Edgemoor KCI Project Update May 2018

KCI NEW TERMINAL PROJECT UPDATE May 2018

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

EXECUTIVE SUMMARY Working closely with the Kansas City Aviation Department (KCAD) and the airlines, the Edgemoor Team continues to advance the activities necessary to reach Financial Close and prepare the project for construction. Procurement of subcontractors to build out the construction joint venture’s (Clark | Weitz | Clarkson) team is underway and will continue into 2019. The team announced that JE Dunn was awarded a design-build contract for the parking garage in mid-May. Pre-construction work, in the form of sampling and preparation for utility work, is continuing. While not highly visible activities, the information gathered through these steps informs the design and construction of the new terminal and guides the team in developing the foundation and utility relocation plans. Planning for the construction phase and developing the new terminal design is an intensive and highly-collaborative process that has involved more than 200 meetings and work sessions to ensure the new terminal meets the needs of the airlines and traveling public when it opens, and into the future.

The project remains on track to deliver the final Environmental Report that is required by the Federal Aviation Administration and reach Financial Close this fall. Along with advancing contractual documents, the Team is continuing to deliver on its Community Benefits Agreement (CBA) commitments, with the addition of local partner Lead Bank to provide low-interest loans to disadvantaged businesses who need additional financial resources to pursue work on the project. The Edgemoor Team is committed to helping ensure that qualified businesses are not precluded from doing work on the new terminal because of cash flow issues.

In addition to advancing the development and pre-construction work, the Edgemoor Team and KCAD are also supporting community events and providing updates to business and community organizations.

If your group is interested in having a representative speak to your organization, please contact the Edgemoor Team at info@kciedgemoor.com.

2.2 Design

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DESIGN & CONSTRUCTION

2.1 Procurement The construction team, led by the joint venture of Clark | Weitz | Clarkson (CWC), continues to grow with the announcement of JE Dunn as a tier one subcontractor to lead the design and construction of the new garage. Their team includes local architect, BNIM, who will be the architect of record for the parking structure. BNIM’s principal, Bob Berkebile, was the lead architect on the current KCI, which opened in 1972. JE Dunn, along with Capital Electric (electrical) and U.S. Engineering (mechanical) will each lead a robust team of subcontractors. Each of these tier one subcontractors is still looking to build out their teams with local talent. On April 26, more than 100 people attended an open house hosted by

JE Dunn Joins KCI Construction Team JE Dunn brings 90 years of construction experience to the New Terminal project. The firm’s local portfolio includes projects like the Cerner Innovations Campus, Phases I and II and Kansas City Missouri Police Department East Patrol Division and Regional Crime Lab. The firm has previously delivered as a combined 1.47 million square feet of parking garage space at Terminals A and C at KCI. JE Dunn has nearly 1,100 employees in the greater Kansas City metropolitan area, many of whom will support efforts to deliver the new parking structure.

Pictured (left to right): Gordon Lansford, President & CEO, JE Dunn; Wesley Stith, Vice President, CWC; Mark Goodwin, Vice President, CWC; Steve Kellerman, Chief Engineer, CWC; Paul Neidlein, President – Midwest Region, JE Dunn; and Jeff Blaesing, Vice President, JE Dunn

CWC, Capital Electric and U.S. Engineering to learn more about subcontracting opportunities with them.

With the addition of JE Dunn, so far roughly 40% of the anticipated construction scope has been awarded to local companies, with that percentage to increase as the procurement process continues into 2019.

JE Dunn joins a growing and diverse team of local Edgemoor partners, which collectively includes 50 Kansas City-based firms, 33 of which are certified MBE or WBE businesses.

Upcoming construction procurement opportunities are maintained on cwcjv.com.

In mid-April, KCI’s major airline carriers and KCAD announced that the new terminal would have more gates at its opening - going from 35 to 39 - to ensure the facility will meet the needs of the airlines and allow the flexibility for future growth. Since that time, the Edgemoor Team, airlines, and KCAD, have continued to meet regularly assessing what will be needed in the new terminal and the various systems necessary to support the gates. To date, the Project Team has engaged with the KCAD and airlines in more than 200 meetings and work sessions to work through details related to the terminal layout, baggage handling systems, wayfinding, passenger check-in and other systems that will impact how the new terminal functions.

Did you know that even the passenger movements are “modeled” and inform design? The path and frequency with which travelers access the ticket counter, move to the gate and find restrooms or snacks are just some of the movements that architects take into consideration when designing public spaces within the New Terminal.

Geoprobe and culvert box exploration take place airside at KCI.

2.3 Construction Pre-construction activities continue with utility potholing and geoprobe sampling. “Potholing” for utilities involves digging small holes to verify where underground utilities are located. The geoprobe sampling investigates for contaminated soils. The findings from that process will also create an “underground map” to inform design and construction.

Geoprobe and culvert box exploration take place airside at KCI.

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ENVIRONMENTAL ASSESSMENT

Landrum & Brown continues to collect information for the Affected Environment and Environmental Consequences sections of the Environmental Assessment (EA). Under recommendation of the State Historical Preservation Office (SHPO), an archaeological survey is planned to further supplement the EA. A request for proposals (RFP) for this work was issued by KCAD and an archaeological consultant will complete the work this Spring. Subsequently, the first full draft EA will be submitted to the FAA for review and feedback.

The Environmental Assessment process will continue throughout Spring and Summer months, targeting completion in the Fall of 2018.

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NEGOTIATING THE CONTRACT

Edgemoor and the City’s negotiating staff continue 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.

The Enivronmental Assessment (EA) is a required document that captures an analysis of potential environmental impacts from the new terminal, such as changes to use of airspace (noise), emissions construction and aircraft.

Members of the CWC team lend a helping hand to a KCMO resident through the Love Thy Neighbor initiative.

COMMUNITY BENEFITS AGREEMENT

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4.1 Low-Interest Small Business Loans & Pay Without Delay Program Cash-flow is the most-often cited obstacle for small businesses. Not having the resources to add employees, or being able to sustain their companies during what can be lengthy pay cycles, are the top reasons many small firms do not pursue work that could otherwise help grow their businesses. In order to make work on the new terminal accessible to more small businesses, Edgemoor has partnered with Lead Bank to provide a low-interest loan program for disadvantaged firms. Furthermore, Edgemoor has made a commitment to its subcontractors to pay verified invoices within two weeks of receipt. As one small business owner noted, this “pay without delay” policy is a “game changer” for small firms.

FINANCIAL CLOSE

The remaining two financial partners - Kutak Rock (bond counsel) and Lewis Rice (disclosure counsel) were selected in April. This rounds out the financial team, which met to officially kick off work on May 15.

Lead Bank has provided $12 million in loans to MBE and WBE firms as part of its “For Change Initiative”.

The Pay Without Delay program allows subcontractors to receive payment for completed and approved work within 14 days instead of the traditional 45 to 60 days.

Putting this team in place is the first step in starting preliminary conversations with rating agencies, 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

Members of the CWC construction team supported the Love Thy Neighbor program this month by contributing manpower and equipment. Special thanks to Martin Marietta for donating the rock needed for this project and Scott Heller Trucking for delivering the rock to the site.

Love Thy Neighbor is a volunteer program and not funded by the City. Love Thy Neighbor volunteers make minor repairs at homes owned by senior citizens and persons with disabilities who have received citations for code violations, but are physically or financially unable to do the work.

Thank you to all of the groups that invited the Edgemoor Team to provide a a project update: • KS & MO Societies of Professional Engineers • KC Mayor’s Corp of Progress • Greater KC Chamber of Commerce Airport Committee • 4th Council District Community Meeting • 3rd Council District Community Meeting

The National Institute for Construction Excellence’s (NICE) 2018 iBuild Conference on May 3 was one of two opportunities the Team had to connect with area youth this month. CWC representatives hosted an exhibit at the event complete with an Oculus Rift. Students we able to try out the virtual reality device, which gave them a sense of how technology is enhancing the building process.

CWC also joined 8th graders from Harmony Middle School in Overland Park, KS, to help evaluate their recent school project: How to make KCI a more functional airport.

Inspiring the next generation of problem-solvers at the NICE 2018 iBuild Conference for middle and high school students.

@kciedgemoor kci-edgemoor.com