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TABLE OF CONTENTS SECTION 1: INTRODUCTION ................................................1 1.1 Vision and Key Issues..............................................1 1.2 Desired End Products ...............................................3 1.3 Report Outline ....................................................4 SECTION 2: AIRPORT MISSION AND MANAGEMENT STRUCTURE ............5 2.1 Airport Mission ...................................................5 2.2 Airport Management Structure .......................................6 2.3 Other Participating Agencies.........................................8 SECTION 3: EXISTING AIRPORT CHARACTERISTICS ........................10 3.1 Introduction .....................................................10 3.2 Existing Aviation Activity..........................................18 3.3 Existing Facilities ................................................18 3.4 Existing Tenants and Users.........................................22 3.5 Airport Development Plan..........................................25 3.6 Market Analysis..................................................34 SECTION 4: BASELINE FINANCIAL OUTLOOK ..............................41 4.1 Historical Revenues and Expenses ...................................41 4.2 Baseline Forecast of Revenues and Expenses ...........................42 SECTION 5: BUSINESS PLAN ALTERNATIVES ...............................45 5.1 Area-wide Factors Supporting Growth and Development of the Airport ......45 5.2 Obstacles to Airport Performance and Goal Attainment...................50 5.3 Revenue Enhancement Options......................................51 5.4 Cost Reduction Strategies ..........................................54 5.5 Impact of Revenue Enhancement Strategies on Potential Demand...........54 SECTION 6:RECOMMENDED PLAN.........................................56 6.1 Recommended Management and Policy Actions ........................57 6.2 Revenue Enhancement Recommendations .............................60 6.3 Impact on Revenues and Expenses ...................................75 6.4 Summary of Business Plan Recommendations..........................79 6.5 Timetable and Trigger Points .......................................82 SECTION 7:AIRPORT COMMUNITY VALUE.................................85 7.1 The Multiplier or Ripple Effect ......................................85 7.2 IMPLAN Modeling...............................................86 7.3 Other IMPLAN Input Data .........................................87 7.4 Application of Regional Multipliers ..................................88 7.5 Summary of Impact Analysis........................................91 TABLE OF CONTENTS (Cont.) LIST OF FIGURES Figure 1 Griffiss International Airport Organization Chart...................7 Figure 2 Airport Location ...........................................11 Figure 3 Existing Airport Layout Plan ..................................14 Figure 4 Hangar #101 Layout ........................................20 Figure 5 Development Plan ..........................................29 Figure 6 Airport Service Area ........................................35 Figure 7 Griffiss Master Plan - Land Uses...............................72 LIST OF TABLES Table 1 Runway Characteristics......................................13 Table 2 Taxiway Characteristics......................................15 Table 3 Airport Reference Code (ARC)................................16 Table 4 Aircraft Use Sample.........................................16 Table 5 Runway Protection Zones ....................................17 Table 6 Runway Safety Areas........................................17 Table 7 Sample of Tenants: Griffiss Business & Technology Park ...........26 Table 8 Permitted Uses: Griffiss Business & Technology Park ..............27 Table 9 Airport Capital Improvement Program (ACIP)....................32 Table 10 Airport Service Area and Other Comparable Airports ..............34 Table 11 Facility Comparisons ........................................38 Table 12 Service Comparisons........................................39 Table 13 Rates and Charges Comparison................................40 Table 14 Historical Revenues and Expenses .............................41 Table 15 Baseline Forecast of Operating Revenues and Expenses ............43 Table 16 Baseline Net Deficit.........................................44 Table 17 Impact of Revenue Enhancement Strategies on Potential Demand.....55 Table 18 Revenue Totals Resulting from Revenue Enhancement Strategies.....75 Table 19 Expense Totals Resulting from Enhancement Strategies ............78 Table 20 Recommended Plan Operating Revenue v. Recommended Plan Operating Expense Comparison ...............................79 Table 21 Action Plan Trigger Points ...................................82 Table 22 Direct and Induced Economic Impacts: Griffiss International Airport . 89 Table 23 Direct and Induced Economic Impacts without Empire Aero Center ...90 TABLE OF CONTENTS (Cont.) APPENDICES Appendix A State and Local Incentive Programs Appendix B Impact of Green Technologies on Costs Appendix C Economic Impact/IMPLAN Results Griffiss International Airport Business Plan May 2010 Griffiss International Airport Business Plan 1. INTRODUCTION HE PURPOSE OF THIS BUSINESS PLAN FOR Griffiss International Airport is to recommend a plan of action to improve the Airport’s financial performance and long-term viability as a provider Tof jobs and general aviation services to Oneida County and the broader Utica-Rome metropolitan area. The plan is founded upon an understanding of current activities at the Airport and sets forth options to address a number of key areas: the Airport’s economic impact; job creation on and off the Airport; opportunities related to the Airport’s maintenance/repair/overhaul (MRO) tenants; marketing for aviation users and non-aeronautical business; high utility and facility maintenance costs; retro-fitting of aging structures for new users; air service options; and, capitalizing on a number of real growth opportunities in the near term. 1.1 Vision and Key Issues The 1,680-acre Griffiss International Airport features an impressive airfield designed to meet standards for the operation of a range of military aircraft since its activation as Rome Air Depot in early 1942. The Airport is equipped with a primary runway measuring 11,820 feet in length by 200 feet in width. This impressive length, combined with a control tower, non-precision GPS approaches to both runways, and a precision instrument landing system (ILS) on Runway 33, permits the Airport to accommodate operations of all aircraft in the civil and military fleet, especially during periods of low visibility and poor weather conditions. Landside facilities consist of approximately 20 structures, including: Airport administrative and FBO offices; an aircraft rescue and fire fighting (ARFF) building; large conventional hangars for storage and aircraft maintenance; and, a set of five “nose dock” hangars that were once used for maintenance of B-52 aircraft. Looking forward, the Airport’s vision is to serve as a nexus of economic activity for the region. The Business Plan presents an overall strategic direction and 5-year plan for the Airport, given its existing setting and opportunities. A number of preliminary issues have been identified that are addressed in this plan including: ! Economic Impact Assessment: The Airport does not break even relative to operating costs, so there is a need to show the economic value of the Airport to the County. In this regard, there are a significant number of high-paying jobs supported by industries at the Airport, which create large direct and indirect contributions to the local economy. This value is generally not recognized by the public or their elected representatives. In addition, the previous spending from the Military Airport Program (MAP) at Griffiss has reportedly totaled more than $90 million. To communicate the economic impact of the Airport, some accounting of the job creation and economic outputs from that spending is desired. Thus, one important output of the study is an economic impact assessment for the Airport. The economic impact assessment will use inputs such as the number of jobs on-Airport, along McFarland-Johnson, Inc., in association with R.A. Wiedemann & Associates, Inc. 1 Griffiss International Airport Business Plan May 2010 with a more accurate figure for total investment from all sources, to estimate total economic output of Griffiss International Airport. ! Job Creation: The philosophy of economic development in the Mohawk Valley is relatively simple: job creation. Thus, if enterprises at the Airport break even, it will be considered a good trade off for the creation of more jobs. This is especially the case given the loss of jobs since the closure of Air Force operations at the Airport. Therefore, it is recognized that preference and scoring weight will be given to Business Plan alternatives that will result in the creation of more jobs. While revenue enhancement is important in balancing the budget, the overriding concern at this time is linked to increasing the employment base in the County and region. ! Marketing Materials: Currently, the Airport is marketed by Mohawk Valley EDGE and the Griffiss Local Development Corporation (GLDC). Discussions with Airport Management indicate that more marketing is needed. While this study cannot produce marketing materials, it can produce good information that can be included with other marketing items
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