Edgemoor KCI Project Update April 2018

KCI NEW TERMINAL PROJECT UPDATE April 2018

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Executive Summary Design & Construction Environmental Assessment Community Benefits Agreement Negotiating the Contract Financial Close Community Outreach

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EXECUTIVE SUMMARY This regular project update provides a recap of recent work completed, including key activities and milestones, project news, and a look ahead. Highlights in this edition include: Procurement activities continue across the team with the selection of several key financial partners, and the team’s construction joint-venture, Clark | Weitz | Clarkson (CWC), selecting Kansas-City based companies to lead two of the most significant subcontracting opportunities - the mechanical and electrical services, respectively.

In mid-April, Southwest Airlines, along with other large carriers and the Kansas City Aviation Department (KCAD), announced that growing flight demand has increased the airlines’ need for gates from 35 to 39 at the opening of the facility. Now that the opening day gate count has been determined, the design team can move forward to assess and validate other key components of the design to ensure the facility’s programming will support both opening day and future expansion.

Work continues on the Environmental Assessment, which is on track to be completed this Fall.

Finally, nearly 50 small business owners accepted into the KC Strategic Partnership Program met for the first class on April 5.

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DESIGN & CONSTRUCTION

2.1 Procurement Clark | Weitz | Clarkson selected Kansas Citybased companies to lead two of the most significant subcontracting scopes: U.S. Engineering Company for mechanical and Capital Electric Construction Company for electrical services. Each of these Tier 1 firms is building a team of local partners and suppliers to support their efforts on the airport project. Already in total, these two subcontracting groups have brought on 12 minority- and women-owned local firms.

CWC, U.S. Engineering, and Capital Electric will host an Open House event on Thursday, April 26 from 3:30-5:30pm at the Minority Contractors Association for interested mechanical and electrical firms to meet

14 Local Teams Added to KCI Construction Roster Teams led by U.S. Engineering and Capital Electric add depth to Edgemoor’s growing local team.

U.S Engineering (Tier 1)

· Alexander Mechanical (MBE) · LMG Construction (WBE) · Premier Mechanical Products (WBE) · Pro Metals/Pro Insulation (MBE) · Vazquez Construction (MBE)

Capital Electric (Tier 1)

· Mark One Electric (WBE) · Alpha Energy & Electric (MBE) · Max Electric (WBE) · Kansas City Electric Supply (WBE) · Whatever It Takes (MBE) · EG Tech (MBE) · Wilkerson Crane (WBE)

the Tier 1 firms and learn more about subcontracting opportunities for mechanical and electrical work.

More information can be found at cwcjv.com.

The next subcontractor packages anticipated to be released include baggage handling system, passenger boarding bridges and aviation systems. Any company interested in bidding on new terminal work should sign up to receive procurement updates at cwcjv.com.

An updated list of upcoming procurement opportunities is maintained on the CWC website. For more information, visit cwcjv.com.

2.2 Design On April 12, Southwest Airlines, along with major carriers American, Delta, and United, and the Kansas City Aviation Department, announced that the new terminal will have more gates - growing from 35 to 39 - to ensure the facility will meet the needs of the airlines and allow the flexibility for future growth. The additional need was identified through the Program Validation Process, which began last December. The number of gates informs many key components of the design, such as parking garage needs, baggage handling, security and ticketing. Now that the gate count has been validated, the design team can determine how much space is needed inside the terminal to support those gates.

In addition to validating the project’s technical requirements, the team has begun considering how the design input received through the nine community open houses will influence the final design.

A complete summary of the community design workshops is available on kci-edgemoor.com.

In March, more than 200 industry members attended CWC’s information session at Bartle Hall for local construction subcontractors interested in work on the KCI project.

2.3 Construction TSI Geotechnical continues geotechnical work on site.

In total, 27 holes will be drilled in the area surrounding Terminal A. This work provides the soil samples needed to identify any existing contamination and to verify soil conditions - information which will guide the foundation design. Preconstruction activities will continue throughout the summer.

Members of the U.S. Engineering and Capital Electric teams with CWC project lead Mark Goodwin (second from right).

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ENVIRONMENTAL

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COMMUNITY BENEFITS AGREEMENT

3.1 Environmental Assessment

4.1 KC Strategic Partnership Program

Landrum & Brown (L&B) completed revisions of Chapter 1: Purpose and Need and Chapter 2: Alternatives of the EA to incorporate comments received from FAA and KCAD. Concurrently, L&B collected information for subsequent chapters, which will cover the Affected Environment and Environmental Consequences. These efforts included collection of detailed information about the existing environmental conditions of the project site and commencing studies and technical analyses to facilitate determination of whether there are potential direct and/or indirect environmental impacts of the Proposed Action.

As part of a commitment to delivering a transformative project, the Edgemoor Team is offering the KC Strategic Partnership Program (KCSPP) to business owners and leaders of Kansas City-based MBE, WBE, SBE, DBE and Veteran-owned firms. This six-month, MBA-style development program is offered at no cost to participants and includes courses in business fundamentals and construction management, such as bonding, estimating and scheduling. KCSPP is managed by the team’s construction joint venture, Clark | Weitz | Clarkson.

Efforts in progress include review and assessment of all requests and concerns collected through the Public Scoping process; continued research and analyses of Proposed Action activities; and evaluation of potential effects/consequences to the environment. These activities support the preparation of the Preliminary Draft Environmental Assessment document to be submitted to KCAD, the FAA, and SHPO for review and feedback, and ultimately the issuance of a Final EA.

3.2 Public Scoping Meeting Public Scoping Meetings were conducted on March 15 in an open house format. One meeting was held for affected agencies and the other for the general public to learn about the Proposed Action and NEPA process, and allow the public to speak with KCAD, the FAA, and State Historic Preservation Office (SHPO) representatives about issues and concerns they would like to see addressed in the Environmental Assessment (EA). Both meetings were led by KCAD consultant Landrum & Brown, with KCAD and Edgemoor in support roles.

50 Business Owners on the Path to Sustainable Growth The Strategic Partnership Program was developed by Clark Construction Group, (lead member of CWC) with the help of scholar Dr. Leonard Greenhalgh of the Tuck School of Business at Dartmouth College.

Dr. Greenhalgh, who is in the Minority Business Hall of Fame, helped kick off the program in Kansas City, addressing the inaugural class during a day-long opening session at the Morningstar Youth & Family Life Center.

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Intern Liam Dai is a senior at Park Hill South High School.

4.2 Internships As part of the Edgemoor Team’s commitment to providing educational opportunities for local students, we welcomed our first intern to the project office.

NEGOTIATING THE CONTRACT

Edgemoor and the City’s negotiating staff continue to meet weekly to discuss and negotiate key terms of the Comprehensive Airport Modernization Program (CAMP) Agreement. In addition, outside aviation counsel and KCAD have presented the CBA to the FAA for review and comment.

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FINANCIAL CLOSE

Edgemoor has selected the project’s financial team, including Conduit Issuer - Kansas City Industrial Development Authority (IDA), Senior Bond Underwriter - Morgan Stanley, and Trustee - BOK, Bond Counsel - Kutak Rock, and Disclosure Counsel - Lewis Rice. Putting this team in places is the first step in starting preliminary conversations with rating industries, finalizing the financial structure, and beginning to draft bond documents - all key activities on the path to Financial Close later this year.

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COMMUNITY OUTREACH

In addition to project-related procurement opportunities, the Edgemoor Team has been attending community and business groups, to provide in-person project updates.

Project representatives will be at the 4th District Council Meeting on April 30th.

Edgemoor’s Dan Moylan provides an update on project progress to members of the Kansas City Civic Council.

@kciedgemoor kci-edgemoor.com