Kansas City council approves Edgemoor to build new KCI - KCTV5

Kansas City council approves Edgemoor to build new KCI

Updated:
A procurement selection committee has chosen a proposer to recommend to the City Council to design, build and finance KCI’s new terminal. (KCTV5) A procurement selection committee has chosen a proposer to recommend to the City Council to design, build and finance KCI’s new terminal. (KCTV5)
KANSAS CITY, MO (KCTV) -

UPDATE 4:17 p.m. - The Kansas City City Council approved Edgemoor by a 10-2 vote. 

Following the vote, Kansas City Mayor Sly James said it was time to move forward to Nov. 7, when a vote will be held. 

"The issue of who builds the airport is significantly less important than whether or not we build one because frankly, if we do not have a positive vote on November 7 there will be nobody to build an airport because we will not be moving forward," James said. "There will be no community benefit agreement.  There won't be 17,000 jobs or (economic impact)."

Geoffrey Stricker of Edgemoor said the firm is committed to what they proposed. 

"It's in our DNA to do the types of things that we said we'd do," he said. "We as a company have been around for over 100 years because we do the right thing with our clients number one. Number two, it's going to be contractually part of the MOU and the long term agreement so our feet will be held to the fire  - to make sure we do it with that we're going to do."

Edgemoor is expected to release its design in October and starting building its design team in the next 90-120 days. 

The vote comes on Nov. 7. 

Full release: 

A City Council majority voted on Thursday to approve the recommendation of Edgemoor Infrastructure & Real Estate as developer for the proposed KCI terminal.
 
The recommendation came from a Procurement Selection Committee, which determined that Edgemoor submitted the best overall proposal, with the best value, a financing plan that preserves the City’s credit, and a flexible, collaborative approach to creating the terminal design.
 
All financing will be paid back through airport revenues, meaning that only people who use the airport will help pay for the new terminal. The City will continue to own and operate Kansas City International Airport.
 
The Edgemoor team includes Meridiam Infrastructure as co-developer. Clark Construction,Clarkson Construction and Weitz Company will form a joint venture to lead the design-build team. Skidmore, Ownings & Merrill will be the lead architect, Project Finance Advisory, Ltd. joins as the financial adviser and CityFi will advise the team on SmartCity and technology infrastructure.  
 
Edgemoor is reaching out to other local businesses to complete its team, and plans to open the terminal by the end of 2021. The team will also bring to Kansas City its unique training, education and mentoring program for minority and women-owned businesses.
 
Edgemoor has been involved in 30 airport projects worth more than $60 billion worldwide.
 
Next steps include developing a Memorandum of Understanding between the City and Edgemoor. The developer pledges that Kansas City-specific design visions will be developed with community input and shared in early October.
 
Additionally, the terminal project will be on the ballot Nov. 7. A “yes” vote by Kansas City residents, with a simple majority, would provide approval to demolish existing terminals as needed, and approval for construction of a new single terminal to serve the airport.
 
To see the ballot language, and for more information about the terminal project, visitwww.kcmo.gov/newkci

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ORIGINAL STORY

A second procurement selection committee has recommended Edgemoor Infrastructure & Real Estate LLC as the preferred development team to design, build and finance the new terminal at Kansas City International Airport.

The recommendation now moves the decision to the full city council.

If the council approves Edgemoor, it would be followed by the negotiation of a Memorandum of Understanding betewwen the city and the preferred proposer. The memorandum would require a vote from the council.

Committee members say they recommend Edgemoor as the best overall proposer due to its experience with high-profile airport projects nationwide, its collaborative approach to the design process, and a plan that would deliver the terminal at the best price.

City officials said the Edgemoor proposal had the lowest cost and stands to gain the smallest profit of all the proposals.

Project financing would paid back with airport revenue, with no funds coming from the city’s general fund. The city will continue to own the airport.

The firm was initially recommended by a procurement committee on Sept. 6.

“We’d like to thank all four teams that participated in the city’s procurement process,” said City Manager Troy Schulte. “We really dug into the details during multiple days of evaluations. We are recommending the best proposal to build a world-class terminal that will serve the City for many years to come.”
 
City officials said Edgemoor’s proposal is committed to creating a terminal that improves on KCI’s convenience for travelers and meets the city’s strong requirements for local involvement. Additionally, they say the Edgemoor team has a proven record for paying prevailing wages, partnering on workforce development, complying with M/WBE goals and including sustainable practices.
 
The Edgemoor has more than $60 billion in aviation projects at 27 airports. The team's proposal also has the flexibility to fill out its team with additional local companies, city officials said.

The City Council may be asked to vote to accept the recommended proposer. That would be followed by the negotiation of a Memorandum of Understanding between the City and the preferred proposer and require a vote by the City Council.
 
Separately, the City Council has authorized a ballot question for the Nov. 7 election that will ask voters for approval to proceed with the terminal development project.

A “yes” vote, with a simple majority, would provide approval to demolish existing terminals as needed, and approval for construction of a new single terminal to serve the airport.

Burns and McDonnell had an aggressive ad campaign centered around civic pride - dubbing its design, construction and finance collaboration the "KCI HOMETOWN Team."

Then, just this week, it raised concerns about potential conflict of interest involving Edgemoor and the selection committee's outside counsel.

Burns and McDonnell Senior VP would *not say if the company intends to *fight the committee's decision.

"We are just heartbroken that we developed this concept and brought this proposal to the city, and the city then chose to select an out-of-town firm to take it to the next step," said Ron Coker, the senior vice president of Burns and McDonnell. 

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