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2009/02/02 South Kalispell Airport Redevelopment PlanREPORT TO: FROM: Kalispell City Airport — S27 Fred A. Leistiko, Airport Manager 201 First Avenue East, Kalispell, Montana 59901 Post Office Box 1997 - Kalispell, Montana 59903-1997 Telephone (406) 250-3065 Fax - (406) 758-7758 arportispel clall. com The Honorable Mayor Pamela B. Kennedy and City Council Fred A. Leistiko, City Airport Manager Myrt Webb, Interim City Manager SUBJECT: Update and Amendment of the "Kalispell City Airport/Athletic Complex Redevelopment Plan and Analysis" dated January 23, 1996. MEETING DATE: February 2, 2009 BACKGROUND: In 1996 the Kalispell City Council approved and implemented the Kalispell City Airport/Athletic Complex Redevelopment Plan. While some of the goals of the Plan have been accomplished, namely the Athletic Complex Redevelopment, the remainder of the Plan still has goals to accomplish. This updated version of the Plan reflects the accomplishments that have been completed and those that are yet to be completed. This update reflects the numerous changes that have taken place in the past thirteen years the Plan has been in affect. This Draft Plan has been amended to provide consistency with the Kalispell Growth Policy and other changes which have occurred in South Kalispell. RECOMMENDATION: The updated and amended "South Kalispell Airport Redevelopment Plan" should be forwarded to the Kalispell City Planning Department for review and recommendations. Upon the completion of the review and recommendations, the Plan should be returned to the City Council for final approval. FISCAL IMPACT: None at this time. ALTERNATIVES: As suggested by Council Respectfully submitted, Fred A. Leistiko, Manager Kalispell City Airport A-ej�411-tl-1 My ebb Kalispell City Manager South Kalispell Airport Redevelopment Plan SOUTH, ..1' REDEVELOPMENT PLAN The purpose of this report is to update and amend the "Kalispell City Airport/Athletic Complex Redevelopment Plan and Analysis". While some of the goals of the plans have been achieved, it is necessary to update the analysis and extend the life of the TIF to accomplish the remaining goals. Map 1 includes the existing and proposed boundaries for the study area. This amendment will be adopted in accordance with Section 7-15-4281 of the Montana Code Annotated (MCA). This analysis considers the following factors: • Reflect the accomplishments since the original analysis was completed • Document current conditions, • Incorporate the recommendations of airport planning studies and infrastructure studies • Provide consistency with the Kalispell Growth Policy Plan • Review boundaries of the planning area to reflect changing conditions B. Redevelopment Area HistorX The Kalispell City Airport Neighborhood Plan was adopted by the City Council in 1994 and was also approved and adopted by the Flathead County Board of Commissioners, formally amending the Kalispell City -County Master Plan, Year 2010. The Plan was initiated by the Flathead Regional Development Office at the request of the Kalispell City Council. The primary goal of the plan was to redevelop the airport to meet the B1 design standards of the Federal Aviation Administration. The plan also included goals for relocation of the youth baseball, softball, and soccer fields to a consolidated recreation complex. • Kalispell City Airport/Athletic Complex Redevelopment Plan Analysis (1996) In accordance with Section 7-15-42 of the MCA, the redevelopment plan was adopted in 1996 and included options, costs analysis and financing options for implementing the recommendations of the neighborhood plan. Resolution #4256 determined that blight conditions existed within the study area. • Tax Increment Financing District (TIF) (1997) In accordance with Section 7-15-4281 of the MCA, Ordinance #1242 approved the Kalispell City Airport/ Athletic Complex Redevelopment Plan and authorized the City Manager to implement the Plan with an effective date of July 31, 1996. Ordinance #1260 created the tax increment finance district with January 1, 1996 as the base year for calculating the tax increment, with an effective date of April 17, 1997. The TIF is effective for 15 years. • Kalispell Growth Policy (2003) The Growth Policy includes future land use recommendations for the area. Kalispell, MT Page 1 SOUTH y ) y ) l REDEVELOPMENT y C. Airport Background In 1928 the City of Kalispell purchased 135 acres on the southeastern edge of the City to establish a municipal airport. Except for a brief time in the 1950's, the Airport has operated uninterrupted at its original location. In March of 1966 a group of local businessmen and aircraft owners formed the Kalispell Airport Association to lease the Airport from the City and assumed responsibility for its operation. In 1986, the Kalispell Airport Association dissolved in the face of financial difficulties and a lack of clear lines of authority and direction from the City. Operational and fiscal responsibility passed back to the City at that time. The City also has an Airport Advisory Council appointed by the City Manager to advise the city manager and airport manager on airport issues. 2. Airport — Current Operations According to the 2002 Environmental Assessment, 64 aircraft are based at the airport and generate 13,600 local operations (takeoffs and landings) each year. Itinerant aircraft account for an additional 14,000 operations per year. With air taxi and military aircraft operations, the total number of annual aircraft operations is approximately 40,000 making the airport the second busiest general aviation airport in Montana. The airport presently has one runway with dimensions of 3,600 feet in length and 60 feet wide. This is sufficient to accommodate 75 percent of the small aircraft fleet. The runway is a visual approach runway with low intensity runway lights and some navigational aids. The airport includes parking aprons, tie down facilities, flight training and hangars as well as fueling services and maintenance. ® Airport Feasibility/Master Plan (1999) This plan was completed in 1999 by Morrison-Maierle to examine the feasibility of upgrading the status of the existing airport to a B-II Utility Airport. The study also included an airspace analysis and an environmental analysis. The study addressed issues of removing obstructions in the protected airspace and land acquisition. ® Airport Environmental Assessment (2002) The document evaluates the environmental impacts likely to occur as a result of further development at the proposed airport. Based on the EA the FAA made a fining of no significant impact from the proposed improvements. The proposed Federal action included the following development items at the Kalispell City Airport: a. Acquire land adjoining the existing airport (approximately 72 acres) b. Construct staged development of 4,700' by 75' wide runway (14/32 orientation) c. Construct tie down apron, parallel taxiway and connector taxiways, hangar access taxi lanes d. Install medium intensity runway lighting system, beacon, wind cone, segmented circle, Precision Approach Indicator (PAPI), and Runway End Identifier Lights (REILs) e. Construct perimeter fencing and airport access road. f. Removal or relocation of AM radio towers located south of the airport. Kalispell, MT Page 2 SOUTH'i 1 i' PLAN D. Boundaries The original redevelopment plan included the following description of the project area. "The project area is bounded generally by Twelfth Street West to the. north, U.S. Hwy 93 and Third Ave. East to the east, Cemetery Road to the south, and Ashley Creek to the west." Subsequent to the adoption of the redevelopment plan, the City of Kalispell established a Tax Increment Finance District (TIF). The TIF generally included the area within the city limits covered by the redevelopment plan. As land is annexed, the TIF has been expanded to include these areas. The attached map indicates the existing TIF and the amended boundaries for this study. The amended boundaries reflect the following: ® Include additional area identified required to accomplish the goals for airport safety ® Include adjacent land with redevelopment potential per the recommendations of the subsequent feasibility analysis and environmental assessment. ® Include land east of US 93 that has blighted conditions and is a candidate for redevelopment ® Expand the boundaries to coincide with the proposed US 93 By-pass improvements to reflect the change in land use projected to occur and potential impacts on the airport. The expanded boundaries include 741.8 acres of land compared to 266.458 acres in the original urban renewal area. Kalispell, MT Page 3 SOUTH KALI SPE-L-L/AIRPORT REDEVELOPMENT PLAN Map 1: Study Area Kalispell, MT Page 4 SOUTH KALISP-E-LL/AIRPORT REDEVELOPMENTPLAN Report11. Status The 1996 Plan included long-range objectives and generalized development schemes. The goals and objectives were based on a physical inventory of building conditions, land use, traffic and circulation. The plan also contained a number of strategies that were identified to achieve these objectives. This section reviews the status of those strategies. A. Extend the Runwav in Accordance with an Airport Lavout Plan A feasibility study -master plan, site -selection study and environmental assessment were completed with recommendations for airport layout to achieve the safety goals. These recommendations included leaving airport operations at the current site and developing a 4300 foot -long runway with the ultimate goal of a 4,700' long and 75' wide runway. The runway would be relocated 950 feet to the south to clear the runway protection zone. Additionally, the new runway would be aligned 5.6 degrees clockwise from the current alignment to provide optimum configuration and avoid encroachment on private property along US 93 south. (See Appendix A) According to the Environmental Assessment, there are about twenty-eight separate tracts of property owned by eighteen different landowners that could be affected by the proposed airport expansion. (See maps in Appendix B) B. Remove obiects within Runwav Protection Zone (RPZ) and purchase property located within RPZ The Runway Protection Zones (RPZ) is the trapezoidal areas located 200 feet from the thresholds of each runway. The current RPA has serious land use compatibility problems with some residences inside the RPZ. Relocation of the runway and land acquisition per the proposed layout plan will create RPZs that are entirely located on airport property and free of obstructions. C. Strobe KGEZ Towers Although the 1996 redevelopment plan recommended strobe lights for each of the KGEZ towers, further analysis in the 1999 Airport Feasibility Plan, indicated that removal of the towers is required to meet FAA standards for the runway protection zone and FAR Part 77 requirements. D. Implement Capital Improvements at the Airport The neighborhood plan and urban renewal plan identified a number of capital improvements to upgrade operations at the airport. In 2004, Resolution 4945 authorized the expenditures of TIF funds for infrastructure projects. In 2005, the council passed Resolution 4976 stating the intention to bond to pay for improvements and acquire land related to such improvements. Resolution 4989 specifically authorized the following improvements to be undertaken as part of the urban renewal project: • Purchase land and improvements from Red Eagle Aviation • Construct northwest ramp and taxiways • Construct northwest utilities • Construct internal vehicle access road • Install automatic vehicle security gate Kalispell, MT Page 5 SOUTH KALISPELL%AIRPORT REDEVELOPMENT PLAN im- E. Airport Overlav Zone The urban renewal plan recommended that the city and county adopt an airport overlay zone (aka — Airport Affected Area) to promote compatible land uses and protect the airport from hazards. In 2005, the Montana Legislature repealed Chapters 4,5, and 6 of Title 67, Aeronautics and replaced them with Chapter 7, "Airport Affected Areas". The new legislation mandated that all federally funded airports establish an airport affected area. In 2006, the City of Kalispell passed Ordinance 1573 to establish regulations in an "airport affected area". (See Attachment 2) The regulations provide for independent review of development proposals in the zone regarding height and land uses within noise impacted areas and runway protections zone. The regulation was also adopted by Flathead County and it gave the City of Kalispell jurisdiction over the airport affected area. F. Construction and Signalization of U.S. Hwy 93 and 3rd Ave. East Montana Department of Transportation has completed this improvement. G. Relocation of Recreation Activities At the time of adoption of the urban renewal plan there were a total of 16 baseball and soccer fields in the vicinity of the airport. The fields all had frontage on US 93 which was identified as having commercial redevelopment potential. The plan recommended relocating the fields. Since the adoption of the plan, the fields have been relocated to north Kalispell and commercial redevelopment has occurred. Figure 1: 1990 Aerial Photo of Study Area Kalispell, MT Page 6 SOUTH'!'REDEVELOPMENT PLAN Figure 2: 2005 Aerial of Study Area H. Resolution 5331— Action Plan to Mitigate KGEZ towers. On 12-15-08 the Kalispell City Council passed Resolution 5331 to authorize the City Manager to project the cost of relocating the KGEZ towers and make an offer to the owner of the towers. If the owner rejects the officer, the Council will then determine whether to proceed with condemnation proceedings. Kalispell, MT Page 7 SOUTH KALISPELL/AIRPORT REDEVELOPMENT. PLAN loom A. Population and Housi_ng_Unts According to the 2000 Census there was a population of 832 people in the study area and 347 housing units. Most of the population is located east of U.S. Hwy 93 with a pocket of housing at the northwest corner of U.S. 93 and Cemetery Road. The Montana Department of Revenue (DOR) property assessment has a number of indicators to assess housing condition. The "Grade" ranking is more accurately evaluated in the field and is a determining factor in assigning value to the property. "Grade" is a compilation of several factors and is defined as follows: "Grade represents quality of both workmanship and type of materials used in construction of the dwelling. The combination of quality workmanship and materials reflects increased cost and value. The value of a dwelling constructed of high quality materials and with the best of workmanship throughout may be considerably more than that of one built from the same floor plan with inferior materials and workmanship. The grading of structures is used to distinguish between variations in value and to identify the full range of conventional single family residential construction." According to DOR data there are 212 single family and mobile home units located in the expanded study area. Most of these units are located west of US 93 with a pocket of residential units at the northwest corner of US 93 and Cemetery Road. Of these units 78 are rated below average. The breakdown of below average categories is as follows: • Fair = 47 • Low Cost = 18 • Poor = 11 • Cheap = 2 Map 2 indicates the concentration of below average units are primarily located at the corner of US 93 and Cemetery Road and US 93 and the area south of Kelly Road. Figure 3: House within the Study Area Kalispell, MT Page 8 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN Map 2: Housing Condition Map Kalispell, MT Page 9 SOUTH KALI SPELL/AIRPORTSPELL/AIRPORT REDEVELOPMENT B. Taxable Value The incremental value of the original airport urban renewal area has increased every year since its adoption except for 2005. There is still a significant amount of developable land within the expanded urban renewal study area and it would be expected that this trend would continue resulting in increasing tax increment funds. Table 1: Taxable Value of the Airport Redevelopment Area FY Incremental Value 1998 $9, 648 1999 $53, 933 2000 $93, 804 2001 $223,801 2002 $389,620 2003 $406, 059 2004 $455,201 2005 $445, 080 2006 $497,404 2007 $554,175 2008 $912,669 Source: City of Kalispell, Finance Department, Audited Report — March, 2007 Note.- Taxable Value = Market Value *.386 The major taxpayers in the urban renewal area are listed below. • Southfield Tower • Rosauers • Hilton Garden Inn • MacKenzie River Pizza • Diamond Lil Inn Kalispell, MT Page 10 SOUTH KALISPELL/AIRPORT REDEVELOPMENTA C. Ownership Patterns —Public The expanded urban renewal area includes 741.8 acres of land. Approximately 185 acres, including roadways, is public owned land within the study area. These include: • City Airport • City of Kalispell Wastewater Treatment Plan • City of Kalispell Shops • Begg Park • Former City Landfill • Lions Park • Retention Pond (18t' St. & Airport Rd.) • Flathead County Animal Shelter Improvements to the existing airport and airport expansion could affect about 35 separate tracts of property owned by eighteen different landowners. The original urban renewal area comprised the existing airport and surrounding residential, commercial and residential use. Extensive gravel mining has occurred on land immediately southwest of the airport site. The expanded urban renewal area includes significant amount of agricultural lands south of the airport. The City of Kalispell zoning regulations apply to lands within the city limits. The City of Kalispell has also adopted a Growth Policy which designates future land use in the area. Flathead County has enacted zoning for the lands in the unincorporated area of the expanded urban renewal district. The Future land use map designates the entire area for urban development. There are several instances where the proposed land use and existing zoning are not consistent. It is anticipated that as the area is developed and annexed to the city either rezoning or growth policy amendments will be considered to reconcile these differences. The airport is zoned Public Use (P-1) or Light Industrial (1-1) Following is a review of land use patterns in the area. • US 93 Corridor Commercial uses are primarily located along US. 93 and are generally located within the city limits. A mix of industrial uses and commercial uses are located in the unincorporated area south of Twin Acres Road. The land use generally is consistent with the zoning districts in the city and county. The Growth Policy indicates primarily commercial frontage along the highway. At the northeast corner of US 93 and 3rd Street in the expanded boundary is a vacant commercial lot and the Outlaw Inn. The hotel is an older facility in need of upgrades and rehabilitation. Figure 4: Outlaw Inn Kalispell, MT Page 11 SOUTH KALISPELL/AIRPORT REDEVELOPMENT ® East of US 93 East of US 93 is a mix of residential, industrial, commercial and residential land. Much of the area is unincorporated with county zoning. The zoning districts generally reflect the current land use. The City of Kalispell Growth Policy, however, designates this area for urban residential with a pockets of industrial uses along Kelly Road. ® South of Airport - East of Ashley Creek There is a mix of industrial land with vacant -agricultural land located south of the airport east of Ashley Creek. All of this area is currently located in the unincorporated area in the county. This area is zoned SAGA 0 in the county while parts are zoned industrial. The City Growth Policy shows this area as future industrial use. SAG-10 allows for 10 acre minimum lots. ® South of Airport - West of Ashley Creek There are large tracts of vacant -agricultural land south of the sewage treatment plan and west of Ashley Creek. It is zoned SAG-10 and shown as urban residential in the Growth Policy. ® North of Airport City shops are located in this area. There is a mix of residential and commercial uses that result in some land use conflicts. Zoning is generally consistent with the existing land use. The Growth Policy shows this area for future commercial/office use. The Growth Policy contains the following specific policies for the airport urban renewal district. a. Target development areas are generally located in the southwest part of Kalispell, around the City airport, the southwest area of West Reserve Drive and Highway 93 primarily the State Lands Section 36 and the Center Street area. b. Encourage development and redevelopment in the City's established urban renewal districts. c. The target development areas are where commercial and / or light industrial development or redevelopment is encouraged. Integration of residential uses within these areas is also encouraged. d. In general, the northwest area of the city is intended for commercial development and the southwest area of the city is intended for industrial development. Kalispell, MT Page 12 SOUTHP!'REDEVELOPMENT PLAN Map 3: Land Use Map Kalispell, MT Page 13 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN Kalispell, MT Page 14 SOUTH KALI SPELL/AIRPORT REDEVELOPMENT PLAN Map 5: Growth Policy Map Kalispell, MT Page 15 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN E. 2002 Environmental Assessment - Contaminated Sites Contaminated and hazardous waste sites were evaluated as part of the "Kalispell City Airport — Final Environmental Assessment" (2002). The following is an excerpt from that document. (pg. 3-20 to 3-21) "Hazardous materials are products or wastes regulated by the U.S. Environmental Protection Agency (EPA) or Montana Department of Environmental Quality (DEQ). These substances regulated under the Comprehensive Emergency Response, Compensation, and Liability Act (CERCLA or Superfund), the Resource Conservation Recovery Act (RCRA) and regulations for solid waste management, above -ground storage tanks (ASTs) and Underground storage tanks (UST). No National Priority List or Superfund sites identified by the EPA are located near the Kalispell City Airport. Hazardous waste date is contained the Resource Conservation and Recovery Information System (RCRIS), in support of the RCRA. Generators, transporters, treaters, scorers, and disposers of hazardous waste (as defined by the federally recognized hazardous waste codes) are required to provide information concerning their activities to state environmental agencies. RCRIS-listed sites in the vicinity of the project area include Diamond Aire, Major Aerocraftsman Inc., MSE Environmental Inc, and Stevens Aeroworks. A review of MDEQ information was performed to determine if any known leaking underground storage are known in the vicinity of the Kalispell Airport. The data showed that there have been instances of releases from 109 underground storage tank facilities within the community of Kalispell since 1985. MDEQ's information shows the only leaking underground storage in the vicinity of the airport projects was at the USDA Flathead Shop that fronts Airport Road west of the proposed runway threshold. The confirmed release from the tank at the shop occurred in May 1992. An automobile wrecking yard exists just southeast of the existing airport property. Improving Kalispell Municipal Airport would require the acquisition of some of the property now housing the wrecking yard. Automobile wrecking yards and other junkyard businesses typically or accept discarded, wrecked and abandoned automobiles, trucks, buses and trailers. In general, junk vehicles remain in the junkyard for a period when all useful parts are removed and offered for sale. Junk vehicles may also be sold intact. Vehicles that remain in the lot for a long period of time are usually crushed and sent to a scrap metal facility. Junk vehicles contain hazardous waste (brake and transmission fluids, antifreeze, lead from batteries, gasoline and motor oil) that are a potential threat to ground water quality. To accurately assess potential hazardous waste concerns and identify any remediation and cleanup needs, a due diligence audit of properties affected by the proposed airport project must be completed. The audit would ensure the City does not assume the liability for contamination on lands needed for airport improvements. Environmental remediation activities (such as the removal of contaminated and mitigation of leaking underground storage tanks) are activities that are not eligible for Airport Improvement Program funding." F. Diamond Air Environmental Assessment In 2008 a Phase 1 and Phase 2 environmental assessment was completed for the Diamond Air property. The assessments indicated contamination from underground fuel tanks. The assessments have been forwarded to MT DEQ for consideration of clean-up funds. Kalispell, MT Page 16 SOUTH'i 1 ! PLAN A. Transportation 1. US 93 By-pass The southwest corner of the expanded study area is adjacent to the proposed US 93 by-pass route. The bypass begins on US 93 approximately 1/3 mile south of the US 93 intersection with Cemetery Road and proceeds west and northwest following an abandoned railroad alignment with its first crossing over Ashley Creek. Continuing to follow the railroad alignment, the bypass crosses under Airport Road. Partial access is provided to Airport Road with no northbound bypass access to Airport Road. The bypass continues northwesterly to Sunnyside Drive. The by-pass is generally a four -lane, limited access roadway that includes 12-foot (3.6-meter) travel lanes and 8-foot (2.4- meter) outside shoulders, separated by a 10-foot (3.0-meter) paved median. It includes a 10-foot (3.0-meter) bike path constructed along the entire length of the bypass, primarily on the east side of the bypass. 2. Kalispell Transportation Master Plan Since the original urban renewal study was completed, the Montana Department of Transportation has made recommended improvements to the US 93 corridor. The 2007 Kalispell Transportation Plan contains recommendations for the transportation system on local roads. The plan recommends the following intersection improvement within the study area. "TS -12: 18th Street / Airport Road: This intersection should be reconstructed to take the slight "offset" out of the intersection. It is a difficult maneuver to make for westbound travelers on 18th Street West. Although a long term recommendation is to extend 18th Street west to Sunnyside Drive, this short term project would improve conditions beforehand. It will likely entail some right- of-way acquisition on the northeast and northwest quadrants of the intersection." 3. Cemetery Road According to the EA, a portion of Cemetery Road may need to be shifted further south to provide an additional safety buffer for the airport at ultimate development. Cemetery Road provides a second access for aviation businesses along the west side of the current airport, airport users, ad minor local access. Its realignment would increase the traffic on the north access and/or move the traffic to existing roads to the south. Kalispell, MT Page 17 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN B. Wastewater The City of Kalispell operates a wastewater treatment plant within the study area on Airport Road. The plant provides secondary treatment with advanced biological nutrient removal. The treatment plant is designed to accommodate a flow of approximately 3.1 million gallons per day (mgd). A plant of this capacity is able to serve a population of approximately 31,000. The plant is currently treating an average of approximately 2.4 mgd of effluent. The City is currently increasing the size of the plant to 5.4 million gallons per day to accommodate growth. The project is adding or replacing some units and modifying others to stay with the current concept of treatment without the use of chemicals. The improvements will also include a biological state-of--the-art odor control system. Future development of the agricultural lands in this area would require the installation of water and sewer lines. Such utilities would be required to be placed in the street rights -of -way. The sewer effluent is discharged into Ashley Creek. Ashley Creek flows alongside the western boundary of the project area. The segment of Ashley Creek that borders the project site is currently on the Montana DEQ 303(d) impaired list of impaired water bodies. Section 303(D) of the federal Clean Water act requires states to assess the condition of their water bodies. DEQ has determined the following beneficial uses that are not fully supported by the current water quality: aquatic life, cold water fisheries, drinking water and recreational swimming. Agricultural and industrial beneficial uses are fully supported with the current water quality. Figure 5. City of Kalispell Wastewater Treatment Plan Kalispell, MT Page 18 SOUTHREDEVELOPMENT , afflEl .. A. Airport Desian Parameters The following excerpt from the Kalispell City Airport —Final Environmental Assessment summarizes the issues and proposed improvements at the Kalispell City Airport. (pg. 1-4 through 1-5) "Conditions at Kalispell City Airport were examined in the Kalispell City Airport Master Plan (Morrison-Maiede, Inc., 1999) the Master Plan documented current and projected aviation activity levels at Kalispell, identified problems at the existing facility, and recommended facilities for future airport development. Federal interest in funding airport development is primarily influenced by the operation of "critical Aircraft" using the facility. Critical aircraft are considered to be those aircraft that regularly use the airport and because of their size and performance capabilities, require the greatest facility considerations (such as runway length, width, separation distances, etc_)_ Regular use is generally considered to be 500 or more operations each year or about ten operations per week. Airport Reference Code (ARC) is a coding system used by the FAA to relate airport design criteria to the operational physical characteristics of the airplanes intended to use the facility. The ARC has two components relating to airport design aircraft. The first component, designated by a letter, is the aircraft approach category and refers to aircraft approach speed. The second component, designated by a Roman numeral, is the airplane design group and relates to airplane wingspan. The aircraft currently using the existing facility are of the A-1, B-1, and B-11 categories, with the majority of operations being attributed to A-1 aircraft. The most demanding aircraft currently based at Kalispell City Airport is a Turbo Commander, a "B-II aircraft. The B-11 aircraft use is on the increase at the airport due to more frequent operations by business concerns and air ambulance operators. All of these aircraft weigh less than 12,500 pounds and have less than 10 passenger seats. The FAA considers such aircraft as part of the "small aircraft" fleet. Based on forecasted demands of aviation activity over a twenty-year planning horizon, the Master Plan concluded that the projected demands at Kalispell can be adequately met by an "ARC B-11" type airport as discussed in the FAA's current. Advisory Circular No. 150/5300-13. This type of airport is designed for airplanes with wingspans of up to but not exceeding 49 feet, and approach speeds of up to 121 knots. A "B-11" airport would accommodate the entire single -engine and small twin —engine airplanes used for personal and business purposes. Additionally, such facilities can serve some small business and air taxi type twin -engine airplanes and a hand -full of the smallest jets. The FAA has advocated that planning and design work should ensure that the Kalispell City Airport be developed to meet "B-II" standards as well as being protected to a Large aircraft standard under FAR Part 77. This would require a slightly larger (wider) Protection Zone (RPZ) and that a 10,000- foot horizontal surface be protected around the airport. The FAA's position is based on the belief that high performance B-11 aircraft would use an improved airport and that aircraft fleets may change over time at Kalispell to include larger aircraft. The City has disagreed with the FAA over this issue since the facility may never be developed to its ultimate capabilities. However, the City has agreed that it would acquire or control all lands and airspace necessary for a B-II facility so future Kalispell, MT Page 19 SOUTH KALI SPELL/AIRPORT REDEVELOPMENT developments options are not limited, provide potential expansion protection, and safety buffers in the runway approach areas." Jet traffic referenced in this section would be limited to a category known as Very Light Jets (VLJ). VLJs are designed for B-II airports. The noise impact would not be greater than existing aircraft using the airport. B. Safety Issues In order to meet safety requirements for a B-11 airport the following issues must be addressed. Obstructions — Two radio towers for station KGEZ exist just east of the extended runway centerline approximately 3,200 feet southeast of the threshold for Runway 31. The pair of towers are 325 feet tall. The towers penetrate the existing and proposed visual approach surface of 20:1 approximately 108 feet by 173 feet. The radio towers were declared a "hazard to air navigation" by the FAA in 1999. The mitigation of these hazards is a precondition to federal funding assistance for construction at Kalispell City Airport. 2. Runway protection zones (RPZ) are the trapezoidal areas beginning 200 feet beyond the threshold of each runway and extending for an additional 1000 feet. RPZs are established primarily to protect the people on the ground and secondarily to prevent establishment of hazards to those in the air. The FAA encourages airports to own the areas encompassed by the RPZs outright, but at a minimum, to control the areas to prevent "places of public assembly". A B-II RPZ starts at 500 feet wide and expands to 700 feet wide. The airport is encouraged to own the RPZ and residences are prohibited inside this area. The north RPZ for the Kalispell City airport is privately owned and contains residences. The south RPZ, while also privately owned, does not contain residences or other incompatible land uses. 3. The "runway safety area" is designed to support aircraft under normal (dry) conditions without causing structural damage to the aircraft or injury to the occupants, should the aircraft undershoot, overrun, or veer of the paved runway surface. It provides an additional measure of safety to aircraft, as well as providing greater accessibility to firefighting and rescue equipment should the need arise. The current parallel taxiways are within the runway safety area. The size of this safety buffer needs to increase as the approach and landing speeds of user aircraft increase. 4. The current Runway Object Free Area (OFA) is 250 feet wide, centered on the runway centerline and extending 240 feet beyond the runway threshold meets only the FAA's standard for "exclusively small" aircraft. To meet the B-11 standards the OFA should be 500 feet wide and extend 300-feet beyond each threshold. C. Recommended Improvements Based on a facility design for a B-II airport, the Kalispell City Airport Feasibility/Master Plan study identified the following improvements: ® Runway length — Increase the runway length from 3,600 feet to 4,300' with an ultimate length of 4,700'. (See attachment 1 for layout.) Realign the runway and relocate it to the south. Increase width to 75 feet. These improvements would address many of the safety issues outlined above. Kalispell, MT page 20 SOUTH KALI SPELL/AIRPORTSPELL/AIRPORT REDEVELOPMENT Or PLAN Land acquisition — About 77 acres of additional land must be acquired or controlled for the proposed improvements. The land must either be acquired from private owners or avigational easements must be obtained. The estimated costs for land acquisition in 2002 were over $3 million. Nine residential units would be required for the relocation of the runway. Five business relocations are also projected to accommodate the airport improvements. There would also be actions to move existing hangars and other airport buildings as well as personal property located on an auto salvage yard near the airport. ® Perimeter airport fencing — Presently there is no continuous fence along the boundary of the airport allowing the public and wildlife unrestricted access to the airfield. This creates a collision hazard. • Runway lighting, Navigational aids and other minor lighting — Replace runway lighting with safer design. Include Precision Approach Path indicators (PAPI) at both ends of the runway. Other navigational aids include a lighted segmented circle, windsock, reflectors along the edge of the runway and a rotating beacon. ® Aircraft parking — The Kalispell City Airport Feasibility and Master Plan Study showed that twice as much apron area is needed. The current number of tie down spaces is estimated to be about 36 and projected needs call for 50 spaces. ® Aircraft Hangar Storage — As the aircraft fleet increases so does the need for inside storage to protect aircraft from the weather elements. Since the redevelopment plan began in 2005, the airport has added 20 T-hangars and seven larger hangars for helicopters and twin engine aircraft: As the runway is improved the projected need for more hangar space will double this amount. Figure 6 : Airport Tie -Down Area on Grass Kalispell, MT Page 21 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN There are several goals from the original urban renewal plan that are still applicable to expanded study area. Additionally, 2003 Growth Policy Plan contained goals specific to the airport. Together, these goals provide a framework for decision makers on development and public expenditures in the area. A. "Kalispell City Airport/Athletic Complex Redevelopment Plan Analysis - Goals 1. To minimize hazards to navigation 2. To develop the Airport in accordance with an airport layout plan 3. To increase development opportunities on nearby properties 4. To promote compatible land uses in and around the airport 5. To establish funding mechanisms for airport operations 6. To establish a priority schedule for plan implementation B. 2003 Growth Policy - Goals 1. Develop an airport that improves the safety and efficiency of airport facilities for the users and neighbors. 2. Develop an airport that complies with federal standards, is eligible to be included in the national plan of integrated airport systems (NPIAS), and is designed for aircraft meeting B-11 (Approach speeds 91 knots or more but less than 121 knots, wingspans of 49 feet and up to but not including 70 feet) in order to obtain federal funding. 3. Adopt zoning that protects surrounding properties and recognizes approach air space to assure the long term safety and viability of the airport. 4. Eliminate through -the -fence operators that do not have agreements in place. 5. Utilize the revenues generated from the airport urban renewal district to assist in funding airport improvements. 6. Hire an airport manager to oversee the day-to-day operations at the airport and to manage city leases. 7. Create and operate an airport facility that is self-supporting and that will generate sufficient revenue to cover costs associated with the airport operations and maintenance_ 8. Develop aviation related business and industry that support and complement airport activities. Kalispell, MT Page 22 SOUTH KALISPELL/AIRPORT REDEVELOPMENT PLAN Vlll. Recommendation Actions Based on the goals of the urban renewal area and the public health, safety and welfare issues surrounding the current configuration of the airport runway and improvements, the following actions are recommended. A. Relocate the KGEZ radio towers so that they are no longer a hazard to air navigation. B. Acquire land necessary to relocate the runway and gain control of the Runway Protection Zone. C. Relocate and realign the runway to increase the length of the runway while moving the RPZs so that they are under ownership control of the city and do not have any residences located within the zone. D. Pursue airport development of additional apron and hangar space to meet the projected needs of the airport. E. Install recommended fencing, lighting and navigational aids improvements to meet the safety needs of a B-II airport. F. Review growth policy and zoning designations to promote compatible land -uses adjacent and in close proximity to the airport. G. Continue to promote the in -fill development and redevelopment of commercial sites along the U.S. 93 Corridor to remove blighting structures and enhance the tax base. H. Conduct environmental assessments and pursue appropriate clean-up activities on sites with contamination. I. Provide relocation assistance for households that reside in the area designated for land acquisition. J. Provide housing rehabilitation assistance to upgrade dwelling units that are classified as below average condition. Kalispell, MT Page 23 SOUTH KALI SPELL/AIRPORT REDEVELOPMENT I pm • • • • r` ti A. Tax Increment Financing In 1997,the city established a Tax Increment Finance District. In 2005, the city approved bonds for the district payable over a 15 year period. (Resolution #4990). Following is a description of Tax Increment Financing. Tax Increment Financing — The legislature enacted the Tax Increment Financing District (TIF) statutes in 1974. The purpose of a TIF is to fund infrastructure and other improvements in urban renewal areas and industrial districts. The costs of these improvements can be paid directly with TIF revenues or, in many cases, TIF revenues can be pledged to the payment of bonds issued to pay the costs of the improvements. When a TIF is created, a base taxable value for the district is established. The base taxable value is the taxable value of all property within the TIF district boundary at the time the TIF is established. In following years, the amount of taxable value within the boundary of the TIF should increase. The incremental taxable value for a TIF is the amount by which the taxable value exceeds the base taxable value. The amount of property tax realized by applying the mill levies of taxing jurisdictions present in the TIF against the incremental taxable value is called the tax increment and is distributed to the TIF. The tax increment is available to the TIF to be used for the specific urban renewal or industrial district purposes set forth in §§ 7-15-4282 through 7-15-4292, MCA. The following activities may be funded with TIF revenues. 7-15-4288. Costs that may be paid by tax increment financing. The tax increments may be used by the municipality to pay the following costs of or incurred in connection with an urban renewal project, industrial infrastructure development project, technology infrastructure development project, or aerospace transportation and technology infrastructure development project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure, industrial infrastructure, technology infrastructure, or aerospace transportation and technology infrastructure that includes streets, roads, curbs, gutters, sidewalks, pedestrian malls, alleys, parking lots and offstreet parking facilities, sewers, sewer lines, sewage treatment facilities, storm sewers, waterlines, waterways, water treatment facilities, natural gas lines, electrical lines, telecommunications lines, rail lines, rail spurs, bridges, spaceports for reusable launch vehicles with associated runways and launch, recovery, fuel manufacturing, and cargo holding facilities, publicly owned buildings, and any public improvements authorized by parts 41 through 45 of chapter 12, parts 42 and 43 of chapter 13, and part 47 of chapter 14 and items of personal property. to be used in connection with improvements for which the foregoing costs may be incurred; (5) costs incurred in connection with the redevelopment activities allowed under 7-1 - 233; (6) acquisition of infrastructure -deficient areas or portions of areas; (7) administrative costs associated with the management of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district; (8) assemblage of land for development or redevelopment by private enterprise or public agencies, including sale, initial leasing, or retention by the municipality itself at its fair value; (9) the compilation and analysis of pertinent information required to adequately determine the infrastructure needs of secondary, value -adding industries in the industrial district, the needs of a technology infrastructure development project in the technology district, or the needs of an aerospace Kalispell, MT Page 24 SOUTH KALI SPELL/AIRPORT-REDEVELOPMENT PLAN transportation and technology infrastructure development project in the aerospace transportation and technology district; (10) the connection of the urban renewal area, industrial district, technology district, or aerospace transportation and technology district to existing infrastructure outside the district; (11) the provision of direct assistance, through industrial infrastructure development projects, technology development projects, or aerospace transportation and technology infrastructure development projects, to secondary, value -adding industries to assist in meeting their infrastructure and land needs within the district; and (12) the acquisition, construction, or improvement of facilities or equipment for reducing, preventing, abating, or eliminating pollution. B. User Fees and Enterprise Fund Airport revenue is generated by users of the airport_ Landing fees, fuel flowage fees, tie -down fees, hangar ground leases, commercial fees, and access fees, are sources of revenue which are available to the airport. The Kalispell City Airport generated the following revenue in FY 2007/2008. Table 2: Airport Revenues FY 06107 FY07/08 FY08/09* Commercial Fees $12,315 $10,680 $12,000 Tie down Fees $2,766 $4,269 $3,500 Hangar Leases $29,414 $12,977 $12,360 Hangar Site Leases -- $28,623 $18,000 FBO Lease — Red Eagle $17,014 $16,464 $16,464 Ground Leases (Hilton) $3,000 $10,115 $10,418 Utility Rebates -- $3,373 $3,000 Fuel Tax $4,788 $4,476 $6,500 Investment Earnings $33,334 $16,430 $18,000 Total Revenue $101,723 $107,398 $100,242 * Projected Source: Kalispell City Budget, FY08/09 In 2005, Resolution #5034 established an enterprise fund for the airport. At the beginning of 2008 there was approximately $329,000 dollars in the fund. Kalispell, MT page 25- SOUTH ''i'REDEVELOPMENT PLAN C. Federal Grants for Airport Development The U.S. Department of Transportation, through the Federal Aviation Administration, provides a portion of the development costs for eligible airport projects. This program is the Airport Improvement Program (AIP). The authorizing legislation indicates that the government will grant up to 95% of costs on eligible and approved airport development projects. Generally, items considered eligible for federal participation include airside improvements such as runways, taxiways, aprons, lighting, navigation, and fencing. Those items which are considered "non- airside", include private hangars, fixed base operators, fueling facilities, industrial park development, or anything aviation related that benefits an individual or for -profit entity. D. State Grants The Montana Department of Transportation Airport/Airways Bureau of the Aeronautics Division administers a loan and grant program. The program is designed to be a flexible funding program to assist eligible airport sponsors. The maximum grant can be up to 50% of the sponsor's share of the eligible project_ Maximum loans can be up to 100% of the cost_ Under the Airport/Airway Bureau administered loan and grant program, the bureau works with FAA in determining with airport projects require funding assistance. Because of this coordination with the FAA, the state can provide additional financial assistance to airport sponsors to help leverage federal funds. Airports that receive federal airport improvement program (AIP) funding are required to pay 10% of the total project costs with the FAA providing the remaining 90%. IF the airport sponsors can secure a grant from the Aeronautics Division, they can use that grant to pay half the sponsors share. The remaining 5% owed by the sponsor for the project may be able to be paid by obtaining a low interest loan from the Aeronautics Division. The funding for the Aeronautics loan and grant program is provided by a 2 cent per gallon general aviation fuel tax. E. U.S. Environmental Protection Agency (EPA) Brownfield Program EPA's Brownfields Program provides direct funding for brownfields assessment, cleanup, revolving loans, and environmental job training. To facilitate the leveraging of public resources, EPA's Brownfields Program collaborates with other EPA programs, other federal partners, and state agencies to identify and make available resources that can be used for brownfields activities. In addition to direct brownfields funding, EPA also provides technical information on brownfields financing matters. EPA Brownfields Grants are listed below. o Assessment Grants o Revolving Loan Fund Grants o Cleanup Grants o Job Training Grants o Training, Research, and Technical Assistance Grants Kalispell, MT Page 26 SOUTH•i.REDEVELOPMENT PLAN F. Community Development Block Grant (CDBG) Community Development Block Grant (CDBG) - US Department of Urban Development (HUD) - This program provides annual grants to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate income persons. The program is authorized under Title 1 of the Housing and Community Development Act of 1974, Public Law 93-383, as amended; 42 U.S.C.5301 et seq. Metropolitan cities and counties receive funds on a formula basis. Kalispell does not have the population necessary to qualify as an entitlement community and must apply for grant funds annually on a competitive basis. Grant programs are available for public facilities, housing, and economic development activities. G. FAA Non -Primary Entitlement Program In 2000 Congress established a funding program for airports that are part of the -- National Plan of Integrated Airport Systems (NPIAS). Non -primary commercial service, reliever, and general aviation airports show higher development needs, with the largest increases at general aviation airports (17 percent). Non -primary entitlement funding began in FY 2001 and can be used for rehabilitating airfield pavement, removing obstructions, installing perimeter fencing, and other improvements identified in a master plan. H. Other Financinq Cities have a number of options for financing debt. These include: ® Debt Financing e Revenue Bonds ® General Obligation Bonds ® Special Improvement Districts Kalispell, MT Page 27 SOUTH KALI SPELL/AIRPORT REDEVELOPMENT PLAN Attachments: 1. Land Acquisition Map 2. Airport Layout Plan 3. Airport Affected Area Kalispell, MT Page 28 SOUTH KALISPELL/AIRPORT REDEVELOPMENTPLAN Attachment 2: Airport Layout Plan Kalispell, MT page 29 1 I�Th1 6f'1 p(j ♦ r 6Q, i .t1 � Vti�uti :. j�yN!. MR or v ra,.a m,FPS+'a-!'ilv1CiwlrawlaE'Visio �4J }l f F4Y Mf 4F4 iil T 'Ye irdfleuilA,al Yu1M1 �1 �+ FYf�J-1! ��'Ra `' T !a':r!a-F®m'p.Lf�r �R V W}FP�'SyltAl 1 nT..•�r�l��....v,a,..�wwtw�r.wl..rR.. �. .� �t — _ #r� r�p�"t P �r�iweae4e�*ws'e'laPTenP�aw� rrrs�t�lxwnw+lllaY � .�1.. 4 ,� - + ',a• � � C lielral.�.�ala.r,+anPt.nrl Mt.r.tt.�s.enPthriY i, �. ,� 'S,r ,_ K pe�otKs rtaa �s e+�l:,�nna3 � ar�x - � r cnPw��Patua*u�l,� ,ElSlk'e�a,ww�,!lrarx taao,ls xoA�•,>d lj ��PR �T o I.4 up.�i W Y,suwr JpJ,Rt,,, r•1'41gP�Y � "+� i . yt �'_ - .v i Attachment 3: Airport Affected Area Kalispell, MT Page 30