Posted: 7:00 a.m.
Tuesday, Oct. 6, 2015
Butler County to focus on airport funding
By http://www.journal-news.com/staff/denise-g-callahan/" rel="nofollow - Staff Writer
BUTLER COUNTY —
Butler County has moved into a taxiing rather than
take off mode in developing plans to better Hogan Field, the regional airport.
More
than two months ago, the county ratified a new five-year deal with its
fixed-base operator Cincinnati
Jet Center,
and as a result, the finances at the airport have improved. County officials
say they want to take a deliberative approach to improving the asset that had a
$40.6 million economic impact on the area in 2014.
County Administrator Charlie Young said
they have been meeting informally with surrounding communities to gauge what
they and their businesses need the airport to be. He said full scale group
discussions will likely resume in the spring. A year ago, the county approached
several other jurisdictions about contributing cash to help with FAA matching
funds for projects. The commissioners then backed off, saying they needed to
get a better handle on airport finances.
“We
are really moving much slower now than we were previously,” Young said. “We’ve
got the finances into a little better position than they were before and that
was one of the commitments we made well over a year ago when we first began
having discussions with other communities. We still have some opportunities we
can put into play.”
The
amended contract with Cincinnati Jet includes a $3,105 rent increase with an
automatic 2 percent — or equal to the consumer price index whichever is higher
— increase, bringing the total up to $33,407. The fuel fees paid to the county
will go from 8 cents to 12 cents, with two, 2-cent hikes in subsequent years.
The
contract also calls for Cincinnati Jet to implement a business plan that
includes “viable plans for the FBO’s future operation, growth and expansion”
for the airport. The commissioners have long lamented the airport is not
self-sustaining.
According
to the study the county commissioned, it cost $257,133 to run the airport last
year, and revenues from the leases, gas and other sources came in at $259,843.
This year revenues are only expected to top expenses by $9,277 but that does
not include the $154,912 debt service payment.
The
study also said sharing an airport manager with Middletown could make fiscal sense. Young
said there is no hurry on that front either, but they are still interested in
holding the discussions.
“We
are really just getting our ducks in a row out at the airport and thinking
things through since we’ve gotten the extended agreement with our fixed base
operator,” Young said. “We are just taking a hard look at things Middletown has the study
and we’ll be getting back together with them. They had some plans for some
things that they want to do at their airport as well. I think it would make
sense to wait until they get some of those things taken care of.”
Matt Eisenbraun, the city’s economic
program manager, said he will be traveling to Detroit on Thursday to meet with the Federal
Aviation Administration to discuss the city’s long range plans and funding
needs for the airport. With one of the largest “uncontrolled” runways in an
eight-state area, Middletown
plans to get into the “industrial aviation business.” Eisenbraun said they plan
to go after companies who want to park jumbo jets there for months of repairs.
“We’re going to move forward with
projects and getting the FAA on board with your plans and your project is a
good thing, doing that as early in the process as possible” Eisenbraun said.
“Basically, we’ll say, here’s what we’re looking at for the next five years;
are you pretty much in agreement?”
The
FAA pays for 90 percent of major projects at airports and now the Ohio
Department of Transportation has also stepped up, increasing funding from
around $800,000 to $6 million a year for the next two fiscal years, to be used
at airports like those in Butler
County.
The
county commissioners recently approved applying for $116,993 of the state
allocation to replace lighting at the airport. Rogers
said they are focusing on budget items like this grant right now, talks with Middletown and other
jurisdictions will come later.
“We’re
not going to do anything until after the first of the year because we’re busy
on these other things with the budget process,” Rogers said.
ECONOMIC IMPACT OF BUTLER COUNTY AIRPORTS
The
Ohio Department of Transportation recently issued a study of the impact of the
state’s airports on economic development. They measured the number of jobs and
payroll attributable to airport activity as well as the output, or the value of
goods and services linked to that activity.
BUTLER COUNTY
REGIONAL AIRPORT
Jobs: 334
Payroll: $12.5 million
Output: $40.6 million
MIDDLETOWN’S HOOK FIELD
Jobs: 269
Payroll: $6.8 million
Output: $22.2 million
MIAMI UNIVERSITY
AIRPORT
Jobs: 8
Payroll: $302,000
Output: $913,000
Source: Ohio Department of Transportation
|