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Senate | March 27, 2013 | Committee Room | Finance

Full MP3 Audio File

…those of you who were here last session may remember this bill. We passed it in the Senate and didn’t get it in the House in time to act on it before adjournment. If you take your car or your truck in to have it serviced or repaired the mechanic gets a lien on the car for the work they do and until you have paid what they, what you owe them they can hold onto your car or your truck. If you disagree with them about the amount of money that you owe them or the work was not done that you wanted to have done and they’re holding your car, you have a way to get it back and that is to pay into the Clerk of Court the amount that’s in dispute, the amount of the mechanic claims in dispute. So you can get the car back and then you fight about the money, interesting enough, if it’s an airplane there’s no way to get it back while you fight and that’s a pretty expensive proposition to have an aircraft grounded and just sitting out there for, well a lawsuit takes several months in court, so what the bill does is it provides a similar procedure for aircraft when there’s a mechanic’s lien asserted against an airplane and the owner disputes the lien or disputes the amount of the lien they can post a bond with the Clerk of Court and recover possession and then they fight about the proceeds in front of the court. That’s what the bill does. You might ask why did we do it with a bond rather than a cash deposit, it’s because the amount, you think about it, the amount of money that’s going to be in controversy for an aircraft is going to be an awful lot larger than the amount of money for my car or your car so we used a bonding requirement, a maturity bond, rather than a cash deposit. That’s the only reason for the difference. Mr. Chairman there is a technical amendment the staff identified about the effective date that I also need to run. [SPEAKER CHANGES] Does everyone have a copy of that technical amendment before you? OK. Would you explain your technical amendment please? [SPEAKER CHANGES] Well, staff tells me that’s correct, needed in order to get the correct citation in reference to the general statutes of which this a part. [SPEAKER CHANGES] Members of the committee, questions about the amendment? Seeing none. All in favor of the amendment please say “aye”. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] All opposed nay. Ayes have it, amendment passes and then we have before you Senate Bill 84 as amended. Questions? [SPEAKER CHANGES] Mr. Chairman? [SPEAKER CHANGES] Senator Apodaca. [SPEAKER CHANGES] Mr. Chairman, I’ve owned an airplane and I also have seen Senator Clodfelter’s car and his car is worth far more than my airplane so I took offense to that statement but thank you. [SPEAKER CHANGES] Senator Tillman. [SPEAKER CHANGES] Mr. Chairman, they held my car one time and the only way I could get out was with a payday loan. I move for a favorable report. [SPEAKER CHANGES] Alright, after that words of wisdom from Senator Tillman we move for a favorable report on Senate Bill 84 as amended. Any further discussion? Seeing none. All in favor please say “aye.” [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] All opposed nay. Ayes have it. Thank you, Senator Clodfelter. Alright, let’s move forward to Senate Bill 97, Senator Goolsby, property tax de-annexation. [SPEAKER CHANGES] And you all thought we were done with annexation. This is actually one of the results of annexation in my local city of Wilmington. Had the mayor and the city council come to me a few weeks ago and say that… [SPEAKER CHANGES] Excuse me, I’m sorry, I apologize, we have a proposed committee substitute before us, Senator Brock makes a motion that we accept the proposed committee substitute for Senate Bill 97 for discussion, sorry. Senator Goolsby please move forward. [SPEAKER CHANGES] They simply said they did not wish to levy the tax on the annexed areas during that short period of annexation. The bills have not been sent out; there’s been no move to collect this. This is a bill that releases the city from its obligation to collect that tax. Senator Newton? I’m sorry. Senator Newton has a question. [SPEAKER CHANGES] Senator Newton. [SPEAKER CHANGES] Thank you, Mr. Chairman. Thank you, Senator Goolsby. If I understand it right, it’s six months back? [SPEAKER CHANGES] Yes. [SPEAKER CHANGES] Would this cover all of the municipalities, all the areas that were de-annexed in our legislation last time or just your area? Just my area. Some of those areas have collected taxes, some of them have billed, there have been payments by some of them. My area has not and we are trying to keep from spending the money to send out the bills. The city doesn’t wish to do it; the city is the mover on this. The municipality does not wish to collect this tax and they just are simply seeking a release from their obligation. [SPEAKER CHANGES] Follow-up? [SPEAKER CHANGES] Follow-up question. [SPEAKER CHANGES] Senator Goolsby, would you be, as I get a chance to look at this more closely, would you be willing to consider…

Home front the changes your bill that would cover and they shall recover all those two various (SPEAKER CHANGES) I'm not sure I've spoken with staff on that I'm not quite sure how complicated are fraught with income, analyst staff can answer that because my concerns and even from a city that skin reading some of its bill financial harm the form, do what is something makes a for after we get through all this and there's a fable the four someone come down, available to light, (SPEAKER CHANGES ) she needs to seven nights, full minute a report just a quick researchers said you notice any one time the county of a sales tax portion of item between the two on the basis of five weren't actually started, but and just the way we have this as economies of a solution, syntax and the vision sales tax between the democrats can look into the conformance four, (SPEAKER CHANGES) but it began to set any of the scheme used 70 to seek she rested on the money issue this is looks like it's simply in the morning before even allow local community that is this not require the static correct (SPEAKER CHANGES) this tradition called a very good and do a follow-up to call up and therefore I would assume that if there was a community out there that had extended public service to set some significant events occurred in the clean the decide to recall a one a two-simply to get some of this question are our bill drafters carefully constructed that way so that there is no obligation there's only a release of the city organist, he wishes to-face a good idea (SPEAKER CHANGES) to come into the committee any additional questions by we have a report from 7:00 AM that good the PCs version the senate bill 97 are received family plot of favor place a (SPEAKER CHANGES) thank you so goes the lights and bob Wallace said at the back again yell at me with a one-inch 82 internal revenue code update primarily because of the fact that there a lot of folks out there waiting two no what the tax rules are the 2012 that's a valid welcome this members to PCs and if a station in a strawberry cake pan-am, if they gave me about the shepherd a tough that if Howard thank you, thank a to make opened December 10 start with NE year fortunately we did not the if we information from MSN's taxpayer relief act of playoff ms about the end of the first week of January am 137 by waiting two LRL their lead La not sure exactly what we're about where going seven are in a while to a VR on the SS things that column that we D couple being that we know the full length from YBR Federal government SS killing NMS things that we've come from lee said incorporating them into 81, Carly S back of the baddest appreciation we do not take the couple with NN 12 and 13 from the just have to wait a bit longer to get NPR and that appreciation Is and reach schedule four are Michelle restaurants and Retail Property we are are conforming in the year 13’ ….

Speaker : The work opportunity task that we are confirming this twelve credit and we are confirming in making an adjustment in there 1314 so there is no expense to out tax revenues for our second year the limitation for ?? there is no ?? that we are confirming for the year 13 the caution related expense we are confirming fro the qualified provision the student learned interest and also the income education fro employees provided ?? we are confirming on all three of the provisions for 12 13 we are complying on the qualified issue expenses for the year 13 by confirming the student loan interest and the interest exclusion for employees education provided assistance we are performing that provision of the year ?? interest premium the organ interest ?? have interest we are confirming with that provision for 12 and complying for 13 the income exclusion for the is charge of ?? there is no change for the year 12 we are comply in the year 13 the tax free distribution form our ?? to the charities we are confirming in the first year ?? they earned income tax credit they earned no change for 12 in the year13 we are confirming to the change but just adjust the amount of the credit so there is no expense adoption ?? there is no change in 12 we are confirming and ?? for the year 13 with that Mr.Chairman i will be glad try to address any question up i left one up the work opportunity task credit that's basically whats the ill does we are running a little but under schedule under the revenue ?? finance with the bill passed ?? to and I'll be glad to answer any questions thank you Mr.Howard good job in explaining this bill members of the committee senator blue Speaker Changes: thank you Mr.chairman ?? Speaker Changes: what is the cost of confirming do you know Speaker Changes: excuse me Speaker Changes: yes sir it is 25 million dollars in the year 2012,14 and this 18 men and the second year for a total of 43 million Speaker Changes: i want follow up Speaker Changes: follow up question Speaker Changes: what is the revenue realization what we didn't confirm Speaker Changes: ?? it would be 281 million on the enhanced 179 60 million in total 340 one million think that has been ?? i think that is about 81 more million dollars Speaker Changes: members of the committee any other question senator tucker Speaker Changes: thank you ?? just a couple of questions i see where under let me get that page under section 4 opportunity tax credit it was six percent and i want 8 percentage what is that 8 percentage do you know Speaker Changes: excuse me Speaker Changes: yes mam section for 125, 129 opportunity tax credit Speaker Changes: Representative Howard i could have the staff help you Speaker Changes: yes Speaker Changes: Mr.Stark or Mr. Griffin whatever Mr. Stark Speaker Changes:OK the federal law expanded the work opportunity tax credit so that more people would qualify so id you confirm to that there would be additional cause to the general fund so this proposal does confirm to the federal changes but at the end reduces the crowd percentage North Carolina

The 5% of the Federal credit , COL only 6% of Federal credit , this provision would produce a good 63% of the Federal credit analyst all said the expansion of a eligibility of a building in remain an initial a talker petition for raising taxes to load the witness chair choose one flaw question home (SPEAKER CHANGES) the home house to 82 and Stephen king, let me know about this on the 2002 tax relief act as we used to be located 3200% owned appreciation and (SPEAKER CHANGES) now strong 50% correct via the Federal legislation is allowing a 50% bonus precision against 2013 of 15,012 five this bill goes on the Carolinas, but in the past which is to the couple from the parade, bonus precision than a minute away but from a chronic ISP that 985 percent of $70.00 in annual line and take that adoption of those subs was five years (SPEAKER CHANGES) thank you thank you for members of the committee and the additional questions sent out about that makes a motion that 2-7 1,000,000,00. One no check that house bill 82, had a family point in my class on from any official comments and questions CM hall of Famer call post AI Janet thank you very much for Bangkok’s Amish each a good job and unlike many simply that one Mobilnet said bill 81 when asked the coach him and writing to take on all I can get this bill fetters (SPEAKER CHANGES) thank you chairman of the way we have a MPC Office spokesman Greg Gannon unlike two of the coaching that we accepted PCs for senate bill 81 for discussion , taking the motion they'll move to a complete fool if they said,(SPEAKER CHANGES) this bill from provides an opportunity for the trolley employed two establish an authority native company individuals that will allow for the continued success and they're like both business winds and financially said that it will be able to be maintained for the city's solid for the region into the C move very fortunate in North Carolina to have are any accord that anyone in North Carolina to take a shot would be anywhere in the world that is a huge military for us because in reality we are number of people surrounding this replace fires bases concern really doesn't match some of the large airports are out there so what that means is that it needs to operate very efficiently as the most efficient one in the country , I think that the fighting, everyone will agree that rally area that that is because of the very calm very fine management of Jerry war, we see a template director and his staff over there they have running very efficient system and the importance of deficiencies we have a fallback and knowledge UA Sierra and ultimately it can be merged USA American airlines because of the deficiency USA track and Airport rather than some other click because the cost them on day of operation smear specially from four of the cost of flights cost of law, the Bach Asia and the like and passengers is extremely low and sell we have to be concerned seriously about the fact that this CIA ,BK that cost efficiency and did you staying very critical component to future economic wealth not only in the city the region but also in the state and nine that being said where get out of staff explain this today briefly this authority will become a list of most of which will be that we tell people around the globe are counting the Ritz surrounding counties and older CE in the county that would experience in aviation business logistics bomb, and a number of other requirements that the very best and brightest minds can provide continued leadership ………

For that airport to be the success that it is and actually go beyond that. There is another component of this that requires additional leadership and knowledge and expertise, because there is an [inter-modal] park over there that has been established, that will openly be the inland port for the [part] Eastern seaboard, especially in the Southeast. Which means all cargo traffic will end up in and through Charlotte, and out to the rest of the country. And that is going to be very important for us, and it is very exciting news for North Carolina to have that kind of facility in place. That being said, Miss Averet, would you be kind enough to explain the bill briefly. I know it's been discussed already. Sorry, Mister Chairman, if staff would help us with that. [SPEAKER CHANGES] Please, sir. [SPEAKER CHANGES] Thank you. Cindy and I will proceed. I'll talk about the general revisions. If there are any finance questions Cindy will answer. The bill establishes the Charlotte regional airport authority, under a constitutional provision article 6, section 1, that authorizes the general assembly to give such powers and duties to county, cities, towns and other governmental sub-divisions as it may deem it advisable. Chapter 63 of the general statutes authorizes counties and cities to own and operate airports or set up joint management agencies. However, most of the larger airports in the state, and many of the smaller size, are actually run by airport authorities established by a local act and then given the powers, the general powers, to actually operate airports. This bill sets up an appointment structure, gives the airport general powers to operate the airport, and then has a catch-all authorizing all the general powers to authorize airport. It directs the city of Charlotte to convey all the airport property within 90 days of after an enactment of the act, with some caveats there in section 7B. Section 7C is changed from the prior version of the bill as explained, in terms of imminent domain, to exercise that the authority will have to have the approval of the majority of the eight local governments that appoint members. But must be used only for airport purposes, not for hotels, motels, restaurants, or industrial park. The authorities are directed to make annual reports to the appointing authorities, and enter into contracts with other political subdivision of the state to administer it. The appointments are set out in the bill - on the bottom of page one and the top of page two - as to how it's to be appointed. I'd like to answer any questions, and Cindy will answer any that relate to the finance side. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Thank you, Mr. Chairman. The bill itself does not address this issue, but the practical aspect of transferring the ownership and management of the airport from the city to an authority, is the fact that there are some outstanding revenue bonds - over $800 million of outstanding revenue bonds issued by the city of Charlotte. From all the discussions that I have had - and there are people far smarter than me in the room on this - it's not that it cannot be done. It can be done. Practically how would it be accomplished? That decision is subject to various judgements and opinions, and from a best-case scenario of a bond counsel saying that this is an administrative change, that there would be no harm to the bond holders, and that the consent of the bond holders under the current covenant are not required-- that would be the best-case scenario. To the absolute worse-case scenario being that the current bonds needed to be recalled and new bonds issued. That last worse-case scenario would be more expensive, a little over $700 million of these bonds cannot be recalled until 2015, so they - as I understand - the terminology would have to be advanced refunded. Meaning the money would have to be put into some escrow for a period of time. So, if you had the worse-case scenario it would involve a lot more cost, but-- and to get a definitive answer on how it would be accomplished I have not found one yet. But that goes from the best to the worse case. [SPEAKER CHANGES] Mister Chairman. [SPEAKER CHANGES] Yes, sir. [SPEAKER CHANGES] I would like to send forward an amendment. [SPEAKER CHANGES] Thank you, does the committee have copies? [SPEAKER CHANGES] I believe they do sir. And I'll have...who's going to explain the amendment? [SPEAKER CHANGES] Mr. ?? would you like to speak to the amendment, please. [SPEAKER CHANGES] I'll just ask that the amendment be explained by Miss Averet. [SPEAKER CHANGES] The amendment just insures that in addition to the assets and liabilities that would be transferred from the city to the authority, that any other types of agreement.

[0:00:00.0] …May have entered into or in conferences regardless of whether or not they have been recorded would be assumed by the authority so if there is any outstanding development agreements that pertain to the Airport Authority that the city of Charlotte has entered into someone that the authority would have to honor those agreements. [SPEAKER CHANGES] Thank you, is there any discussions on the amendment? If not we will vote on the amendment, all those in favor please say aye. [SPEAKER CHANGES] Aye. [SPEAKER CHANGES] All oppose no, amendment case…Senator Rucho. [SPEAKER CHANGES] As you can see this provides a regional approach to this, there has to be regional bind because it is an asset that exceeds two billion dollars, it requires the attention of not a part time city manager but a fulltime board that will provide the expertise and the fulltime commitment to making sure that this asset has reaches it’s full economic potential not only for the city and the region but for the state and that being said Mr. Chairman I would hope that the committee would support this with the favorable report. [SPEAKER CHANGES] Thank you Senator Rucho, questions from the committee. Senator Blue. [SPEAKER CHANGES] Thank you Mr. Chairman, Senator Rucho one thing that interest me somewhat is clearly that’s put over these bonds and I use to know something about this not like now but it seems to me that number one, what we are doing could affect the way that these various bond holders now have in these bonds but secondly Cindy said there are two possibilities worst case scenario and then best case scenario. Typically, before you ___[01:56] you would find the lawyer who is willing to put his bond and everything else up to give an opinion as to what the impact would be of this. You have an opinion from Bond Council or some Bond Council willing to say that this does not have aware of these bonds and goes through this formal process. [SPEAKER CHANGES] Actually, Senator Blue the treasure is in the process of getting that done presently. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Yes Sir, follow up. [SPEAKER CHANGES] The treasure is trying to find council who are… [SPEAKER CHANGES] Getting opinion on the bond but in reality you have to understand that the value of the assets for the bond or how it’s paid back is based on the revenue stream that comes from the airport and not from the city of Charlotte. This is all strictly revenues based on what the airlines right now US Air and other airlines there. So, the value of that airport and the value of the bond so based on the revenue stream that the airport has especially since the city of Charlotte cannot have a good faith in creditors the city of Charlotte from what I have read in the bond documents is not used for paying the bond principle interest or premiums. So, the value of the airport stands on its own and it will do simply. [SPEAKER CHANGES] Follow up, Sir. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] But the city issue the bonds which added some credibility even if the city that can ___[03:28] credit as opposed to an unknown, untested authority that would be issuing the new bonds, is that right? [SPEAKER CHANGES] It was all exclusively on the value of the bonds and revenue stream of the airport. And that has what bond reading…A? [SPEAKER CHANGES] My understanding is the Airport Authority’s AA Bond. [SPEAKER CHANGES] Senator Clodfelter. [SPEAKER CHANGES] ___[03:53] Senator I apologize. [SPEAKER CHANGES] I think it’s important to know the answer has to whether we are in a worst case or a best case before we vote. The city’s Bond Council has issued an opinion and that opinion is that the consent of the bond holders is required that otherwise there is a fall by the city if the consent is not obtained and the given the way these bonds were held it maybe impossible to get that consent. Now, I don’t know whether the treasurer agrees with that or not but actually I wanna know the answer before I vote. I think anybody does I wanna know that. We are not just messing around with the credit of the city of Charlotte, the airport of Charlotte if we mess this kind of thing up, it impacts the credit of every local government of state of North Carolina and probably the states credit too. They don’t take likely to messing around with these kind of things, bond holders and ___[04:55] do not. So, I will be interested… [0:04:58.9] [End of file…]

When are we gonna get the answer? [SPEAKER CHANGES] Well, the answer is coming from the treasures office, and I spoke with the treasurer yesterday and she is in the process of working through that. The talking with some other bond attorneys, there are some other ways of accomplishing that and that's the city of Charlotte just agree that this be moved forward so that it can continue to reach its full economic potential, under folks that are less qualified to continue moving both the airport and the park. So in reality, we will have an answer completely, but there are options there that can be met, and also speaking with folks in the airport, there seems to feel that this can be accomplished pretty simply. [SPEAKER CHANGES] Senator Ford. Thank you Mr. Chairman. Senator Rucho, I've done a great deal of study and research on this, I've even visited out at the airport several times and talked to aviation director, Mr. Orr and it wasn't the first time I've talked to him. I have a tremendous amount of respect for what he's done over the years that he's been there. But Senator Rucho, everything that I've read, there seems to be sufficient enough questions that have not been answered. In light of that, and taking that into consideration, the city of Charlotte and the Mayor city counsil has asked for a delay to allow us to study this issue. Would you allow the city of Charlotte to take the time to study the issue, to bring back some factual information, so that we could have a more informed decision on this very, very important issue? [SPEAKER CHANGES] The study has been done, at least it was done Lieutenant Governor Dalton regarding studying the importance of both the airport and the intermodal yard and that was a study on economics, I believe. The economic vitality of the state. And secondly is we have a pretty clear picture as to what is expected and the portentials are. But before we vote on the floor of the Senate, we will have the answer to Senator Clodfelter's question. [SPEAKER CHANGES] Follow up. [SPEAKER CHANGES] Thank you, Mr. Chairman. One of the things that I have not heard discussed, Senator Rucho, is something that is very important and dear to me, which are the employees at the airport. And moving from the city of Charlotte, which are city employees, to an authority. What kind of impact is that going to have on their benefits and the quality of life that their gonna have as authority employees vs. the city of Charlotte employees? [SPEAKER CHANGES] As best I can tell, since they have done a wonderful job in operating the efficient airport, I can't imagine it'll be changed. The authority pays for it anyhow, with that revenue stream that comes from the revenue stream from the airlines and the like of the airport, then I can't imagine it'll be any different. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] One more follow up, yes sir. [SPEAKER CHANGES] One last follow up, thank you Mr. Chairman. I keep hearing a lot about the revenue stream, and I'm greatly concerned. Based upon my limited knowledge in history of the airline industry, which is not stable. US Air just went through a merger, and if we're gonna hang our hats on some revenue bonds on the airport, as it relates to the hub carry at thier US Air, that concerns me. So, if you look at the history of the airline industry, I think we all need to take into consideration, having some other entity that would support the revenue bonds, out at the airport. Do you have a response to that? [SPEAKER CHANGES] Yes. First of all, the good faith and credit of the city of Charlotte does not support these bonds. Ok, they're not allowed to do so, with any kind of monies that they receive in taxation. Second of all, they have a strong financial status with Mr. Orr. And thirdly, it's just a matter of recognizing that there is going to be a transition at some point when Mr. Orr retires and I think he celebrated his 72nd birthday the other day. And what that means, is it would be a window of opportunity to make a smooth transition to the authority. Authority will pick the next individual that will lead, but it will act as a board of directors to be sure that it will be full potential and part of that comes from the fact that they need to be very concious of the fact that the cost of that operation has to kept low. That's what makes this all worth it, and that's what the intent will be. [SPEAKER CHANGES] Thank you, Senator. We're going to have a question from Senator McKissick, and then one from Senator Clodfelter and then open it up. Senator McKissick. [SPEAKER CHANGES] Sure, let me ask you this, Senator. It always gives me some concern when there is a taking or transfer of assets by any government or any unit and given to some other enemy. Without

compensation. Now I understand that there's going to be a transfer the debt. Has there been any sort of tabulation or some redone to understand the extent to which the city of Charlotte has been investing in this property? Not just the land, the billings, everything that's apart of it to the extent to which they would be compensated or made whole if this moves forward. And secondly unanimity among the delegation that's affected by this type of a transfer or by the local government that's being impacted. I'm wondering where this is coming from. If you could share with me what the genesis of this is so I can understand it cause it doesn't sound like there's a unanimity of opinion out there among either members of the General Assembly that are impacted potentially or among the local government entity. So where's it coming from? [SPEAKER CHANGES] In the amount of money - everything that's paid for out of that airport in all the additions, expansion, everything came from the revenue stream that comes from the airlines. The US Air, American and final entity wants to have certainty in making sure that they had continued to have a low cost hub so that they can operate from and hopefully expand which is something that I assume they will continue since there's no overlap between the roots of the US Air and American. So in reality, the city really has operated it by having an assistant manager pretty much on a part time basis with 2 or 3 other things provide the over site but Mr. Orr previous administrations in the city have all pretty much had a hands off approach to operating what is a very effective system and what we're trying to do is upgrade it as this airport needs to expand as the inter motor park becomes more a play in economics in dealing with the region in the state then very simply we're trying to be sure that the very best board of directors will be put in place. I don't think I've gotten any negative comments from the other regional counties saying no to the fact that this is something that the region should approach in and they have supported it. There are some folks that might disagree but in reality it would seem that the value of the airport and it's economic potential needs to be put first above any type of politics. [SPEAKER CHANGES] One quick follow up - [SPEAKER CHANGES] If it's quick. [SPEAKER CHANGES] It's very quick. It would be excellent, Senator Rucho, if you could just make sure that is the totality. I mean I know it's the current debt but I'm not sure that incorporates in any and all cost that might have been encouraged since the inception of this airport from where it started to where it is today in terms of compensation for what has been invested because it only seems to be that's right if to make them whole if this matter moves forward. [SPEAKER CHANGES] Thank you Sir. Senator Alpodaca then Senator Clodfelter. Senator Clodfelter thank you. [SPEAKER CHANGES] Thank you Mr. Chairman. I have several comments and observations I'll offer. Senator Rucho I know you didn't do it intentionally but I think you did misspeak when you said that there would be full time oversite here because this committee - [SPEAKER CHANGES] Not a full time authority. What I meant to say is folks that are fully dedicated to the airport and it's expansion. [SPEAKER CHANGES] And I think we've had that historically since 1936. The proof is in the pudding. This airport wouldn't be where it is today but for the commitment that has been evidenced over those 70 some years and I have the highest regard for the current tenant of the office out there but it's not a one man show. Before him, some of us actually remember before him that there was Josh Birmingham who was the airport director who really set that airport on a good course and even before him his predecessors and there will be successors and I think they have proved over the years that the current operation structure is very committed to the growth of this airport. It couldn't be otherwise. Some of the debt Senator McKissick over the years was general obligation debt. There was a time when the city did fund this airport with general obligation bonds. I remember voting on them as a council member and as a voter. It's not all been revenue bonds that have funded or supported or paid for this airport and there have been general revenues as well as airport revenues gone into it from the city of Charlotte. So that is an issue that probably needs to be considered when we're going to do this. This is an asset that's been

not through the work of Lincoln county, Cabarrus county, Union county,with all respects to those folks, they have their own airports. But it's been built largely through financial investments made up by the citizens of Charlotte, supported by grants from the federal government. There is a factual difference I want to talk about, and think about, and it's one of the reasons why I want to share and be deliberate about doing this. An authority may be the right way to go, ultimately, but you've got to be really deliberate about it to get it right. This airport is different in an important respect from the Raleigh-Durham airport, and the Greensboro Highpoint airport. And in that respect, it's different from the Dallas-Ft. Worth airport. It does not sit at an area that's predominately undeveloped, it sits right in the middle of the city. It's completely surrounded by the city and by developed areas. In that regard it's much more like Atlanta Hartsfield, or Chicago O'Hare in terms of where it must operate functionally. Those 2, by the way are run as city departments, both the city of Atlanta, and the city of Chicago. But that's important for this reason. The FAA requires that the owner and sponsor of the airport must have authority around the airport to control land uses around the airport, and insure that no hazards are constructed, that development is compatible with the airport. I'm not talking about the airport property, but around the airport. And all around this airport, unlike Raleigh-Durham, unlike Greensboro Highpoint, or Dallas-Ft. Worth is another good example, is the city of Charlotte has heavily built up neighborhoods. that has led to a lot of conflict over the years. A lot of conflict. And it's been managed very well, and very successfully, to enable the airport to continue to grow, to grow very well, but to keep the communities around that airport in balance. the only agency that has the ability to balance both those interests has been the city of Charlotte. And this new authority will not have that ability. It will not have authority outside of the airport property, to ensure that an incompatible tower is not erected on property adjoining it. That is one of the reasons by the way that the FAA has so far refused to give approval to the action we took last year transferring the Asheville airport to a regional authority. In a letter to the FAA, they point out that that is a concern not addressed. Is who controls zoning, planning and building around the airport. And they require that as a condition of being a recognized airport sponsor. So a situational, perhaps we can address it, Senator Rucho. It may be something we can deal with, but we've got to be more deliberate about approaching that, and arresting these problems through. Let them get an authority that's going to work, but we need to take time to do it right. [SPEAKER CHANGES]I agree with you. [SPEAKER CHANGES]Do you want to respond? [SPEAKER CHANGES]Yes, I agree with you in the sense that yes, we want this. I think the common goal for the state, the region, the city, and the airport authority is to be sure that it continues to grow and prosper. The city of Charlotte has everything to gain by having this airport expand, as far as sales tax revenues and other opportunities that will come from that, plus the fact that the intermodal park will lead to 10's of 1000's of new jobs for the region, in addition to some economic pluses in that direction. [SPEAKER CHANGES]Senator Apodoca. [SPEAKER CHANGES]Thank you, Mr. Chairman. I never thought I would say this sentence, but Senator Rucho, you're somewhat of a visionary with this, and I don't know if I really hurt to say it, but you need to take it to the next level, and the next level is a regional airport authority. Now Senator Clodfelter brings some pretty good points up, but as most attorneys do, they leave out some very good points. Us folks who happen to change planes coming through Charlotte, help pay for that airport. The planes that land there pay a landing fee. They help pay for that airport. The people who live in Lincoln county and fly out of that airport, help pay for that airport. So the city is having good luck on having a large amount of folks from all over the United States, land and maybe transfer planes through that airport, to help with that. So, I think this is the place that it needs to grow in order to grow to the next step. And with all that being said, I move to unfavorable report to the original bill, favorable to the proposed committee

Some stuff as amended the focus of the day of will come aboard the November for one can continue as long been listening into the lesson and seven of them all , as well as the assembly to open the right now you said this is over two billion dollar asset of the city show up until it belongs like the old vehicle that struck me but like that belongs to the service owns or shawl and they have constructed there's is there any sense of what the general population feels toward giving away this asset to aid to the other counties that the Donnelly belong , in the future, we're just taking apparently taking his assets from the taxpayers that sailed from citizens of saying well as part of my response is not taking it away from anybody in the state is not taking it from anybody what is his proper icing authority to allow a cinematic I could seek to raise into the next level so that for lack of economic potential can come from the facility and (SPEAKER CHANGES) I think the people on the back of the county in the meeting in the state what the very finest inflicted and one that's most efficiently run in this is the goal that will happen in this is the direction that we often will be supplying we expect to move in that direction to let you are concerned about about this a move for a command post at the age of everyone to have a person from the center's trauma care on them too good a fire says with a chairman (SPEAKER CHANGES) of a Latin Friday at recognize for Lisa last 20 minutes by head of the wants to one when I get two or so ago when police when this trouble 59, strong supporter regional parties for the most anything of that it makes more sense for practical and other business perspective 223 years ago I've tried to put together regional party with shellacking and the CIA Concorde were stylish income for regional Airport in and happy workouts little track history on the third column about to have a problem with this potential interference with the bond covenants Nichols left much playing with fire and Leslie got some, opinion from somebody that says if this is not impair contract for by Wayne Begum state constitution to do not have considered that the problem of installing fearful LG same ID will shed some light on something we're a long does not match my concern is to look into bond funds from the contractual perspective of a long day of golf and more (SPEAKER CHANGES) than a couple of late Mr. Chairman Senator Richard Mintz the committee on data said, was slain liaison for the city Charlotte America in behalf of the Mayor Kelso do unanimously agree that it operates a study of this bill should be telling undertaking to ensure that no complicated consequences of her from this legislation your internal audit that was in my testimony today and copy to replace on the tables are getting $12,000,000,000 economic impact on from this Airport every year six busiest Airport in the world cost to reclaim it is the lowest of all major hub airports United States on all measures we've been successful in instead of our stewardship of this Airport and worry that take its Charlotte couples to greater Heights are you all rail yards being constructed or working with the FA mu control tower commission three years earlier than program currently in the last two are City Council approved the capital improvements planned for the Airport over over one billion dollars to improve the airfield the terminals general aviation cargo facilities are mayor council understand that they're the stewards of the tremendous asset in that the success of the Airport is due in large part to digest the effective management officer war but also the visionary leadership of previous councils and mayors the city case responsibilities as a steward as the airports will sponsor a very serious when you're taking proactive steps to improve safety and security report in the financial record keeping in the greatest bristly fall all the other Federal standards that are condition for the second score for the greater Federal aid for the Airport , they're council really see no compelling need right down to go to authority would truly no stem the flow …..

They are agnostic about whether we should go to an authority or not, but they want to see what the advantages are of that structure. This past Monday evening, the council director and the city manager put together a framework for the study, to be done in just the next couple of months, before the general assembly adjourns for the year, and to present it to them on Monday night for approval. The study would be funded by the city. We would get critical input from our stakeholders, such as the airlines, the railways and members of the general assembly. In addition, this study’s going to look at the financial ramifications of the transfer of the airport, including the issues that brought forth the letter from the Bond Council. The airport has benefited from the synergies of being a part of the city. They take advantage of central services like risk management, information technology, employee health insurance programs. It’ll take a look at all those issues as well, including the outstanding bonds. [SPEAKER CHANGES] Thank you. You have 30 seconds. [SPEAKER CHANGES] Very good. I’ll just sum up this way. I’m glad Senator Rucho brought up the Logistics Task Force because, at the end of the government subchapter, after he said that, on page 90, they talk about how these regional assets should be regionalized, on the very next page, the last paragraph reads as follows: “Further investigation and legal expertise is needed to formula the appropriate governing and financing models for these proposed regional assets and the model may differ from region to region; however, these models should be developed, and questions answered, before embarking on subsequent actions related to their creation in the expenditure of funds for the inland ports and infrastructure related thereto.” I think that paragraph right there justifies why a study is needed before embarking with this legislation. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] I think all of these questions are very simply answered. I know the bond questions will be answered before it goes to the floor of the Senate and, very simply, it does have to go through the House so there’ll be additional opportunities to be sure that we’re perfect but, as Senator Apodaca said, it is time to move forward and, Mr. Chairman, we do have a motion. [SPEAKER CHANGES] Yes, we do. Thank you, Senator Rucho. The motion on the floor to approve the PCS as amended. Those in favor of the motion, please say aye. Opposed, no. Motion carried. This meeting is adjourned.