀁾􀁾􀁾􀁾􀀻􀁾􀁾􀁾􀁾􀁾􀁾􀀺􀁲􀁾􀁾􀁾􀁾􀁣􀁴
􀁾􀁾􀀮􀂷􀀠·sion.;.... led ,by Fredenck C. Ford" U.S. 􀁩􀁳􀁴􀁬􀁊􀀮􀁥􀀧􀁬􀁡􀁓􀁻􀁩􀁯􀂷􀁃􀁡􀁾􀁨􀀼􀁩􀁮􀀠iIi "'!tall Dec. 31. ,-'.' .... , .. ' 'upon whichto base,the airport con-. foinier
direCtor' of' DallasIFort thinlc wiUbe a real growth .area -for, WorthlritemalionaI.Aii]iOrt-.:.will. us... said Mr:Ford,tho' oompanh take care of flight operations arid,developmeD.l
"." . ..; manager. 􀀢􀁁􀁤􀁤􀁩􀁾􀁣􀁩􀁮􀀠is unique .:...'m" , . Thec<impariies facelittldinau-thati!;iS the. only ,Oite:weinanage. cial risk beCause:ciipital 􀁩􀁲􀁩􀁹􀀢􀁴􀁮􀀩􀀮􀁥􀁮􀁾􀀠rightjigw,:birhye
!hiiJkit Will be QDe ; . wili C9ine/torithe,: ici:vtn's *""rt , .of' 􀁉􀁬􀁬􀁬􀁕􀁬􀁙􀀺􀁉􀁦􀀬􀀧􀀮􀁾􀀠􀁧􀁩􀁩􀁴􀁧􀁾􀁴􀁩􀁬􀁊􀁬􀁓􀀠:its',." .. ' revenues;' said 􀁌􀁏􀁮􀁹􀁋􀁩􀁭􀁢􀁉􀁥􀁲􀀻􀁾􀁲􀁡􀁵􀀭􀀮􀀠w<irki
rig\!rnOilOi, .·«itlie(:·. airports: bach'sexeeutiv:e\deepresideqt,· '," . oiimoo,)Jy:ihecitywili conSider Us.'" liCitY.if'you. don'tdoa 􀁾􀁲􀁴􀁡􀁬􀁩􀁴􀁹job,", . . Staubacliis)ookiligatitideve!Mi:
Kimbler silid,"'Thisjookiid,Ilke' 􀁯􀁰􀁭􀁥􀁮􀁩􀀧􀁴􀁪􀁰􀁾􀁯􀁮􀁾􀁦􀁯􀁲􀁩􀁩􀁩􀁥􀀺􀁬􀀶􀀶􀁣􀁡􀁣􀁲􀁥air, ", .' . , " ,-. .􀁾􀀠, '... 
,.:. The 􀁰􀀧􀁾􀁰􀁡􀀬􀁡􀁴􀁩􀁯􀁮􀀠01 Lhi. doc:ument w., financed In partth,ough a planning grant f,om Lhe Fede,al Aviation Admini,ualion (fAA) al provided under Section 50S of the Airport
and Ai.......y Improvement Ac! of 19112 a, am""d.d by the Airport and Alrway Safety a"d Capacity hpafllien Act of 1987. The content, do not ne,,,,,arily r.llect the official view, or
policy of the FAA. Aceeptane" of thil ••pert by the FAA doe, not in any way ,onnitut. a commitment on th. part 01 the United SMte5 to participate in any development depiCled hereIn,
no! doe. it indicate (hat the propo.ed development j. enviconmentally acceptable in accordance with appropriate Pl'bhc 10""'. TIl;. document Wa, prepared and pubJi.hed by BARNARO OUNKHBERG
& COMPANY{Tuba, Oklahoma_ July 1997.*Printed on P.r.cyded Paper. o E X e cut ve Summary {flt! airport 􀁾􀁡􀁳􀁴􀁥􀁲􀀠plan update IAddison, Texasl 􀁾Barnard Dunkelberg & Company capabilities
of the facility to accommodate future aviation demand. The planning process has coordinated input from the Town of Addison, a Master Plan Study Advisory Committee, the Addison Airport
Board, the Federal Aviation Administration, Airport Users, and interested citizens. This summary reviews the findings and recommendations of the Airport Marter Plan Update and illustrates
the demand-dictated development program for airport improvements and environs compatibility. Introductionl Addison Airport is a major corporate-use general aviation reliever facility,
which serves not only the Town of Addison, but several surrounding communities within a large portion of the Dallas Fort Worth Metroplex. Historically, the airport has both benefited
and contributed to the economic expansion and development of the "North Dallas" sector of the Metroplex. Today, it is the airport's unique proximity to many of the Metroplex's larger
employment market centers, businesses, industries and residential areas that has provided the stimulus for continued facility development and expansion. 􀁾􀀠-:-.-: -.--. a n update -_.'_...,...
-_.'_...,... --'.. In addition, Addison Airport plays an integral role in the national system of airports, as well as provides a vital component of the transportation infrastructure
which serves this region. The airport offers facilities which are essential not only from a transportation 􀁰􀁥􀁲􀁳􀁰􀁥􀁣􀁴􀁩􀁶􀁾􀀬􀀠they are also a necessity from an employment and
economic development standpoint. A v atlon Activ For e cas t s t y The forecasting of futUre aviation activity at Addison, in terms of aircrah operations and based aircrah, provides
a unique opportunity for both analyzing existing airport facilities, as well as identifying future aviation needs and requirements for the community. Forecasting, by its very nature,
is not exact; however, it does establish some general parameters for development and, when soundly established, provides a defined rationale for various development activities as demands
increase. The overall trend in the general aviation operations forecast for Addison Airport is one of slow, but consistent growth, remaining responsive to the growing number of corporate
aviation users, as well as anticipating the ongoing industry·wide changes to reduce the ownership and operational costs of general aviation aircrah. Annual aircrah operations at Addison
(landings and takeoffs) are forecast to increase from 161,935 in 1995 to 209,050 in 2015. It is anticipated that a majority of the growth will occur within the corporate and business-related
general aviation sector (i.e., business jet and turboprop aircrah), with Addison continuing to be recognized as a desirable basing location for corporate aircrah owners and operators
within the Dallas Fort Worth Metroplex. :: .', . 􀁾􀀠. -: 􀁾􀀮􀀠
􀁲􀀭􀀭􀀮􀁾􀀮􀀭Development Assumption.s 10 concert with the status of the airport, some basic assumptions have been established which are intended to direct the expansion of airport development
in lhe future. These include: 1 Assumption One. The airport will continue to be operated as a single runway fatility, in accordance with FAA':! decision not to :support the future I
development of 0 non-standard porallel "departure only" runway_ 2 Assumption Two. The runway'S. existing ARC D-II precision approach dimensional criteria will be maintained to cccommooate
the operotian of the airport's current based and itinerant business jet aircralt fleet However; there are existing dimensional criteria deficiencies 􀀨􀁩􀀮􀁥􀀮􀁾􀀠the Runway 33 safety
area and object free afro and Runway 15 sofelyarea} that will be resolved utilizing both the application ofI declared distances criteria and the implementation of drainage/gradfng improvement
projects, 3 Assumption Three. According to the findings ofFAA's precision approach obSlrUCtiOfl onofysis, the specified one mire visibility minimums far the existing Runway 33 predsian
instrument approach could likely be reduced to 􀁴􀁨􀁲􀁥􀁥􀁾􀁱􀁵􀁡􀁲􀁴􀁥􀁲􀁳􀀠ofa mile following the removal/relocation ofexisting light and power poles. In additkm, lheexisUng Runway
15/33 displaced thresholds (i.e,# 979' on Runwoy 15 and 771' on Runway 33) must be maintained for compliance with the specified obstruction clearance requirementsI a"odated with the
lower instrument approach visibility minimums. 4 Assumption Four. The existing aviation and aviationrelated foc/lities identified for displacement, due to the construction of the Keller
Spdngs Toll Tunnel; will be relocated to existing fadlities which are currently available on the airport. Additional property, which is contiguous to the current airport 􀁢􀁯􀁵􀁮􀁤􀁯􀁾􀀠will
also be purchased to replace the property needed for the tunnel development. Because the existing landside area is at a premium, the future airport development pion should I strive to
maximize the airport's development patentiol for 􀁑􀁶􀁩􀁡􀁴􀁩􀁡􀁮􀁾􀁲􀁥􀁊􀁡􀁴􀁥􀁤􀀠fodlfties and activities. Development Plan Recommendations The pfan for the future development of Addison
evolved from an analysis of many considerations. Among these are: forecast aviation demand; aircraft operational characteristics; requirements for aviation and nOll-aviation fJdlities;
and environmental consideratlons_ Following a careful assessment of the potential impacts of several altematives, a Recommended Development Plan was formulated, The Development Plan
is presented in three phases: the first or Short-range phase (0-5 years/2000), the second or intermediate-range phase 􀀨􀀶􀁾10 years/2005), and the third or long-range phase (11-20 years/201S).
TIle projects planned for each phase are to be implemented on an as needed, demanddictated basis. ..' Airslde Development Recommendations landside Development Recommendations P'uue I
(0-5 yt:an) proJects: Phase I (OWS 􀁹􀁾􀀮􀁮􀀩􀀠proJeds: Rewtvc clii$tiilg Runway 1 S/33 􀁴􀁨􀁭􀁾􀁩􀁯􀁮􀁡􀁬􀀠(otelia derKiencies with Acquire replacetTle!nl property for Toll Tunne! development,
implementation of Declared 􀁄􀁩􀁳􀁴􀁡􀁮􀁣􀁾􀀠S!andar(h, and dtJinage/grndin9 Recoflllrucl e.>Ihtlng south tCmlinai apron "fell to a(CQmmodate future! let Covrt impl'OW;lmenlS. Hangar
developmenc COnstruct nrsl pha5e of thc we\t-1l<lc partial paroll11e1 talliway 􀁳􀁹􀁾􀁭􀀮􀀠COMlruct two new Filled 8Me Operator (F60)/mainlenance hang"fl wi,h tower Runway 33 predlion
approocn vi5ibilily minimums to 314-mile. apron aM aulo parkiflg facmlieJ:. Install Predwn ApprMch Path Indi(;lLOK {PAPlsj Qn Runway 33. Acquire property for luture luel «crage facility
development. Acquire avlgation casement within 􀁦􀁵􀁬􀁵􀁲􀁾􀀠runway protection :/!ones 􀀨􀁒􀁐􀁬􀁾􀀩􀀠Acquire prop"rty for future air traffic control tower (ATCl) f.ldlity dlllMlopment.
01'1 edch 􀁾􀁮􀁤􀀠of th" runway. Acquire property lot future airport facility 􀁲􀁥􀁤􀁾􀁬􀁯􀁰􀁭􀁥􀁮􀁴􀁬􀀨􀀡􀁬􀁴􀁰􀁤􀁲􀁵􀀻􀁩􀁏􀀡􀁬􀀮􀀠 Phase U (6-10 ),Nn} proJerts: lmpkln'len, 􀁣􀁣􀁾􀁬􀂷􀁳􀁩􀁤􀁥􀀠acee
u taxiway pavement improvements.. Phase II (6-10 Ymln) proJeds: Construct new conne«(!)f wlIiW.l)t at Runwa.y 15 approoch thrl!$hofd. Conwutl rlrst phille 01 Keller Springs RlXld hangar
redlN1,llopmeOtwith apron, Repiac" Runway lS 􀁖􀁩􀁾􀁵􀁡􀁬􀀠Approarh S.lope Indicaltlt (VAS!) Wllh a PAPt talliway and aulO parklog fl'lc1lities. lk>I:on1tru<:lell:i5ting TOWn T-h3ngMcompl"lI
and apron to accommodate futum Phase IH 􀀨􀀢􀁾􀀲􀀰􀀠years) pnljeds: 􀁥􀀢􀀬􀁥􀀬􀁵􀁾􀁩􀁶􀀼􀀺􀀠hal'lgollr redevelopmcnL IMplement Rl.lnw..y 1Sf]] paVllmcot improvemenlS. Acquire property
for future airport facility redweiopmeflt/elipanskm. Comtrutt 􀁾􀁦􀀬􀀧􀀨􀁑􀁮􀁤􀀠􀁰􀁨􀁡􀁾􀁥􀀠of the W<5t-1ide parallel la)((Way sf$tem with fUnupf holding aprtlnllt norttw.tet corner
of Runway 1 S. phase til (11w20 yean) projed.$: Implement differenlOalglobl'll pcuitioning s)'lleM (OGPS) pr;:<,tiOrt approach Construct S(lco()d ph;ue of Keller Spring! Road hangar
redevelopment with apron, upgrade to RUflWil;t11 S and 33. l.lxiway and "uto parking I,KUll.ies. Coostruct two new corporatcJmmntenal'lt::e haflgiiI} with apron and Mlto parking Conslru<:t
runup/hoJding apron al southwell comer of Rtmway 33. facilities.COflUruct helipad with access taxiway adiaccnt 10 future AlCT. Al:qtJir<: property (or lutufe airport fadllty redevewprrn:mt/ellpilns«m
.Widen e<i1.l""'de paralle! taxiway \0 7'£ jeet and Implement east-.sld" acce% t.u:i>v<Iy paveMent improvemenb. Development 􀁐􀁲􀁯􀁧􀁲􀀮􀁾􀀠Over the course of the 􀀲􀀰􀁾􀁹􀁥􀁡􀁲􀀠planning
period, the Master Plan Update identifies the potential need for approximately $64.1 million in Capital Improvements at Addison Airport, In addition to the Sponsor (i.e., the Town of
Addison), funding sOUKes which have been identified include the Federal Aviation Adminis.tration (FAA), and private investment local and regional economic development sources couldalso provide funding. The anticipated FAA share Is some $38,981,250with the local Sponsor share totaling approximately $5,331,250, The remaining $19,815,000 have been classified as revenue-generating
expenditures which are typically financed by tenants Of private developers, Overall, the recommended Development Plan is flexible, realizing that the extent of aU future airside and
landside lacility expansion and development will be dependent upon local demand and specific user requirements. A rport Development Plan 
. .:.. :.:.' 􀁾􀁟􀀧􀁾􀁾􀁾􀁉••',are'sel-,c>.... 􀁾􀀺􀀮􀀮􀀬􀁾􀀢􀁲... 􀀺􀀬􀁴􀀨􀀩􀁾􀁮􀁬􀁬􀁬􀁥􀂷.􀀮􀁁􀁤􀁤􀁩􀁳􀁾􀀮􀁮􀂷􀂷􀂷􀁌􀂷􀁾􀀻,11,'-+"1 ....... '_· ",-.:'>' 􀀺􀁾􀀺􀀮􀀺􀀮􀀧􀁾􀀮􀀺􀁾􀀺􀀺􀁾􀀺􀁾􀁾􀀮􀁾􀀠...,
' 􀀾􀁾􀁦􀀺􀀼􀂷􀀺􀀯􀀨􀀭􀂷􀀺􀀺􀀬􀁾􀀺􀀧􀁴􀀧􀀺􀀺􀀺􀁾􀀮􀀺..--;· -􀁾􀁟􀀮􀀧􀀭􀀭,':-:/:.. ,<" ", .-:..:. ' ." \,':, 􀀭􀀧􀁾􀀧􀀺􀁾􀀠􀁴􀀺􀁡􀁪􀁰􀀮􀁩􀁊􀁙􀀧􀀮􀁴􀀹􀁾􀁴􀁙􀀬􀁰􀁶􀁥􀁴􀁾􀁣􀁯􀁾􀁴􀁲􀁯􀁴􀁴􀀨􀀩􀁓􀁾􀁮􀀮􀁢􀁡�
�􀁾􀁃􀁱􀀺􀀬. .t-' " 􀁾􀀻􀀠,'•• . " .... ' 
------toWIl'S efforts In an emotional bid for public support 'Olay imd theirsupporters want to '. Henry Stuart, 77, who helped start Addison Airport in 1952, believes that he and his
47·year-old son, Sam, are still the best people to run the facility. 'Addison prepares to assert control over airport --.. 􀀢􀀧􀁾􀀧􀀧􀀧􀀭" 􀁾.. . 1􀁾􀀢􀁴􀁲􀁯􀁮􀁯􀁬􀁬􀁴􀁡􀁮􀀠􀂷􀂷􀂷􀁾􀀢􀀬􀁬􀁉􀁬􀁲􀂧􀀠el
m Tbe DtiW MctalDi Ntwt 􀀧􀀭􀁾􀀠􀁜􀁾􀀮􀁃􀂥􀀮􀀮􀀠􀀢􀀭􀁲􀁾􀀠By Todd Bensman StoN Writer'i Tb,!l1lliSMotnlDgNeWs. A DDISON-Fornearlyhalfa . century, the Henry Stuart family looked at Addison
Alrport the 􀁷􀁡􀁹􀁦􀁡􀁲􀁭􀁥􀁲􀁓􀁉􀁏􀁏􀁫􀁡􀁴􀁦􀁡􀁭􀁩􀁬􀁙􀁉􀁾􀁮􀁤..itseconomiclifeblood,itschildhOod "I've spent a lifetime building this; it's been the prime thing," said Mr. Stuart,
77, whO with some wartime flying buddies sl1lrted the airport as a dirtstrip in 1952. Along the way, he handed over the contrOl siick to his 47.year-old'son, Sam Stuart. 'Ole younger.
man came ofage at. AddiSon Airport and has made a career of managing it profitably. playground, a way of life. 􀀭􀀭􀁾-1.· .... 􀀮􀁾􀀢􀀧􀁾􀀢􀀢􀁾􀀮􀀢..􀁾i-"eontinued from Page 21A. '{,e.staurants
see ('IIii> situation differently. To tbem. I the Stuarts have enjoyed a goodIde.lfor along time-about 95 i􀁾􀁾􀁾􀁾􀁾􀁾􀁩􀁾􀁾􀁾􀁾􀁾􀀺􀁾􀁾􀁾􀀧􀀺􀀺􀁾􀁾􀁾􀁾􀀺l Henry Stuart agreed to sell
tbe : 􀁾􀁩􀁲􀁰􀁯􀁲􀁴􀀠to lower Its I1Ix burden and:'qualify the airport for federal !development money. But the town t at the time lacked $800,000 for the 1down payment. Mr. Stuart agreed
f instead to accept the lease ; agreement giving him most of the : profits for two decades. lasnorthwest Dallas County ! grew, the airport prospered, and so !,dla Mr, Stuart. : Town
officials, long irked by1what they consider a lopsided deal, : said it is time for the town of 8,000 􀁾􀁭􀁬􀁡􀁩􀁭tbe priv!ieges of . ,olrYnershlp. Revenue that the g)Jarts once took
as profits. can now 􀁾􀁾􀀧􀁐􀁬􀁯􀁷􀁥􀁤􀀠back into the airport for 􀁾􀁲􀁡􀁳􀁴􀁲􀁵􀁣􀁴􀁵􀁲􀁥and development !.I'Ei1jects that could generate tax '>DIoney: 􀁾􀁾􀀠'it,i,C'In a lot of the
dialogue with the 􀁭􀁾􀁡􀁲􀁴􀁳􀀬􀀠it's very clear that theire very prqud of the airport,1I said ,Tijwn Manager Ron Whitehead, . 􀀢􀁾􀁉􀁬􀁤􀀠they're very charming people. '1'lley didn't
get as far as they have .",' ,.u<, ,o;v"""7" •••. ':l2r>. . 􀁾􀁾􀁴􀀴􀁾􀀢􀀠r. by notbelng charming. But In the end, the town does own the airport and haS a fiduciary responsibilily to
the taxpayers." The city staff proposes to hire an outside management firm to run the airport at a set price. The town last year established the Addison Airport 2001 Committee -made
up of council members, residents, airport tenants and airport board members -to formulate a policy on how the airport should be run. Mr. Whitehead said the committee is expected to give
its report to the airport board In June. The board will then submit the report to the council. The town plans to take bids from management firms this year, and the Stuarts are Invited
to compete, officials said. Once a management firm is In place next Year, the town hopes to begin begin planning changos outlined in a20.1'oar master plan updated last year. Among the
proposals is construction of a half.dozen more corporate jet bapgars and related facilities catering to the kind of high-end traffic that officials said spells revenue. . That would
reptese!)t a shift from the airport's current focus on ·C·HANGE IN THE AIR . • . . \' 'As AddIson prepares to take control ofauport, '. 'Z" , L' f d 1ongnme managers, otners wary 0 re
eve opment .'But now, the Stuarts acknowledge, tlieir days of running the airport they .nurtured appear to be numbered -as is their access to the lion's share ofits grOWing profIts.
'Ole Stuarts have enjoyed those profitS evell though they sold their airport to the town in 1976. They got$9 mlllian and most of the airport's future profits under a . . small private
planes and the businesses that serve them, city officials and the Stuarts said. Another town proposal calls for expanding and Improving the Cavenaugh Fl!ght Museum, which is already
a significant attraction for visitors. "I think the airport bas been very successful historically," said Mayor Richard Beckert. "But I think there's even more' opportunity in the future."
Talk of changing the airport's miSSion -plus a recent town move to halve tradit!onal4O:year lease arrangements for business operators -bas prompted some tenants to rally behind the Stuarts.
"It is our feeling that the airport would be better run the way. it has been for 40 years because it is the paragon, the model, of all general aviation airports in the country," said
CorkY Pledger, a board member of the Addison Airport BUSiness Owners Association. "'Olis is what got us bere. Why would you want to change that? Don't fix what ain't broken." Jan Colimer,
an aerobatic pUot and former DallaslFort Worth International Airport board member, also praised the way the airport has been managed. "As far as the Swarts are long·term lease that left
them in control. With that 􀁬􀁥􀀮􀁳􀁾􀀠due to expire In 2001, Addison has begun taking steps to assume control control of the 36i).acre airportand institute an ambitious $64 million
redevelopment plan. 'fueStuarts, meanwhile;are opposing the { \:concerned, I'm a100.percelit i :::;:;:::::c: I""t booster," said Mr. Collmer, who has housed his plane at Addison Alrport
for 15 years. "I don't see anything done that could have been done differently." Supporters especially like to point to how the Stuarts kept the airport afloat after the mid·19SOs economic
bust chased away corporate jet traffic that had arrived during the preceding boom. 'Ole exodus of those corporate clients-the same sort that town offiCials now want to court-could have
killed the airport had the Stuarts not paid attention to tbe small clients, supporters said. "It was the little guys who stayed' and nursed this airport along -the doctors,tbe lawyers,
the people who have always been here," said .Ms. Pledger, whose ramily operates an airport business catering to owners of small planes. .. Town officials agreed that the Stuarts are
largely responsible for the airport'S success. But they said . the time Is right for evolution and improvements. " , ''The future ofthe airport Is clearly to maintain a balance betw,een
the large operators and the concern that the new era will be small operators," Mr. Beckert said. bad. Overnight Tex8;S& 􀁓􀁯􀁵􀁴􀁢􀁾􀀢􀀧􀁬􀁯􀂷􀂷􀀠. . 􀁾􀀬􀁾􀀿􀁾􀁾􀁾􀀠􀁾􀁪􀀻􀀠HF .. "
.. " 21 A maintain alease arrangement simllar to ille explrlngone, to whlch'they attribute with pride the airport's growth frOm a dirt airstrip Intoone of the n;atlon's premier general
avlat!on airports.yet theStuarts concededthat theysumd littlechance of continuing the old way. "It's like the old saying," said Sam Stuart, sitting wltb his father in.thelr airport offices.
"You d9n't know what you have until It's gone. It's very hard to build something up and watch somebody come In from the. outside and tear It apart slowly but surely on paper. It burts.:'
Officials of the 41'.o..squar..mlle town 'of' executive apartments, office towers alid . Please see ADDISON on Page 2SA. The Dallal Morning Newt Michaiil AIMlViirt, '1 don't think from
a business 
,,", '''....-" 􀁾􀀮􀀺􀀺􀀠< . . .. ' . , · •.. ·...··USlneSSB WOlt"The Dallas Morning.News, ' .􀁩􀁪􀁴􀁾􀁴􀀠􀁾􀁡􀁌􀁉􀁡􀀻􀁓􀀠􀁾􀁮􀁴􀁩􀁬􀁴􀁧Jtltr,$ .WWW.daUasnews.com . SeetionH ) , ADDISON
AIRPORT AT A GLANCE Owner: Town of Addison Operators: Dallas-based Staubach Co. and Washington Gioup hilemallonal of Boise, Manager: David Pearce .Runway: Asingle runway thaI Is 7,002
feellong and 100 feel wide . Takeoffs and landln!il": 170,000 a year .. , I ... ,'. illrcraft based' Iii Addison: 425 slngle-eriglne prop planes, 225mlJltl-englne prop . planes, 66 jets,
13 helicopters . .Other airport actlvttr. Addison Airport Is home to the Cavanaugh Museum, Frl!o-Lay's corporate aviation facilities, six flight schools .. and·four fixed-base operators,
which provide aviation seMees. A RUNWAY MODEL . 􀁾􀀧􀀮􀀠.' David Pearce was hired to run the Addison Airport·by the Staubach Co.-Washington Group team. "There are things·we ·ean streamline
and make things ·more efficient to get a return on the assets," be said. Can city airfields be privately run? Addison Airport's new bosses think so By Steve Quinn Piano Bureau .. ADDISON
Airport hils landed . ... 􀁉􀁨􀁾􀀠hands of the corporate world io a. deal that supporters say could .become a blueprinl for city-owned airports across the United States. Although the
town ofAddison still owns the general aviation aiIport, Dallas-based S!aubacb Co. and Washington Group ,. International Inc. ofBo!se, Idaho, teamed up last month to run Airline Tecb
Reps the day-to-day operations. meChanic Mike In return, S?luooch, a real estate company, and Washffigton , . LobSinger works on Group, an engmeenng fUTll, wlll keep 18 percent ofthe
alrport.s. tht'·wlng oh Boeing gross annua1.revenue. 737.tAddison 􀀧􀀮􀀧􀁗􀁥􀀧􀁶􀁾􀀠been askedto 􀁾􀁥itloits next level. to pul the . Aiiport. The ,. 011 pohsh on II and 10 capltahze
on It m the corporate arena, which .'Ii . t 􀀷􀀲􀁾􀀠is where aviation is headed," said David Pearce, whom the two. .􀁾􀁾􀀠.􀁯􀁭􀁦􀁾􀀠0 companies hired liway from McKinney Municipal Airport
to . aIrcra .. manage the Addison airfield. "There are things we can streamline and make thiogs 􀁭􀁾􀁾􀁥􀀠. efficient to get a return on the assets." . Brian Busey, a WasJiington:based
attorney who specializes io .. Please see ADDISON, 3R,