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<br />. <br /> <br />~ <br /> <br />G\( <br />. <br /> <br />. <br /> <br />ronway in addition to a primary runway!' '!he Aiqx>rt CollInission was advised to <br />purse Alternate B. <br /> <br />'!he study has looked at some of the envirormental consequences and impacts that <br />would associated with Alternate B: perceived safety and noise prob1ans, non- <br />com~tible land use (it has been determined ~ FAA that landfills are not <br />compatible with airports if they are located within 5000' of an airport), <br />increased air traffic, socicreconanics (airport developnent oosts in relation <br />to airport size, runway length and nunber of runways). All of these details <br />have to be addressed in greater detail in an Envirormental Assessment which is <br />a follow-on fhase of this airport study!, <br /> <br />Mr. otto stated that Stage I of airport developnent would involve approximately <br />230 acres of land aa;{uisition including 14 banes and 2 commercial <br />establishments, scheduling the relocation of cty. Rd. 1116, paving runway and a <br />portion of the taxiway system, portion of building area developed. Stage II <br />developnent woulCl include developing the building area including aircraft <br />hangars; aircraft. and aut.o parking area; arrival departure buildings; security <br />fencing; approach and navigation aids. <br /> <br />Mr. otto stated the City's benefits fran this airport developnent as follows: <br />1. IImnedi.ate benefits fran the oonstruction; 2. COntinuing benefits tq <br />attraction of itinerant users; 3. Intangible benefits. An airport, especially <br />in the middle of 1400 acres of industrial property, makes a oommunity look more <br />attracive to a potential business coming into the OOll1Ilunity. '!hat incoming <br />business shifts the tax base fran residential to ccmnercial/industrial tax <br />base.~â‚ĴollegetQfa recently did a study that states for wery dollar spent on <br />capital improvanents, $2.80 is realized in econanic benefits. Studies also say <br />that wery itinerant ~ssenger leaves $70 in the oommunity; based on the <br />projections for Gateway in 1990 and using a conservative figure of <br />$35/passenger, Ramsey is looking at a benefit of $115,000 in itinerant <br />activity; using the multiplier affect on this figure, Ramsey would see an <br />indirect benefit of $460,000 for that one year period. <br /> <br />Mr. otto stated that there is funding available for airport developnent for <br />land acquisition and public use facilities, including runway and taxiway <br />developrment. '!he Airport Improvanent Fund is user generated fran gas and jet <br />fuel sales, airline ticket taxes, etc. and those funds in turn are appropriated <br />for public use portions of airport developnent. Developnent costs in Stage I <br />would be $4,000,000; $3,600,000 would be funded through AIP funds; City's share <br />would be $400,000. stage II costs would be $700,000+; $530,000 would be <br />eligible for AIP funds; $90 ,000 eligible for state funds; City's share would be <br />$100,000. stage III, which includes developnent necessary to meet growth <br />demands, costs would be $260,000; $200,000 is eligible for AIP funds; $21,000 <br />eligible for state funds; City's share would be $33,000. 'lbtal developnent <br />costs over that 20 year period would be $5,000,000 with the City's share being <br />$500,000+. <br /> <br />Mr. Otto stated that airport associated operating expenses are a concern. In <br />order to get a rwenue base, you need a viable fixed base operation to generate <br />those revenues and offset the expenses. Having hangars available accanplishes <br />that goal. Including hangar developnent significantly increases the State and <br />City's share of airport developnent costs; Federal ~rtici~tion does not <br />August 21, 1985 <br /> <br />Page 3 of 14 <br />