HOLLYWOOD BURBANK
AIRPORT UPDATE
Presented to:
Burbank City Council
June 25, 2024
Frank Miller
Executive Director
Items to be Covered
1. Approval of the Replacement Passenger Terminal (“RPT”) Guaranteed Maximum Price (“GMP”)
2. Issuance of Series 2024A-C Airport Senior Revenue Bonds
3. Appointment – New Fire Chief
4. Appointment – Deputy Chief of Police
2 REPLACEMENT PASSENGER TERMINAL (“RPT”) PROJECT
• On May 6, 2024, the Commission approved the Guaranteed Maximum Price (“GMP”) for the RPT Project.
• Total Design-Builder’s GMP - $1,110,074,145
• Total RPT project budget (include Owner’s cost) - $1,298,700,000 • Design elements include:
• Charrette Themes
• Accessibility
• Resiliency
• Sustainability
• Art in Public Places
3 REPLACEMENT PASSENGER TERMINAL (“RPT”) PROJECT
Mass Grading
4 REPLACEMENT PASSENGER TERMINAL (“RPT”) PROJECT
Art in Public Places
• Exterior Artwork – Cliff Garten
• “The Two Electras”
To be located in the plaza between the terminal entrance and parking structure 5 REPLACEMENT PASSENGER TERMINAL (“RPT”) PROJECT
Art in Public Places
Interior Artwork – Glenn Kaino
“When We Reflect”
To be located past the passenger
security screening checkpoint
6 Series 2024A-C Airport Senior Revenue Bonds
On Wednesday, May 22nd, approximately $725 million of the Authority’s 2024 Series A (non-AMT), B (AMT) and C (Taxable) Airport Revenue Bonds were offered to investors. Over 100 institutional investors participated in the transaction. 12 of the 15 investors that the Authority’s staff and finance team met with during the recent investor meetings at the Airport and in Boston, Princeton and Philadelphia placed sizable orders for the Authority’s bonds.
The largest order received was from New York Life owned MacKay Shields which attended the investor meeting and tour hosted at the Airport. In total, the syndicate received over $8.8 billion in orders or about 12x the amount of bonds offered.
7 Series 2024A-C Airport Senior Revenue Bonds
The strong investor interest allowed BofA Securities to lower interest rates by as much as 15 bps.
The final pricing terms of the 2024 Bonds resulted in a true interest cost (TIC) of 4.54% and total net debt service of $1.32 billion which are 73 bps and approximately $180 million lower, respectively, than the preliminary estimates presented to the Commission at its May 6th meeting.
The strong investor reception for the 2024 Bonds establishes a strong foundation for when the Authority undertakes the second bond issue closer to completion of the Replacement Passenger Terminal.
BofA Securities served as the Authority’s lead senior manager overseeing an underwriting syndicate of seven firms.
8 APPOINTMENT – FIRE CHIEF
• On June 4, 2024, Lewis Pianka was promoted to Fire Chief of the Hollywood Burbank Airport and will report to the Executive Director. • Chief Pianka will also report/coordinate with the Director of Public Safety/Chief of Police Edward Skvarna on operational matters of the Airport. • Chief Pianka began his career at the Airport as a firefighter 10 years ago rising to the rank of Assistant Fire Chief. Prior to joining the Airport, he served with the South Tucson Fire Department for 20 years rising to the rank of Battalion Chief.
9 APPOINTMENT – DEPUTY POLICE CHIEF
• On June 17, 2024, the Commission appointed Mr. Neil Gallucci as Deputy Chief of Police of the Burbank-Glendale-Pasadena Airport Authority Police Department reporting to Director of Public Safety/Chief of Police Edward Skvarna.
• Mr. Gallucci will assist Chief Skvarna with the safety and security requirements of the Airport as well as preparations for the Replacement Passenger Terminal.
• Prior to joining the Airport, Mr. Gallucci served as Chief of Police for the City of Carlsbad and served as the responsible person in charge of the City’s Emergency Operations Center.
• Mr. Gallucci holds a Peace Officer Standards Training (“P.O.S.T.”) Executive Level Certificate.
10 And Now, Introducing….
The Hollywood Burbank Airport
Replacement Passenger Terminal
https://vimeo.com/912718274/1bdccaf063?share=copy
11 Questions?