Squint s Ranch and Airport Lake Arrowhead, CA Airport Project Summary
The Lake Arrowhead Airport at The Lost Ranch is a valuable asset to the surrounding communities. Not only does it provide residents and visitors greater access to the mountain, it also supplies invaluable access to the local service entities including fire and emergency teams. Our short term goal is re-grade and pave the runway as well as install a pilot controlled lighting and Unicom system. The entry road is preliminary approval by the Department of Public works and once finished will be brought into the County Maintained Road System. The Lake Arrowhead Airport Project has overwhelming support by the community and has the potential to be a beautiful Lake Arrowhead destination. The Airport The Lake Arrowhead Airport (LAA) is a Federal, State, and County approved airport under California Division of Aeronautics Permit #SBD-053 issued September 14 th, 2007. It is the first airport to be permitted for commercial purposes in Southern California (Los Angeles Sectional Quadrant) in over 40 years. The airport is classified B-1 for the operation of all aircraft up to and including 12,500 lbs. The Rating is very important as it allows virtually all private aircraft and small commercial aircraft while keeping below the auspices of airports requiring additional government restrictions and regulations. This helps keep operating cost lower and allows for increased convenience for the public. The B-1 classification covers the majority of General Aviation (GA) business aircraft including King Air 90, 200, 300, Pilatus PC 12, Conquest I & II, Caravan, all VLJ s and everything below. Larger aircraft are permitted in emergency situations. The Runway is 3,650 feet long x 75 feet wide plus shoulders. Paving plans for the runway are finished and approved waiting only on funding. Pilot controlled lighting is approved. In Addition, Unicom frequency 123.075 is permitted by the FCC and a hardwired permanent instillation is due. The Unicom frequency 123.075 is unique to Lake Arrowhead Airport and is independent of receiving overlap communications from any other GA airport in Southern California. The Lake Arrowhead Airport will be the first General Aviation airport in the US to make being green a priority, all of our hangers are designed with solar panels supplying enough power to run the entire airport and ranch with excess power being sent directly to the Lake Arrowhead community. It is our utmost concern to make this Airport an asset to the residents and visitors to this beautiful mountain resort. Ash Meadows Road Ash Meadows Road is a 2.3 mile dirt road. As of September 17 th, 2009 we have received preliminary approval for a 26 foot wide paved road with approved bridge to cross over a blue line creek. We have written agreement with San Bernardino County to 2
oversee all design, approval, construction & all future maintenance upon completion. A full environmental, archaeological, botanical, and soil study has been completed, along with design and engineering for the bridge and beautiful Lost Ranch entryway. The county and U.S. Forest Service will move into the finalization and completion by the end of the year. The Preliminary approval includes the 26 foot wide two lane paved road and the railcar designed bridge. The bridge was designed with all of the unpredictable natural disasters taken into account including fires and earthquakes. It is a solid piece that will not crumble or crack in an earthquake and is made from a fire proof material. The proposed 2.1 mile road can bring guests to or from the north shore of the lake within 4-7 minutes and into the stunning Lake Arrowhead resort in 10-12 minutes. The road improvement will allow for the full development of The Lake Arrowhead Airport and The Lost Ranch with a new beautiful entrance security gate designed by Robert Morris (Shown Below). It will increase our abilities to maximize all the many profit centers of the Ranch and Airport. Design Sketch by Artist Robert Morris For Lost Ranch entrance, and example of his work from Old Town Temecula. Engineering for Bridge and example from a near by location. Streams Revenue Our first realized income will come from the sale and leasing of the hangers. Our well designed master plan includes a minimum of 74 hangers. The larger 60 by 52 3
hangers will sell for $475,000 and the smaller 42 by 40 hangers will sell for $300,000. These are comparable rates to similar size hangers at Redlands and Chino Airports. In addition to the sales, the hangers will also be available for lease $2,300 for the larger and $1,280 for the smaller. These too are competitive prices for the surrounding area. interest is very high. If you go to www.lakearrowheadairport.com there is a hanger interest form. We have already received over 50+ inquiries into both purchasing and leasing hangers at the Lake Arrowhead Airport. We used the preliminary feedback forms to establish a rough estimate of our income from hangers beginning after the completion of the road approval in spring 2010. Figure 1 shows a breakdown of projected income and totaled other income detailed in Figure 3 for the 2010 year from April to December. Income April May June July Aug Sept Oct Nov Dec Sales $300,000 $475,000 ---- 300,000 ---- ---- 300,000 300,000 300,000 ---- 300,000 475,000 ---- 475,000 475,000 ---- ---- ---- 475,000 ---- Leases $1,280 $2,300 1,280 1,280 2,560 2,560 3,840 3,840 3,840 3,840 3,840 ---- ---- ---- ---- ---- ---- ---- 2,300 2,300 Month Other Income 476,280 301,280 477,560 477,560 303,840 303,840 303,840 481,140 306,140 3,431,480 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 404,100 *estimated sales numbers based on feedback forms filed out via www.lakearrowheadairport.com Year 2010 3,835,580 4
Figure 2 shows a breakdown of projected income and totaled other income detailed in Figure 3 for the 2011 year from January to November. (Last payment month). Income Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Sales $300,000 ---- ---- 300,000 300,000 ---- 300,000 300,000 300,000 300,000 ---- 300,000 $475,000 ---- ---- ---- ---- 475,000 ---- ---- ---- ---- ---- ---- Leases $1,280 $2,300 Month Other Income 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 2300 2300 2300 2300 2300 2300 2300 2300 2300 2300 2300 6,140 6,140 306,140 306,140 481,140 306,140 306,140 306,140 306,140 6,140 306,140 2,642,540 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 44,900 493,900 *estimated sales numbers based on feedback forms filed out via www.lakearrowheadairport.com Year 2011 3,136,440 With the final approval of the road we are confident that sales of the hangers would begin. And with ease of access rentals will increase as well. The line for hanger leases is compounded over time as more hangers are leased. With the sale of a single hanger we would be able to begin payback of the loan. As stated above we are receiving numerous requests for information and several residents have already expressed interests. The s are not our only source of income. The Lost Ranch also has potential to produce a large income as well as other revenue streams from the airport described below. Our other income will include, but is not limited to 24 monthly Tie Downs and 90 overnight or transient Tie Downs. There are two heliports reserved for emergency service and 2 optional heliports. We also plan on providing FBO services including jet and 100LL fuel facilities. Our private plane will make private charters available, as well as air tours, aerial photography, and a flight school with a Certified Flight Instructor. The area gives way to fly in camping and premiere hiking. (Already a very popular getaway) Rental cars and a shuttle can also be provided for a small fee. We are able to offer a historic Pilots lounge and supply shop in the existing home. In the future we plan a high end restaurant complete with wine tasting, where guests can watch the planes take off into the sunset. The Lost Ranch also has space for a beautiful vineyard complete with an event facility perfect for weddings and special events. Where else can you fly straight from your wedding on a private charter to your honeymoon? We offer VIP services and will receive a small payment from emergency services as well as landing and overnight fees. 5
Figure 3 shows a breakdown of the fees and income from the above mentioned services. Other Income Quantity Avg. Income or fee Days Fuel Sales (Gallons) 5000 $1.00 30 $5,000.00 Monthly Tie Down 24 $250.00 30 $6,000.00 Overnight Tie Down 90 $10.00 30 $900.00 Flying Lessons (hours) 60 $145.00 30 $8,700.00 Shuttle (Eachway) 25 $20.00 30 $500.00 Aircraft Rental (Per Hour) 30 $110.00 30 $3,300.00 Aircraft Charter 20 $500.00 30 $10,000.00 Local Advertising 1 $7,500.00 30 $7,500.00 Public Service Use 1 $3,000.00 30 $3,000.00 Monthly $44,900.00 *these numbers are extremely conservative and in most cases do not take into account the possibility of numerous sales per month. The combination of the 80 acre Ranch and the Lake Arrowhead Airport opens up several opportunities for revenue. Arrowhead is already a Mountain resort destination and soon visitors can experience it in a whole new way, from the sky. Proximity to Lake Arrowhead and resort Community Lake Arrowhead is the beautiful resort community located at 5,300 ft. It is surrounded by pocket communities such as Blue Jay, Twin Peaks, Cedar Glen and Sky Forest. The permanent residents, approximately 13,000 occupy about 53% of the homes in the area. The remaining 47% are second homes used on weekends, holidays and in the summer. On a summer holiday weekend, the population swells to forty thousand, (Provided by the 2008 census). The California Division of Aeronautics and FAA require notification of all residences or entities of any kind for an airport permit or expansion of existing facilities within two statute miles from the centerline of the runway in any direction. Incredibly the nearest residence to the runway centerline is 2.1 statute miles, just outside the U.S. Forest Service boundary line. This is extremely important to mention. LAA is surrounded by USFS land, this means we will never have encroachment issues in the future that could hinder expansion and ultimately force 6
closure of the airport. LAA has the benefit of being the closest airport to this beautiful mountain community. The next GA airport is over an hour away via mountain roads which suffer from numerous seasonal and unexpected closures, i.e. rock slides, fires, snow, etc. Phase 1 Lake Arrowhead Project Cost Analysis Unicom installation and pilot lounge upgrade $24,000 Drainage infrastructure finish/slope protection $40,000 Runway regrade and finish grade for pavement $270,000 Retaining wall for runway 27 run up area $120,000 Runway, tie down and taxiway paving 4 inch section $1,100,000 Pilot Controlled Lighting $150,000 Runway, taxiway and tie-down striping/tie-down $25,000 Fuel depot for 100LL and Jet A $185,000 (PAPI) Precision Approach Path Indicators $60,000 Electric entry gate with security cameras $145,000 Engineering, design, soils, environmental permits, $200,000 Right of way, etc. to arrive at a fully approved entry road Phase 1 costs $2,319,000 Notes: Unicom installation is approved Pilot Controlled Lighting is approved Paving plans for the runway are approved This phase completes the basic components for a fully operational airport. Lights are essential for 24/7/365 operation. Fuel is critical as planes don t always have options when arriving from long distances and it is often time consuming and inconvenient to land in route to purchase fuel. Of course this is an important source of revenue as well. Having fuel onsite has another advantage when emergency services such as fire supply their own fuel the host airport still receives flowage fees. Once this phase is complete, phase II the hangers can begin immediately and all other airport related ventures. 7