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HomeMy WebLinkAboutMay 28, 2002 AgendaAgenda 02-018 05/28/02 AGENDA CITY OF DENTON CITY COUNCIL May 28, 2002 After determining that a quorum is present, the City Council will convene in a Planning Session of the City of Denton City Council on Tuesday, May 28, 2002 at 4:30 p.m. in the City Council Work Session Room at City Hall, 215 E. McKinney, Denton, Texas at which the following item will be considered: NOTE: A Planning Work Session is used to explore matters of interest to one or more City Council Members or the City Manager for the purpose of giving staff direction into whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal City action. At a Planning Work Session, the City Council generally receives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council or City Manager to participate in the session. Participation by individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Planning Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff will generally prepare a final report defining the proposed action, which will be made available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. 1. Receive a report, hold a discussion, and give staff direction regarding the Denton Airport. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of ., 2002 o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. Agenda 02-018 05/28/02 #1 AGENDA INFORMATION SHEET AGENDA DATE: DEPARTMENT: ACM: May 28, 2002 Airport and Transit Department Jon Fortune, Public Safety and Transportation Operations SUBJECT Receive a report, hold a discussion and give staff direction regarding developmem and planning activities at the Denton Airport. BACKGROUND The attached Airport "White" Paper provides a comprehensive review of past and current issues and how they relate to the future development of the Denton Airport. To facilitate the presemation and discussion of the report, staff has requested a number of individuals representing various entities associated with the current and future growth of the Airport to participate in the brief. Below is a list of those individuals and issues they will address: Mark Nelson, Director of Airport and Transit Operations - general overview of recent Airport development and introduction of presentation team and Airport Advisory Board. Dr. Don Smith, Chairman, DeNon Airport Advisory Board - historical reference and local pilot's perspective. Mr. Damon Ward, Presidem, Texas Air Cemer - general discussion on relocation from Love Field and growth potemial of his operation at Demon. Mr. Mike Nebrig, Presidem, Nebrig and Associates - general discussion on trends in the corporate aviation market and how fractional ownership is affecting corporate aviation. Mr. Mike Dmyterko, Senior Planner, Coffman Associates - aviation forecast for North Texas and the Denton Airport master planning process. Mr. Chuck Carpemer, Presidem, Demon Chamber of Commerce - North Texas aviation industry and marketing efforts. EXHIBITS Airport White Paper Exhibit lC Exhibit 4D Exhibit 4F Respectfully submitted: Mark Nelson, Director Airport and Transit Operations DENTON AIRPORT I. INTRODUCTION It is a common perception that the development and operation of a general aviation airport, an airport without commercial airline service, is operated primarily for the benefit of a select few. General aviation airports are commonly referred to as a "play ground for the wealthy." Although the ownership and operation of aircraft is an expensive proposition, this moniker is off base. The general aviation airport is an economic tool that should be used and developed to benefit the entire community or region that it serves. General aviation airports are used by many businesses and corporate ventures to transport personnel and cargo to remote locations or more efficient destinations. This allows the company to improve efficiency, grow their market base, increase the level of services provided to the local population, improve employment opportunities for the community and provide a base of operation for governmental functions such as law enforcement and search and rescue operations. The Denton Airport is frequently used by some of the leading employers in Denton, both public and private. Peterbilt uses the airport on a weekly basis to transport personnel to and from their plant. Peterbilt also uses the Denton Airport for transporting vendors and prospective clients as well as transporting priority cargo for the assembly line. Wal-Mart, also a frequent user, uses the airport to facilitate their retail and distribution operations in Denton County. Other entities and businesses using the airport include but are not limited to UNT, State of Texas, DEA, FEMA, Infinity Partners, Hulcher Services, Anderson Merchandising, Victor Equipment, Jostens, Sally Beauty Supply, United Copper, Tetra-Pak, CareFlite, and a variety of individual business ventures. The airport is used to improve the overall standard of living in Denton; however, at first glance many benefits can be overlooked. II. HISTORY AND AIRPORT BACKGROUND History - In 1943 the United States Army was expanding flight-training operations throughout Texas to assist the on-going war effort. Texas was prime real estate for flight training operations because of favorable year-round flying weather, the rural landscape to conduct flight training operations and the use of the airfields for national defense purposes. In Denton's case, the Army looked to capitalize on the availability of cadets from what is now known as the University of North Texas. in 1943- 1944, the US Government and the City of Denton began acquiring a total of 550 acres west of Denton to construct a new Army Airfield for the purpose of training glider pilots. Although the use of gliders for invasion purposes was discontinued after the June 6, 1944 invasion of Normandy, construction of the airfield was underway and completed in 1945. The Civil Aeronautics Administration, forerunner of the Federal Aviation Administration (FAA), was given stewardship of the airport and deeded the facility to the City of Denton in 1947. Denton Airport: Damage from 1947 Storm The airport was managed through a number of private businesses based on the field from the late 1940's through the late 1970's. The airport was classified as a basic transport airport and only minor development of the infrastructure and marginal growth of hangar and office facilities occurred during this period. During a seven-year period from 1985 to 1993, hangar and office space nearly doubled from approximately 91,000 square feet to over 173,000 square feet. The growth in hangar and office space is attributed to the growth in the number of based aircraft on the field which increased from 96 in 1980 to a high of 143 aircraft in 1989. A similar growth trend was experienced during the period from 1996 to 2002, when based aircraft increased from 114 in 1996, to 228 in 2002, and hangar and office space grew from 173,000 to over 350,000 square feet. TABLE 1 Based Aircraft 25O 2OO 150 100 5O 0 maBased Aircraft Infrastructure -The Denton Airport has a well-developed airside infrastructure. The airport has a single runway configuration, oriented 170 degrees south and 350 degrees north: Runway 17/35. This orientation allows for 95-percent wind coverage throughout the year. The runway is 150 feet wide by [= new constructio~ No~h America~ Airport Rd, 6,000 feet long and has a weight bearing capacity that will accommodate aircraft up to the size of a Boeing 737. The airport boasts an instrument landing system (ILS) approach to Runway 17 (south approach) and a Global Positioning Satellite (GPS) approach to Runway 35 (north approach). These instrumem approaches, along with medium imensity runway lights and an approach lighting system, allow the airport to operate in almost all weather conditions. The Denton Airport is fortunate to have these features, as many general aviation airports do not enjoy the all-weather capability or the benefit of a 150 feet wide runway. Most general aviation airports are not equipped with precision navigational aids and many airports operate runways of 100 feet wide or less. The ILS and the GPS approach allow aircraft the ability to operate to and from the Demon Airport when visibility is as low as ½ mile and when the ceiling (cloud cover) is as low as 200 feet. Along with the proximity to the Metroplex, these amenities make the airport an attractive location for pilots, business and aviation related enterprises to base aircraft at Denton. Denton Airport Development Milestones 1946-1996 1948 1966 1971 1977 1986 1994 1994 1995 Construction of T-hangars and main storage hangar Construction of current Terminal Building Construction of Business Air Cemer Hangar (Texas Air Cemer) and 10 T-hangars North extension to 5,000 feet and the installation of the ILS Infrastructure improvements to South East Development Area Airport Master Plan Airport Compatibility Land Use District and Airport Height Zoning Ordinance South extension of 1,000 feet; total length 6,000 feet Airport Designation - The FAA has designated the Denton airport as a super reliever airport. Reliever airports are located in close proximity to major metropolitan areas and are developed and funded by the FAA to relieve congestion at large commercial service airports. A reliever airport provides a base of operation for general aviation, private and corporate aircraft, to reduce the imerference of smaller slower aircraft with large commercial airliners. The FAA has established the reliever airport category because these airports experience high traffic counts and serve a variety of different aircraft, from small single engine aircraft to retired airliners converted for cargo operations. Reliever airports receive individual attention during the Department of Transportation budget process to ensure that infrastructure is maintained to assist large commercial airports experiencing congestion. By definition a reliever airport is required to have a minimum of 50 based aircraft and experience either 25,000 itinerant operations or 35,000 local operations. An operation where an aircraft departs from one airport and lands at a different airport is known as an itinerant operation. A reliever airport must also "relieve" a commercial service airport that is experiencing 60 percent capacity on its runway infrastructure. There are 21 reliever airports in the state of Texas with 11 relievers located in the DFW Metroplex area. A higher category of reliever airports, known as a super reliever airport, must have a minimum of 100 based aircraft, experience a minimum of 75,000 total operations, have a minimum runway length of 5,000 feet and have an instrument approach to at least one runway. In addition to these individual requiremems, the airport being relieved must experience a minimum of 20,000 hours of delayed flight operations during a year. DeNon is one of thirty-four super reliever airports nationwide, and one of three super reliever airports statewide. Both Denton and McKinney serve as super relievers to DFW International Airport. TABLE 2 RELIEVER AIRPORTS - D/FW METROPLEX Addison 7,200' x 100' YES 767 160,897 Alliance 9,600 x 150' YES 20 181,463 Arlington 6,000' x 100' NO 319 148,000 Denton* 6,000' x 150' YES 228 100,000 Dallas Executive 6,450' x 150' YES 173 95,630 Grand Prairie 4,000' x 75' NO 287 98,001 Lancaster 5,000' x 100' NO 126 40,500 McKinney* 7,000' x 100' YES 144 114,511 Meacham 7,500' x 150' YES 328 199,417 Mesquite 6,000' x 100' YES 215 82,000 Spinks 6,000' x 100' YES 133 65,300 Denotes Super Reliever Airport Source: (TxDOT, Aviation) Airport Planning - Prior to 1996, all reliever airports throughout the state worked directly with the FAA Southwest Regional Headquarters in Fort Worth for development and compliance activities. In fiscal year 1997, oversight of reliever airports was turned over to the TxDOT Aviation Division as part of the Federal Government's move toward block grant funding. Texas is one of 11 states nationwide that receives FAA block grant funding for general aviation development. The FAA favors block grant funding for general aviation airport development as it allows for a more uniformed approach to the development of the National Plan of Integrated Airport Systems (NPIAS) via State Airport System Planning. The NPIAS outlines a development plan for a safe, efficient and integrated national system of airports to meet the needs of civil aviation, national defense and the Postal Service. TxDOT has established the Texas Airport System Plan (TASP) that outlines development priorities such as enhanced safety/security, compliance with standards, infrastructure preservation, increased capacity and the promotion of economic development for the community. The goals of the TASP are to develop a statewide system of airports that will provide adequate access by air to the population and economic activity centers of the state; to provide for the timely development of the airport system; to maximize the economic benefits and return on investment to the state; to integrate the airport system effectively with other transportation systems and thereby provide an efficient multi-modal transportation system; to maximize the opportunity for growth in international trade and travel; and to minimize adverse impacts on the environment. In addition to this, TASP objectives listed in the Aviation Capital Improvement Program are as follows: Scheduled air carrier service should be available to all Texans within a 60 minute drive. Access to business jet aircraft should be available within a 30 minute drive from significant population and mineral resource centers. Light piston-engine aircraft access should be available within a 30 minute drive of agricultural centers. The Demon Airport has received many grams since 1997. Since then, TxDOT has served as the City's agem for the purpose of applying for, receiving, and disbursing the gram funds on behalf of the City. To facilitate positive development, Airport Management works closely with TxDOT Aviation Division to establish five-year capital improvement programs (CIP) that best meet the local aviation needs/trends, but also address parameters set forth in the TASP. A major componem in the establishment of the five-year TxDOT CIP is the airport master plan. The development of an airport master plan typically takes 12-14 months to complete, and the process is conducted every seven to ten years. The master plan is a comprehensive documem addressing activity forecasts, environmemal impacts, community compatibility issues, and financial feasibility of idemified projects. As comprehensive as the airport master plan is, it remains a snapshot in time and requires continued revisions of the project schedule to address currem and unforeseen demands on an airport's infrastructure or growth cycle. Grant Funding - Federal funds are usually matched by the local sponsor at a 90:10 ratio (90% federal to 10% local) while state funds are typically matched by local sponsors at a 50:50 ratio. Since the Denton Airport has been coordinating development through TxDOT, Denton has received federal grants totaling more than $3.3 million and state grants totaling approximately $870,000 for a total of $4.2 million in the past six years. The City of Demon has been able to leverage approximately $1.64 million to receive $5.8 million in infrastructure improvemems since 1997. During the same six year time period an estimated $3.5 million has been invested by the private sector to develop and renovate hangar, office and shop space for aviation services. DENTON AIRPORT GRANT F[INDING - 1997-2002 TABLE 3 1997 RAMP $10,000 $10,000 $20,000 1998 RAMP $10,000 $10,000 $20,000 FY99 AlP-Design Phase $11,110 - $99,990 $111,100 1999 FY99 AlP Construction Phase $132,000 - $1,188,000 $1,320,000 RAMP $20,000 $20,000 $40,000 Innovative Financing $4,668 - $13,406 $18,074 2000 FY01 AlP Design Phase $14,938 - 134,442 $149,381 RAMP $20,000 $20,000 $40,000 2001 FY01 AlP Construction Phase $192,000 - $1,728,000 $1,920,000 Airport Master Plan $16,100 - $144,900 $161,000 RAMP $30,000 $30,000 $60,000 2002 Tower $650,000 $450,000 $1,100,000 Terminal $500,000 $300,000 $800,000 RAMP $30,000 $30,000 $60,000 $1,640,816 $870,000 $3,308,738 $5,819,555 RAMP - Routine Airport Maintenance Program Grant, state funded. AIP - Airport Improvement Program, FAA funded. Airport Management & Operations -The airport has been managed by municipal staff for the past twenty years providing grant administration, property management services, development of airside infrastructure and development of land-side support infrastructure such as utilities and streets. Staff also maintains the operational efficiency of the runway, taxiway and navigational aids. The City Council appoints a seven member Airport Advisory Board that meets monthly to advise the City Council on matters of airport policy and development. Each Board Member serves a two year term and may serve up to three consecutive terms. Airport Services - In Denton, the demand for hangar, office and shop space has largely been met by the private sector. Individual businesses based on the airport provide aviation services to the flying public through commercial lease agreements with the City of Denton. The primary provider of aviation services on a general aviation airport is known as a fixed base operator (FBO). FBOs provide services such as fueling, hangaring of aircraft, aircraft maintenance, flight training, pilot supplies, car rentals, catering and other related support services. A common analogy to the FBO is the marina on a lake. Denton currently has two FBOs in operation on the field employing approximately 40 employees and providing significant services to the public. Another 13 businesses employ 69 employees that augment the FBOs by providing flight-training services, air cargo services, aircraft sales and aircraft hangaring services. Airport lease agreements are required for the development of a hangar or for commercial operations. The Airport offers a 30-year lease that states at the end of the lease ownership of the development reverts back to the city. To encourage investors to develop at the Denton Airport, certain lease agreements are provided with two ten-year rights of first refusal provisions. This allows the current lessee the opportunity to extend their lease agreement for two ten-year periods beyond the primary lease term. The reversion clause is supported and requested by the FAA to provide airports the ability to improve operating revenue in the future. TABLE 4 AIRPORT BASED BUSINESSES Avionics Imernational Supply Avionics Wholesale 19 Business Air Center Fixed Based Operator 10 CAH Aircraft Aircraft Sales 2 Tiger Contract Cargo Cargo 2 First Financial (Hulcher) Corporate Flight Operations 3 Flight Line Flight School 2 Jet Associates Aircraft Sales/Corporate Flt. Ops. 5 Johnson's Aircraft Service Aircraft Maimenance Shop 4 Nebrig & Associates Aircraft Sales 7 North American Flight Services FBO-Flight School 19 North Texas Pilot Shop Retail Pilot Supplies 2 Ritchey, Robby Corporate Flight Operations 1 Bob Smith Aircraft Aircraft Sales 1 TexStar Air Freight Air Cargo Carrier 17 U.S. Flight Academy Flight School 10 City of DeNon Administration/Maimenance 5 TOTAL 109 iii. AVIATION GROWTH TRENDS Aviation is a unique industry that frequemly experiences wide fluctuations in growth and decline. It has been said that the aviation industry, similar to the construction industry, is an excellem tool for gauging the economy. The recem developmem and employmem information provided above suggests cominued growth for general aviation at Demon and for the aviation industry in the North Texas area. In fact, prior to the September 11th terrorist attack, much discussion and consideration was given to the national aviation system nearing capacity for commercial airline service. The capacity issues in the commercial aviation sector directly influence the remainder of the aviation industry as more and more corporate air travelers idemify more time-efficiem modes of transportation. Aviation Industry analysts are commenting that the capacity issue has not gone away since the decline in commercial aviation after the events of September 11 . The problem of inefficient air traffic control systems and near capacity runways and airspace around major hub airports has only been temporarily abated. Commercial air traffic is cominuing to rebound after losing a significam market share and is expected to return to the pre-September 11th status. Commercial airlines are also struggling with passenger discomem associated with new security measures put in place by the federal govemmem to improve the safety of commercial air service. This negatively impacts both the airline and commercial service airports as these expensive new security measures have resulted in higher airfares. Higher airfares across the board, however, are not the only threat to airline profits; lost revenue potential from walk-up fares and business travelers also pose a threat. The walk-up business traveler and the frequent flyer are turning to other options for business travel whereby security delays and non-productive down time can be reduced via travel on corporate aircraft. Though the sole ownership of corporate aircraft is expensive, a new trend is emerging that provides more economical fractional ownership of an aircraft. Fractional ownership allows companies that have not previously operated corporate aircraft an opportunity to reduce the initial capital costs by purchasing an interest in an aircraft and only paying for time used. Essentially a management firm operates a fleet of aircraft and will provide aircraft management services and pilot services on demand. Thus, the fractional owner pays a prorated share for the use of the aircraft avoiding expensive nonproductive downtime associated with sole ownership of an aircraft. TABLE 5 Fractional Owners 1999 1997 1994 1990 1986 ~4 0 1000 2000 3000 4000 Source: AvDatatlnc, Wichita, KS, 2001 Fractional ownership is increasing, and is having a positive impact at the Denton Airport. Jet Associates currently manages three corporate aircraft for similar use, and Business Air Center reports an increase in services provided to itinerant aircraft operated by fractional ownership companies. The National Business Aircraft Association (NBAA) reports that in 1986 as few as three individuals participated in a fraction ownership program. As of 2000, the number has grown to 3,694 individuals in a fractional ownership of an aircraft. NBAA further suggests that by the year 2011, fractional ownership management firms will operate 20 percent of the business aircraft fleet. This will certainly be important in the continued expansion of Denton Airport as both local and national firms seek to increase the productivity of their key personnel, and to transport customers and suppliers to more convenient destinations. A second and equally important trend that will continue to impact growth at the Denton Airport is the proximity of the Metroplex population center and the northward expansion of the D/FW urban area. As business, retail and distribution centers continue developing further north, additional aviation services will be needed. Coffman and Associates, the firm conducting the current Denton Airport Master Plan, projects a four percent annual growth rate over the next 20 years in the number of based aircraft at DeNon, resulting in almost 500 based aircraft by year 2021. Many of the projected additional aircraft to be based at DeNon will come from aircraft owners relocating from congested airspace at Addison, Love Field and other DFW area airports. It is not uncommon for aircraft to spend more than thirty minutes waiting to depart from Addison. As Addison continues to evolve into a true executive airport serving twin-engine and turbine aircraft, many private aircraft owners will relocate to both Denton and McKinney. The need for less congested airports was illustrated when Nebrig and Associates opened 36 new T-hangars and four corporate box hangars at Denton during the summer of 2000 and experienced 90 percent occupancy rate within six-months. More than half of the new aircraft had relocated from Addison Airport. IV. AIRPORT DEVELOPMENT STRATEGY To address anticipated growth and forecasted aviation demands at the Denton Airport, the City has hired an airport master planning consultant, Coffman and Associates, to conduct a comprehensive study that will provide a plan of action to address short-term and long-term airport development. Additionally, the development of the airport will be greatly influenced by the FAA and TxDOT Aviation pursuam to the primary developmem and funding issues of: safety/security, developmem standards, preservation of infrastructure, capacity and economic development. As a result, the Airport Advisory Board and Airport managemem have idemified several projects that will be necessary to accommodate future growth and development at the airport. Short-Term Projects Land Acquisition: Staff is curremly in the process of acquiring approximately 40 acres of property for a runway protection zone, which is required for a proposed 1,500 foot runway extension. The property is located north of Airport property and south of Jim Christal Road. In the 2000 Bond Election, citizens approved $220,000 in bonds for the land purchase, and an additional $230,000 in bonds was included in the 2001-2002 City CIP. The purchase of this land can be used as in-kind comribution and matched at a 90:10 ratio toward the construction of the runway extension. The land purchase is the first step necessary to extend the runway, and City Council has directed staff to acquire the property now to avoid cominued cost escalations of the property. Control Tower: Improved safety resulting from air traffic control services enhances the airport's opportunity to efficiently serve the increasing demands of corporate aircraft and transient air traffic into and out of the field. Many corporations restrict flight departments from operating out of uncomrolled fields due to the increased risks to flight safety. The tower increases the ability of the airport to fund operational budgetary requiremems via property taxes assessed on new hangars and newly based corporate aircraft, increased fuel flowage revenues and increased land lease revenues from new developmem. 10 The Airport recemly held a groundbreaking ceremony for the construction of a new $1.1 million comrol tower. Construction is scheduled to begin June 1, 2002 and be completed January 1, 2003. This facility is funded in part by a TxDOT gram of $500,000 that will be matched with $500,000 approved by Denton citizens in the 2000 bond election for the construction of the tower. Additionally, the Airport has applied for and has been accepted to participate in the FAA contract tower cost-sharing program. This program provides partial funding for personnel costs associated with tower operations. In Demon's case the FAA will provide between 85-95% of personnel costs, while the City will pick up the remaining 5-15% and the remaining operational costs. Taxiway Realignmem: Airport managemem has requested TxDOT to include the design of the $1.975 million realignmem of the primary taxiway in the 2003-2005 TxDOT Aviation CIP. Discretionary gram funds already available could be used to begin project design by FY 2003 with construction funding to be provided by FY 2004. The realignmem of 4,000 feet of the main taxiway provides a significam safety benefit as the taxiway could be used as a secondary landing surface during runway closures for prevemative maimenance or closures associated with aircraft accidems/incidems. The currem taxiway is semi-parallel and cannot be safely used as an emergency runway. A true parallel taxiway provides increased capacity to single-runway airports and shifts the initial need to develop a more expensive true secondary runway. Terminal Building: The currem Terminal was constructed in 1966 and has experienced mourning maimenance problems to keep the facility operational. The 1,200 square foot Terminal does not 11 provide sufficient administrative office space to efficiently serve current staff levels or public needs. The existing terminal is not ADA complaint and is viewed by the Texas Department of Licensing and Regulation as part of the air traffic control tower complex. Therefore, as the control tower is built, the terminal building will have to be renovated to provide adequate access. ADA renovations have been estimated as high as $60,000 to improve access to the facility from the parking lot and to bring the restrooms up to code. Finally, numerous requests have been made by airport users for multi-purpose training and conference rooms, which are curremly not available. As the airport cominues to grow, new public use facilities and administrative facilities will be required to maimain quality service. TxDOT, Aviation recognized this need and included funds for the construction of a new Terminal as part of the control tower grant received in the fall of 2001. TxDOT will provide matching funds up to $300,000 for the construction of new terminal buildings. The proposed $800,000 facility will have approximately 3,500 to 4,000 square feet and will be able to meet aviation demands of the community by providing conference and training facilities and a pilot planning room. The new facility will also improve the professional image of the City of DeNon as the airport serves as a gateway to the community. Terminal Apron Expansion: Expansion of the current terminal apron is necessary to assist with increased demand of the airport by larger and heavier aircraft. An increasing number of prospective developers have indicated that the location north of the terminal would we be suitable for large hangar developmem near the proposed executive terminal apron area. The project calls for approximately 90,000 square feet of aircraft movement area that will serve over five acres of developmem parcels and accommodate aircraft with a maximum weight of 120,000 pounds. Tree Removal: Airport Managemem is working with TxDOT, Aviation to secure gram funding to address the removal of trees located in the Approach Zone to Runway 17. North Americat~ F~'~lht Services Airpor~ Rd. The FAA has identified several trees in the north approach zone that are penetrating the approach surface and creating a safety hazard. This project will serve a dual purpose. First, it will correct the safety hazard. Second, the removal of all trees in the idemified area will eventually be required for the proposed runway extension. FAA standards require that a runway safety area be provided at the end of each runway for aircraft overrun purposes. The trees are located in the future runway safety area which, by FAA standards, will require the area to be object-free and have a slope of no more than five-degrees. 12 Taxiway Extension and infrastructure improvements: A Taxiway extension and utility infrastructure improvement is planned in the southeast development area of the airport. The improvements would enhance development opportunities for more than five acres of property slated for light aircraft development sites. The lack of infrastructure in this location makes development cost prohibitive for individual hangars as developers are required to extend the taxiway infrastructure. The addition of the infrastructure would provide individual pad sites to address current and anticipated demand for light general aviation development, and would also increase airport revenue through higher lease rates. Long-Term Projects Runway Extension: The acquisition of the property for the north extension of the airport is the first step in a 5-year development process for the project. Bond funds utilized for the purchase of the property will be used as the City's matching funds to receive $4.3 million of the proposed $4.9 million project. With the addition of the tower, forecasts suggest heavier, faster aircraft will want to operate from Denton to access final destinations in the Metroplex. Efforts are also being made by the FBOs to increase revenues by serving the cross-country refueling market. The extension of the runway will provide business aircraft a mid-way point to refuel in route to destinations on either coast. Airport management has been notified by the FAA that the length of the runway, the southern portion that is located in the Hickory Creek floodplain, must be reduced by 500 feet. This will reduce the length of the runway from 6,000 to 5,500 feet. The displacement of the runway threshold will be necessary to achieve a full runway safety area as set forth in FAA standards. These standards require that airports experiencing certain air traffic mix be required to provide a runway safety area 500 feet wide, 1,000 feet from the end of the runway. This displacement will reduce the capacity of the airport to serve larger, heavier business aircraft during periods of hot weather. Therefore, a runway extension will be required to reestablish and extend the length of the runway to a length that is compatible with the current and future aircraft mix and the hot weather conditions experienced in North Texas. The extension will require closure of Masch Branch Road north of the airport. Masch Branch intersects Tom Cole Road which provides ground vehicle access to the west side of the airport. This issue will warrant further discussion, as access to the west side of the airport will be needed for future development. The long-term solution to west side access will be the extension of Loop 288 on the west side of the Airport. Several potential routes for Loop 288 have been presented to the Airport Advisory Board and the airport master plan is using a right-of-way alignment of approximately 500 feet west of the airport property line. This location will greatly enhance the development opportunities for west side aviation and industrial sites. Though Masch Branch road will be closed, the construction of Western Boulevard will provide an alternate route from Airport Road to U.S. 380, and will provide more opportunities for industrial development in this area. The Runway extension project includes an environmental analysis of the proposed project in year one, project design in year two and construction in year three pending Federal funding. West Side Development: As development continues on the east side of the airport, attention will be focused on planning for development of the approximate 230 acres located west of the runway. Significant challenges are presented with this proposed development as limited, if any, suitable 13 infrastructure is available for industrial development on the west side. The issue is further complicated by the fact that the FAA is unsupportive of major utility lines being placed under the runway due to the potential closure of the runway for repairs. West side development is not planned until the proposed runway extension is complete. The close proximity to the industrial zoned property on the west side of DeNon provides a unique opportunity for the airport to host not only aviation related activities, but light industrial activities as well. The Airport Board and Airport management are reviewing the development of non-aviation related businesses on airport property. The potential for non-aviation related development must be balanced against the threat that it can minimize opportunities for aviation related development. The 1994 Master Plan and the 2002 Master Plan (under review) provide specific areas for industrial development and guide development of non-aviation activities. Other developmental challenges exist for the Airport. The most immediate and significant issue is related to environmental regulations. Denton County is categorized as a non-attainment county for air quality. The Environmental Protection Agency and the Texas Natural Resource Conservation Commission (TNRCC) require the FAA to establish sustainable environmemal developmem. This has resulted in establishing a development plan that adheres to capped emission levels for the three years. The capped emission levels could have an impact on further construction for new developmem. These short and long-term projects are considered key to the future development of the airport. As part of the development strategy, the City Council directed staff on February 27, 2001 to initiate an aggressive campaign to acquire federal funding for airport capital projects. Through the services of the Texas Cities Legislative Coalition, a request was submitted to fund the air traffic control tower, the taxiway realignmem, and the runway extension in the 2002 Appropriations bill. On March 6, 2001 the Denton City Council passed a resolution of support for this request. Armed with this resolution and the personal request and effort from the Mayor and City Council, DeMon's request for funding received considerable support from our Federal Congressional Delegation. U.S. Congressmen Dick Armey and Ralph Hall joined Congressman Mac Thornberry in support of our request and were successful in getting Denton's Airport listed as a "priority consideration" for Federal discretionary grants in the 2002 House Transportation Appropriations bill. The House of Represematives passed their version of the Appropriations bill with the support language included. Senators Phil Gramm and Kay Bailey Hutchison also supported our request. This was significant because Senator Hutchison serves on the Transportation Appropriations Committee. Unfortunately, the Senate version of the Appropriations Bill did not include priority language for the airport, and the bill was sent to Conference Committee for reconciliation. Though staff continued to support and encourage the Conference Committee to designate priority funding for the airport, the final version of the Conference Committee bill, which was ultimately passed, did not include funding for DeMon's airport. Airport staff, with the assistance of the Mayor and City Council, has resubmitted a funding request for 2003. This request includes support for the projects listed above, but also includes a new project for terminal apron expansion. At this time, it appears that support among our Congressional Delegation remains high for our request. Staff will cominue to aggressively pursue federal funding and is optimistic that funding will eventually be grained for these projects. 14 V. CONCLUSION The airport continues to a serve a vital role in the local economy. The significant public and private improvements made to the airport in the past ten years have set the stage for continued development. As the airport continues to strengthen its role as a premier general aviation facility serving the North Texas region, an increasing number of businesses will consider Demon as a home for their base operations. The airport is an economic development tool with unlimited possibilities to "land" new businesses in the City. The future is really "taking off' at the Demon Airport! 15