DULUTH INTERNATIONAL AIRPORT An Economic Engine in our Region Brian Ryks Executive Director Duluth Airport Authority
Duluth Airport Authority Mission/Vision: The Duluth Airport Authority is dedicated to providing safe, secure, customer friendly and progressive air transportation facilities that serve the traveling public and promote economic growth throughout the region.
A Regional Asset 3,100 Acres 10,100 Primary Runway 5,700 Crosswind Runway Instrument Approaches to all Runways Available Property for Development Duluth International Airport Feb 7, 2007
DULUTH AIRPORT AUTHORITY Operating Budget for FY 2008 Revenues Expenses Space Rental $ 1,362,500 Payroll $ 1,061,700 Parking Lot Fees $ 702,600 Employee Benefits $ 672,900 Landing Fees $ 377,200 Utilities $ 480,000 Car Rental Commissions $ 389,000 Repairs and Maintenance $ 470,100 State Aid for Maintenance & Operation $ 188,900 Airport Security $ 185,100 TSA Fees - Law Enforcement $ 87,600 Operating Supplies $ 235,000 Fuel Flowage Fees and Fuel Sales $ 208,000 Insurance $ 92,600 Utility Sales $ 70,700 Professional Services $ 120,000 Other - ANG Joint Use Agreement $ 27,500 Other - Admin Fee-City $ 45,200 - Display Advertising $ 13,000 - Travel $ 30,000 - Restaurant Concessions $ 5,000 - Cost of Goods Sold $ 60,000 - Sky Harbor Rent/Concessions $ 35,700 - Vending Machine Concessions $ 6,000 - Other Concession Fees/Misc $ 34,700 total $ 3,508,400 total $ 3,452,600 Other 4% State Aid 5% TSA 2% Utility Sales 2% Parking 20% Car Rental 11% Repairs & Maint 13% Insurance / Other 8% Operating Supplies 7% Professional Services 3% Salaries & Benefits 50% Space Rental 39% Fuel Flowage Fees and Sales 6% Landing Fees 11% Security 5% Utilities 14%
2008 Non Operating Revenue - $767,500 Refunds, Reimbursments, Marketing Grants & Misc 7% Interest Income 9% $40,000 $52,500 Passenger Facility Charge 84% $675,000
Former Air Force Base 2,000 Employees Closed in 1982 Airbase Reuse Plan Federal Prison Feb 7, 2007
Air Service - Don t Bank On It! NWA to MSP 5X Daily NWA to DTW 2X Daily FEDEX to MEM Daily Allegiant to LAS 2X Weekly Charter
Total Passengers 400,000 350,000 300,000 250,000 253,454 316,912 305,750 289,065 349,447 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006 2007 75% increase from 1974 when existing terminal opened
Northwest & Delta Combined Route Maps
Allegiant Air Service Area
The Former FBO - North Country Aviation Feb 7, 2007
Quality FBO = Investment & Opportunity
Increase in International & Charter Traffic
NCA / Monaco Fuel Flowage Concessions 100,000 80,000 $94,906 $99,681 60,000 40,000 20,000 $16,232 $15,830 0 2003 NCA 2004 NCA 2006 Monaco 2007 Monaco
Corporate / GA Re-Development Plan Southwest Quadrant Feb 7, 2007
U.S. Army Deicing Team - 2008
Northwest Airlines Airbus Maintenance Facility 189,000 sq. ft. Greenfield Hangar 400 employees Avg. Wage $31.00/hr Opened 1992 Vision North American Headquarters for Airbus Maintenance Spin-off Industry 2005 AMFA Strike Facility Closed Feb 7, 2007
The Cirrus Story Needs: Vision: create the first GA composite airplane with a parachute Baraboo, WI company with 40 employees Airport with airspace capacity Financial package for new building Quality Workforce Support infrastructure Feb 7, 2007
Cirrus Phase I (1993) 1993- Cirrus site search Airport with airspace Stand behind financial incentives Quality of life to support growth Duluth response: Understanding the aviation industry Financial incentive package Community support structure
Cirrus Phase II (1993) Headquarters Building Tax increment financing City utilities Duluth 1200 fund loan Minnesota Power loan State equipment loan 30,000 sq. ft. Feb 7, 2007
Cirrus Phase III (1997) Headquarters expansion Tax increment financing 1200 Fund loan State job training grant 111,000 sq. ft. Feb 7, 2007
Duluth Aviation Economic Development Plan (1997) South Area Plan
Duluth Aviation Economic Development Plan (1997) North Area Plan
Cirrus Expansion - Five Phases Office, Engineering, Manufacturing, R&D Expansion/US AFB pollution cleanup Sources of Funding Duluth 1200 Fund loans Tax Increment Financing State Pollution Cleanup Grant State fixed asset loan City/County tax abatement MN Power Loan State Equipment Loans State MIF Loan Federal EDA grant State Job Training Grant City Bonds Manufacturing Engineering Customer Delivery & Paint Facility Service facility
Cirrus Design Inc. 1,000 employees in Duluth 350 employees in Grand Forks, ND R & D for new jet 2007 Cirrus Owners Migration Feb 7, 2007
2007 Cirrus Product Introductions $95k - $125k $199k - $565k Jet Engine/Performance Powerplant: Williams FJ33-4A-19 1800+ lbs thrust Performance goals: 61 kts stall speed Near 3000 ft/mn 2100 useful load $1.0M SRS Engine/Performance Powerplant: Rotax 912S (100 bhp) Cruise: 120 KCAS (LSA Max Limit) Fuel capacity: 18.6 US gal Fuel type: premium mogas or avgas (100 LL) SR22 Engine/Performance Powerplant TCM IO-550-N Horsepower 310 HP Gross Weight 3400 lbs Cruise Speed 185 KTAS
Cirrus Phase VI Lease 189,000 sq. ft. of former NWA hangar- Cirrus North 20 year lease 15 acre site with 25 acres for expansion Revenue for DAA
Spin-off Businesses
Local Impact: Duluth July COPA migration brings 625 guests to Duluth for a three day event. July & August Cirrus hosted our annual Supplier Symposium 140 suppliers visit Duluth for a three day session. Constant supplier and vendor negotiations. Results in local economies? Customer Deliveries (additional local impact) 650 aircraft deliveries Average of 1.5 guests per delivery Average of four days in delivery and training 3,900 Room nights in local lodging 550 to 600 car rentals 10,000 to 11,000 meals Other entertainment / tourism options for guests
Local Impact Duluth: Purchased Products (Local Twin Ports) $17,500,000 in 2007 Goods & Services for inclusion into SR20 and SR22 Aircraft Does not include CDC payroll Purchased Products (Local State of Minnesota) $41,000,000 in 2007 Goods & Services for inclusion into SR20 and SR22 Aircraft Does not include CDC payroll Payroll Calculation for CDC Duluth $50,000,000 in 2007
1.3 Billion Regional Economic Impact Direct Indirect Induced Total Employment 2,309 954 1,171 4,434 Output/Sales $599.1 $146.8 $114.2 $861.0 Value-added $146.9 $58.4 $66.0 $271.2 Labor income $132.6 $40.4 $34.6 $207.6 Sources: AEO/DEED impact analysis; Duluth Airport Authority; Duluth Air Nat l Guard; IMPLAN Version 2.0.1025
Project Budget - $2,862,065 Funding Federal EDA $1,431,033 MN State Airports Fund $560,000 MN DEED - $250,000 St. Louis County - $250,000 Monaco Air Duluth - $371,033 The Future - North Business Development Area
Airports Role in Economic Development Primary Responsibility Safe & Secure Operating Facility for Traveling Public Maintaining Existing Assets Improvements that Enhance Competitiveness Air Service Development
Airports Role in Economic Development Ability to leverage alternative funding sources FAA AIP, Entitlement & Discretionary (non-exclusive use) State Aeronautics Trust Fund Military Cooperative Construction Agreements FAA Assurances Aviation Related business first Fair Market Value (fair market vs. ability to compete nationally) 14,000,000 Capital Grants Revenues 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7
Airports Role in Economic Development Requires Multiple Partners Economic Development Organizations Existing Business State & Federal Development Agencies City, County, State, Federal Delegations
Airports Role in Economic Development Challenges Perception of Liability Air Service (Deregulation/Re-regulation?) Reliable Partners (State of MN) Local share dollars for major improvements Tax Revenue?? Required to provide many of the same things Cities provide without the benefit of tax revenue Comparison to City Development of Industrial Parks Considerations View the Airport as an Economic Development Project Value it as a Job Creator Gateway to the world (1 mile of highway vs, 1 mile of runway)
Welcome To Duluth
Existing Screening Limitations & Congestion 10/10/07
Our Brand Promise
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