05/09 Airport Economic Impact Studyzr7AWIF 1=0 0
TO: Mayor and City Council
FM: Fred A. Leistiko, Manager§
Kalispell City Airport
SUBJECT: Kalispell City Airport Economic Impact Study
Released: May 11, 2009
As I reported to you a couple of weeks ago, the Economic Impact Study of
Montana Airports begun two years ago has been completed. This study was a
collaborative effort between the Montana Department of Transportation
Aeronautics Division and the FAA, using Wilbur Smith and Associates along with
the local engineering firm of Morrison Maierle, Inc. I have enclosed, for your
information, a copy of the letter from Jim Lynch, Director, MDT, the Kalispell City
Airport Study and the breakdown of airport specific data derived from the
Executive Summary.
Please note that in the analysis of the Kalispell City Airport Study, the total
economic impact equates to 359 jobs; $10,1111,900 in wages; and $24,182,800 in
total Economic Activity.
I would ask the Council to also take note, especially on the last page of the
report, that our airport supports no less than 20 different uses that promote the
well being of our community. This should refute the criticism by those who insist
that this airport exists for the sole use of a select few individuals.
The Council should be commended for its support of the City Airport that
functions with one city employee, yet adds tremendously to the economic and
qualitative value of the City of Kalispell and the State of Montana.
I should also point out that the State of Montana and the Federal Aviation
Administration employed a nationally known engineering firm and a local
engineering firm to complete this study. I was not involved in the preparation of
this study and therefore would not be able to answer questions about the
methodology used in its preparation; however, if you have any questions about
the study, please feel free to write them down and I will be happy to get you an
answer from the authors of the document.
Montana Department of Transportation Jim Lynch, Director
servrny you w([h pride 2701 Prospect Avenue Brian Schweitzer, Governor
PO Box 201001
Helena MT 59620-1001
May 7, 2009
Fred Leistiko
Kalispell City Field
PO BOX 7905
Kalispell MT 59904
Subject: Montana Airports Economic Impact Study 2009 Montana State Aviation System Plan
Dear Fred,
I am pleased to announce that the Economic Impact Study of Montana Airports has been
completed.
This study was a two-year collaborative effort between the Montana Department of
Transportation (MDT) Aeronautics Division, the Federal Aviation Administration, Wilbur
Smith and Associates and Morrison Maierle Inc. The enclosed study is an effort to break
down aviation's significant contributions in Montana and show how these impacts affect
economies on a statewide and local level. Depending on your location, you may also find
enclosed several copies of an individual economic summary specific to your airport.
Results of the study clearly show that Montana's 120 public use airports are a major catalyst
to our economy. Montana enplanes over 1.5 million passengers per year at our 15
commercial service airports, half of whom are visiting tourists. The economic value of
aviation is over $1.56 billion and contributes nearly 4.5 percent to our total gross state
product. There are 18,759 aviation dependent positions in Montana, accounting for four
percent of the total workforce and $600 million in wages.
In addition to the economic benefits, the study also highlights how Montana residents
increasingly depend on aviation to support their health, welfare, and safety. Montana airports
support critical services for medical care, agriculture, recreation, emergency access, law
enforcement, and fire fighting. The airports provide residents and businesses a direct and
efficient link to the national and global economy.
The complete technical report and executive summary and 72 individual airport reports will
be available in the near future at http://www.indt.mt.gov/aviation. Please contact MDT
4eronautics Division at (406) 444-2506, if additional information is required.
Lynch
attachments
Director's Office An Equal Opportunity Employer Web Page: www.mdt.mt.gov
Phone: (406) 444-6201 Road Report: (800) 226-7623 or 511
Fax: (406) 444-7643 TTY: (800) 335 7592
-KA----L--ISPELL CITY AIRPORT
KALISPELL
KALISPELL CITYAIRPORT - KALISPELL
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 Lake 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.
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 spendinj
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 assumes
to be the sum of annual gross sales and average annual capital
expenditures, including capital improvement projects.
MONTANA ECONOMIC IMPACT OF AIRPORTS STUDY
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 total 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 IMPLAN 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.
METHODOLOGY
Direct
Y
Impacts s
AIRPORT SUMMARY TABLE
FIRST -ROUND ECONOMIC IMPACTS
SECOND -ROUND ECONOMIC IMPACTS
TOTAL ECONOMIC IMPACTS
359.0 Jobs
$10,111,900 In Wages
$24,182,800 in Economic Activity
DUALITATIVE BENEFITS
In addition to the economic benefits described above, Kalispell City
Airport provides access and services that promote the well being of
the local community. The airport is primarily a base for recreational
flying, corporate aviation, law enforcement activity, and forest and
rangeland firefighting activities during the warm months of the
year. 'Ihe airport is also used extensively for aerial wildlife sur-
veys and as a gateway for visitors to the areas resorts. Helicopter - +4
and airplane flight instruction is another regular activity at
Kalispell City Airport as are charter service and scenic tours.
Kalispell Regional 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
bring doctors and specialists to the hospital to conduct clinics. These
doctors fly in from Missoula, Spokane, WA, and Seattle, WA. The hospital
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
patient 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
Monona OryeKmvnt of T nsportnNon
Montana Department of Transportation
2701 Prospect Avenue I PO Box 201001
— Helena, MT 59620-1001
--wAm- —jib Pride 406.444.8200
AIRPORT SPECIFIC ECONOMIC IMPACTS
Billings
Billings Logan International Airport
3,270.5
$97,114,600
$279,190,900
Bozeman
Gallatin Field
3,914.5
$99,686,500
$282,400,500
Butte
Bert Mooney Airport
355.5
$9,466,600
$26,669,700
Great Falls
Great Falls International Airport
3,335.0
$141,821,900
$267,982,100
Helena
Helena Regional Airport
1,774.0
$66,705,500
$153,659,900
:>
Kalispell
Glacier Park International Airport
889.5
$27,829,300
$88,001,500
Missoula
Missoula International Airport
3,084.5
$91,570,400
$260,648,800
{
Primary Commercial Service Subtotal
16,623.5
$534,194,800
$1,358,553,400
Glasgow
Wokal Field/Glasgow International Airport
132.5
$4,042,000
$12,893,400
M7
Glendive
Dawson Community Airport
45.0
$1,327,100
$3,424,300
Havre
Havre City -County Airport
39.0
$1,230,000
$3,132,500
Lewistown
Lewistown Municipal Airport
164.5
$7,149,200
$17,718,600
Miles City
Frank Wiley Field
71.5
$2,139,100
$8,263,500
Sidney
Sidney -Richland Municipal Airport
105.0
$2,886,100
$8,582,200
West Yellowstone
Yellowstone Airport
257.0
$7,912,100
$21,577,000
Wolf Point
L M Clayton Airport
47.0
$1,703,800
$4,074,800
Commercial Essential Air Service Subtotal
961.5
$28,389,400
$79,666,300
Baker
Baker Municipal Airport
11.0
$275,000
$561,300
Big Timber
Big Timber Airport
13.5
$331,100
$822,300
Chinook
Edgar G. Obie Airport
1.0
$27,100
$84,100
Choteau
Choteau Airport
2.0
$66,900
$459,300
Columbus
Columbus Airport
10.5
$300,900
$589,000
Cut Bank
Cut Bank International Airport
9.5
$267,300
$794,700
Dillon
Dillon Airport
37.0
$1,116,200
$3,675,800
Forsyth
Tillitt Field
7.0
$164,600
$362,700
Hamilton
Ravalli County Airport
124.5
$4,196,700
$10,420,200
Jordan
Jordan Airport
0.0
$0
$17,600
Kalispell City
Kalispell City Airport
359.0
$10,111,900
$24,182,800
Laurel
Laurel Municipal Airport
82.0
$2,111,000
$5,796,100
Livingston
Mission Field
13.0
$216,400
$959,700
Poison
Poison Airport
42.0
$1,152,100
$2,631,200
Ronan
Ronan Airport
4.0
$64,800
$132,700
Seeley Lake
Seeley Lake Airport
13.0
$519,700
$1,131,900
Shelby
Shelby Airport
0.0
$0
$55,500
Stevensville
Stevensville Airport
70.5
$1,727,600
$9,342,200
Three Forks
Three Forks Airport
3.0
$37,500
$192,700
Twin Bridges
Twin Bridges Airport
18.0
$605,200
$1,571,500
High Volume General Aviation Airports Subtotal
920.5
$23,292,000
$63,783,300
Anaconda
Bowman Field
4.5
$81,200
$229,200
Benchmark
Benchmark Airport
0.0
$0
$5,500
Big Sandy
Big Sandy Airport
0.0
$0
$1,000
Broadus
Broadus Airport
1.0
$3,800
$29,000
{
Chester
Liberty County Airport
9.0
$267,700
$1,960,400
Circle
Circle Town County Airport
3.0
$55,700
$90,900
Colstrip
Colstrip Airport
2.0
$45,700
$149,300
Conrad
Conrad Airport
6.5
$200,800
$1,347,800
Culbertson
Big Sky Field
1.0
$16,500
$22.800
Deer Lodge
Deer Lodge City -County Airport
17.5
$517,900
$3,800,600
Ekalaka
Ekalaka Airport
0.0
$0
$49,500
Ennis
Ennis - Big Sky Airport
7.5
$63,000
$225,000
Eureka
Eureka Airport
2.0
$54,000
$332,300
Fort Benton
Fort Benton Airport
18.5
$568,900
$13,405,000
Gardiner
Gardiner Airport
18.5
$423,100
$1,216,900
Geraldine
Geraldine Airport
3.5
$56,100
$657,200
Harlem
Harlem Airport
3.0
$52,400
$346,700
Harlowton
Wheatland County Airport at Harlowton
1.0
$5,900
$27,800
Libby
Libby Airport
23.5
$638,000
$2,010,100
Lincoln
Lincoln Airport
0.0
$0
$14,800
Malta
Malta Airport
9.5
$195,000
$1,309,900
Philipsburg
Riddick Field
1.0
$24,800
$128,600
Plains
Plains Airport
18.0
$330,100
$4,856,000
Plentywood
Sher -Wood Airport
5.0
$48,000
$85,200
Poplar
Poplar Airport
16.5
$563,100
$1,703,100
Red Lodge
Red Lodge Airport
13.5
$213,400
$602,900
Roundup
Roundup Airport
5.0
$153,800
$397,100
Scobey
Scobey Airport
11.5
$387,400
$911,700
Stanford
Stanford Airport
3.5
$42,200
$453,200
Superior
Mineral County Airport
0.0
$0
$10,600
Terry
Terry Airport
0.0
$0
$800
Thompson Falls
Thompson Falls Airport
1.0
$24,800
$181,800
Townsend
Townsend City -County Airport
4.5
$101,500
$364,400
Turner
Turner Airport
0.0
$0
$1,100
Valier
Valier Airport
0.0
$0
$1,400
White Sulphur
Springs
White Sulphur Springs Airport
0.0
$0
$17,600
Winifred
Winifred Airport
0.0
$0
$5,300
Other Select General Aviation Airports Subtotal
211.0
$5,134,800
$36,952,500
All General Aviation Airports Subtotal
1,258.5
$36,403,600
$117,613,300
ALL AIRPORTS TOTAL
18,743.5
$598,987,800
$1,555,833,000