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HomeMy WebLinkAbout[08a] St. Cloud Airport SupportUff OF ST. JOSEPH Council Agenda Item 8(a) MEETING DATE: August 4, 2011 AGENDA ITEM: St. Cloud Airport Support SUBMITTED BY: Administration BOARD /COMMISSION /COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: BACKGROUND INFORMATION: The City of St. Cloud is requesting the area Cities and Counties to support their efforts in securing a SCAD grant to encourage commercial air travel back to St. Cloud. They are looking for both financial and residential support. It is my understanding that the City of Sartell was considering on Monday evening a contribution of $ 1,000. Waite Park will not be acting until August 15 and I am uncertain as to when Sauk Rapids will be considering. Please see additional information that follows this cover sheet. I have also forwarded this request for the EDA for possible funding through their CIP BUDGET /FISCAL IMPACT: ATTACHMENTS: Request for Council Action ............................. 8(a):1 -2 City of S. Cloud Request ... ............................... 8(a):3 Resolution supporting efforts ........................ 8(a):4 REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute resolution 2011- 018 supporting the grant funding of the St. Cloud Regional Airport and determine if a financial contribution will be forwarded. 8(a):1 THIS PAGE INTENTIONALLY LEFT BLANK 8(a):2 RESOLUTION 2011 -018 Resolution of support for an application to the US DOT for a Small Community Air Service Development Grant To help enhance air service at the St. Cloud Regional Airport. Whereas, the City of St. Joseph is part of the St. Cloud Regional Area, partnering with the area Cities to promote and sustain the region through various economic endeavors; and Whereas, the City of St. Joseph continuously strives to attract and retain businesses /industry and in doing so, the City relies on regional services such as air service /transportation; and Whereas, the St. Cloud Regional Airport lost regularly scheduled commercial air service on December 31, 2009, when Delta Air Lines withdrew service; and Whereas, many studies throughout the United States have confirmed that commercial air service is critical to the economic growth and stability of a region; and Whereas, the reinstatement of commercial air service will bring the TSA back to the Regional Airport which will also trigger the return of charter service for vacation travelers and other commercial opportunities; and Whereas, the Small Community Air Service Development (SCASD) program is designed to provide financial assistance to help small communities, which are underserved, enhance their air service; and Whereas, members of the St. Cloud area have supported the efforts of the City of St. Cloud to continue air service with corporate gifts exceeding $ 55,000 in support of the grant application. BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ST. CLOUD, MINNESOTA, THAT: The City of St. Joseph, MN, hereby supports the application of a $ 750,000 Small Community Air Service Development grant to the US DOT to help enhance air service at the St. Cloud Regional Airport. Adopted this day of .2011. ATTEST Judy Weyrens, Administrator Rick Schultz, Mayor 8(a):3 Members of the City Councils: Thank you for considering support for a Small Community Air Service Development Program (SCASD) grant application for the St. Cloud Regional Airport. A successful application is vital to encouraging commercial air service back to the St. Cloud region. Our goal is to encourage service from St. Cloud to Chicago. The Federal SCASD grant will provide funding to guarantee a commercial air carrier a minimum level of income during the first year of operations. During that first year, we are confident that a profit will be shown and air service will continue without a revenue guarantee. The grant application is for $750,000. The application needs to be supported by local dollars. It is important to have financial commitments from various jurisdictions to provide matching funding and strengthen the show of support. A significant application measure is "community participation" demonstrated by financial commitment: "Full community participation is a key goal of this program as demonstrated by the statute's focus on local contributions and active participation in the project. Therefore, applications that demonstrate broad community support will be more attractive. For example, communities providing proportionately higher levels of cash contributions from other than airport revenues will have more attractive proposals. Communities that provide multiple levels of contributions (state, local, airport, cash and in- kind contributions) also will have more attractive proposals" (US DOT, SCASD Grant Order). We think we can provide a 15% cash match from a variety of sources. Local businesses and industries have provided $55,000 to date. The City of St. Cloud will provide $20,000 in cash and can waive airport fees well in excess of $100,000. The City is requesting $10,000 each from Sherburne, Stearns, and Benton Counties. The Cities of Sartell, Sauk Rapids, St. Joseph, Waite Park, and St. Augusta have been asked to contribute smaller amounts, hopefully $1,000 each. We believe we need to organize the best possible application for this grant for the following reasons: 1. The attraction of a commercial air carrier is atop goal for the City of St. Cloud, the new Greater St. Cloud Area Economic Development Corporation, and the Central Minnesota Community Priorities chaired by the Initiative Foundation and the Central Minnesota Community Foundation. 2. This grant is the most important tool for attracting commercial air service. 3. The funding for the SCASD program is elevated this year; but, we think it will be the last year of SCASD grants. 4. It is a priority for many businesses and industries dependent upon efficient travel options. 5. The reinstatement of commercial air service will bring the TSA back to the Regional Airport which will also trigger the return of charter service for vacation travelers and other commercial opportunities. 6. Local businesses and industries are supporting the application with +$55,000. 7. The Regional Airport is not eligible for Essential Air Service (EAS) funding (ongoing air carrier subsidy). Thank you, Michael Williams, City Administrator 8(a):4 Sarah Bialke From: Judy Weyrens Sent: Tuesday, August 02, 2011 12:51 PM To: Sarah Bialke Subject: FW: County Support for the SCASD Grant From: Michael Williams [mailto: Michael .Williams @ci.stcloud.mn.us1 Sent: Tuesday, August 02, 2011 12:41 PM To: Judy Weyrens; <ROLSON(5)ci.sauk- rapids.mn.us >; <sjohnson(@waitepark.org >; McCabe, Bill; Patti Gartland Subject: County Support for the SCASD Grant Hello: This morning, the three counties of Benton, Sherburne, and Stearns each approved a resolution of support and an appropriation of $10,000 toward the community match for the Federal SCASD Grant. We continue to solicit support from the private sector and expect the $55,000 to grow. I hope the memo I sent yesterday was helpful; but, If you need anything else from me prior to your City Council meetings, please do not hesitate to contact me. Thanks. City Administrator michael.williams @ ci.stcloud.mn.us www.ci.stcloud.mn.us 8(a):5