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million will be required from local sources, including general obligation bonding and/or tax increment financing. Up to $800,000 could be generated through hangar space fees to recover cost of construction of those facilities by using a state-supported revolving fund. operating costs are estimated at $17,000 annually;' these costs can be at least partially offset by state grants and aviation building leases. DISCUSSION The proposed improvements are consistent, or at least not in conflict with all but two of the~adopted goals and policies of the Aviation Chapter of the Metropolitan Deve~topment Guide. For two policy areas, uncertainty'exists as to whether consistency with the goals and policies would be achieved. These areas relate tO land use/environmental compatibility and system'investments. In addition, new aviation demand forecasts have been developed as part of the pending update~of the Aviation Chapter, and a comparison of regional forecasts and those made for the Gateway Master Plan show differences that warrant discussion. - Land Use/Environmental Compatibity Policy 4 states: "Land use surrounding an airport in the metropolitan airports system should be compatible with the role and function assigned to that airport; where incompatibility exists, affected agencies and jurisdictions should jointly participate in developing a program to mitigate the incompatibility. The guidelines for determining land use compatibility with aircraft noise are presented in Appendix D." Policy 6 reads:~ "State and Federal environmental standards and adopted Metropolitan Council policies (noise, air quality, water quality, etc.) must be major considerations in the planning, design and operation of air transportation projects." The airport master plan discusses noise impacts only in a qualitative manner, referring to "perceived noise", other noise generators in the area (such as Highway 10) and the types and volumes of aircraft traffic anticipated. It states that: "the noise levels and intensities projected will not change significantly, however the duration will increase with increased activity both at the airport and vehicular traffic around the facility caused by general development of the area". As discussed above, and as evidenced by attached Figure 2, significant encroachment upon other developments must be made to implement the proposed improvements. Included in the land for acquisition are 13 occupied residential units; additional remaining residential units abut the land being acquired. The runway is to be moved north of its present site, toward existing residences, whereas the present airport site is somewhat buffered from the residential areas.