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C:\MJ\New York\Airports\Suffolk Co\Gabreski Report FRANCIS S. GABRESKI AIRPORT BUSINESS PLAN Prepared for: New York State Department of Transportation in behalf of Sullivan County Department of Public Works Monticello, NY Suffolk County New York February 2002 TABLE OF CONTENTS 1. INTRODUCTION ......................................................1 1.1 Vision ...........................................................1 1.2 Key Issues .......................................................2 1.3 Desired End Products ...............................................4 1.4 Report Outline ....................................................4 2. BACKGROUND AND MANAGEMENT STRUCTURE ........................5 2.1 Historical Mission of the Airport ......................................5 2.2 Historical Performance Meeting the Mission ............................6 2.3 Airport Management Structure .......................................7 3. EXISTING AIRPORT CHARACTERISTICS.................................9 3.1 Introduction ......................................................9 3.2 Airport Development Plan ..........................................15 3.3 Market Analysis ..................................................23 4. BASELINE FINANCIAL AND ECONOMIC OUTLOOK ......................29 4.1 Historical Revenues and Expenses ...................................29 4.2 Baseline Forecast of Revenues & Expenses ............................31 5. BUSINESS PLAN ALTERNATIVES ......................................34 5.1 Area-wide Factors Supporting Growth and Development of the Airport ......34 5.2 Obstacles to Airport Performance and Goal Attainment...................35 5.3 Revenue Enhancement .............................................36 5.4 Cost-Efficiency/Management Structure Options.........................43 6. RECOMMENDED PLAN................................................46 6.1 Recommended Management/Administrative Actions .....................46 6.2 Revenue Enhancement Recommendations .............................47 7. SUMMARY OF BUSINESS PLAN RECOMMENDATIONS ...................54 7.1 Timetable and Trigger Points .......................................56 8. ECONOMIC IMPACT ASSESSMENT .....................................58 8.1 Goals and Methods of Analysis ......................................58 8.2 Results of Analysis ...............................................59 8.3 Non-monetary Impacts .............................................60 TABLE OF CONTENTS (Cont.) LIST OF TABLES Table 1 - Airport Development Areas.......................................20 Table 2 - Airport Capital Improvement Plan (ACIP) ...........................22 Table 3 - Facility Comparisons ............................................27 Table 4 - Service Comparison.............................................27 Table 5 - Rates and Charges Comparison....................................28 Table 6 - Suffolk County Gabreski Airport Historical Revenues ..................30 Table 7 - Suffolk County Gabreski Airport Historical Expenses ..................30 Table 8 - Baseline Forecast of Airport Revenues ..............................32 Table 9 - Baseline Forecast of Expenses: Suffolk County-Gabreski Airport .........33 Table 10 - Potential Demand Changes by Year 2005 ...........................40 Table 11 - Potential Increases Resulting from All Revenue Enhancement Strategies . 42 Table 12 - Forecast of Expenses Associated with Revenue Enhancement Options ....45 Table 13 - Action Plan Trigger Points: Suffolk County - Gabreski Airport ..........56 Table 14 - Direct, Indirect, and Induced Economic Impacts ......................59 LIST OF FIGURES Figure 1 - Organization Chart ..............................................8 Figure 2 - Location Map .................................................10 Figure 3 - Existing Airport Layout .........................................13 Figure 4 - Surrounding Land Use ..........................................17 Figure 5 - Airport Development Plan .......................................19 Figure 6 - Airport Service Area............................................24 Figure 7 - Historical Revenues & Expenses ..................................31 Figure 8 - Impact of Market Factors: Aviation Lease Fees.......................44 Figure 9 - Impact of Market Factors: Non-Aviation Fees........................44 Figure 10 - Strategic Impact of Market Factors on Revenues.....................44 Suffolk County - Gabreski Airport Business Plan February, 2002 SUFFOLK COUNTY - GABRESKI AIRPORT BUSINESS PLAN 1. INTRODUCTION UFFOLK COUNTY HAS ACCEPTED SERVICES TO conduct an airport business plan for the Gabreski Airport to examine potential development and operational options for the purpose of providing Sincreased benefits to the County and local community. This evaluation must consider all of the on-airport and off-airport impacts associated with various development options. Key to this understanding is the fact that the local residents are adamant about limiting Airport-related aircraft noise. Mindful of this position, the business plan must examine the operation and business practices at the Airport and suggest improvements that will benefit the local area without noticeably increasing the level of noise exposure associated with the Airport’s operation. 1.1 Vision When the 1,486 acre Airport was first acquired by the County in 1971, the acquisition came at short notice and without a plan for its operation and development, as was the case for other military air base transitions. For many years, the Airport served primarily as an Air National Guard facility, housing the military operations and providing a base for training. However, the general aviation and business segment of the airport remained somewhat dormant and without a plan for the Airport=s business development nor a role in the County=s transportation infrastructure. That changed in 1995-1996 when a Gabreski Task Force was commissioned to study the development of the Airport. From that Task Force work, a vision for the Airport began to take shape. Since that report was issued, the County has added other components, but the main focus can be summarized to include: security plan, continued maintenance and upgrade of existing facilities, potential economic development of Airport property, strict interpretation of environmental laws and regulations, and continued convenience for all users. ! Security Plan: In light of the terrorist attack on the U.S., all airports will need to reevaluate their security plans. Gabreski Airport, as an Air National Guard facility will have heightened security issues that will require separate planning and analysis. ! Maintenance and Upgrading of Existing Facilities: The County recognizes that the Airport represents a significant investment in air transportation infrastructure. The Airport also serves a role in support of the Air National Guard. For these reasons and in order to upgrade safety margins at the Airport, a capital improvement program has been submitted in the 2003 budget that will address a number of infrastructure aging needs at the Airport. ! Potential Economic Development of Airport Property: In 1998, the FAA released 58.6 acres for development as a light industrial park. This property has been McFarland-Johnson, Inc., in association with R.A. Wiedemann & Associates, Inc., & Shumaker Consulting Engineers, P.C. 1 Suffolk County - Gabreski Airport Business Plan February, 2002 designated a Planned Development District (PDD) by the Town of Southampton. As a former military base, Gabreski Airport has a significant amount of property that is not being used for aviation purposes. It is believed that more land, in addition to the 58.6 acres, is available for compatible development - both aviation and non-aviation. This development will help to offset the cost of operating the Airport, while at the same time produce jobs and income for the local community. ! Strict Interpretation of Environmental Laws: The location of the Airport near residential sections of Westhampton Beach has underscored the need to be environmentally sensitive to the concerns of local residents. This facet of the overall vision for the Airport is meant to create trust between the County leaders who manage the Airport and the community. This principle, however, is two-edged in that economic development often requires some trade-offs. A zero-growth policy, for example, precludes the increase in revenues that would occur with greater Airport activity. ! Continued Convenience for All Users: Despite a desire by some local citizens to limit growth and activity at the Airport, there is a genuine desire on the part of the County to serve all airport users. The Air National Guard is a tenant with a long term lease. Their presence incorporates aspects of national security, disaster relief, and other essential programs. In addition, a number of companies have aircraft based at the Airport and need access during all types of weather conditions. While there are some negative attitudes toward the Airport in adjacent residential sections, these concerns must be balanced against the necessary air transportation function that the Airport provides. For this reason, it is important to show both the economic and intangible benefits associated with the Airport. 1.2 Other Key Issues There are a number of key issues that must be addressed by this analysis. These issues are varied but all carry a theme of improving airport facilities, financial performance, and area economic development: ! Integration of the Airport into the Local Economy: There is a need
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