H3. Res. 5949 - Airport Users Assoc. Grant ApplicationKALISPELL
City of Kalispell
Post Office Box 1997 - Kalispell, Montana. 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Grant Application request- Kalispell City Airport Runway Lighting
Meeting Date: November 18, 2019
BACKGROUND: In December of 2017, Council adopted Resolution 5848, adopting the form
of lease with a User's Association for the management of the Kalispell Airport. As part of that
agreement, a Master Plan for Capital Improvements was included, identifying projects that
would be cooperatively completed. In October of 2018, the User's Association requested and
received an amendment to the agreement to account for more clearly defined components of the
project, including stormwater and engineering. The Users Association also requested funding
from the Council for lighting and fencing improvements. Council did not agree to that request
but encouraged the association to look for additional sources of funds. As such, the User's
Association has been looking at a program form the State Department of Transportation for grant
funding, which they desire to apply for in respect to the runway lighting at the airport. As the
property is owned by the City of Kalispell, the City would have to be the applicant (similar to
our previous grant applications for the golf course and Kidsports).
This grant application is for $200,000 with the user's association committing their funds for
engineering. This would be a pass- through grant with no fiscal obligation on behalf of the City.
The User's association will be present at the meeting to answer questions that Council may have.
RECOMMENDATION: It is recommended that Council adopt Resolution 5949, a resolution
authorizing submittal of a grant application for runway lighting to the State Department of
Transportation.
Attachments: Resolution 5949
Airport User's Association Grant Application
RESOLUTION NO.5949
A RESOLUTION TO APPROVE AN APPLICATION BY THE CITY OF KALISPELL TO THE
MONTANA DEPARTMENT OF TRANSPORTATION FOR A GRANT IN THE AMOUNT OF
$200,000 TO FUND LIGHTING IMPROVEMENTS ON THE KALISPELL CITY AIRPORT.
WHEREAS, In December of 2017, the Kalispell City Council adopted Resolution No. 5848, adopting
the form of lease with a User's Association for the management of the Kalispell City
Airport; and
WHEREAS, a Master Plan for Capital Improvements was included in the lease that identified projects
that would be cooperatively completed; and
WHEREAS, the User's Association requested capital improvement funding from the City for upgrades
to lighting and fencing at the facility which the Council did not approve but rather
encouraged the Association to look to other sources for those funds; and
WHEREAS, the User's Association has now identified a program from the Montana Department of
Transportation for grant funding in respect to the runway lighting at the airport for which
the City of Kalispell, as owner, is eligible; and
WHEREAS, the User's Association proposes committing its funds to all out of pocket costs of the
lighting project, such as engineering, with the City's agreement to be the applicant for the
grant that would operate as a pass -through grant with no fiscal obligation on behalf of the
City; and
WHEREAS, the City Council finds that the arrangement proposed by the User's Association for funding the
airport lighting improvements is in the best interests of the City and its citizens.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL
AS FOLLOWS:
SECTION 1. The City Manager is directed, on behalf of the City of Kalispell and in cooperation
with the User's Association, upon the terms as set forth above and more
specifically described in Exhibit "A" attached hereto, to make application to the
Montana Department of Transportation for a grant in the sum of $200,000 for the
purposes of funding lighting improvements for the Kalispell City Airport.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY
OF KALISPELL, THIS 18TH DAY OF NOVEMBER, 2019.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
Mark Johnson
Mayor
Kalispell City Airport — 2019-2020 Airport Improvements
Loan and Grant Narrative
Common Name: KALISPELL(2)
Access Code: A1WAV0
Applicant Information
Airport Name (Formal)
Kalispell City Airport
Airport Name (Common)
Kalispell
Airport Website*
Airport Owner:
Owner Name
City of Kalispell
Address (Line 1)
201 15T Ave East
Address (Line 2)
City
Kalispell
State
MT
Zip
59901
Country
USA
Phone Number #1
406-883-7211
Phone Number #2
Email Address
citymanager@kalispell.com
Airport Contact:
First Name
Zack
Last Name
Anderson
Address (Line 1)
PO Box 67
Address (Line 2)
City
Kalispell
MT
Zip
59903
Country
USA
Phone Number #1
406-837-7730
Phone Number #2
Email Address
Zack@andersonmasonryinc.com
Airport Engineer:
Firm:
Jackola Engineering and Architecture
Project Information:
Have you previously requested funding for any portion of this project?
If your request for the grant and/or loan amount on the previous page was rejected,
would the airport still have the financial means to complete the project?
Please identify the range of
loan value you are willing to accept:
Not less than
Not more than
When is the project scheduled
to commence?
Brief Description - Insert A
Yes
No
$0
$0
04/01/2020
The Kalispell City Airport has a long and controversial history. This public airport has been a major hub of general aviation
activity in Kalispell since its initial construction in 1966 as a fully improved airport. Over the past 50 years, the airport has
grown into one of Montana's larger general aviation airports. The airport currently reports 56 based aircraft and 28,000
operations per year. Although a NPIAS airport, the FAA has not been able to fund development at the airport because the
existing infrastructure does not meet minimum FAA design standards. Past efforts have been undertaken to conduct the
master planning and environmental work which were needed to begin a redevelopment project which would upgrade the
airport to ARC B-II standards. Kalispell City council voted to approve the upgrade in 2012. However, Council's decision
1
was overturned through a general election ballot initiative shortly thereafter. Since that time, the airport has been limping
along with aging pavements and limited facilities with its future in -flux.
In 2017, the Kalispell Airport Association successfully negotiated a 30-year term lease of the airport from the City of
Kalispell. Key conditions of the lease include the following:
1. The airport must continue operating under its previous operating guidelines;
2. Existing hangar leases with the City were canceled and new leases with the Association were established;
3. Assets within the Airport Enterprise fund were turned over to the Association;
4. The Association could make pre -approved improvements to the airport using a combination of Association funding
(Airport Enterprise Fund) and Tax Increment Financing (TIF). Improvements approved by the Council are included
on the attached Master Plan (Exhibit 1).
The terms of the TIF limit restrict funding to new construction only and do not allow for the funding of rehabilitation or
repair work. In addition, the terms of the lease agreement limit the use of TIF funding to the amounts approved by the
Kalispell City Council as depicted on the Master Plan.
The first phase of improvements at the airport were designed and bid in the spring of 2018. Improvements included the
following projects and are depicted on the attached Exhibit 2:
• Runway 13 Extension (60' x 450') — Includes new lighting and requires a displaced threshold
• Taxiway Reconstruction and Widening — Includes partial depth reconstruction and widening of both parallel
taxiways and connector taxiways to 25'
• Hilton Ramp — A new east -side, public -use parking ramp with 8 aircraft tiedowns
• Street Access Taxiway — New west side taxiway to allow for new hangar development and includes a public use
ramp with 2 aircraft tiedowns
• Runway Turnarounds — Provides for run-up areas at hold lines on each runway end
• Runway Lighting — Replaces an unreliable low intensity lighting system with a new medium intensity lighting
system
• Perimeter Fencing - Completes the perimeter chain link fence around the airport
As the property owner, the City of Kalispell has been clear that they do not want to take on loans; however would be
supportive of obtaining grant funds to help with the improvements being undertaken by the Airport Association. The
"2019 Project Cost" below is a summary of the projects undertaken by the Airport Association during the 2019 construction
season. These projects were funded through Airport Association money and TIF dollars available through the City. The
2019 projects show a commitment among the Airport Association to maintain and improve upon the airport facilities and
improve safety of the operations. The "2020 Project Cost" are additional projects to be completed by the Airport
Association and were possible to fund during the past year. As a significant amount of resources were expended this past
year, grant money to help fund these projects are critical to their completion.
2019 Project Cost
Information:
Type of Work East-West Taxiway Repair
FAA Funded? No
Administration $0
Engineering $13,682
Construction $251,302
Project Cost Information:
Type of Work Hilton Parking Ramp
FAA Funded? No
Administration $0
Engineering $16,087
Construction $295,462
Project Cost Information:
Type of Work
Street Access Taxilane
FAA Funded?
No
Administration
$0
Engineering
$9,196
Construction
$168,889
Desired Grant
$10,000
Desired Loan
$10,000
Project Cost Information:
Type of Work
Runway Extension
FAA Funded?
No
Administration
$0
Engineering
$8,175
Construction
$150,152
Project Cost Information:
Type of Work
Runway Turnarounds
FAA Funded?
No
Administration
$0
Engineering
$6,476
Construction
$118,946
Project Cost Information:
Type of Work
Runway Lighting
FAA Funded?
No
Administration
$0
Engineering
$15,462
Construction
$ 200,000
Desired Grant
$200,000
Desired Loan
$0
Project Cost Information:
Type of Work
Perimeter Fencing & Hilton Gate
FAA Funded?
No
Administration
$0
Engineering
$0
Construction
$42,500
Desired Grant
$0
Desired Loan
$
Supplemental Information:
Annual Airport Income $72,000
Annual Airport Expenses $58,000
Is there a tax levy in place specifically for airport funding No
Appx how much does it generate annually $0
Number of Mill Levies 0
3
Describe what the airport serves and any special roles or functions it may also provide - Insert B
Kalispell City Airport (S27) is a general aviation airport one mile south of downtown Kalispell in Flathead County, Montana.
The airport is north of Flathead Lake in the northwest region of the state serving a city of 21,000 people. The region is
known for its outdoor recreational opportunities offered by Flathead Lake and the Rocky Mountains.
Kalispell City Airport is an active airport with approximately 28,000 operations per year. The summer and fall months are
particularly busy, with airplanes coming and going at all hours of the day. Activities include recreational flying, agricultural
spraying, corporate and business aviation, search and rescue, and public charters. Because of the airport's proximity to
US Highway 93, spectators often watch aircraft take -offs and landings. The airport also provides a staging area for
community events, including an annual Community Day that draws nearly 5,000 people. Several organizations host fly -in
events, including the Experimental Aircraft Association (EAA) Young Eagles, Antique Pilots Association, Cessna Pilots
Association, and Piper Pilots Association.
Kalispell City Airport is an economic engine for the surrounding region. From providing daily general support of local
industries to annual events drawing large crowds, the airport positively impacts the local economy and serves an
important asset to community life.
Direct On -Airport Monetary Impacts: $2,392,000
Visitor Spending: $1,711,000
Total Economic Impact: $6,709,000
*From 2016 Economic Impact Study of Montana Airports
Describe the need, urgency and support for this project - Insert C
The need, urgency and support for all of these projects is strong. As discussed earlier, the history of this airport has been
controversial and its future has been in -flux. Because of the efforts of the Kalispell Airport Association, a future exists for
this airport. With the new lease in place, the airport now has a legal arrangement to continue its operations for at least
20 years (there is an option in the lease for a 10 year extension to 30 years). However, there has not been a development
project at the airport since 2004 when the west side ramp and taxilanes were constructed. The Airport has been faithfully
performing crack sealing over the years and has managed to extend the life of the pavements. But the taxiways are well
beyond band aid repairs and the runway will soon follow. Improvements outlined in the exhibits demonstrates work that
has been committed to the City of Kalispell. Numerous improvements from the plan were constructed during 2019;
however, fencing and lighting upgrades remain in addition to milling and overlaying the runway. Below is a summary of
the projects included in the funding application. As mentioned above, the City of Kalispell has indicated that they do not
want to take on additional loans as the Association is responsible for the maintenance and operation of the Airport. This
provides a greater dependence on private dollars; however, the City indicated they would be supportive of applying for
grant dollars to help offset the financial burden taken on by the Association.
Runway Lighting: The existing runway lighting system is a low intensity, direct bury system that is frequently failing and
in need or repair. A new, more reliable system is needed to continue night operations at this airport over the next 20 to
30 years. The Association intends to install a used PAPI under this project which will require that new electrical conduit
and cable be included in the project out to the PAPI location on Runway 30. In an effort to be as efficient as possible with
the limited funds available, the remaining electrical for a future lighting system replacement was bid with this project.
The bid work included the installation of the conduit, light cans, and cable around the entire runway. The City of Kalispell
considers the cost of replacement of the lighting system as a repair item so no TIF funding is available for this work; all
costs must be entirely paid for by the Airport Association. It is estimated that an additional $75,000 would be required to
fully construct an operational lighting system with a new regulator, controls and MIRL fixtures with transformers. This is
a significant cost item for the Association which cannot be completed without funding assistance.
4
Perimeter Fencing: The majority of the airport is fenced with 7-foot tall chain link fencing; the exception is the south and
southwest end. This is problematic and causes both wildlife and unauthorized entry safety issues at the airport. The
remaining fencing is needed to mitigate these safety issues. This work was not initially presented to the City Council on
the master plan which was approved as part of the lease agreement and is therefore not an item that can be funded with
TIF money. The total cost of these fencing improvements must be paid for by the Association.
Additional Comments - Insert D
The work completed this summer was the first phase of a three-phase project for the Kalispell City Airport. The second
phase includes the installation of fencing and gates as indicated above. The third and final phase is a mill and overlay of
Runway 13/30 will be at least 3 to 4 years away. The pavement on the runway is in better condition than the taxiways
and does not need to be rehabilitated at this time. This will be another significant investment for the Airport Association
which will not be eligible for TIF funding since it is considered to be repair work. The Airport Association has limited funds
and a limited revenue base to accomplish all of the necessary work at this airport to keep it functional and save over the
next 20 to 30 years.
The airport income primarily consists of Hangar Leases. Some additional revenue comes in from Fuel sales. The income
is approximately $72,000.
Expenses include electric, airport management, snow removal, general maintenance, insurance, and miscellaneous
administrative costs and supplies. Expenses were approximately $58,000.
There are currently four vacant hangar pads available for development. The proposed improvements will allow for the
construction of eight T-hangars and one additional hangar pad.
Attach document(s) to upload
Exhibit 1— Master Plan (CIP)
Exhibit 2 — Project Plan
Exhibit 3 — Project Cost Breakdown
MD7* Loan and Grant Application
Review
Applicant Information
Airport Name (Formal)
Kalispell City
Airport Name (Common)
KALISPELL
Airport Website
https://www.kalispell.com/202/Airport
Airport Owner:
Owner Name*
City Of Kalispell
Address (Line 1)*
Po Box 1997
Address (Line 2)*
City*
Kalispell
State*
MT
Zip*
59903
Country*
USA
Phone Number #1*
Home 406 758 7703
Phone Number #2
Email Address*
citymanager@kalispell.com
Airport Contact:
First Name*
Zack
Last Name*
Anderson
Address (Line 1)*
7395 Mt Hwy 35
Address (Line 2)*
City*
Bigfork
State*
MT
Zip*
59911
Country*
USA
Phone Number #1*
Work 406 837 7730
Phone Number #2
Email Address*
zack@andersonmasonryinc.com
Airport Engineer:
Firm
Jackola Engineering & Architecture, Pc
First Name*
Toby
Last Name*
McIntosh
Address (Line 1)*
2250 Highway 93 South
Address (Line 2)*
City*
Kalispell
State*
MT
Zip*
59901
Country*
USA
Phone Number #1*
Work 406 755 3208
Phone Number #2
Email Address*
tmcintosh@jackola.com
Project Information
Have you previously requested funding for any portion of this project? QQ Yes O No
Please identify the range of loan value you are willing to accept:
Not less than*
$0.00
Not more than*
$0.00
When is the project scheduled to commence?
04/01/2020
Please provide a very brief description/overview of the project:
Over $1 million dollars in ramp and taxiway work was completed summer/early fall of 2019 using
Airport Association and City of Kalispell TIF dollars; however lighting upgrades to the airport were
deferred based on overall project costs. The work included under this grant application is related
to upgrading runway lighting to improve overall safety.
Project Cost Information
Type of Work*
Acquire Security Equipment/Install Perimeter Fencing {E.g., Access Control}
FAA Funded?*
No
Administration*
$0.00
Engineering*
$0.00
Construction*
$42,500.00
Desired Grant*
$0.00
Desired Loan*
$0.00
If your request for the grant and/or loan amount is rejected, would the airport still have the
financial means to complete the project?*
Yes
Type of Work*
Install Runway Lighting (HIRL, MIRL) [Statutory Emphasis Program]
FAA Funded?*
No
Administration*
$0.00
Engineering*
$15,462.00
Construction*
$200,000.00
Desired Grant*
$ 200,000.00
Desired Loan*
$0.00
If your request for the grant and/or loan amount is rejected, would the airport still have the
financial means to complete the project?*
No
Supplemental Information
Annual Airport Income*
$ 72, 000.00
Annual Airport Expenses*
$ 58,000.00
Is there a tax levy in place specifically for airport funding? O Yes * No
Approximately how much does it generate annually?
Number of Mill Levies
Please try to limit your response to the space provided, however, if additional information has
to be presented, please feel free to attach documents as necessary.
Please describe what area the airports serves and any special roles or functions it may also
provide:
See supplemental information.
Please describe the need, urgency and support for this project:
See supplemental information
Additional comments for airport finances. (optional)
See supplemental information
Attach document(s) to upload
Please print a copy for your records. You will NOT be able
to access or print this application after November 15.
Pri nt
Kalispell City Airport
MDT Aeronautics 2020 Loan and Grant Application
Supplemental Information
Airport History and Protect Description:
The Kalispell City Airport has a long and controversial history. This public airport has been a major hub of
general aviation activity in Kalispell since its initial construction in 1966 as a fully improved airport. Over
the past 50 years, the airport has grown into one of Montana's larger general aviation airports. The airport
currently reports 56 based aircraft and 28,000 operations per year. Although a NPIAS airport, the FAA has
not been able to fund development at the airport because the existing infrastructure does not meet
minimum FAA design standards. Past efforts have been undertaken to conduct the master planning and
environmental work which were needed to begin a redevelopment project which would upgrade the
airport to ARC B-II standards. Kalispell City council voted to approve the upgrade in 2012. However,
Council's decision was overturned through a general election ballot initiative shortly thereafter. Since
that time, the airport has been limping along with aging pavements and limited facilities with its future
in -flux.
In 2017, the Kalispell Airport Association successfully negotiated a 30-year term lease of the airport from
the City of Kalispell. Key conditions of the lease include the following:
1. The airport must continue operating under its previous operating guidelines;
2. Existing hangar leases with the City were canceled and new leases with the Association were
established;
3. Assets within the Airport Enterprise fund were turned over to the Association;
4. The Association could make pre -approved improvements to the airport using a combination of
Association funding (Airport Enterprise Fund) and Tax Increment Financing (TIF). Improvements
approved by the Council are included on the attached Master Plan (Exhibit 1).
The terms of the TIF limit restrict funding to new construction only and do not allow for the funding of
rehabilitation or repair work. In addition, the terms of the lease agreement limit the use of TIF funding to
the amounts approved by the Kalispell City Council as depicted on the Master Plan.
The first phase of improvements at the airport were designed and bid in the spring of 2018. Construction
began during the summer of 2019 with progress wrapping up this fall. Improvements included the
following projects and are depicted on the attached Exhibit 2:
• Runway 13 Extension (60' x 450') — Includes new lighting and requires a displaced threshold
• Taxiway Reconstruction and Widening — Includes partial depth reconstruction and widening of
both parallel taxiways and connector taxiways to 25'
• Hilton Ramp — A new east -side, public -use parking ramp with 8 aircraft tiedowns
• Street Access Taxiway— New west side taxiway to allow for new hangar development and includes
a public use ramp with 2 aircraft tiedowns
• Runway Turnarounds — Provides for run-up areas at hold lines on each runway end
• Installation of a used PAPI on Runway 13-30
• New Sanitary Sewer and Storm Drain Piping
Summary of the 2019 Improvements:
With the formation of the Kalispell Airport Association, a future exists for this airport. With the new
lease in place, the airport now has a legal arrangement to continue its operations for at least 20 years
(there is an option in the lease for a 10 year extension to 30 years). However, there has not been a
development project at the airport since 2004 when the west side ramp and taxilanes were
constructed. The Airport has been faithfully performing crack sealing over the years and has managed
to extend the life of the pavements. But the taxiways are well beyond band aid repairs and the runway
will soon follow. The following work has been completed with use of Kalispell Association and Kalispell
Tax Increment Finance (TIF) dollars as part of the 2019 improvements.
• East-West Taxiway Repair: There are 20-foot wide parallel taxiways on both sides of the runway.
These taxiways do not meet minimum width standards for ARC B-I aircraft and there are
significant drainage issues in the runway -taxiway infield areas. Besides crack sealing, there has
not been any rehabilitation work on the taxiways since they were originally constructed in the
early 80's. Significant cracking has developed on the taxiway surface that can no longer be sealed
with conventional crack sealing materials. The taxiways are failing and need to be fully
reconstructed and widened to allow for the safe movement of aircraft around the airport. The
City of Kalispell has authorized the use of TIF funding for the 5-foot widening, but the airport must
pay for the cost of the rehabilitation portion of the existing 20-foot wide section.
• Hilton Parking Ramp: There is a large ramp located on the west side of the airport which is used
mostly for parking of based aircraft. There is a small ramp with a few in -pavement tie -downs and
several grass tie -downs located on the east side of the airport which is leased by the airports FBO.
The west side of the airport functions primarily for based aircraft and is not very functional for
itinerant aircraft operations and visitors. A public -use aircraft parking ramp on the east side of
the airport is solely needed. This ramp will provide visitors a place to park their aircraft which is
close to US Highway 93 and to a host of businesses located along this corridor. The City of Kalispell
has authorized the use of TIF funding for this ramp which will cover the majority of the cost.
However, the contractor's bid price exceeded the amount authorized by the City of Kalispell which
will need to be covered by the Airport Association.
• Street Access Taxilane: There has been interest by a private freight company to build a small
processing facility/hangar at the Airport. This type of facility would require both access to the
airports taxiways and runway as well as provide access for public vehicular traffic and parking.
This taxiway is being constructed to allow for business/hangar development along airport road
and provide for additional areas for private hangar development. Growing revenue potential on
the airport will be key to this airports ability to maintain a viable airport over the next 20 to 30
years. Without any tax revenue to help fund improvements, the Airport Association will need to
establish a sufficient revenue base for all future repair and rehabilitation work. The City of
Kalispell has authorized the use of TIF funding for this taxilane which will cover the majority of the
cost. However, the contractor's bid price exceeded the amount authorized by the City of Kalispell
which will need to be covered by the Airport Association.
• Runway Extension: The previous master plan completed for the airport in 2012 recommended a
runway length of 4,200 feet which would accommodate 95% of the small aircraft fleet. The
existing runway at Kalispell City Airport is 60' x 3,600' which is 600 feet shorter than the
recommended length. A runway extension will increase the safety margin for all aircraft operating
at the airport. Although a 600-foot extension cannot effectively be constructed within current
airport property, a 450' runway extension is feasible on the north end provided a displaced
threshold is implemented to maintain the current threshold on Runway 13. The extension will
increase the runway length to 4,050 which will be a significant safety improvement for departures
and Runway 30 landings. The City of Kalispell has authorized the use of TIF funding for this runway
extension which includes edge and threshold lighting which will cover the majority of the cost.
However, the contractor's bid price exceeded the amount authorized by the City of Kalispell which
will need to be covered by the Airport Association.
Runway Turnarounds/Run-up Areas: One of the services of the FBO operating on the airport is a
Part 61 flight school. With limited areas at the airport suitable for performing run -ups and
checklists on the east side, these operations are typically conducted at the taxiway hold lines at
each runway end. The typical 25-foot wide connector taxiway would create a bottleneck at the
runway end connectors when these operations are occurring which are typically longer in
duration for flight instruction. The wider hammerhead turnarounds/run-up areas will provide a
taxiway around aircraft performing these operations. The City of Kalispell has authorized the use
of TIF funding for the turnaround areas on both runway ends which will cover the majority of the
cost. However, the contractor's bid price exceeded the amount authorized by the City of Kalispell
which will need to be covered by the Airport Association.
Need, Urgency, and Support for the 2020 Project:
Runway Lighting: The existing runway lighting system is a low intensity, direct bury system that
is frequently failing and in need of repair. A new, more reliable system is needed to continue
night operations at this airport over the next 20 to 30 years. The Association intends to install a
used PAPI under this project which will require that new electrical conduit and cable be included
in the project out to the PAPI location on Runway 30. In an effort to be as efficient as possible
with the limited funds available, the remaining electrical for a future lighting system replacement
was bid with this project. The bid work included the installation of the conduit, light cans, and
cable around the entire runway. The City of Kalispell considers the cost of replacement of the
lighting system as a repair item so no TIF funding is available for this work; all costs must be
entirely paid for by the Airport Association. It is estimated that an additional $75,000 would be
required to fully construct an operational lighting system with a new regulator, controls and MIRL
fixtures with transformers. This is a significant cost item for the Association which cannot be
completed without funding assistance.
• Perimeter Fencing: The majority of the aiport is fenced with 7-foot tall chain link fencing. The
exception is the south and southwest end. This is problematic and causes both wildlife and
unauthorized entry safety issues at the airport. The remaining fencing is needed to mitigate these
safety issues. In addition to this fencing, a gate is being provided at the Hilton parking/Ramp
entrance. Both items were not initially presented to the City Council on the master plan, which
was approved as part of the lease agreement between the City and Airport Association and is
therefore not an item that can be funded with TIF money. The total cost of the fencing
improvements must be paid by the Association.
Additional Comments for Airport Finances:
Airport Finances: The work completed this summer was the first phase of a three phase project for the
Kalispell City Airport. The second phase includes the installation of fencing and gates as indicated above.
The third and final phase is a mill and overlay of Runway 13/30 will be at least 3 to 4 years away. The
pavement on the runway is in better condition than the taxiways and does not need to be rehabilitated
at this time. This will be another significant investment for the Airport Association which will not be
eligible for TIF funding since it is considered to be repair work. The Airport Association has limited funds
and a limited revenue base to accomplish all of the necessary work at this airport to keep it functional and
save over the next 20 to 30 years.
The airport has only one source of revenue which is lease revenue for commercial and private ground
leases. Ground leases will generate $76,069 in 2019. There is an annual 3% payment escalation clause in
all ground leases.
Expenses include electric, airport management, snow removal, and insurance. Expenses amounted to
$48,923 in 2018.
There is growth potential at the airport and as this growth occurs, airport revenue will grow also. There
are currently four vacant hangar pads available for development. The proposed improvements will allow
for the construction of eight T-hangars and one additional hangar pad. There is an immediate demand
for T-hangar spaces and this once developed, an estimated $3,000 of additional revenue.
Project Funding: In 2017, the Kalispell Airport Association successfully negotiated a 30-year term lease
of the airport from the City of Kalispell. One of the terms of the lease was that the Association could
make pre -approved improvements as depicted in the airport master plan (Exhibit 1) which was made a
part of the lease. The City was able to allow the use of the Southside TIF to fund all or part of the new
improvements constructed on the airport. However, none of the rehabilitation or repair work would be
eligible for TIF funding and therefore would need to be funded fully by the Association either through
the remaining funds in the Airport Enterprise Fund or through loans. In addition, the terms of the lease
agreement limit the use of TIF funding to the amounts approved by the Kalispell City Council as depicted
on the Master Plan.
Bids were opened for this project in June, 2018 but construction was postponed until 2019. Bid prices
were marginally higher than original master plan costs approved by City Council so the amount of TIF
funding approved falls short of the total cost to construct the new improvements. To complete all of the
work approved for Phase 1 required additional contributions from the Airport Association as well as
limiting some project scope. Exhibit 3 is a project cost breakdown which summarizes total project work
items costs, available TIF funding, the Airport Associations share of costs, and requested grant and loan
funding for each.
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