Lower airport costs lead to reduced user fees

Memphis International Airport’s board on Thursday rolled back user fees for the coming fiscal year and approved a $41 million contract for a new maintenance and operations complex.

Landing fees will go down about 0.5 percent, and terminal rents will fall about 13 percent starting July 1 because of reduced expenses, airport officials said.

Landing fees, paid by airlines based on landed weight, and terminal rents, paid by passenger airlines and concessionaires, are major components of a $117.9 million budget that’s down from $120.4 million this year.

The Memphis-Shelby County Airport Authority also picked Chris Woods Construction Company Inc. to build a complex that will house airfield maintenance, airport police, communications dispatchers and operations staff.

Chris Woods was the lowest of three bidders and the only one that completed required paperwork detailing plans for minority and disadvantaged business participation, said Scott Brockman, airport president and chief executive.

Woods bid $41,468,666, compared to F&F Construction Company’s $46,246,360 and Alston Construction Company’s $49,884,264.

The airport is replacing the Ned W. Cook Airfield Maintenance Facility at Winchester and Tchulahoma, the former base of vehicles and personnel that maintain the airfield. The property has been leased to FedEx Express for an expansion of its world hub, and maintenance is in temporary quarters.

The new facility is expected to be completed before winter 2019 on Louis Carruthers Drive, on the south side of the airfield between center and west runways.

Police, emergency operations center, snow command, communications dispatchers and other operations will be consolidated in the new complex from scattered locations.

The project has a 27 percent goal for minority business participation. Chris Woods has lined up seven certified local minority- and women-owned businesses that will account for 29 percent, or $13 million.