We need a new airport!!!

[hartliss]

I don't see how AECOM's proposal offers a better financing package. There plan offered four potential terminal build options:

1. 35 gates with bells and whistles- same exact cost that has been discussed
2. 35 gates stripped down- minimal savings.
3. 25 gates (w/ potential to expand to 35 gates) and bells and whistles- significant savings.
4. 25 gates (w/ potential to expand to 35 gates) with no bells and whistles- HALF A BILLION in savings!!!

Sooo, basically they're saying if you want to save a bunch of money...build less. Seems like a bit of a marketing ploy.

Edit: here are their cost estimates

Well, it would appear that Aecom feels confident they can secure a lower interest rate the B&M which would be a big help (3.99 vs. 4.24). Aecom is kicking in more equity up front too, which I believe helps. If I am missing something, please let me know but Option 1 (which was meeting the City's RFP specifications). - AECOM proposed debt payments of 69.8 Million vs. B&M was 85.2 Million?

[beautyfromashes]

^ Thats the confusion. The $85.2M number was the maximum allowable by the airlines for yearly payment. It's my understanding that in B&Ms proposal, they said it would be under $60M for their proposal with it being more if there was add ons from the city to the final project. And the interest rate differences are pure speculation based on the conditions at the time of issuance.

[kboish]

Here are B&M assumptions



You can see they have a range of options also. All this tells us is that design is not and will not be finalized until someone gets picked. All can offer a range. Similarly, the financing method will also get hammered out AFTER selection also. Besides, the 4% number is just an assumption of utilizing tax exempt bonds. Any of the proposers could do that if they wanted which is why I don't think someone providing an assumption that they can get lower financing costs is necessarily something to base the selection on.

Watch the last airport meeting if you haven't. The finance director explains the pros and cons of all the different potential financing methods. http://kansascity.granicus.com/MediaPla ... p_id=10341

[aknowledgeableperson]

Now the big question. Which team has which council members already on their side?

[KCFan]

I just don't know how B&M doesn't get picked because I don't think there's any chance the vote passes unless they're the choice. My only concern with B&M at this point is if they can design a nice enough airport. I don't have any doubt they can do a solid job, but I'd really like to see a nice airport with a little bit of a wow factor to it.

[kboish]

And btw, this really goes to show you what a shit job the Star does in reporting this stuff. When I saw the headline stating HALF A BILLION in savings, i just thought, what a bunch of BS. They get caught hook, line, and sinker for every business gimmick dangled in front of them.

[beautyfromashes]

Here is the big difference that I see: B&M wins, the CEO builds a huge new house in Hallbrook or Mission Hills. The executive team gets huge bonuses and, with a good year, the other employees get some cash as well. The company hires more employees, build an architecture building for UMKC (this would be better marketing than their current commercials) and buy suites and advertising at all the local sporting events. The cash stays in the building and funds other jobs and amenities in the city.

AECOM wins and their CEO builds a mansion in the Hollywood Hills....

[beautyfromashes]

And btw, this really goes to show you what a shit job the Star does in reporting this stuff. When I saw the headline stating HALF A BILLION in savings, i just thought, what a bunch of BS. They get caught hook, line, and sinker for every business gimmick dangled in front of them.

Yep! I ready that article and it said 'bought and paid for'. Paid marketing.

[flyingember]

The Star's reporting is a victim of excessive cost cutting.

The corporate HQ effectively got them to the point people don't trust their articles. That's not how you build a successful business.

[pash]

.

[GRID]

Anybody know if they are keeping the current rental car facility or moving it to the new garage? I seems odd to relocate such a new facility, so I don't see it happening, but I have read where it's a possibility.

[KCPowercat]

That would be nice but I bet they don't.

[kboish]

So AECOM cried foul (again) and said the selection committee was moving the goalposts mid game.

It looks like the city has released the clarifying questions of which AECOM was so upset about.

Just curious what others think- Does this look like moving the goal posts? or is AECOM just doing their best to apply pressure to their benefit?

[flyingember]

or is AECOM just doing their best to apply pressure to their benefit?

Obviously.

[WoodDraw]

I mean, yes and yes, and yes.

This was created for B and M to win. The city got caught with its pants down. Now they took a "competitive" bid. All bidders now will act in their own interest.

I'll still be shocked if it's not gifted to their's truly,

[KCPowercat]

Think the last one is most important to get clarified

[beautyfromashes]

All the questions seemed a bit lazy to me. They could have answered them all themselves with some basic calculation.

[KCPowercat]

I think AECOM thinks they fully answered all this and better than burns but these clarifications will give burns a chance to catch up...that's my guess

[flyingember]

All the questions seemed a bit lazy to me. They could have answered them all themselves with some basic calculation.

Possible, but they could be accused of getting it wrong for one company if they do. Don't want that to happen

[kboish]

It looked to me like they were trying to get everyone to answer a specific scenario so they could compare apples to apples. It also was clear that although there was a public release of the proposals, some financial information was marked confidential and not released to the public because there was a question asking if and when the developers would be ok with making that information available to the public. Which ultimately leads me to believe I'm not really in a position to judge the proposals based on the information available to the public.

Although I would say the design award goes to AECOM...but all of that is up in the air (no pun intended) and is not what is being decided.