Tri-Cities Airport Authority discusses Aerospace Park status

BLOUNTVILLE — Aerospace Park was one of the many discussion points at Thursday's Tri-Cities Airport Authority board meeting. The group heard a recommendation for a one-year extension for JLL's Aerospace Park marketing and brokerage services contract, which expired in December. As presented, the extension would leave the company's rates and other material terms the same. Tri-Cities Airport Director of Business Development Mark Canty said there would be a monthly $4,000 fee split 50/50 between NETWORKS Sullivan Partnership and TCAA under this recommendation. Mark Ireson, TCAA vice-chairman, asked Canty if he was happy with JLL's results at Aerospace Park. Todd Hensley, who represents Washington County on the board, advocated for more transparency from JLL about its recruitment efforts and overall performance before voting to extend the agreement. "We as a board should know how this is going," Hensley said. John Hunter, representing Johnson City on the board, asked if JLL could provide TCAA with an activity report. Gene Cossey, TCAA president and CEO, said he was happy with the company's ability to build and bring contacts to the airport, but not as satisfied with JLL's frequency of providing timely updates about park progress. David Lotterer currently serves as the contracted company's Aerospace Park consultant. "[Lotterer] occasionally will come to our economic development committee meetings, whether he's here in person or he's online, and he'll give a report then," Cossey said. "And those are good reports, but I think we need more of an update on a regular basis." Cossey further explained that if the airport chose to look for another firm or company to handle the same services, there are not many options. "There's plenty of people out working for companies, trying to find sites for them to build," he said, "but having somebody who is specifically out representing our site, there's not a lot of options on that." Cathy Ball, city manager of Johnson City and TCAA board member, proposed continuing the JLL contract for six months and the airport putting out a Request for Proposal to see who else might be out there. "I mean, we haven't had any luck," Ball said, in reference to Aerospace Park. "We have nothing out there." Cossey agreed that getting a detailed quarterly report from JLL about recent Aerospace Park activity and leads "would be a good thing." He said the airport has put out a request for this type of firm before, but it generated no responses. Kingsport City Manager and newly-appointed TCAA Secretary/Treasurer Chris McCartt suggested inviting JLL to the board's April meeting to give a presentation. He said the board could ask a representative from the Tennessee Department of Economic & Community Development to come share what work they are doing related to the park, as well. Then the board could decide whether to extend the contract, McCartt said. McCartt made a motion to proceed with that as the next step, which the board unanimously approved. Cossey added to the motion a request for TCAA to continue JLL's contract on a month-to-month basis until the next meeting or a decision is made. "It wasn't that long ago, although time seems to be slipping faster and faster, that [Tennessee Valley Authority] and [Tennessee Department of Economic & Community Development] made a presentation in this room," McCartt said. "And I think it's timely, as the state is a major investor in our project, for them to come back and provide an update as to efforts they're taking, in conjunction with JLL." Canty said in a follow-up email after the meeting that the airport's initial agreement with JLL has been in place since Dec. 15, 2023. Modular hangar concepts At the same meeting, Canty provided an update to the board about issuing a bid invitation to develop modular hangar design concepts. These concepts would be utilized to support future Aerospace Park tenants. "The goal of this is just to identify firms that can create flexible concepts as opportunities arise," he said. "We just want to be able to move quickly when we do get a tenant." Cossey having a "ready-to-go" hangar design can limit attractiveness to certain businesses. "My inherent problem with that is, no matter what you design, the person who comes in wanting to build here isn't going to want the design you build, and you're going to have this design that nobody wants to use," Cossey said. "I don't know if that's absolute, but that's my fear." Canty said the airport hopes to issue the Request For Quotation, or RFQ, in the coming days — which would be followed by evaluations and interviews. A recommendation for a picked firm could come before the board in June, according to Canty. Background Aerospace Park is a 160-acre aviation development located beside the Tri-Cities Airport. It has direct access to the airport taxiway system and runway. According to a brochure on the property website, the space is large enough to accommodate general aviation, large business and large commercial aircraft. It is considered a Select Tennessee Certified Site. The concept of an Aerospace Park has long been a part of the vision of the Tri-Cities Airport. Times News previously reported the concept for Aerospace Park dates back to the airport's 1999 master plan. Twenty-one acres of the park is currently certified and developed for use. The park welcomed its first tenant, Final Forge, in April 2022. NETWORKS Sullivan Partnership CEO Clay Walker said NETWORKS serves as the economic development organization on record for Aerospace Park since it is located in Sullivan County. Former airport executive director Patrick Wilson helped pitch the park to local governments around September 2016, exiting his role in August 2018 in the midst of the park's starting development.