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Airport Acquisition Feasibility Study

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Airport Acquisition Feasibility Study AIRPORT ACQUISITION FEASIBILITY STUDY of the Sussex Airport, New Jersey QED Airport & Aviation Consultants October 5, 2009 CONTENTS Page Transmittal Letter Chapter 1 Introduction.................................................................................................................. 1-1 Purpose and Objectives ........................................................................................ 1-1 Advisory Committee.............................................................................................. 1-2 2 Conditions Analysis .................................................................................................... 2-1 Existing Facilities................................................................................................... 2-1 Special Aviation Activity ........................................................................................ 2-3 Environmental Setting........................................................................................... 2-3 Development Constraints...................................................................................... 2-5 Past Grant Funding and Associated Obligations ................................................... 2-5 Airport Design Standards Compliance .................................................................. 2-6 Facility and Service Objectives............................................................................ 2-10 Airspace Setting and Instrument Procedures ...................................................... 2-10 Conclusions........................................................................................................ 2-12 3 Market Analysis ........................................................................................................... 3-1 Introduction ........................................................................................................... 3-1 Socioeconomic Setting.......................................................................................... 3-1 National and State Plans....................................................................................... 3-3 Competitive Position............................................................................................. 3-3 Airport Use and Service Role ................................................................................ 3-9 Based Aircraft.......................................................................................... 3-10 Aircraft Operations.................................................................................. 3-12 Airport Business and User Surveys ......................................................... 3-14 Implications for Future Activity and Business Integration......................... 3-16 4 Airport Improvement Requirements........................................................................... 4-1 Introduction........................................................................................................... 4-1 Required Airport Facilities ..................................................................................... 4-1 Airside Facilities......................................................................................... 4-1 Terminal Area Facilities............................................................................. 4-2 Airport Improvement Schedule and Cost ................................................... 4-4 5 Airport Management Options...................................................................................... 5-1 Introduction ........................................................................................................... 5-1 Ownership............................................................................................................. 5-1 Local Government Entity........................................................................... 5-2 Airport Authority......................................................................................... 5-2 Industrial / Economic Development Authority or Agency............................ 5-3 Community Development Corporation....................................................... 5-3 Operation and Management.................................................................................. 5-3 Owner as Operator and Manager.............................................................. 5-4 Fixed Base Operator as Operator and Manager........................................ 5-4 Federal and State Funding Eligibility ..................................................................... 5-6 Findings................................................................................................................ 5-7 Sussex Airport Acquisition Feasibility Study QED i Page 6 Financial Feasibility Analysis ..................................................................................... 6-1 Introduction........................................................................................................... 6-1 Baseline Private Ownership and Management Financial Pro Forma..................... 6-2 Airport FBO Revenue and Expense Data .................................................. 6-2 Forecast of Private Ownership Revenues and Expenses .......................... 6-5 Government Entity Acquisition and Providing FBO and Management Functions... 6-7 Government Entity Acquisition and Contracting for FBO Operation and Management.............................................................. 6-9 Sussex Air Show.............................................................................................. 6-11 Capital Funding Requirements......................................................................... 6-12 Summary and Findings.................................................................................... 6-13 7 Economic Impact Analysis.......................................................................................... 7-1 Introduction ........................................................................................................... 7-1 Economic Impact Assessment.............................................................................. 7-1 Airport Operating Expenses (Direct Impact) .............................................. 7-2 Visitor Spending (Indirect Impact).............................................................. 7-2 Sussex Air Show....................................................................................... 7-2 Induced Impacts........................................................................................ 7-3 Total Economic Impact.............................................................................. 7-3 Non-Monetary Impacts.......................................................................................... 7-3 Off-Airport Land Use............................................................................................ 7-4 8 Findings and Recommendations................................................................................ 8-1 Findings................................................................................................................ 8-1 Airport Setting............................................................................................ 8-1 Ownership, Management and Operations Scenarios................................. 8-1 Recommendations................................................................................................ 8-2 Ownership................................................................................................. 8-2 Airport Management and Operations......................................................... 8-3 Airport Oversight....................................................................................... 8-3 Daily Airport Management......................................................................... 8-4 Summary................................................................................................... 8-5 Next Steps ............................................................................................................ 8-5 Due Diligence............................................................................................ 8-5 Formation of Airport Commission.............................................................. 8-5 Property Acquisition................................................................................... 8-6 Outside Professional Assistance............................................................... 8-6 Airport Plan Drawings and Capital Improvement Plan ............................... 8-6 Airport Commission Activities.................................................................... 8-7 Grant Applications..................................................................................... 8-7 Tenant and User Agreements.................................................................... 8-7 Airport Operations..................................................................................... 8-7 Sussex Airport Acquisition Feasibility Study QED ii Page Table 2-1 Existing Principal Airport Facilities ................................................................................. 2-2 2-2 Previous Federal and State Funding Grants .................................................................. 2-6 2-3 Airport Reference Code Standards................................................................................ 2-6 2-4 Airport Compliance with Selected Design Standards ....................................................
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