08M. Appendix MKALISPELL CITY AIRPORT
KALISPELL
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ECONON41C
IMPACT
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ECONOMIC IMPACT
ANALYSIS
Economic impacts at an airport are measured through employ-
ment, payroll, and output (spending). On -airport business and
government activities (direct impacts) account For a significant
portion of an airport's first round economic benefits. Additional
first round benefits are also linked to visitors who arrive via the
State's system of airports (indirect impacts). Spending by these
visitors supports additional employment and associated annual
payroll. These first round impacts create additional spin-off
benefits that ripple through the economy. These second -round or
induced benefits were measured with Montana -specific IMPLAN
multipliers. When combined, first round and second -round ben-
efits equal the rota] economic impact associated with each airport.
First -Round Impact
In 2008, there were eight aviation -related tenants on the airport,
including airport management, who supported over 96 employees.
These tenants' direct or first -round employment, payroll, and
output impacts were derived from survey data. Direct output
from all on -airport aviation -related tenants is estimated at $7.3
million annually. The estimated direct annual payroll of these
tenants is $3.4 million. Operational data indicated that approxi-
mately 19,980 visitors used the airport. Visitor -related spending
supported an additional 144 full-time jobs for employees earning
over $2.8 million annually. Indirect output from general aviation
visitors is estimated at $7.5 million.
Second -Round Impact
The first round impacts associated with on -airport tenants
and general aviation visitors also create second -round impacts
throughout the State. Second -round impacts are induced impacts
calculated using the Montana specific I1TVIPLAN multipliers. The
accompanying table presents the 2008 first round, second -round,
and total impacts for output, payroll, and employment as they
relate to on -airport tenants and general aviation visitors.
Total Impact
For 2008, the total output (including first round and second -
round impacts) stemming from all on -airport tenants and general
aviation visitors to Kalispell City Airport was approximately $24.2
million. Total full-time employment related to airport tenants
and general aviation visitors, including all second -round impacts,
is estimated at approximately 359 persons, with a total annual
payroll (first round and second -round) of approximately $10.1
million associated with these jobs.
M(I HC)D01_(_i A
FIRST ROUND ECONOMIC IMPACTS
SECOND -ROUND ECONOMIC IMPACTS
ECONOMICTOTAL
359.0 Jobs
$10,111,900 in Wages
$24,182,800 in Economic Activity
KALISPELL CITY AIRPORT - KALISPELL
AIRPORT LOCATION
Kalispell City Airport is located one mile south of Kalispell, Montana, in Flathead County. In the Kalispell area, visitors are
treated to a city that prides itself on its modern art studios, galleries, restaurants, shops, bed and breakfast inns, and offices mixed
among historic homes and buildings. Kalispell is an outdoor enthusiast's paradise, with limitless recreation opportunities and
spectacular scenery found in the surrounding mountain ranges, National Forest lands, and nearby Flathead fake and Glacier
National Park. Kalispell is the county seat of Flathead County.
Kalispell has a population of approximately 19,432. Major employment sectors in the area include health care and social
assistance, accommodation and food services, construction, and education services. Largest employers in Kalispell area include
Kalispell Regional Medical Center, Plum Creek Timber, Semi -tool, Flathead Valley Community College, Kalispell School
District, and Teletech.
The 134-acre airport's primary runway, Runway 13/31,
measures 3,600 feet in length and 60 feet in width. The
airport, with 70 based aircraft, experiences approximately
43,000 aircraft operations annually. The City Airport is
scheduled to build a new airport with a 4,700' runway 75'
wide with locations for more hangar space. The ALP (Airport
Layout Plan) has been approved by the FAA and funding has
been allocated under the current AIP (Airport Improvement
Plan) with construction proposed to begin in 2013. The new
runway will be moved approximately 1,000' south of the
current runway and turned approximately 5.5 degrees to the
west. The new runway designation will be 14/32 and will be
equipped for LPV (Instrument) approaches in the near term.
1. '4TEWIDE RESULTS
Economic benefits in the Montana Economic Impact of Airports
Study are expressed in terms of jobs, payroll, and annual economic
activity or output.
Jobs/Employment
An estimated 18,800 jobs in Montana are in some way supported
by the commercial and general aviation airports. These are jobs
that are associated with on -airport businesses, tenants, and other
activities that are located on commercial or general aviation airports
in the State. In addition, spending by visitors arriving in Montana
by air helps to support other jobs. When airport improvements
are made, additional jobs are supported by the airports over the
duration of these projects.
Payroll/Earnings
The 18,800 jobs in Montana that are linked to the commercial and
general aviation airports account for over $600 million in annual
payroll. Airport related payroll is a key component of the eco-
nomic benefit cycle that starts at the airport. It was this economic
cycle that was measured by this study's induced benefits. When
those employed by on -airport businesses use their paycheck to
purchase groceries, new clothes, or household items, their spending
helps to support other jobs in the community and the payroll asso-
ciated with these jobs. The initial benefits that start at the airports
continue to multiply once they enter the State's economy.
Annual Economic Activity/Output
To operate Montana's airports, businesses located on the airports
and businesses that support visitors who arrive in Montana via
the airports all require the purchase of goods and services. These
expenditures are most often in addition to those benefits identified
in the payroll and earnings category. Benefits in this category are
expressed in this study as total annual economic activity or output.
Annual economic output related to the airports is typically assumed
to be the sum of annual gross sales and average annual capital
expenditures, including capital improvement projects.
JOBS ......... 0_.N.189800
QUALITATIVE BENEFITS
In ar_Idirion tp rhr cconoinie : cnchr< d.c:a:, il.�ed above_ Kr-Jih,pcll Ci
Airport provides access and services that promote the well being of
the recrcrJoj1,�1l
Hving, corporate ax•i�aticn, laws, en'orc:men: `-,LT)�.]tn,, at+d i�;t�tst and
gthe
vcar, the airpori i., also used e _r,cn:.tv l,• fnr ncrial �fi.�lldiife Sur-
veys and as a gateway for visitors to the area's resorts. Helicopter
and airl)lanc Aiglrt in_tructioi au(-,T -1 r tlt-r grti,;ity 1
Kalispell City Airport as are charter service and scenic tours.
Kalispell Regionall Medical Center in Kalispell, Montana and
Northern Rockies Medical Center in Cut Bank, Montana utilize
Kalispell City Airport as well. A survey of 35 hospitals in Montana
gathered data to obtain information relating to how often hospitals
use airports in Montana to bring in specialists from out of the area,
as well as how often airports are used for patient transfer. Survey data
indicated Kalispell Regional Medical Center uses Kalispell City Airport
and Glacier Park International Airport 24 times per year on average to
hriny d()CCC1r5 and spccialisu ro the hospital to conduct Tne:c
dgcror„ rk in Jroru All 11 jt;cksne,'LA, ,Ind 5eaule, WA, TI,� ho lvital
also uses Kalispell City Airport 36 times per year on average for emergency
patient transfer via air ambulance.
Other aviation activities that occur occasionally at Kalispell City Airport
include agricultural spraying, aerial inspections of pipelines and electric
transmission lines, search and rescue operations, medical shipments and
paticnt transfer, aerial photography, real estate tours, banner towing, sky
diving, and hot air balloon and ultralight aircraft operations.
According to airport management data, the major airport users include
Barrett Aviation, Northern Lites Aviation, B&B Properties, Red Eagle
Aviation, and Diamond Aire. FAA data indicates the following businesses
utilized the airport during the past year
Air Center of Salt Lake
° Bear Hollow Properties
Big Wave Construction Inc.
° Cumberland Corp.
ETCO Incorporated
Standard Construction Inc.
° Stewart Homes Inc.
'Western States Equipment
wanrm uap°r[m°pt nl 7rAn pvtachm
Montana Department of Transportation
2701 Prospect Avenue I PO Box 201001
Helena. MT 59620-1001
Bw"& ►W AW& nfiftprAWe 406, 444.6200