Bid awarded for runway extension; RIAC seeks $52M bond

Airport to sell $52 million in revenue bonds

By John Howell
Posted 5/24/16

The last of the major construction projects - for the time being, anyhow - is about to take off at Green Airport. Last Wednesday, the Rhode Island Airport Corporation (RIAC) awarded Cardi Corporation a $37,876,958 contract for the

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Bid awarded for runway extension; RIAC seeks $52M bond

Airport to sell $52 million in revenue bonds

Posted

The last of the major construction projects – for the time being, anyhow – is about to take off at Green Airport.

Last Wednesday, the Rhode Island Airport Corporation (RIAC) awarded Cardi Corporation a $37,876,958 contract for the extension of Runway 5, including an engineer materials arresting system (EMAS) at the end of the longer runway as well as the extension of a taxiway and relocation of Federal Aviation Administration navigational equipment.

And on Thursday, Peter Frazier, RIAC’s interim president and CEO, traveled to New York City to meet with bond rating agencies for the issuance of $52 million in airport revenue bonds to cover the cost of the runway extension, acquisition of property, realignment of Main Avenue, relocation of Winslow Park, and extension of the runway protection zone at Green, in addition to the demolition of an unused terminal building and construction of maintenance garage at Quonset.

Cardi’s bid was the lowest of three submitted for the runway work that will extend the current main runway from about 8,200 to 8,700 feet, enabling carriers to offer longer-range, nonstop service and increased unrestricted use of aircraft that face weight limitations during warmer weather. Also bidding was Manafort Brother Inc. at $38.5 million and J.H. Lynch & Sons at $41.7 million.

Frazier said work on the runway extension would start immediately, but that actual groundbreaking and earth moving start next month. According to the schedule of airport projects, which started more than two years ago with the extension of runway safety zones of the shorter, or cross-wind, runway and relocation of the Winslow Park playing fields, the runway extension is to be operational by December 2017.

The extension caps more than a decade of intense community debate over longer Green Airport runways and where they should go. Among proposals were parallel runways of more than 9,000 feet that would have required taking large swaths of residential neighborhoods and the relocation of the city’s east-west arteries, and a plan to extend the runway to 9,250 feet. That proposal suggested extensions at both the north and south ends of the runway. At the northerly end the plan called for the extension of Route 37 to Warwick Avenue to replace Airport Road. To the south, the proposal was to tunnel Main Avenue under the runway extension.

Former RIAC president and CEO Kevin Dillon scaled back the plan, coming up with an extension to the south that could be accommodated without the costly tunnel by looping Main Avenue around the runway protection zone and the use of EMAS. EMAS is a system of concrete blocks that are designed to crumble under the weight of an aircraft that overshoots the end of the runway, like a sandy track at the bottom of a hill is engineered to stop runaway trucks. EMAS enables the airport to meet the 1,000-foot runway safety roll-off in confined areas.

While less intrusive, Dillon’s proposal also met resistance. The city lobbied for a shorter extension, arguing that 8,500 feet would adequately accommodate the fleet of aircraft being used at Green. RIAC agreed to relocate Winslow Park and for a time alternate locations to the site eventually selected were considered.

With completion of environmental studies and a plan in place, the City Council initiated legal action that could have delayed, if not stopped, it. Dillon and RIAC formalized a memorandum of understanding, reached with Mayor Scott Avedisian and the administration and amended by the council, that lifted the threat of a prolonged legal entanglement. The agreement spelled out the relocation of Winslow Park and set forth deadlines for the projects with consideration to homeowners and businesses whose properties would be impacted and acquired.

Frazier said yesterday that he would hope to hear from the rating agencies in two weeks.

Currently RIAC general airport rated bonds carry a BBB with a stable outlook from Standard and Poors and Fitch. Moody’s rated the bonds at A3 with a negative outlook.

Frazier is hopeful the news of an added 290,000 seats of service with the addition of flights to Chicago and Ronald Reagan Washington National Airport could result in improved ratings. Given airport passenger traffic for the past two years, he feels the recession has bottomed out and the local economy is on the upswing.

Comments

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  • Thecaptain

    Thank you Mayor Avedisian for selling out the residents of Warwick to big business once again. Your airport deal has destroyed the city and ruined a community where generations of families resided. And for what? No tax revenue, no improvement in the quality of life, all to line the pockets of your corporate friends that donate to your campaign. I wonder what the possible quid pro quo could possibly be? Maybe a nice cushy job with RIAC after you finish destroying Warwick and take your pension?

    You should be ashamed of yourself selling out the residents and buying votes from your employees buy giving out unrealistic wage increases to every worker. While you cut every service line in the budget you increase the WFD sick time bonuses to $931,950. You should be ashamed of yourself. Your city council is just as incompetent as you having no guts to ask any legitimate questions. While your sweetheart Wilkinson discusses the possibility of saving pennies, she ignores the millions of dollars of waste on your watch. All I can say is that it is a good thing for you that you surround yourself with dopes. Clearly evident last night when your dope finance director didn't know if taxes are taken from sick bonuses. Real bright guy ya got there Mayor. How much was his raise this year? 4.7 million in tax increases and all of it going to wages and employee benefits. Cut all services such as paving and road repair to give your minions more bonuses so they elect you again.

    Its unfortunate that you lack the integrity and guts to enter into any kind of debate. I would do anything to debate you in public and show the community what an incompetent fraud you are. Nice going again Scotty, give away the store to your buddies. One other thing, why is it that you cant look anyone in the eye when they speak to you?

    Tuesday, May 24, 2016 Report this

  • richardcorrente

    To "Thecaptain",

    Warwick lost the tax revenue on over 100 homes due to the airport expansion and all that Warwick residents received was more water, soil, noise and air pollution. That's why, as Mayor, I will renegotiate the Airport Agreement. I met with Kelly Fredricks and asked "If we can prove that your airport waste drain is polluting Warwick Pond, would you be willing to pay for the cleanup?" He looked me in the eye and said "We can't! It's illegal!" I never said another word to him. 20 minutes later I got an elbow from the airport guy siting next to me who said "If you have a clean-up day I'll get my feet as muddy as yours." That guy was Peter Frazier, the new RIAC president, a man who impresses me as someone who actually cares. I believe he is someone we can partner with to make the airport a much better neighbor. Stay tuned. I'll keep you posted.

    As far as debating "Scotty", he's avoiding me too, but he does look me in the eye when I comment about his leadership. I suppose that's a start. He also actually attended the budget hearings this year, unlike 2015 when he went on vacation for the third of five times.

    Take good care,

    Richard Corrente

    Democrat for Mayor

    Tuesday, May 24, 2016 Report this

  • Thecaptain

    Rick,

    Can you tell the Titanic to turn 5 points to port? No, because it is history in the past. So is the airport deal. There is nothing that can be done to renegotiate a deal that is already under construction. But sadly, your buddy Wilkinson and a few others sealed the deal. Maybe you should talk to them. Ask Vella who else she knows that would sign a lease for ball fields that RIAC can cancel with 180 days notice and Warwick is responsible for all "de-construction" , removal , and clean up. What sane person would do that? Your buddy did. Read the lease.

    By the way, as someone who has substantial construction management time on major airport projects, and by the way, the structural inspector of record at TF Green, I can assure you, that substandard construction and code deviation will be the daily norm. You forget that Scotty and Cardi have a long relationship as well as the attorney who negotiated the dismissal of the city litigation. I didn't see you at any of those meetings.

    Also, from the pilot seat, a bit of edification for you. The runway expansion was derived from a mathematical formula of thrust vs weight and take off length roll out. It was calculated on the engine thrust of a 737-100 with GE engines that have been obsolete for many any years. The new 737-700's in the fleet now and the A320 AB have a much greater thrust to weigh ratio and a much shorter take off roll and a much greater braking capacity. Hence, expansion completely un-necessary. However, all the players involved in the negotiating didn't give a crap about the facts as they evolved, only about the future quid pro quo that is now coming to fruition.

    I would suggest researching the topics at hand that are problematic and get the facts and data. Presently the Titanic rests in 13,500 feet of sea water which would be 409.09 ATM of seawater at an ambient pressure of 6013 ponds per square inch. Just sayin'.

    Tuesday, May 24, 2016 Report this

  • Justanidiot

    mayer corrente,

    You need to work to get the airport out of Warwick and up to Massachusetts where it belongs.

    Along with that, we need to get I-95 and 295 moved out of the city, the train tracks and station moved, and all the big box stores littering route 2 to take a hike. Once these small steps are taken the bigger issues can be tackled and Warwick can be made great again.

    You can lower taxexs, increase property values, better education, bring down the price of government and all this. What you do in your second week in office is up to you.

    mayer corrente -- making warwick great again

    Wednesday, May 25, 2016 Report this

  • Reality

    Captain.....thanks for your insight. I agree Mr.Corrente has set his sights on only one of the conspirators. Willinkson aka Corrente's best buddy destroyed the Lake Shore Dr. neighborhood by locating the Winslow Ballfields at the airport. Our children now play within 200 yds of an active runway. Good job Wilkinson. Vella also didn't ask for a healthcare study either. Disgraceful.

    I hope Mr. Corrente starts his inquiry where it should be.....at Wilkinson's doorstep.

    Wednesday, May 25, 2016 Report this