Laserfiche WebLink
Airports t/~e~size of Gateway generally are not totally self sustaining and it <br />would .not. ~)e i¥iable to float a rewenue bond for the development of it. G.O. <br />bonds do ~O~ide the lowest cost of financing for public facilities and it is <br />typically ~the method that is pursued. If a city knows the airport dvelo~ment <br />is coming,~ it.'can avoid a large bond issue by beginning to accumulate cash <br />to be used tOWards the development. The City could create a tax increment <br />district ~a~ ~Se the tax increment dollars gained from that district to pay for <br />airport development costs. <br /> <br />conomic I/moacts - There are direct benefits to a community from an airport <br />nstrUC~'~ Program; a good portion of the development costs will be spent in <br />the local ~ar~a. Georgtown University did a study which states that every $1.00 <br />spent on development generates $9..80 worth of economic activity. The longer <br />term ber~fit ito airport development is that it will attract more and more <br />business uses. A forecast by the General Aviation Manufacturers Associate <br />states that the average itinerant spends $50 to $70 per day in the area; a <br />conservative forecast was done on Ramsey using a $35/day figure; based on that <br />figure a~d the cyclic multiplier effect, by 1990 an indirect benefit of <br />$460,000 is forecasted for the community and the community's share of <br />development oosts, in the first place, was $500,000. An airport is considered <br />another ~ype of utility that a oommunity has to offer and Gateway would be <br />geared towards attracting mall business, sales reps and light manufacturing. <br /> <br />County Commissioner Haas inquired if acquisition goes to court, would it be a <br />condemnation process. <br /> <br />Mr. Otto replied that it would be a condemnation process if it goes to court, <br />but it would be fair market value or relocation. <br /> <br />County Commissioner Haas inquired as to who will make the decision regarding <br />tax dollars being used to relocate Cty. Road #116. <br /> <br />Mr. Otto replied that State funds come through the Minnesota Department of <br />Transportation, Division of Aeronautices; those funds are user generated funds. <br />Ten percent of the cost would be the City's share and 90% of the cost would be <br />covered by Airport Improvement Funds. The Metropolitan Airport Commission has <br />noting to do with the relocation of Cry. Rd. #116. <br /> <br />Chairman tppel stated that some of the Airport Commission member and City <br />Council toured airport facilities in the surrounding metro area. <br /> <br />Commissioner Stauffer stated that the airport facilities that would be most <br />like what is being considered in Ramsey are Air Lake and Princeton; the <br />businesses locating near these airports are the type of businesses desired in <br />Ramsey -- light manufacturing, sales reps and business sales, etc. <br /> <br />Commissioner Erickson stated that Air Lake is definitely what he would like to <br />see Gateway become and that he sees the swing factor to making improvements at <br />Gateway being the desire for additional tax base. <br /> <br />Commissioner $iebert stated that he was impressed with the economic impact of <br />incoming b~sinesses at facilities like Princeton and Air Lake. <br /> May ~, 1985 <br /> Page 3 of 8 <br /> <br /> <br />