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1. Resolution 4518 - Final Feasibility Study - Kalispell City AirportREPORT TO: Honorable Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT: Airport Master Plan MEETING DATE: November 1, 1999 BACK GROUND: Attached is the memo that was presented to the Council during the October 25 work session. During that meeting we discussed several advantages related to the B2 realignment option. The most obvious being the assistance from the Federal Aviation Administration (FAA). In order to complete the formal process of the Airport Master Plan, the City Council needs to pass a resolution accepting the document. This resolution also helps secure the FAA's assistance with the project. It was made clear at the work session that the City Council is placing a cap of one million dollars toward this project. I believe the project can be accomplished within this spending limit and the commitment shows the FAA that the City is serious about completing the airport upgrades. Under ideal conditions, the airport project would start during the 2002 construction season. RECOMMENDATION: The City Council approve Resolution 4518 which identifies Alternative 2 (B2 realignment) as the preferred route to upgrading the City's Airport. FISCAL EFFECTS: A cap of one million local dollars has been placed on the project. The one million dollars will be generated from the sale of two parcels of property and or the tax increment revenues generated by the Airport URD. ALTERNATIVES: As suggested by the Council. Respectfully submitted Chris A. Kukulski City Manager Report c4ti* October 29,19" Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT: Airport Master Plan MEETING DATE: October 25, 1999 BACK GROUND: As you are well aware, the Airport Advisory Board and city staff have been working with Morrison 8t Maierle for nearly two years on the Development of a Feasibility Study and Master Plan for the Kalispell City Airport. Since August, two presentations have been made before the City Council. The first was during an August 9, 1999 Council Work Session and the second was during a Public Hearing held on October 4, 1999. In recalling the discussions which took place during the Council Work Session, the City Council indicated that two of the five options provided in the Master Plan stood out above the others. Option 1 entaf7s the City investing $1.255 million in updating and improving the airport with no assistance from the Federal Aviation Administration (FAA). Option 2 upgraded the airport to FAA B2 standards. Option 2 is estimated to cost the city $1.301 million, with the FAA contributing $4.958 million towards the airport's upgrades for a total cost of $6.258 million. During the October 4 Public Hearing, the Council heard from ten local residents. All but one of whom spoke in favor of the B2 upgrade. The one individual did not want to be labeled as either a supporter or a naysayer and rather wanted to make sure the group was cognizant of noise, traffic and other spinoffs of this type of development. Since the public hearing, there have been `letters to the editor" speaking both in favor of and against the upgrades to the airport. During last weeks Chamber of Commerce lunchen, those in attendance were asked to hold up cards vocalizing their views towards several issues facing the City. Green represented support for a project and red stood for Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 your disagreement of the idea. Nearly everyone in the room expressed support for improving the city airport with only one individual raising a red card. Three issues of great importance must be resolved before making a commitment toward the B2 option. Number 1, the City and FAA must resolve issues related to the two radio towers located south of the airport and east of US-93. The extent to which the towers are a problem is still unknown. Five divisions of the FAA are currently reviewing the location of the towers in reference to the flight patterns in order to determine a resolution to the problem. Best case is that the towers do not interfere with the flight pattern and thus no change is necessary. Worst case is that the towers have to be removed. Number 2, approximately thirty parcels of property must be secured in order to lengthen the runway and receive the B2 status. We are currently working with a consultant who acquires right-of-ways for various municipal projects. If hired, the consultant would secure options on the thirty parcels and be paid primarily out of commissions on each successfully signed agreement. Number 3, the FAA must designate the Kalispell City Airport on the National Plan for Integrated Airports designation and agree to fund 90% of the improvements. If the three issues listed above can be resolved without spending tens of thousands of dollars, I recommend the City commit to Option 2. By upgrading the airport to B2 standards we are greatly improving our city owned asset. Our investment of $1.3 million will result in over $6.25 million of improvements. These improvements add to the airport's viability over the long term for the city and the region. How does the City pay its $1.3 million dollar share of the project? The debt will be paid through two revenue sources: First, the sale of two lots adjacent to the airport. Lot one is 2.98 acres and has a state equalized value of $498,471. Lot 2 is 7.41 acres and has a market value of $1,233,082 (1999 tax rolls). The sale of these two lots should net the city $1.7million conservatively. The sale of at least one of the two lots is essential to the City's ability to finance the improvements. Second, the Airport Urban Renewal District (URD) is growing as a result of the Rosauer's and Dasen's projects as well as other smaller projects. Attached is a spreadsheet outlining the increment which is anticipated over the next three years in the Airport URD. Therefore, the City will be in a position to either pay cash for the improvements or sell bonds through the URD to cover the cost. Under ideal conditions, the airport project would start during the 2002 construction season. RECOMMENDATION: The City Council concur that the issue should be placed on the November 1 City Council Agenda for clear direction to be given to the City Manager and staff. FISCAL EFFECTS: The total cost of the B2 upgrade is approx. $6.258 million. $4.958 will be paid by the FAA with the City committing $1.301 million towards the project. The City's share will be paid for from the sale of the two lots outlined above and the Airport URD fund. ALTERNATIVES: As suggested by the Council. Respectfully submitted, Chris A. Kukulski City Manager Report compiled October 21,1999 RESOLUTION NO. 4518 A RESOLUTION ADOPTING THE AIRPORT MASTER PLAN STUDY AS SUBMITTED AND AMENDED AND IDENTIFYING ALTERNATE NUMBER TWO, 5 DEGREE REALIGNMENT, AS THE PREFERRED ALTERNATIVE. WHEREAS, the City of Kalispell has completed Phase I and Phase II of the Airport Master Plan Study dated August, 1999, and WHEREAS, public meetings were held on September 29, 1998, January 27, 1999 and June 15, 1999 where results of the study were presented, and WHEREAS, a formal public hearing was held on October 4, 1999 before the Kalispell City Council and public comment was solicited, and WHEREAS, the results of the study identified, Alternate 2, Five (5) Degree Realignment, B-II, with full FAA participation, as the preferred alternative and Alternate 3, $1 Million, B-I, as the other viable alternative. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. That the City Council hereby approves the findings of the Airport Master Plan Study dated August, 1999, and amended October, 1999. SECTION II. That the City Council hereby identifieds Alternate 2, Five (5) Degree Realignment, B- II, as the preferred alternative. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS 1ST DAY OF NOVEMBER, 1999. Wm. E. Boharski Mayor Attest: Theresa White City Clerk