THE PURPOSE OF THIS BUSINESS PLAN FOR Lee s Summit Municipal Airport is to assess potential

Transcription

1

2

3 Business Plan June, INTRODUCTION DRAFT TECHNICAL REPORT Lee s Summit Municipal Airport Business Plan THE PURPOSE OF THIS BUSINESS PLAN FOR Lee s Summit Municipal Airport is to assess potential means to improve the Airport s financial performance, economic development, and operation. To do this, the business plan will evaluate potential development and optimal operations associated with the implementation of the existing Airport Master Plan. Our understanding of the current situation involves several components, including the Airport s competitive setting, the highest and best use of Airport property, the benefits and costs of attracting corporate aviation, safety and noise issues in the vicinity of the Airport, the potential for hangar development as well as the high growth of the City of Lee s Summit, the desire of the Sponsor to examine the Airport governance structure, and a number of other facility-related issues. 1.1 Vision Statement The Lee s Summit Department of Public Works (DPW) operates the municipal Airport and has adopted the following Vision Statement for its facilities: Public Works will strive to meet or exceed citizen needs through accountability, fairness, consistency and increased communication. We will maintain and improve existing infrastructure in an effective and efficient manner. New growth will be accommodated through proactive planning and implementation. We are committed to supporting a positive work environment in which employees can share in the overall health, safety and welfare of the community. The work on this business plan is an example of proactive planning to ensure that the Airport is improved in an effective and efficient manner. 1.2 Airport Mission Lee s Summit Municipal Airport s role is that of a general aviation facility, providing general aviation services for regional air transportation. Lee s Summit Municipal Airport s accommodates general aviation activity including all types of propellor aircraft and some small business jets. The Airport is operated by the Lee s Summit Public Works Department (PWD), but is subject to administrative and legislative control by other municipal divisions and the City Council. There is no specific mission statement for the Airport, but there is a mission statement for the Lee s Summit PWD: The Lee s Summit Public Works Department is dedicated to maintaining and improving the quality of the community through environmentally and economically sound infrastructure preservation and growth while providing outstanding service to our customers. R.A. Wiedemann & Associates, Inc. 1

4 Business Plan June, 2008 This general statement can be applied to the Airport. One purpose of the business plan is to determine if the Airport Master Plan recommendations are economically sound and if their implementation will be perceived by the community and its leaders as improving the quality of the community. The Airport is an asset to the community, providing air transportation infrastructure needed for both business and personal travel. Airport operational objectives that support the overall DPW mission statement could include the following:! Strive to provide safe, excellent airport facilities and services to its based aircraft owners and the flying public, while operating compatibly with its neighbors and providing a base for economic development.! Continue to operate the Airport safely, efficiently, and in a manner that conserves City resources of time and money.! Strive to reduce expenditures and increase revenues at the Airport, without sacrificing needed services.! Encourage private sector investment in the utilization of the Airport s facilities.! Supplement economic development goals of Lee s Summit as opportunities arise at the Airport.! Encourage compatible public use of Airport facilities or property, where possible and appropriate. The final result is to help the Airport achieve greater financial and operational performance in support of the community s overall goals and vision. 1.3 Airport Issues Lee s Summit Municipal Airport features two runways: Runway is 4,016 feet by 75 feet and Runway is 3,800 feet by 75 feet. The adopted Airport Master Plan recommends the lengthening of Runway to 5,500 feet - 1,484-foot extension. This action would upgrade the Airport to accommodate more business and corporate aircraft. The business plan presents an overall strategic direction and plan for the Airport, given its existing setting and market niche. A number of preliminary issues have been identified and addressed, including:! Highest and Best Use of the Airport Property: There is some dispute concerning the highest and best use of Airport property. With industrial land at a premium, development around the Airport has raised questions about economic trade-offs between Airport land use and industrial land use. In particular, what taxes are being forfeited with the Airport use versus industrial use? (See Section 5.3 on page 43 and Section 6.2 on page 59).! Implementation of the Airport Master Plan: The airport master plan calls for the expansion of the primary runway from 4,000 feet to 5,500 feet. Money has been allocated for this process, but political support is divided. Some of the decision R.A. Wiedemann & Associates, Inc. 2

5 Business Plan June, 2008 process will rely on a credible estimate of the Airport s value to the community. (See Section 5.4 on page 44 and Section 6.2 on page 49).! Attraction of Corporate Aviation: The attraction of corporate aviation to Lee s Summit will depend, in part on the expansion of the primary runway to a length greater than 5,000 feet. Stage lengths for corporate aircraft are hindered by shorter runways and thus to maximize efficiencies for these operators, longer runway length is needed. Without that expansion, many insurance companies will either charge significant premiums or will not cover operations at shorter runway lengths. (See Section 5.4 on page 45 and Section 6.2 on page 50).! Safety/Noise Around Airport: An Air Traffic Control Tower (ATCT) feasibility study was undertaken to determine whether the use of an ATCT could provide safer aircraft operations, while at the same time possibly mitigating some noise impacts to residential areas. (See Section 5.1 on page 35).! Use of Local Matching Funds: The City was reimbursed for over $2 million by the Federal Aviation Administration (FAA) for the purchase of land abutting the Airport, providing a significant matching fund resource for the future. A significant portion of the master plan can be implemented using these monies as the local share match.! High Growth of the City: As a popular suburb of Kansas City, residential development in Lee s Summit has taken on the characteristics of a boom town. Lee s Summit began to experience high growth in the mid-to-late 1980s. This residential growth, coupled with the associated services sector growth has created significant demand for developable property in the area. (See Section 5.2 on page 37).! Expectations of Revenue Production: When the City purchased the Airport in 1970s, there was an implied understanding from the previous owners that the Airport would be self-sustaining. These expectations have not been fully met, and as such, have negatively influenced support for the Airport. (See Section 5.3 on page 42).! The Question of Mission and Vision: In many public projects, different values generate a variety of viewpoints. Lee s Summit Municipal Airport is no exception. While the operational mission of the Airport can be defined using acceptable industry standards, the vision for the Airport s future is more difficult to capture. This business plan should contribute to the formation of consensus about long term development at the Airport. (See Section 1.2 on pages 1 and 2).! Airport Governance Structure: Questions have been raised concerning the most effective governance structure for the Airport. Currently, the City Council, the Board Of Aeronautic Commissioners (BOAC), the Department of Public Works, the Finance Department, and the Purchasing Department all have a hand in the Airport s R.A. Wiedemann & Associates, Inc. 3

6 Business Plan June, 2008 governance. The business plan will examine this structure to see if it can be simplified and/or strengthened. (See Section 2.1 on pages 5 and 6, and Section 6.1 on page 48).! Airport Zoning & Special Use Permits: Once all of the land has been purchased, the City is interested in including recommendations for revised zoning at the Airport. At most municipal airports, airport projects do not require individual zoning approval if they meet definitions of conforming uses. Similarly, the business plan can examine the language concerning special use permits that keep the Airport development in accordance with its master plan. (See Section 6.2 on pages57 through 59). 1.4 Desired End Products The end products that are produced as a result of this analysis include the following:! A well-defined mission statement for the Airport.! An evaluation of current Airport business operating practices.! An identification and evaluation of needs, opportunities, and challenges facing the Airport.! A five-year projection of revenues and expenses at the Airport for the baseline case and alternative scenarios.! Strategic planning recommendations for the Airport, including those for capital development, leases, operations, marketing, zoning, and management.! Executive summaries and technical reports for the Airport and City use. 1.5 Report Outline In order to address the issues described above and to produce the desired end products, this report has been organized to include the following sections:! Section 1 - Introduction! Section 2 - Background and Management Structure! Section 3 - Existing Airport Characteristics! Section 4 - Baseline Financial and Economic Outlook! Section 5 - Business Plan Alternatives! Section 6 - Recommended Plan! Appendix A - Airport Facility Directory - LXT! Appendix B - Economic Development Incentives! Appendix C - Corporate Aviation Interest Letter! Appendix D - Revenue & Expense Pro Formas R.A. Wiedemann & Associates, Inc. 4

7 Business Plan June, BACKGROUND AND MANAGEMENT STRUCTURE UNDERSTANDING THE BACKGROUND AND MANAGEMENT STRUCTURE OF Lee s Summit Municipal Airport helps to identify challenges and opportunities facing the Airport. Management structure is one component of the Airport s ability to reach its potential. As such, this section is organized to include the following:! Airport Management Structure! Airport Staffing 2.1 Airport Management Structure Lee s Summit Municipal Airport is owned and operated by the City of Lee s Summit. The current formal organizational chart is shown in Figure 1. As shown, the chain of command moves from the Lee s Summit Mayor and City Council down through the City Manager, to the Deputy Director of Public Works, to the Airport Manager. The Airport Manager is responsible for the members of his staff - four full time personnel - the assistant manager, two attendants, and one maintenance technician. There are an additional 2.7 full-time equivalent airport attendants to cover for all the hours of operation. Although the direct line of authority shows only the Public Works Department, there are other City departments and committees involved in the management and operation of the Airport. The Finance and Purchasing Departments are involved in the process of writing checks and invoicing customers at the Airport. The City Council approves the official Airport rates and charges each year. The Board Of Aeronautic Commissioners (BOAC) is made up of 8 members appointed by the City Council. This Board is charged with reviewing issues pertaining to the Airport and reporting back to the City Council. In addition to the BOAC, three other City Council committees consider airport issues, including:! Finance & Personnel! Public Works Figure 1 - Formal Organization Chart These additional groups change the formal organizational chart by adding advisory functions to the tree. The functional or informal organizational chart is shown in Figure 2. R.A. Wiedemann & Associates, Inc. 5

8 Business Plan June, 2008 The value of an Airport s advisory committee (in this case the BOAC) is typically based on the make-up of the committee. If all sectors of the airport user community are not represented, recommendations coming from the committee can be skewed toward a limited number of special interest groups. Typically, these groups work best when representatives of different segments of Airport stakeholders are included. This often involves representatives from the political structure (e.g. City Council), pilots groups, corporate aviation, economic development/chamber of commerce, and city planning. 2.2 Airport Staffing The day-to-day operation of the Airport is the responsibility of the Airport Manager. The Airport Manager s position incorporates all facets of Airport administration along with responsibility for the equipment and maintenance of grounds at the Airport. The Airport Manager must have a working knowledge of Federal, State, and local laws and regulations relating to aviation. From an administrative standpoint, the Airport Manager supervises Airport staff, administers Airport security and emergencies, coordinates all longrange capital development, and coordinates the financial responsibilities of the Airport with the Finance and Purchasing Departments. Currently, the Airport Manager is also responsible for participating in the planning and environmental processes at the Airport. The Assistant to the Airport Manager performs the duties of the Manager when he is absent. The maintenance technician performs maintenance on the Airport, mowing, repairs to equipment, buildings etc. Anything beyond the City s capabilities is given to contractors to perform. Airport attendants are needed to staff the Airport during its working hours. Figure 2 - Functional Organization Chart The Airport is open 24 hours per day, seven days per week. However, it is only staffed from 5:30 am to one hour after dusk, resulting in different hours for winter and summer. An approximate staffing time table is presented in Figure 3 below. The first full time employee performs tasks such as the inspection of the Airport, testing the fuel tanks, daily inventory, cleaning bathrooms if needed, and recording information in the inspection book. At the end of the day, the part-time employee leaves after the airport inspection is completed, the building is cleaned, and equipment is put away. R.A. Wiedemann & Associates, Inc. 6

9 Business Plan June, 2008 The Assistant to the Manager provides coverage with the attendants during busy times and completes the weekly and monthly reports, required safety training and meetings per City policy, and insurance requirements. If the Airport remains open for an average of 14 hours per day, it must be staffed roughly 100 hours per week. Given that there are normally two personnel at the Airport at any one time, about 200 hours of staffing is needed each week. This translates into 5 full time equivalent employees. Figure 3 - Approximate Staffing Timetable for Lee s Summit Municipal Airport Recommendations concerning the management structure and operation of the Airport are presented later in the report in Section 6 - Recommended Plan. R.A. Wiedemann & Associates, Inc. 7

10

11 Business Plan June, EXISTING AIRPORT CHARACTERISTICS AIRPORT FACILITIES ARE OFTEN DESCRIBED AS AIRSIDE or landside. Airside (or airfield) facilities include those directly used by aircraft during takeoff and landing, such as runways, taxiways, lighting, and instrumentation. Landside facilities include support buildings and structures, such as aircraft hangars and parking (tie-down) aprons, automobile parking lots, and access roads. For this report, several previous studies that were adopted by the City are referenced. These include: the 1996 Adopted Airport Master Plan, the 1999 Airport Layout Plan (ALP) Update Adopted in 2000, and the 2005 Adopted CMT 14-year Airport Capital Improvement Plan (ACIP). 3.1 Airside Facilities Lee s Summit Municipal Airport is at an elevation of 1,004 feet above mean sea level (MSL) and has two intersecting concrete runways (see Figure 4). Runway is 4,016 feet long and 75 feet wide and extends in a north-south direction. Runway is 3,800 feet long and 75 feet wide and extends in a northwest-southeast direction. Both runways are in good condition and have nonprecision approach (NPI) markings, medium intensity runway lights (MIRL) and a full length parallel taxiway. All taxiways are 35 feet wide. Runway is equipped with a Visual Approach Slope Indicator (VASI) at both runway ends and Runway with a Precision Approach Path Indicator (PAPI) at both runway ends. Table 1 summarizes the runway data for both runways. The Airport is further equipped with a rotating beacon, segmented circle with a lighted wind indicator, and an Automated Surface Observing System (ASOS). A Non-Directional Beacon (NDB) is located on the field, but was decommissioned in Table 1 - Runway Data Summary ITEM Runway Runway Length 4,016 3,800 Width Pavement Concrete Concrete Weight Bearing Capacity 30,000 lbs 30,000 lbs Markings NPI NPI Runway End Identifier Lights Yes Yes Pavement Edge Lighting Medium Intensity Medium Intensity Visual Aid VASI PAPI Traffic Pattern Left Right Right Left Approaches RNAV RNAV RNAV RNAV R.A. Wiedemann & Associates, Inc. 8

12 225' 300' 225' LEGEND Interstate 470 Rice Road EXISTING DESCRIPTION BUILDINGS PAVED AREAS UNDER CONSTRUCTION (2008) SEGMENTED CIRCLE/WIND INDICATOR AIRPORT PROPERTY LINE RPZ 35' Jones Industrial Drive 390' 390' 240' 35' Strother Road UNDER CONSTRUCTION (2008) Pond Hagen Road Leinweber Road Taxiway "B" Existing 3,800' x 75' Runway 35' Colbern Road Interstate 470 Existing 4,015' x 75' Runway Pond RPZ RPZ Taxiway "A" Taxiway "A" Pond RPZ Douglas Road Pond Pond Drawing Copyright 2008 Clough Harbour & Associates LLP CLOUGH HARBOUR & ASSOCIATES LLP EXISTING CONDITIONS FIGURE 4 III Winners Circle, PO Box 5269 Albany, NY Scale in feet 1000 Main: (518) LEE'S SUMMIT MUNICIPAL AIRPORT DATE: MAY 2008

13 Business Plan June, 2008 Pilots at airports without an Air Traffic Control Tower (ATCT) typically follow predetermined left traffic patterns to ensure orderly flow and operation and communicate with each other on the Common Traffic Advisory Frequency (CTAF). Visual, or VFR flight procedures, at Lee s Summit Municipal Airport do not follow the FAA standard traffic patterns in order to avoid noise sensitive residential development (see Figure 5). To reduce air traffic over residential development, the traffic patterns were published to concentrate air traffic operations to the south and east of the airport, and minimize flights to the north and west. When necessary, pilots departing to the west or north (i.e., on Runways 29 or 36) are required to climb to at least 2,500 feet MSL before turning, in an effort to reduce noise over homes. Whenever winds permit, departures to the south (on Runway 18) are recommended. Appendix A presents the published airport traffic pattern for Lee s Summit Municipal. Pilots operating to and from the Airport under Instrument Flight Rules (IFR) contact the Columbia Flight Service Station (FSS) and Kansas City Air Route Traffic Control Center (ARTCC) for the most up-to-date information and guidance. A remote transmitter receiver (RTR) operated by the FAA is located on the field and provides the communications link to the Kansas City ARTCC. Figure 5 - Normal Flight Track Patterns There are five non-precision approaches available at Lee s Summit Municipal Airport. Each runway end is equipped with a straight-in RNAV or GPS approach which uses satellite navigation. For all runway ends at LXT, these RNAV approaches are the best available type of non-precision instrument approach, and are call LPV procedures (Localizer Performance with Vertical guidance procedures). An LPV approach is nearly as accurate as a full precision approach using ground-based radio navigational aids (i.e., an Instrument Landing System - ILS), but without any of the capital or maintenance costs. The current approach minimums at LXT are as low as 1-mile visibility, with a 250-foot cloud ceiling. This is also the lowest minimums possible without an ILS and an approach lighting system. Thus, the Airport currently has significant capability to accommodate instrument, R.A. Wiedemann & Associates, Inc. 10

14 Business Plan June, 2008 or IFR flight procedures. In addition, a traditional radio-based VOR [1] /DME approach is also available using the Napoleon VOR to fly an angled approach toward Runway 18. Aircraft then circle to land on the preferred runway end based on the current wind conditions. This allows aircraft not equipped with GPS to fly instrument approaches into the Airport. In summary, the airfield facilities currently available at Lee s Summit Municipal Airport are quite comprehensive. Although, a full ILS (with an approach lighting system) and an ATCT would be beneficial, these systems required significant capital investments, annual maintenance, and staffing (for the ATCT). In the near term, the single most important airfield improvement would be a runway extension. At about 4,000 feet in length, the current primary runway is insufficient to attract business users and corporate jets. From a financial standpoint, general aviation airports generate significantly higher revenues from corporate aircraft, than from light personal aircraft. 3.2 Landside Facilities Lee s Summit Municipal Airport s landside facilities include an administration/terminal building, fuel storage tanks and pumps, aircraft storage hangars, an airport maintenance facility, and a fixed base operator (FBO) hangar. Lee s Summit has two underground storage tanks capable of holding 2,500 gallons of automotive gasoline and 10,000 gallons of 100 Low-Lead (LL) aviation fuel. An above ground storage tank holds 10,000 gallons of Jet-A. There are 138 T-hangar bays with a total storage capacity of approximately 137,000 square feet. The paved aircraft parking apron has 66 tie-downs for itinerant and based aircraft and is approximately 27,500 square yards. The City provides traditional aviation services including full and self serve fueling, ground power units (GPU) for external power, and line service. Air Charter and Midwest Executive Aircraft are two FBOs that provide other services including aircraft rental, flight training, charter, aircraft sales, and aircraft maintenance. A local chapter of Experimental Aviation Association leases approximately half an acre of land on the northeast portion of the airfield for their executive hangar. There are other smaller flying clubs which base aircraft and operate out of Lee s Summit Municipal Airport including Mitchell s Flying, the Wings Flying Club, and Kansas City Flying Club. While the first two clubs advertise to experienced pilots, the Kansas City Flying Club markets to student pilots and offers introductory flights. In summary, the landside facilities currently available at Lee s Summit Municipal Airport are quite comprehensive, and improvements are continuing. From a financial standpoint, developing new hangars or providing shovel-ready hangar sites to accommodate business-use aircraft have the potential to general additional revenues for the Airport. Projects that construct or foster the development of hangars (e.g., property acquisition, access roads, taxilanes, etc.) will best stimulate future revenues for the Airport. When new hangars attract new tenants, revenues from fuel sales, maintenance, and support services all increase. 1 VOR Very High Frequency Omni directional Range R.A. Wiedemann & Associates, Inc. 11

15 Business Plan June, Forecasts Forecasts of aviation demand for Lee s Summit Municipal Airport are a key element in future planning considerations. Aircraft demand forecasts, based upon the desires and needs of the service area, provide a basis for determining the type, size, and timing of aviation facility development. The most recent update to the Lee s Summit Municipal Airport Master Plan was in 2000 in the form of an Airport Layout Plan Update Narrative Report, which updated the based aircraft and operations forecasts. Table 2 and 3 show the comparison among the 1996 Master Plan, 2000 Airport Layout Plan (ALP) Narrative Report, and FAA s Terminal Area Forecasts (TAF) for based aircraft and annual operations. Table 2 - Based Aircraft Projections Master Plan * 210* 250* ALP Narrative * 225* 310* - - Terminal Area Forecast * 191* 201* * Forecast number Table 3 - Annual Operations Projections Year 2000 ALP Narrative Terminal Area Forecasts Local Ops Itinerant Ops Total Ops Local Ops Itinerant Ops Total Ops ,600 38,800 92, ,000* 44,000* 104,000* 53,640 38,360 92, ,000* 56,000* 124,000* 62,332 30,618 92, ,000* 82,000* 170,000* 61,628* 30,412* 92,040* ,628* 30,412* 92,040* ,628* 30,412* 92,040* * Forecast number The TAF for 2000 and 2005 are actual based aircraft, and estimated operations at that time, and thus are more accurate than the earlier forecasts from 1996 or It can be seen that the previous forecasts of based aircraft and operations were overestimated. However, it should be noted that the previous forecasts assumed significant development of hangars and other facilities to attract tenants from other locations. Another reason for the limited growth is a general contraction of the industry as a whole, which further enhances the need for expanding revenue opportunities. In contrast, the TAF is primarily an extrapolation of recent trends into the future. The future growth of activity at Lee s Summit Municipal Airport is somewhat dependent on the growth in the region, but also on the facility development at other nearby airports. The effects of other local airports on Lee s Summit will be further discussed in the Market Analysis (Section 3.5). R.A. Wiedemann & Associates, Inc. 12

16 Business Plan June, Airport Development Plan The most recent recommended development plan the Airport Capital Improvement Program (ACIP) for Lee s Summit Municipal Airport is shown in Figure 6. One of the tasks of this business plan is to suggest revisions to the ACIP to suit the current needs of the Airport, with a focus on revenue generation. Overall, an airport development plan must first address safety, through implementation of FAA design standards as the primary consideration. Secondly, it should suggest new or improved facilities to better serve users and support financial sustainability. The existing airport development plan and ACIP include a comprehensive set of upgrades to the Airport, with a mixture of airfield and landside facilities, land acquisition, and other airport modernizations. In general, the implementation of the 2005 CMT 14-year ACIP would provide for an excellent business-class airport, satisfying all potential requirements. However, the feasibility of funding the full set of projects is low, particularly within the time frame provided. As such, this section of the business plan provides a refined priority of projects for consideration by the City. While it is felt that all the identified projects are worthwhile, the suggested revisions are intended to foster additional airport business use and financial sustainability. Airport Design Standards FAA Airport design standards are based on the Airport s Reference Code (ARC) 1. The ARC of any airport is based on the largest aircraft category that conducts at least 500 annual operations. While Lee s Summit Municipal Airport is classified as a B-II airport (accommodating turboprops and light jets), it is planning to become C-II. ARC C-II aircraft include medium to large cabin business jets. The FAA design standards change significantly when an airport upgrades from a B-II to a C-II airport; offsets between runways and taxiways become larger and the Runway Safety Areas and Runway Object Free Areas increase in size. 1 The ARC has two components. The first component, depicted by a letter, is the Aircraft Approach Category (an operational characteristic), and refers to the aircraft approach speed during landing. The second component, depicted by a Roman numeral, is the Airplane Design Group, and refers to the aircraft wingspan (a physical characteristic). R.A. Wiedemann & Associates, Inc. 13

17 Ultimate RPZ 225' 300' Ultimate RPZ LEGEND Interstate 470 Rice Road RPZ EXISTING ULTIMATE DESCRIPTION BUILDINGS PAVED AREAS AVIATION DEVELOPMENT SEGMENTED CIRCLE/WIND INDICATOR EXISTING & ULTIMATE AIRPORT PROPERTY LINE 35' Realigned Strother Road Strother Road Pond Jones Industrial Drive Hagen Road Leinweber Road Taxiway "B" Ultimate 4,000' x 75' Runway Existing 3,800' x 75' Runway 35' 390' 390' 240' 35' Colbern Road Interstate 470 M Ult. Service Rd. Pond RPZ 200' Extension Taxiway "A" Ultimate 5,500' x 100' Runway Existing 4,015' x 75' Runway RPZ 1,285' Extension Ultimate Service Road Pond 200' Extension RPZ Ultimate RPZ Douglas Road Pond Pond Drawing Copyright 2008 Clough Harbour & Associates LLP CLOUGH HARBOUR & ASSOCIATES LLP FULL BUILD FIGURE 6 0 Scale in feet 1000 III Winners Circle, PO Box 5269 Albany, NY Main: (518) LEE'S SUMMIT MUNICIPAL AIRPORT DATE: MAY 2008

18 Business Plan June, 2008 The 1999 ALP Narrative Report had forecast the design aircraft at Lee s Summit Municipal Airport to be C-II by 2015, as shown in Table 4. As of 2008, the Airport is not meeting these jet aircraft forecasts, which may be related to the limited length of the airport runways. As can be seen in Table 5, Lee s Summit Municipal Airport had less than 150 C-II jet operations in 2007, based on FAA flight plan data, even though the number of jet operations has increased since As such, it may be in the best interest of the Airport to defer projects that would not directly increase the business use and financial potential of the Airport. This section of the Business Plan suggests these revisions, which are summarized below. The most important revision to the ACIP is moving the runway extension into the short-term planning period in an effort to foster use by ARC C-II aircraft. Runway Extension Table 4 - ARC C-II Operations Forecasts Year Operations Source: 1998 ALP Narrative Table 5 - Total Jet Operations by Airport Reference Code Lee's Summit Year B C D % Change 66.7% 311.4% - Source: FAA ETMSC (Flight Plan Data) A runway extension may increase the financial position of the Airport as more businesses and corporate jets would be able to operate on the longer runway. Thus, the extension of Runway should take priority in the ACIP to increase total operations as well as attract corporate jets. The current ALP depicts the two runway extensions; a 1,284 foot extension to the south and a 200- foot extension to the north. The runway cannot be extended more than 1,284 feet to the south due to impending obstructions from buildings. It is recommended for the Airport to complete the full runway extension to the runway south in the short term, for a runway length of 5,300 feet. The 200- foot extension to the north may be conducted later, after a relocation of Strother Road is completed. Although it is not possible to predetermine the increase in jet aircraft use encouraged by a longer runway, there is a clear correlation between runway length and jet activity. For example, New Century and Downtown Wheeler have the longest general aviation runways in the region and as well R.A. Wiedemann & Associates, Inc. 15

19 Business Plan June, 2008 as the most jet operations. Although there are other related factors to the high level of jet activity, a longer runway is clearly needed to better accommodate business jet aircraft and related development at Lee s Summit. Table 6 - Total Jet Operations by Airport Reference Code New Century Downtown Wheeler Year B C D B C D % Change 14.9% 93.2% 6.5% -8.8% 12.7% 14.2% Source: FAA ETMSC Parallel Taxiway Relocation For Lee s Summit Municipal Airport, the current FAA standard parallel taxiway offset (measured from the runway centerline to the parallel taxiway centerline) is 240 feet for ARC B-II. The existing offset of Taxiway A is 225 feet, thus it does not quite meet standards. Long term, the ALP Report recommends providing a full precision instrument approach, with approach lights, and ARC C-II standards. This recommendation increases to required parallel taxiway offset to 400 feet. While the 400-foot offset is ideal, it is not required until a full approach lighting system (e.g., Medium Intensity Approach Lighting System with Runway Alignment Indicator Lights MALSR) is in place on Runway 36. Until that time, other runway-taxiway offsets may be adequate, per FAA criteria as listed in Table 7. Table 7 - Runway-Taxiway Offsets Requirements Facility (Design Aircraft) ARC B-II ARC C-II LPV Approaches (any wingspan) LPV Approaches (wingspans <55 )* 227 LPV Approaches (wingspan <65 )* 233 Potential Facility (Design Aircraft) ARC B-II ARC C-II ILS with MALSR (any wingspan) ILS with MALSR (wingspans <55 )* 280 ILS with MALSR (wingspans <65 )* 285 *With an approved FAA Modification-to-Design-Standards As shown in the Table, with the current LPV approaches and based aircraft (wingspans under 55 ) at Lee s Summit, there may not be an immediate need to relocate Taxiway A. Based on the existing taxiway offset of 225 feet, FAA should be consulted to discuss the potential for a temporary R.A. Wiedemann & Associates, Inc. 16

20 Business Plan June, 2008 modification-to-design-standards for the runway-taxiway offset. This short-term modification would enable the City to pursue the runway extension, prior to the implementation of the taxiway relocation project. Combined with the runway extension project, Runway should be rehabilitated and widened to 100 feet (in anticipation of the ultimate ARC C-II design standards). This will ensure that the new longer runway contains a consistent pavement design and condition for its entire length, and the entire runway can equally accommodate the weight of larger corporate aircraft. Parallel Taxiway A would also be extended at that time, with the standard runway-taxiway offset, and tie into the extended end of Runway 36. The existing portions of parallel Taxiway A may be retained at the current runway-taxiway offset until C-II itinerant operations reach 500. As discussed above, the ultimate parallel taxiway offset (e.g., 300 feet, 400 feet) should be evaluated with the FAA, as part of an ALP Update effort. For Taxiway A, this smaller offset would retain more of the existing apron and hangar areas on the west side of the main Runway. This change does not need to be addressed currently and would require an ALP update; however, from a business planning standpoint, retaining existing hangar and apron areas provides more revenue generation potential. Other Development Plan Factors As of May 2008, the City of Lee s Summit has completed 55 percent (14 parcels) of an airport land acquisition program. The land acquisition is required in order to provide the standard Runway Protection Zones (RPZs), the extension to Runway 18-36, and development area for a new terminal building and hangars on the east side of Runway Currently, the appraisals for the remaining parcels are being reviewed with the Missouri Department of Transportation (MoDOT) and funding is in place to complete the acquisitions. Lee s Summit is current pursuing construction of a new apron and taxiway on the east side of the airfield, which will provide a new terminal development area. The future terminal and development area is being moved from the west to the east side of the airfield due to setback requirements the terminal building and runway. A new exit will be provided, connecting to Strother Road, and is expected to increase traffic through the area significantly. Transferring the main services of the Airport near this new high traffic area should provide potential businesses incentives for development at Lee s Summit Municipal Airport. Strother Road is expected to be improved in accordance with the Thoroughfare Master Plan. The design process should include adequate separation from the Runway 18 end to satisfy FAA requirements. The new east side terminal area of the Airport will provide additional developable property for both general and corporate aviation facilities. There are several areas on the airfield that may be utilized for non-aviation development. Such development may be related to aviation, but does not need a direct connection to the airfield for aviation access. Businesses may include those typically found in an office park or a flight school, flight department, or corporation that park their aircraft on the main apron. East of the access road for the new terminal area is currently reserved for this type of commercial development. Additional sites could include to the west and east of the Runway 36 RPZ. These sites include R.A. Wiedemann & Associates, Inc. 17

21 Business Plan June, 2008 multiple acres for development and roadway access once Strother Road is realigned. They are lower in elevation then the runway and would not impact the airspace. An additional site includes the parcel scheduled for acquisition in the southeast corner of the airfield. The parcel is large enough for office or light industrial facilities with an extension of the existing roadway network. City officials should ensure that all non-aviation development is compatible to the Airport per the FAA Land Use Compatibility Guidelines. The current east side apron project does not include road access or buildings. A Site Plan is required by the City before all roadway access and buildings are constructed. The Site Plan should be completed as soon as possible in order to market hangar sites and attract businesses to the new apron area. It is also recommended that the Site Plan contain minimum standards for development of buildings rather than specifications for any individual development. This will allow developers or new tenants to construct buildings most suited to their needs, reduce the processing time, but still satisfy City requirements. It is also recommended to amend the phasing and construction of the new hangars as depicted in the ALP. The old T-hangars to the west of Runway have an approximate lifespan of five additional years. It is recommended that replacement T-hangars be built within the next five years in the northeast quadrant of the airfield. Once new T-hangars are completed, the first, and possibly second, row of old T-hangars on the west side may be demolished, and would then enable the relocation of Taxiway A (See Figure 7). The demolition of the old T-hangars and relocation of Taxiway A would be deferred until after the extension of Runway 36 and the development of new replacement T-Hangars. It is also recommended that conventional hangars to be built to the west of the runway (see Figure 7). Conventional hangars are typically occupied by corporate aircraft, which corresponds with the business goal of Lee s Summit. To foster the growth of corporate airport activity, proper aircraft storage must be supplied in conjunction with the new terminal apron and building. The runway extension is an important component to the growth of corporate aviation. The suggested revisions to the ACIP phasing are summarized below in Table 8. R.A. Wiedemann & Associates, Inc. 18

22 300' Ultimate RPZ LEGEND Interstate 470 Rice Road RPZ EXISTING ULTIMATE DESCRIPTION BUILDINGS PAVED AREAS AVIATION DEVELOPMENT SEGMENTED CIRCLE/WIND INDICATOR EXISTING & ULTIMATE AIRPORT PROPERTY LINE 35' Realigned Strother Road Strother Road Pond Jones Industrial Drive Hagen Road Leinweber Road Taxiway "B" Ultimate 4,000' x 75' Runway Existing 3,800' x 75' Runway 35' 35' 390' 390' 240' Potential Non-Aviation Development Sites Colbern Road Interstate 470 M Ult. Service Rd. Ultimate 5,500' x 100' Runway Existing 4,015' x 75' Runway 1,285' Extension Pond RPZ RPZ Ultimate Service Road Pond Douglas Road Pond Pond Drawing Copyright 2008 Clough Harbour & Associates LLP CLOUGH HARBOUR & ASSOCIATES LLP PERFORMANCE ALTERNATIVE FIGURE 7 0 Scale in feet 1000 III Winners Circle, PO Box 5269 Albany, NY Main: (518) LEE'S SUMMIT MUNICIPAL AIRPORT DATE: MAY 2008

23 Business Plan June, 2008 Table 8 - Potential Revision to the Airport Capital Improvement Program Currently in Progress Eng. Implementation Plan* Runway RPZ Land Acquisition -- - Land Acquisition for Terminal Development --- Phase I of Terminal Ramp BC5 Construction of Taxiway C BC4, C2, B4 Construct Fuel Facility and Vault BC9, BC15 Relocation of Rotating Beacon BC9 Install Perimeter Fence BC14 Short Term Projects ( ) Site Plan for New Terminal Area --- Construct New Terminal Access Road BC6 Construct New Terminal Building and Parking Lot BC8, BC7 Extend Runway 36 to 5,300 A2 Widen Runway to 100 and Rehabilitate A1, BC11, BC13 Extend Taxiway A B1 Phase I of T-hangars in N.E. Quadrant BC2 Phase I of West Hangars D1 Realign Strother Road as City Public Works project E1 Intermediate Term Projects ( ) Demolish T-Hangars BC3 Relocate Taxiway A to an offset of 400 BC10 Phase II of T-hangars in N.E. Quadrant D4 Construct Phase II of Terminal Ramp C1 Construct Taxiway B B6 Long Term Projects (2020 and beyond) Construct Northeast Holding Apron C2 Construct Taxiway E B3 Install MALSR and ILS on Runway 36 A4 Construct Perimeter Roads E3, E4 Extend Runway 18 North 200 to 5,500 A4 Construct Taxiways A1 and Northwest Hold Apron B7, C3 Install Approach Lights on Runway 18 A5 Air Traffic Control Tower BC16 Extend Taxiway B2 and E B5 Construct Taxiway A5 B2 Construct New West Entrance Road E2 Phase II of West T-hangars D2 Phase III of West T-hangars D3 *Number corresponds with Airport Master Plan Implementation Engineering Investigation R.A. Wiedemann & Associates, Inc. 20

24 Business Plan June, Market Analysis To understand the revenue-producing potential of Lee s Summit Municipal Airport, it is important to evaluate the economic forces at play in the existing market. The interaction of customers in the market with existing offerings of aviation products and services determines prices, and can guide the Airport in finding a unique position in the market that can produce revenue. In addition to assessing the condition of the existing market in the suburbs of Kansas City, there is also some undetermined amount of non-customers that may be converted to customers, should the Airport find the right balance of product/service, price, and value to offer the market. The ultimate goal of the Airport is to capture an increased share of both the existing customer market and a share of the natural regional growth of general aviation demand in the Kansas City market. Airport Market Area For the purpose of this Business Plan, the existing geographic market of Lee s Summit Municipal Airport is defined to include the suburban areas to the east and south of Kansas City International, and west to Miami County Airport in Paola. While transient activity originates in many other regions of the country, this geographic area represents the market from which the Airport is likely to draw new users and activity that will assist in driving revenue growth. Figure 8 illustrates the general market area of the Airport and includes nine other nearby public-use airports. Market Area Airport Facilities Within the geographic service area for Lee s Summit Municipal Airport, there are a number of other public-use airports, which provide a range of general aviation services, and likely compete with Lee s Summit Municipal Airport for activity and users. For this Business Plan, the airports considered as competing facilities include:! Johnson County Executive (OJC)! Charles B. Wheeler Downtown (MKC)! New Century AirCenter (IXD)! East Kansas City (3GV)! Midwest National Air Center (GPH)! Lawrence Smith Memorial-Harrisonville (LRY)! Skyhaven (RCM)! Miami County (K81)! Higginsville Industrial Municipal (HIG) These airports and the facilities and services they offer represent the competition in the existing market for general aviation products and services in the eastern and southeastern suburbs of the Greater Kansas City region. R.A. Wiedemann & Associates, Inc. 21

25 Business Plan June, 2008 Figure 8 - Lee s Summit Airport Market Area R.A. Wiedemann & Associates, Inc. 22

26 Business Plan June, 2008 Table 9 presents information regarding the facilities offered by these airports for comparison purposes. As indicated, airports within Lee s Summit s market area offer a range of options to general aviation users. The largest airfield in the area is New Century AirCenter, which consists of 2,600 acres, and boasts the longest runway (7,339 feet.) Johnson County has the most based aircraft (228) and matches New Century in number of based jets (15). Wheeler Downtown offers the second longest runway of all nine airports (7,002'), and the most based multi-engine aircraft (85). Miami County Airport in Paola, Kansas has the least number of based aircraft (22). There are certain anomalies within the region that need to be considered when developing a plan for Lee s Summit. East Kansas City (privately owned) is the smallest of facilities in terms of land area, with just 120 acres and 4,501 feet of paved runway; however, there are 200 based aircraft on the airfield, a total second only to Johnson County Executive. Lee s Summit Municipal Airport facilities are within averages for the region. In terms of airfield size and based aircraft, Lee s Summit is larger and more active than five of the other nine airports. However, Johnson County Executive, with nearly identical runway length and approach capability, and no crosswind runway, has attracted 15 based jets. One interesting difference between Johnson County Executive (OJC) and Lee s Summit is the fact that OJC offers the benefits of an Air Traffic Control Tower to users. Wheeler Downtown Airport is the busiest general aviation airport in the region, with recent annual operations estimates approaching 100,000. The only airports that come close to this level of activity are New Century and Johnson County Executive, which have estimated annual operations near 60,000 and 70,000, respectively. Wheeler Downtown s location in Kansas City suggests that it serves general aviation desiring to access the Central Business District (CBD). As such, much of the demand may be immune to lower prices or equivalent services at other regional airports. However, there may be a small portion of based aircraft that are sensitive to these market factors that Lee s Summit may be able to capture. Market Area General Aviation Services General aviation services available at area airports include airframe repairs, powerplant repairs, and avionics and are shown in Table 10. Additional anomalies are apparent when comparing the three tables with regard to the services provided, rates charged, and storage availability. For instance, Midwest National (GPH) offers the fewest services, with just minor airframe and power plant repairs and no additional services such as flight instruction, charter service, avionics, or aircraft sales/rental. GPH also offers the lowest price for Jet A in the area, but charges a higher than average storage rate, but still has an active waiting list for hangar storage. While Lee s Summit Municipal Airport offers most of the services provided at the other nine airports, there is no waiting list for hangar storage. R.A. Wiedemann & Associates, Inc. 23

27 Business Plan June, 2008 Market Area Rates and Charges As indicated in Table 11 below, prices for Avgas in May of 2008 were found to be as low as $3.83 per gallon at Miami County in Paola, and as high as $5.90 per gallon at Wheeler Downtown, while Jet A was $3.49 at Midwest National Air Center, and $5.90 at Wheeler Downtown. Only New Century and Johnson County airports report a fuel flowage fee. None of the airports considered reported the collection of a landing fee. In terms of aircraft storage, rates for daily tie-downs range from $3.00 at Skyhaven and Miami County, to $5.00 at Smith Memorial and East Kansas City. Higginsville Industrial Municipal and Wheeler Downtown charge multiple rates based on the type of aircraft. Midwest National and Wheeler Downtown have the highest daily tie-down fees. Monthly tie-down rates begin at $25 at Skyhaven, and increase by increments of $10 until they reach $55, the highest amount reported, at Midwest National. Monthly rates at Wheeler Downtown vary based upon the size of the aircraft. Hangar storage at these regional airports varies, depending mostly on type (box/conventional or T-hangar). Rates begin as low as $65 per month for a T-hangar at Skyhaven, to a high of $2,500 per month for an 80'X70' conventional hangar Midwest National, and at many price points in between. On a square foot basis, T-hangar storage ranges from a rate of $0.08 to $0.19 per square foot. Box or conventional hangar storage can be leased for approximately $0.40 to $0.50 per square foot. Considering the availability of hangar storage among all of these airports, of particular interest is a T-hangar construction project that is currently underway at Wheeler Downtown Airport. When completed, the project will include seven new buildings containing 96 individual hangars, a 100LL self-serve fueling facility, and wash area and a connecting taxiway. The first phase of construction is expected to finish three buildings, with 44 hangar units, the self-serve fuel facility, wash area, taxiways, and apron areas, while not displacing current T-hangar tenants. This project will add 49 T-hangar units to the regional market. With approximately 1,175 aircraft based at the airports considered here, and waiting lists that total 85 parties seeking storage at a number of these airports, this additional hangar capacity will likely be absorbed in a relatively short timeframe. Lee s Summit Municipal Airport rates and charges are within the upper ranges of those from other airports in the region, for fuel prices, tie-down fees, and hangar storage. Summary of Market Area Analysis Considering facilities, services, and rates and charges between Lee s Summit Municipal Airport and the nine airports discussed here, it appears that in many ways Lee s Summit Municipal Airport does not differentiate itself from the market. While only three facilities have more based aircraft than Lee s Summit, the Airport is similar regarding land envelope, primary runway length, and approach capability. Likewise, general aviation services currently provided do very little to make the Airport unique in the market. R.A. Wiedemann & Associates, Inc. 24