Presentation to the Mayor and Council City of Prescott
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1 Presentation to the Mayor and Council City of Prescott November 12,
2 Ad hoc Airport Area Steering Group - Participants - Purpose - Process Strategic Planning Session 4 Review Key Findings Recommendations Goals, Action Sequence and Engagement 2
3 Airport Area Map Airport is an underutilized City asset The future economic success of PRC will be defined by extending and strengthening its main runway The Airport needs updating and new capital investments to increase its economic development impact Airport development requires a long term financial commitment of the City of Prescott The priorities and timing of airport improvements are heavily influenced by FAA policies and decisions The City has a significant investment in the Airport and to more fully capitalize on that investment, the main runway must be lengthened & strengthened and a new terminal constructed 3
4 Private Sector Dr. Frank Ayers Chancellor, ERAU (Prescott) Michael Gjede Brig. Gen., USAF (Ret.) Kevin Lane Financial Advisor John Gordon Real Estate Broker Dr. Robin Sobotta Chair, Business Dept., ERAU Alex Vakula Attorney David Shingledecker Vice President and General Manager, General Dynamics Integrated Space System Division (Ret.) Rick Roberts FedEx pilot (Ret.) City Mayor Marlin Kuykendall Craig McConnell, City Manager John Cox, Airport Manager Jeff Burt, Director, DEI - Facilitator 4
5 Steering Group Purpose Provide an independent perspective on the Airport Area and Airport Review and contribute to Strategic Planning Presentations to Council (1/14, 2/25, 3/25, 4/22/2014) Provide feedback on Airport challenges and opportunities (FAA, facilities, and funding) Engage Airport Area stakeholders including existing businesses, airport tenants, realtors, developers, and other key property owners Evaluate and recommend project priorities for both the Airport Area and Prescott Municipal Airport 5
6 Process A group of Prescott citizens (the Steering Group) with interests in airports and economic development was convened The Steering Group met regularly on an ad hoc basis to address selected topics/issues related the Airport and Airport Area. The Group met 23 times including 8 sessions with Airport Area stakeholders Conducted a strategic planning SWOT (strengths, weaknesses, opportunities, threats analysis) for the Airport and Airport Area Reviewed findings of studies oriented to groups not affiliated groups not directly affiliated with City regarding airport and air passenger service perceptions Summarized discussions to develop Steering Group recommendations for consideration of the Mayor and Council 6
7 Defined Airport Development options General Aviation Airport Commercial Local Airport Commercial Regional Airport Presented Infrastructure and facility requirements of each option Highlighted projected cost of each option Made a recommendation for a Commercial Local Airport option Identified several strategic actions for Airport Area economic development 7
8 The Airport Area holds significant economic promise due to land availability that is under single ownership, existing and expandable City infrastructure, appropriate zoning, and location A live, work, and play environment in the Airport Area is achievable and a desirable outcome Significant retail development opportunities will occur in the SR 89 and SR 89A corridors in the next 3 or 4 years due to newly approved housing developments in Prescott and Prescott Valley The Airport Area can be the Greater Prescott hub for new manufacturing and distribution enterprises The Airport Area presents an excellent opportunity for the City to be creative in its housing policies and practices with a goal of broadening the City s mix of housing types and prices. 8
9 The Airport is an underutilized City asset The future economic success of PRC will be defined by the City s ability to extend and strengthen its main runway The Airport needs updating and new capital investments to realize its economic development potential and maintain safety Cognizance of airport improvements and how they relate to air traffic management and noise on the surrounding area must be maintained Airport development requires a long-term financial commitment of the City, but one that will leverage a ROI of between 8 and 10:1. The priorities and timing of airport improvements are heavily influenced and dependent on FAA policies and decisions 9
10 10
11 The Airport Area has all the elements to be a successful master-planned area of Greater Prescott The land and zoning can attract new businesses and create new jobs (in an already proven location for manufacturing) The Area is well-situated in the center of the Quad City region with excellent access via primary highways (SR 89 and SR 89A) Public infrastructure is in place and can be extended to undeveloped areas Partnerships and economic development agreements with engaged property owners and users will equitably share the costs of development 11
12 The Airport Area is critical to the Prescott s economic future Coordinate annual investments through departmental budgets to realize the Area s economic potential Strengthen relationships with granting agencies; the importance of FAA/ADOT/ACA funding can not be overstated Reduce the need for General Fund allocations Organize budget, development, and policies in FY 16 to initiate a long-term Airport Area economic development effort 12
13 Create partnerships with property owners, investors and developers More than 4,000 new housing units have been approved along SR 89A in Prescott and Prescott Valley Prepare demographic and consumer reports on the Airport Area Market the City s SR 89 and SR89A corridors to hotels, grocery stores, home supply centers, specialty retailers, restaurants, and convenience stores Initiate research and marketing efforts in the current City fiscal year 13
14 The Airport Area currently hosts more than 1,500 manufacturing jobs Plan and provide infrastructure on a case-by-case basis to support this effort Update the City s economic development incentive policy Marketing of the Airport Area (and City) will be an ongoing activity of the Department of Economic Initiatives annual work program Conduct targeted campaigns and direct sale missions to companies and site selection firms Research and encourage the development potential of specialized industry business parks (and commercial centers) 14
15 Explore tools that can help broaden the mix of home types and prices for young families and firsttime homebuyers Employer recruitment and retention of employees will benefit from a housing market that can better accommodate young families Research the market utility and legal requirements of a Community Land Trust (CLT) in the Airport Area in FY 16 Work with property owners, homebuilders, and other community partners in FY 17 to implement a CLT if found to be feasible 15
16 Enhance the operational platform of PRC to maximize its economic impact and service to area residents starting in FY 16 Effort will require a sustained commitment on the part of the City (15 to 20 years) Enable PRC to successfully compete for improved air passenger service to expanded destinations Total projected capital cost of improvements: Federal/State - $50 million Local share - $6 million (not including recurring maintenance and repair) Note: Timing of projects and capital investment will be determined primarily by market conditions, and FAA/ADOT policies and priorities 16
17 Extend Runway 3R-21L by 2,000 to a new length of 9,615 and strengthen the entire runway to 150,000 lbs. (design standard for the new USFS loading pads) - $20 million FAA/ADOT and $3 million Local) Enable new generation USFS air tankers to operate at PRC without waivers Reduce the density-altitude constraint at PRC (take-off weight, runway length + temperature + elevation) City owns sufficient acreage to extend 3R-21L to 9,000 but additional land (70 to 160 acres) is needed to fully extend and protect the long-term viability of the runway The extended runway will enhance the City s ability to retain Essential Air Service (EAS) and attract additional air carriers 17
18 The runway extension will trigger several other safetyrelated projects at PRC: Runway EIS, land acquisition, lighting, etc. - $5 million Relocate Taxiway Charlie - $8 million New Air Traffic Control Tower - $7 million ARFF station/maintenance facility relocation - $5 million These projects are expected to take years to complete Total runway and safety-related projects costs - $42 million (FAA/ADOT) and $3 million (Local) Local share for runway and safety-related projects equates to $165,000 - $200,000 annually (Airport budget) Formal discussions with FAA will be initiated at Council direction Note: City will examine creative ways to acquire the necessary acreage to protect the runway(s) and hold down costs (e.g. avigation easements, ground leases, and transfer development rights (TDRs) while still meeting FAA guidelines. 18
19 Relocation of Taxiway Charlie is incompatible with the existing terminal location The current terminal is 57 years old and the cost of repairing, upgrading, and maintaining the terminal into the future is becoming cost prohibitive An extended runway elevates the need for a new terminal A terminal siting assessment is needed to determine the location (FY 15 and FY 16) Cost of a new terminal building- $5 million (8,000 to 10,000 sf with interior improvements and furnishings); includes $2 million local share Does not include costs of infrastructure (water and sewer, parking, streets, and sidewalks) as these costs could vary greatly depending upon the siting decision. 19
20 USFS is an anchor tenant USFS provides a significant public service to Prescott and Northern Arizona The City and USFS are collaborating on apron and facility improvements at the Prescott Fire Center at a total cost of $2.6 million (FY 15) $1.44 million - ADOT grant to Prescott $1.0 million - USFS budget allocation $166,000 Local share USFS is planning other improvements A new 20-year lease is being negotiated with USFS 20
21 21
22 Recommendations Matrix 22
23 Steering Group Key Economic Development Recommendations for the Airport Area D R A F T Goal Recommendation Justification Estimated Cost Implementation Timing Integrate planning of the Airport Area to achieve a live, work, and play environment. Sequence 1 Provide stable and sustainable funding source(s) to implement the Airport and Airport Area recommendations. 2 Facilitate new commercial shopping venues along SR 89 and SR 89A by working closely with private sector developers, property owners, and investors. The Airport Area has all the elements to be a "masterplanned community" where new jobs are created, new homes are delivered, and lifestyle amenities and services are attracted to create an integrated living environment. These elements include vacant and appropriately zoned lands, engaged property owners, infrastructure, and location. The Airport Area is important to the economic future of Prescott. Annual investments must be made if it is to realize its economic potential in the form of new jobs, new purchasing power, and new retail taxable sales. SR 89 and SR 89A will see significant Airport Area development over the next three to five years including the new YRMC complex, Granite Dells Estates (200 homes in Phase 1), and Glassford Heights (3,500 SF homes in Prescott Valley) that will drive the demand for new commercial developments and retail services. - Hotel development firms are showning interest in the Airport Area. Service delivery models for the provision of public Leverage the City's existing infrastructure as a utilities have been prepared for pieces of what now strategic planning and development tool to constitutes the Airport Area, however, additional analysis provide service to non-served areas, support is needed to better calculate the costs for the actual newly new economic development opportunities, and annexed acreage. manage water resources. To be determined. Sourcing of funds is likely to include regular department budgets and Economic Development Agreements with the private sector. Infrastructure costs are to be determined on a project by project basis. Several roadway improvements are needed to support employment growth and enhance area traffic circulation, especially if there is a decision to move the terminal to the southeast side of the Airport. To draw new tenants to the Airport and attract new businesses to the Airport Area additional area amenities are needed such as hotels, restaurants, grocery stores, and other retail services. Airport projects will rely on funds from FAA, ADOT and the Airport budget while the Airport Area must utilize regular department budgets, public-private partnerships, and additional annual allocations through the city General Fund. DEI staff will prepare an information packet on the Airport Area and market the material to new and existing Prescott area retailers and other service enterprises such as grocery stores, leisure and entertainment facilities, and convenience stores. Annual DEI work programs. FY 16 FY 15 and FY 16 3 Promote the Airport Area as the City's primary center for new and expanding manufacturing operations and provide the necessary infrastructure to support this effort. The Airport Area has a ready supply of vacant Marketing of the Airport Area will be an ongoing activity industrially-zoned land that is central to the economic of DEI and its Economic Development Division's annual future of Prescott. The Airport Area can become the budget. Overall marketing and advertising budget for FY manufacturing employment center of the Prescott 15 is $18,000. Region and N. Arizona. - The City needs to update its incentive policy as part of - The area already contains 1,500+ manufacturing jobs, this economic development effort. The policy was last the largest concentration in the Prescott Region. updated in Retail jobs will continue to be created throughout the city. 4 Determine the feasibility of creating a Community Land Trust to help broaden the Market forces over the last decade suggest Prescott's housing mix will stay within a fairly narrow product No cost during research phase. If implemented, may require some specialized legal work. mix of housing types and prices in the City of range that is unaffordable and ill-suited to many young Prescott and actively pursue associated opportunities. families and first-time homebuyers. Prescott's workforce, employers, and economic vitality will benefit from a housing mix that appeals to a broader crosssection of homeowners. Conduct a marketing outreach program including an campaign and direct sales to companies and site selectors. Work with developers and property owners to create specialized-industry business parks and shopping centers. Work with Community Development and IT to create a map specific to manufacturing and sites for commercial development. Conduct research and roundtable discussions with interested parties and subject matter experts. Work with property owners, homebuilders, and other potential partners to determine the next step in the implementation process if the CLT is seen as a desireable tool in Prescott's housing development strategy. FY 15 and FY 16 DEI work program FY 16 Engagement Item Work closely with Greater Prescott Regional Economic Partnership (GPREP) and Arizona Commerce Authority (ACA) regarding Airport Area activities and opportunities. Extend the marketing reach of Prescott through out-ofstate marketing programs undertaken by GPREP and ACA. City of Prescott FY 15 membership fee for GPREP is $40,000. Maintain membership in GPREP and participate in the BAT (Business Action Team) and ACA programs. Underway and on-going 23
24 Steering Group Key Economic Development Recommendations for the Airport D R A F T Recommendation Justification Estimated Cost - M=Million Implementation Timing Goal Develop PRC as a Commercial Local Airport (Non-Primary Commercial Service Airport) The goal is to enhance the operational platform of PRC over the next 15 to 18 years in order to maximize its economic impact, support the creation of new jobs at the Airport and in the Airport Area, and prepare the airport to compete for improved air passenger service by regional carriers in the future. $50M (FAA/ADOT), $5M (Local) = $55M total - Note: depending upon the project and FAA priorities, the local investment is likely to occur over 15 to 18 years The Commercial Local Airport option is a long term economic development outcome that will require a total investment of $50 million in potential state and federal grant funds. Local grant matching and development funds are projected at $5 million. The DEI staff will look to leverage local dollars and jobs with potential ACA funding. Infrastructure improvements have been initiated in FY 15 with annual improvements slated for the next 15 to 18 years. Sequence 1a. Lengthen Runway 3R-21L a minimum of 2,000 feet and strengthened the entire runway to support 150,000 #'s (a weight consistent with USFS planning on their new aircraft loading pads at the Prescott Fire Center). This action will also require land acquisition of a minimum of 70 acres up to 160 acres to protect the viability of the runway into the future. 1b. Replace the existing airport terminal. (Note: Construction of a new terminal may also require the construction of a new access road depending on a final terminal location.) 2 Work closely with USFS/Prescott Fire Center to achieve long-term tenancy and make facility improvements. Engagement Item Enlist the support of Arizona's congressional delegation to successfully compete for FAA Discretionary funding (in support of various airport infrastructure needs for existing and future airport tenant operations). The Airport should be able to accommodate 90% of existing corporate aircraft fleet and the next generation of USFS aircraft (without the use of waivers) as well as attract new regional carriers and accommodate their aircraft fleet. - Overcome density altitude issues of PRC - The City owns sufficient acreage to extend Runway 3R-21L 1,600 beyond which land must be acquired - Plans for an upgraded runway helps efforts to retain EAS - EAS agreement expires in April 2015 FAA indicates that Taxiway Charlie must be moved 75' to the north to meet guidelines for separation from 3R-21L. - The taxiway re-alignment is incompatible with the location of the existing terminal. - The cost of repair, upgrading, and routine maintenance of the current terminal is becoming prohibitive. - An extended runway hastens the need for a new terminal. $45M (FAA/ADOT), $3M (Local). Associated with the runway improvements, additional infrastructure is necessary for safety compliance: - EIS, land acquisition, grading, lighting, etc., $5M; - ATCT relocation, $7M; - ARFF/Operations facility relocation, $5M; - Parallel Taxiway (Charlie) relocation, $8M; - Lengthen primary runway 2,000' and strengthen entire runway length to 150,000 lbs., $20M. *Note: Due to cost, the City will investigate creative ways to acquire the acreage in consultation with property owners and FAA. $5M (FAA/ADOT), $2M (Local). Initial phase is for design and construction of 10-12,000 SF facility. Estimate does not include infrastructure (streets, parking, utilities, sidewalks, etc). FAA guidelines suggest it is more appropriate to plan for cost sharing on a new terminal at 60% Federal/40% (Local). - A Terminal Siting Assessment is needed to provide a definitive cost estimate for a new terminal ($41,000) - A new terminal will also help strengthen EAS service which is strategically important to PRC's positioning for grant dollars. The USFS provides an essential public safety service Total funding for FY 15 is $2.6 million during fire season. The Prescott Fire Center has taken on $1.44 million (ADOT) additional regional fire management functions in the $1,000,000 (USFS) past two years. USFS is planning other projects that will $160,000 (Local) enhance the Center's fire fighting capacity. A new 20-year USFS lease is being negotiated at PRC. The FAA Airport Improvement Program (AIP) has limited funds, and it will be difficult to justify this amount of funding through the normal AIP program channels. Legislative and Congresssional support will be critical in obtaining funding for necessary airport infrastructure needs. Select projects for congressional support: e.g. $7M Air Traffic Control tower (ATCT) relocation and construction; $7M Aircraft Rescue & Firefighting (ARFF) facility relocation and construction; various additional federal grant awards through the FAA Discretionary Fund program. Initiate planning and discussions with FAA and ADOT concerning the City's visioning process. Convey the purpose and direction for Airport development as the City builds its case for significant Airport improvements. The City's vision and commitment to the Airport is captured in the FY 15 projects related to the USFS. A Siting Assessment would be started in FY 15 and completed in early FY 16. Key issues are acreage requirements, access road, expansion capacity, and cost. The USFS and PRC/ADOT are partnering to improve pavement surfaces at the Fire Center to support larger fire suppression aircraft and construct additional fire fighting facilities. A 20-year lease extension with the USFS is currently being negotiated. FAA Discretionary Finds are limited and highly competitive. The funding process could take 3 or 4 years with a fully engaged Congressional delegation. FY 15 and subsequent FY years. The Airport will seek funding from FAA for terminal design services once the runway extension project has been prioritized. FY 15 and FY 16 FY 16 24
25 Goal Steering Group Key Economic Development Recommendations for the Airport Area Recommendation Justification Estimated Cost Integrate planning of the Airport Area to achieve a live, work, and play environment. Sequence 1 Provide stable and sustainable funding source(s) to implement the Airport and Airport Area recommendations. The Airport Area has all the elements to be a "masterplanned community" where new jobs are created, new homes are delivered, and lifestyle amenities and services are attracted to create an integrated living environment. These elements include vacant and appropriately zoned lands, engaged property owners, infrastructure, and location. The Airport Area is important to the economic future of Prescott. Annual investments must be made if it is to realize its economic potential in the form of new jobs, new purchasing power, and new retail taxable sales. Service delivery models for the provision of public utilities have been prepared for pieces of what now constitutes the Airport Area, however, additional analysis is needed to better calculate the costs for the actual newly annexed acreage. To be determined. Sourcing of funds is likely to include regular department budgets and Economic Development Agreements with the private sector. 2 Facilitate new commercial shopping venues along SR 89 and SR 89A by working closely with private sector developers, property owners, and investors. SR 89 and SR 89A will see significant Airport Area development over the next three to five years including the new YRMC complex, Granite Dells Estates (200 homes in Phase 1), and Glassford Heights (3,500 SF homes in Prescott Valley) that will drive the demand for new commercial developments and retail services. - Hotel development firms are showning interest in the Airport Area. Infrastructure costs are to be determined on a project by project basis. Several roadway improvements are needed to support employment growth and enhance area traffic circulation, especially if there is a decision to move the terminal to the southeast side of the Airport. To draw new tenants to the Airport and attract new businesses to the Airport Area additional area amenities are needed such as hotels, restaurants, grocery stores, and other retail services. 3 Promote the Airport Area as the City's primary center for new and expanding manufacturing operations and provide the necessary infrastructure to support this effort. The Airport Area has a ready supply of vacant industrially-zoned land that is central to the economic future of Prescott. The Airport Area can become the manufacturing employment center of the Prescott Region and N. Arizona. - The area already contains 1,500+ manufacturing jobs, the largest concentration in the Prescott Region. - Retail jobs will continue to be created throughout the city. Marketing of the Airport Area will be an ongoing activity of DEI and its Economic Development Division's annual budget. Overall marketing and advertising budget for FY 15 is $18, The City needs to update its incentive policy as part of this economic development effort. The policy was last updated in Determine the feasibility of creating a Community Land Trust to help broaden the Market forces over the last decade suggest Prescott's housing mix will stay within a fairly narrow product No cost during research phase. If implemented, may require some specialized legal work. mix of housing types and prices in the City of range that is unaffordable and ill-suited to many young Prescott and actively pursue associated opportunities. families and first-time homebuyers. Prescott's workforce, employers, and economic vitality will benefit from a housing mix that appeals to a broader crosssection of homeowners. Engagement Item Work closely with Greater Prescott Regional Economic Partnership (GPREP) and Arizona Commerce Authority (ACA) regarding Airport Area activities and opportunities. Extend the marketing reach of Prescott through out-ofstate marketing programs undertaken by GPREP and ACA. City of Prescott FY 15 membership fee for GPREP is $40,
26 Steering Group Key Economic Development Recommendations for the Airport Recommendation Justification Estimated Cost - M=Million Goal Develop PRC as a Commercial Local Airport (Non-Primary Commercial Service Airport) The goal is to enhance the operational platform of PRC over the next 15 to 18 years in order to maximize its economic impact, support the creation of new jobs at the Airport and in the Airport Area, and prepare the airport to compete for improved air passenger service by regional carriers in the future. $50M (FAA/ADOT), $5M (Local) = $55M total - Note: depending upon the project and FAA priorities, the local investment is likely to occur over 15 to 18 years Sequence 1a. Lengthen Runway 3R-21L a minimum of 2,000 feet and strengthened the entire runway to support 150,000 #'s (a weight consistent with USFS planning on their new aircraft loading pads at the Prescott Fire Center). This action will also require land acquisition of a minimum of 70 acres up to 160 acres to protect the viability of the runway into the future. 1b. Replace the existing airport terminal. (Note: Construction of a new terminal may also require the construction of a new access road depending on a final terminal location.) The Airport should be able to accommodate 90% of existing corporate aircraft fleet and the next generation of USFS aircraft (without the use of waivers) as well as attract new regional carriers and accommodate their aircraft fleet. - Overcome density altitude issues of PRC - The City owns sufficient acreage to extend Runway 3R-21L - Plans for an upgraded runway helps efforts to retain EAS - EAS agreement expires in April 2015 FAA indicates that Taxiway Charlie must be moved 75' to the north to meet guidelines for separation from 3R-21L. - The taxiway re-alignment is incompatible with the location of the existing terminal. - The cost of repair, upgrading, and routine maintenance of the current terminal is becoming prohibitive. - An extended runway hastens the need for a new terminal. $45M (FAA/ADOT), $3M (Local). Associated with the runway improvements, additional infrastructure is necessary for safety compliance: - EIS, land acquisition, grading, lighting, etc., $5M; - ATCT relocation, $7M; - ARFF/Operations facility relocation, $5M; - Parallel Taxiway (Charlie) relocation, $8M; - Lengthen primary runway 2,000' and strengthen entire runway length to 150,000 lbs., $20M. *Note: Due to cost, the City will investigate creative ways to acquire the acreage in consultation with property owners and FAA. $5M (FAA/ADOT), $2M (Local). Initial phase is for design and construction of 10-12,000 SF facility. Estimate does not include infrastructure (streets, parking, utilities, sidewalks, etc). FAA guidelines suggest it is more appropriate to plan for cost sharing on a new terminal at 60% Federal/40% (Local). - A Terminal Siting Assessment is needed to provide a definitive cost estimate for a new terminal ($41,000) - A new terminal will also help strengthen EAS service which is strategically important to PRC's positioning for grant dollars. 2 Work closely with USFS/Prescott Fire Center to achieve long-term tenancy and make facility improvements. The USFS provides an essential public safety service during fire season. The Prescott Fire Center has taken on additional regional fire management functions in the past two years. USFS is planning other projects that will enhance the Center's fire fighting capacity. Total funding for FY 15 is $2.6 million $1.44 million (ADOT) $1,000,000 (USFS) $160,000 (Local) A new 20-year USFS lease is being negotiated at PRC. Engagement Item Enlist the support of Arizona's congressional delegation to successfully compete for FAA Discretionary funding (in support of various airport infrastructure needs for existing and future airport tenant operations). The FAA Airport Improvement Program (AIP) has limited funds, and it will be difficult to justify this amount of funding through the normal AIP program channels. Legislative and Congresssional support will be critical in obtaining funding for necessary airport infrastructure needs. Select projects for congressional support: e.g. $7M Air Traffic Control tower (ATCT) relocation and construction; $7M Aircraft Rescue & Firefighting (ARFF) facility relocation and construction; various additional federal grant awards through the FAA Discretionary Fund program. 26
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