La Porte Municipal Airport Business Plan
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La Porte Municipal Airport Business Plan Final Technical Report Prepared for: City of La Porte, Texas Texas Department of Transportation Prepared by: R.A. Wiedemann & Associates, Inc. P.O. Box 621 ! Georgetown, KY 40324 ! (502) 535-6570 ! FAX (502) 535-5314 TABLE OF CONTENTS SECTION 1: INTRODUCTION 1.1 Understanding & Key Issues ............................................................................... 1-1 1.2 Desired End Products ........................................................................................... 1-3 1.3 Report Outline ...................................................................................................... 1-4 SECTION 2: AIRPORT MISSION AND MANAGEMENT STRUCTURE 2.1 Current Airport Mission ....................................................................................... 2-1 2.2 Airport Accounting and Business Practices ......................................................... 2-2 2.3 Current Airport Management Structure ............................................................... 2-4 2.4 Summary and Preliminary Observations ............................................................. 2-5 SECTION 3: EXISTING AIRPORT CHARACTERISTICS 3.1 Airport Location................................................................................................... 3-1 3.2 Description of the Service Area ........................................................................... 3-1 3.3 Airport Facilities .................................................................................................. 3-5 3.4 Airport Activity .................................................................................................... 3-8 3.5 Competitive Market Assessment ......................................................................... 3-9 SECTION 4: BASELINE FINANCIAL PROJECTIONS 4.1 Historical Revenues and Expenses ...................................................................... 4-1 4.2 Baseline Forecast of Operating Revenues and Expenses .................................... 4-3 SECTION 5: BUSINESS PLAN ALTERNATIVES 5.1 Application of SWOT Findings ........................................................................... 5-1 5.2 Revenue Enhancement ......................................................................................... 5-3 5.3 Impact of Revenue Enhancement Strategies on Potential Demand ................... 5-21 SECTION 6: RECOMMENDED PLAN 6.1 Recommended Administrative and Policy Actions ............................................. 6-1 6.2 Revenue Enhancement Recommendations .......................................................... 6-8 6.3 Impact on Revenues and Expenses ................................................................... 6-22 6.4 Summary Recommendations ............................................................................. 6-25 SECTION 7: AIRPORT COMMUNITY VALUE 7.1 Economic Activity Generated by La Porte Municipal Airport ............................ 7-1 7.2 Existing Value of Airport Property and Facilities ............................................... 7-3 7.3 Summary of Airport Community Value ............................................................. 7-6 TABLE OF CONTENTS (Cont.) LIST OF FIGURES Figure 2-1 – Organizational Chart for the Airport ........................................................... 2-4 Figure 3-1 – Service Area Airports .................................................................................. 3-1 Figure 3-2 – Existing Airport Layout .............................................................................. 3-5 Figure 3-3 – Landside Buildings...................................................................................... 3-7 Figure 5-1 – UAS Pavilion at Kansas State University ................................................. 5-11 Figure 5-2 – Existing Potential Non-Aviation Airport Property ................................... 5-13 Figure 5-5 – Potential Airport Land Use with Crosswind Runway Closure. ................ 5-17 Figure 6-1 – UAS Pavilion at Kansas State University ................................................. 6-14 Figure 6-2 – Non-Aviation Property Development Options.......................................... 6-19 LIST OF TABLES Table 3-1 – Historical Population Trends ........................................................................ 3-2 Table 3-2 – Historical Per Capita Personal Income Trends ............................................. 3-2 Table 3-3 – Top Employers in the City of La Porte and La Porte ETJ ............................ 3-3 Table 3-4 – La Porte Municipal Airport Runway Data ................................................... 3-6 Table 3-5 – La Porte Municipal Airport Landside Building Inventory ........................... 3-7 Table 3-6 – Estimated Aircraft Operations at La Porte Municipal Airport ..................... 3-8 Table 3-7 – Facility Comparison ................................................................................... 3-12 Table 3-8 – Services Comparison .................................................................................. 3-13 Table 3-9 – Rates and Charges Comparison .................................................................. 3-14 Table 4-1 – Revenues and Expenses: Five Year History ................................................. 4-1 Table 4-2 – Comparison of Operating Revenues & Expenses ........................................ 4-3 Table 4-3 – Baseline Forecast of Operating Revenues and Expenses ............................. 4-5 Table 5-1 – Baseline Forecast of Based Aircraft and Operations .................................... 5-4 Table 5-2 – Impact of Revenue Enhancement Strategies on Potential GA Demand ..... 5-21 Table 6-1 – Ten Unit T-Hangar Breakeven with FAA Grant .......................................... 6-9 Table 6-2 – Private Development of Hangars ................................................................ 6-10 Table 6-3 – Potential Benefits and Costs of Runway Closure ....................................... 6-15 Table 6-4 – Costs for Decision Analysis ....................................................................... 6-15 Table 6-5 – Revenues for Decision Analysis ................................................................. 6-16 Table 6-6 – Recommended Forecast of Operating Revenues and Expenses ................. 6-23 Table 6-7 – Recommended Plan Net Revenue (Deficit) ............................................... 6-23 Table 6-8 – Airport Capital Improvement Program 2016-2019 .................................... 6-25 Table 7-1 – Airport Replacement Value .......................................................................... 7-4 Table 7-2 – Depreciated/Existing Airport Value ............................................................. 7-5 APPENDIX Appendix 3A – SWOT Analysis................................................................................... 3A-1 Appendix 3B – Lease Analysis ......................................................................................3B-1 Appendix 3C – Survey Results ......................................................................................3C-1 Appendix 6A – Revenue & Expense Work Sheets ....................................................... 6A-1 La Porte Municipal Airport Business Plan June 2017 FINAL TECHNICAL REPORT La Porte Municipal Airport Business Plan 1. INTRODUCTION HE PURPOSE OF THIS BUSINESS PLAN FOR La Porte Municipal Airport (T41) is to assess potential means to improve the Airport’s financial performance, economic development, Tand operation. To do this, the Business Plan will evaluate a number of potential operational and development scenarios and provide the City of La Porte with decision-making information. We understand that this plan can be a dynamic vehicle to identify new aviation demand markets, support facilities, public-private investment opportunities, improved Airport financial and economic performance, and a better understanding of the mission and value of the Airport by the community and region it serves. Thus, to become more financially self-sufficient, it is likely that specific types of Sponsor initiatives and possible investments should occur, along with a growing perception of the Airport brand. The Airport has upside potential, but must take a measured and deliberate business approach to reaching its goals. It should be noted that a Business Plan is a strategic effort that provides the vision to guide subsequent studies such as master plans or airport land use compatibility studies. Airport master plans are more directed at building and infrastructure planning and do not generally incorporate market niche forecasts or proactive branding and marketing activities associated with business planning. 1.1 Understanding & Key Issues Currently, La Porte Municipal Airport is home to 82 based aircraft. Of these, there are five multi-engine aircraft and one helicopter. The Airport has two runways: a 4,165 by 75-foot runway (12/30), and a 2,998 by 75-foot crosswind runway (05/23). There are 64 T-hangars and four large conventional hangars on the field, with several ramp areas on the south side, some of which could be used for more hangars, if needed. Of note, the Airport is only five air miles from Ellington Airport (EFD). This proximity impacts the competitive market for based aircraft storage as well as airspace and other operational issues. To prosper, La Porte Municipal Airport must carve out a niche in the local market. The proximity of EFD and other general aviation airports in the area presents