Leistiko/Improve a Valuable AssetRecently the question has again been raised about the "highest and best use of
the City Airport.," Unfortunately that question was raised and answered
almost 6 years ago and it was last answered by the City Council in 1999. At
that time the City Council voted to bring the City's airport up to FAA 1311
Standards through improvements and expansion. 'fhe decision was also put
to public scrutiny as to whether or not the airport should remain at its present
location or move to a number of other sites out in the county. The
recommendation by the consulting engineers doing the study was to leave the
airport where it was, but make a few modifications to the runway for safety
and noise abatement. Extensive public hearings were held as required by law.
The City Council accepted that recommendation and one million dollars was
set aside as the City's matching share to FAA funds, representing a 5% to
95% obligation.
Since 1999, a number of steps have been taken to bring this decision to
fi-uition. First, a master plan was developed, made available to the public and
accepted by the City Council. Again, extensive public hearings were held as
required. An Airport Layout Plan was developed and approved by the FAA.
Second, an Environmental Assessment was done in 2002 and items like
noise, safety, economic impact, etc. were addressed and found NOT to be of
significant concern. The finding was that there were no significant impacts to
deal with and recommendations were made for improving safety, noise
abatement, etc. The public was again given an opportunity to access the
information and respond. The FONSI is a Federal determination, made by
the FAA after review of all the information contained in the EA, which
included a transcript of the October 7, 2002 Public Hearing on the Kalispell
City Airport Improvement Project.
Third, the project was engineered into three different phases with phases two
and three contingent upon the KGEZ tower situation being gated. Phase
one, however, was not impacted by the towers and was considered necessary
regardless of whether the other phases were ever completed. The airport
simply needed basic upgrades in order to continue to be safe and functional.
Such basics include security fencing, airplane ramp parking, ramp upgrades,
inftastructure for airport improvements and lease spaces. Also, in
anticipation of future projects, additional land was to be purchased.
Fencing has begun and is in the finishing stages. In January 2005, the City
Council approved the bids for infrastructure improvements (utilities) and the
th
contract work began on March 14 . Such work is necessary in order to meet
the City's contractual obligations to current and new leaseholders on the
property. Deadlines had to be met.
VVhich, of course, brings up another critical advancement at the airport.
Based upon representations made by the City in the actions taken above, and
made public, a great deal of new interest was generated in private investment
at the airport. Businesses and individuals wanting to use the airport have
leased land, built hangars, and signed leases for future building within the
next year. In addition, the City is under multi -year lease obligations to a
number of current tenants. Businesses who want to be near the airport are in
negotiations for sites along Highway 93 based on the fact that the airport is
being upgraded.
The FAA has also moved forward on this project in the last 6 years. It has
put the Kalispell City Airport on the NPIAS (National Plan of Integrated
Airport Systems). The sum of $7,444,445 has been allocated for this project.
The sum of $150,000 per year in (Non -Primary Entitlements) has been
allocated to the Kalispell City Airport for 2005.
Now, we come to the present situation in March, 2005. The Phase I
improvements have already begun; the utility project associated with the new
ramp and taxiways is being installed; we are in the execution phase of this
project, and it must be paid for. Bonding counsel was consulted and a
recommendation was made to the City Council as to how the project could
continue using bonding procedures. As part of that process, the public was
given an opportunity to comment on the bonding mechanism and the
obligations it imposes on the City, and how the bonds would be paid off, etc.
A tax increment district was already in place at the airport and is the perfect
tool to move this project forward.
However, what occurred at the public hearing on the bond issue on March 7th
was not a discussion of the bonding, but a rehash of whether the airport
should exist at all. Opponents of the airport raised the prospect of it being
sold off for $20 million, giving developers a shot at making money on this
valuable City property. Other uses such as a community center and
playground were again raised for consideration. Environmental issues
already addressed in the Environmental Assessment were again brought up.
Everything about the airport, except the current bonding issue, were
discussed.
Therefore, we need to swing the momentum back around from backwards
looking to where it should be --going forward with the improvements of Phase
I and finalizing its funding mechanism. First of all, one thing should be made
perfectly clear. The City Council has made commitments to the public.
Individuals and businesses have expended money based on those
commitments and deserve to feel secure that the City will stand behind its
Council's word.
Second, everyone needs to be reminded that the questions raised have already
been answered, decisions were made to move forward, and to think of
reversing that trend would be detrimental to the City and its citizens. Yes, the
land is valuable, as are other tracts of land the City owns. That's how you
build your City. You don't sell off its assets to the highest bidder.
Remember, the legal obligations, lawsuits, and penalties to be paid to persons
having interests which would have to be bought out if the airport were closed,
would eat up the bulk of any monies to be made from the sale of the land.
The developer would have a nice piece of property, except around the sewer
plant, and the City would have a pile of debt. That doesn't sound like highest
and best use, except for the developer. Any remaining monies would be too
little to finance buying other land and moving the airport any place else.
Therefore, the money would be gone, the airport would be gone, and the
citizens would be left holding the bag. Instead, let's move forward, improve a
valuable asset, provide better service, and enhance our community.
Fred A. Leistiko
Kalispell City Airport Manager