For the past week, many Kansas Cititans have been scratching their heads regarding the future of the Kansas City International Airport single-terminal plan. After a months-long selection process and a public vote to move forward, Kansas City Council on Dec. 14 rejected a memorandum of understanding with Edgemoor Infrastructure & Real Estate LLC, the chosen developer for the project.

What’s going on, and how did we get here? Here’s a round up of the saga ahead of the council’s Dec. 21 meeting.

The selection

In May, Kansas City engineering firm Burns & McDonnell announced that it had come up with a plan to build a new single terminal at KCI using private financing, a factor that had been on the City Council’s wish list. Just as the city began moving forward with Burns & Mac’s no-bid proposal, other companies expressed interest in taking on the project, including Los Angeles-based AECOM, which has an office in downtown Kansas City, and Edgemoor, based in Maryland.

The city reversed course, opening the process to bidders. In September, it chose Edgemoor to develop the new terminal. AECOM’s proposal was the runner up; the council said it had disqualified the Burns & McDonnell “KCI Hometown Team” proposal because of what it deemed an unfavorable financing arrangement.

The vote

Kansas City residents went to the polls in November to vote on whether to allow the council to move forward with building a new single terminal at KCI that would replace the multi-terminal layout, designed in the 1960s. Voters approved, with 75 percent voting for a new terminal.

The MOU

Once voters had OK’d the project, Kansas City began negotiations with Edgemoor in earnest. One of the steps was for the City Council to approve a memorandum of understanding (MOU) with Edgemoor. An MOU is an agreement on an intended course of action. In a move that surprised many, the City Council rejected the MOU in a 9-4 vote on Dec. 14.

Here’s what some of the involved parties have said about that vote:

• Following the vote, Councilman Jermaine Reed, who voted in favor of accepting the MOU, tweeted Dec. 14: “This is democracy in action. The will of the Council has been expressed. Kansas City can rest assured: despite what occurred today, I am redoubling my efforts starting now, to work hard to ensure that progress for @KCIAirport will continue. We will not stop. We will not give up.”
• In a lengthy Facebook post Dec. 15, Councilman Quinton Lucas, who voted to reject the MOU, addressed the reaction to the vote: “Part of the public surprise is that many didn’t realize we either had to enter into an MOU or others thought we already had entered into it and were backing out of the deal. I wish we had let that be known.” Many councilmembers wanted more details than were provided before signing on the dotted line, he said: “Unfortunately, the MOU still has vague/no terms on the financing plan, has a reimbursement agreement that obligates millions in payments to the developer for some questionable costs, and has a limit on community benefits that still has no clear basis in law or reason.”
• Also on Dec. 15, Edgemoor released a statement about its view of the events. An excerpt:

Over the last two months, we have incorporated every change that has been requested by the City. Just yesterday, new concerns were brought to our attention during Business Session. We were unaware of these concerns prior to the meeting, and believe we should be afforded the opportunity to continue negotiations and develop solutions. Throughout the procurement process, and during the campaign and the weeks that followed, our team has been open, transparent and collaborative with the Council, and the community, with a focus on delivering the best result for Kansas City. … The Edgemoor Team remains committed to delivering a world-class terminal for Kansas City.

• Kansas City Manager Troy Schulte sent a series of tweets on Dec. 16 shedding some light onto councilmembers’ concerns. One sticking point was the mix of minority-owned and women-owned firms that would be involved in building the new terminal: “Lots of twitter activity today about labor unions and #newkci. The issue surrounds whether the #newkci project can be all labor and achieve high MBE/WBE goals. Some labor groups want only 100% labor workforce. Many MBE/WBE firms are non-union.” Schulte explained some of the challenges with the projected mix and tweeted, “The policy issue that certain members of the City Council are wrestling with is can #newKCI construction be a 100% labor union workforce and still achieve a high MBE/WBE participation which is a stated Council priority for the project.” He also mentioned other concerns, including the use of aviation funds.
• On Dec. 19, Kansas City Mayor Sly James, who voted to accept Edgemoor’s MOU, released a statement titled “In Good Faith.” In it, he shared his disappointment with the council’s vote: “My fear is that this miscalculation has not only undermined the airport project, but has also undermined the voters’ trust in our ability to lead. I won’t let that happen. So let’s fix this.”

Some other voices also weighed in on the council’s surprise vote:

• The Greater Kansas City Chamber of Commerce’s CEO Joe Reardon and Chairman Matt Condon also weighed in Dec. 19 with a letter to the City Council, reading in part:

Kansas City voters said “yes” to “A Better KCI,” expecting you and your colleagues to proceed in an open, transparent, and professional manner to bring the new terminal to fruition. The airport’s many regional users expect the same. As does the business community. The actions of these past few days do nothing to reassure Kansas Citians and the business community in the process now underway at City Hall, and is not a good example of how business should be conducted. We urge you to negotiate in good faith and in a transparent manner respecting the integrity of the process. We also urge you to “get it done.”

• The Kansas City Star Editorial Board wrote that the rejection “betrayed voters” and chastised the council’s “ham-handed interference.”
• David Hudnall of The Pitch dug into the MOU and explained some of the councilmembers’ financial concerns with the way the document is written.

Other developments

It’s not over yet for a new KCI terminal, according to the City Council. Councilwoman Heather Hall tweeted Dec. 14: “@KCMO Council continues to be in contract negotiations to build single terminal. This does not change timeline or plans to construct new terminal @KCIAirport. I remain committed to successful project, on time, on budget. #transparency #financialaccountability.” Hall voted to reject Edgemoor’s MOU.

However, some are questioning whether the city moves forward with Edgemoor. Following the rejection of the MOU, Councilman Lee Barnes proposed the city move forward with AECOM on its proposal. Then, on Dec. 18, AECOM announced it would team up with Burns & McDonnell and could execute an MOU within 30 days if asked.

So what’s next? Councilwoman Jolie Justus, who was chairwoman of the Airport Committee and voted in favor of the MOU, told The Kansas City Star the city had three options to go forward:

• Tell Edgemoor what council members want out of the agreement and vote based on how the firm responds.
• Reject Edgemoor and move forward with another partner, as Barnes proposed
• End the procurement process and start all over again with a call for new proposals — though on this option, Justus said, “I have no appetite whatsoever for that.”

At a work session Dec. 19, councilmembers indicated they wanted to continue negotiations with Edgemoor. The Airport Committee meets Dec. 21 to decide a path forward.

For more background and updates, follow FlyKCI.com and KCMO.gov/NewKCI.