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Specific Issues Addressed by the FAA1. If Kalispell City Airport uses federal funds to mitigate the KGEZ towers, an Environmental Assessment will need to be done on the site of the new towers. This will take at least 9 months and cost approximately $25,000. 2. If the Kalispell City Airport negotiates the deal as a cash buyout to remove the towers and no new towers are constructed, an environmental assessment will not be needed and the FAA will participate as a Development Grant. The agreement is subject to FAA approval for participation. 3. Kalispell City Airport has $600,000 of Non -Primary Entitlement money that can be used on this project. To use these funds, the Kalispell City Airport must do a pre -application by December 1, 2008 and have a decision to spend the funds NLT May 1, 2009. 4. What constitutes a decision as specified in (3); a. A District Court decision on relocation and subsequent condemnation of the current towers. b. A signed agreement by the owner of the towers that they will be relocated, reduced in height, or removed entirely. 5. Should the relocation take place, the FAA would participate by allowing the Airport to use NPE funds. All costs, including EA, engineering, equipment cost, are subject to reimbursement. Should a buy out take place, the FAA would participate in the costs, but the EA, engineering, etc., would not be eligible since they were not used and therefore not eligible for reimbursement. 6. If the Kalispell City Airport has documented proof of the tower mitigation by May 1, 2009, the Airport would be eligible for a phased land purchase allocation of $1.5 million starting in FY 2010 and continue until the project is completed. This would include reimbursement for those lands we have already purchased. This would give us seed money to move forward on other purchases. A solid Buy -Sell agreement is sufficient. 7. The FAA has been holding a position in the funding pool for Kalispell City Airport. However, if Kalispell City Airport is not committed by May 1, 2009, they will be repositioned behind five other airport projects waiting funding. This would set us back at least three years. 8. Robert Peccia & Associates is finalizing our CIP to be submitted to the FAA. RPA is also working on a timeline for acquisitions and construction to be submitted to the FAA. Also, RPA is working on a pre -application for funds to mitigate the KGEZ towers. 9. The current Environmental Assessment will need to have an update done and approved before construction is scheduled. Grant money is available for the update. The updated Airport Layout Plan is waiting final review at the FAA.