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FAA Initiatives At By Mike Mitchell |
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May 2, 2011 - A new headwind of politicians have emerged in this country that now advocate for big business on the backs of the everyday worker. Politicians speak of balancing budgets, bringing businesses to their communities and creating jobs. It’s a new catchall phrase with an underlining agenda that lacks any critical thinking and fiscal relevance. This new headwind is now looking to shut down the general aviation airport, which will affect the businesses on those airports such as flight schools, aircraft maintenance, fuel suppliers, etc.
This impact will also threaten the livelihood of many
businesses that are located off the airport that do
business directly or indirectly with these airports. This
move will result in a reverse effect of creating jobs
and bringing in new businesses. This
initiative |
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Left to right: Joe Hintz, Larry Silcox (center), and Gary Bauer (on far right ) | ||||
Suppose you are a commissioner in a small county located in The airport has an annual operating budget of $147,000 with annual generated revenue of $137,000. This means that the county needs to pay the difference of $10,000 a year in order for the airport to balance its budget. The airport land and buildings are valued at $1.5 million. The neighboring businesses generate (impact revenue) about $1.5 million a year from the airport. Throughout the years the FAA has provided grant funding for airport repairs in excess of over a million dollars at this airport. Because of grant funding regulations the airport is unable to sell the airport unless it waits 20 years or reimburses the FAA $980,000. |
The property
adjacent to the airport is
So now you have some of the facts. What do you do as a commissioner? Lets us give you some options.
A) Sell the
airport
B) Not sell the
airport and look for ways to improve airport revenue sources C) Go with both plans A and B and look at the pros and cons before rendering a decision. Well in real life the Huron County Commissioners have chosen to go with plan A. So what does this mean for the county? 1) The county will not have to allocate any money in their budgets to cover the short fall of the airport. Remember we stated the shortfall was $10,000 a year however, in reality the county only allocated $5,000 in this year’s budget and has refused to turn that money over to the airport. 2) Those businesses that generate over $1.5 million a year form the airports existence will no longer be in business. Employees will be without work and those businesses will no longer pay county taxes. 3) If the $1 million sale goes through to the race track, the county will have to pay $980,000 back to the FAA and the county would be giving up a property worth $1.5 million. If you do the math there is a net loss to the county of $1,480,000 and the loss of the only county airport.
As a result of the
county commissioners' position to sell the airport the “Friends of the
The FAA sent a
representative to the airport to review the issue of airport closure and
funding.
Upon the conclusion, a
letter was sent out March 22, 2011, to the Huron Airport Authority
which indicated that if
If the county
commissioners are advocating that the airport should be self-sufficient, why
would they have a problem with the dollar amount suggested by the FAA?
The “Friends of the In a telephone interview Commissioner Larry Silcox stated that the airport continues to draw from the county budget and he would like to see the airport be self-sufficient. He states the board has continuously requested from the Airport Authority a business plan that would put the airport on the road to independence and not draw from county funds.
Silcox stated the
commissioners were not opposed to the FAA requiring Silcox states in the March 29, 2011 commissioners meeting that he wants to get rid of Dennis A. Sokol, President of the Airport Authority and the Airport Authority. He states that he would like to give the Airport Authority 30 day to get off the airport. So you ask yourself why? Under Chapter 308: Airport Authorities section (F) the airport authority has jurisdictional control, possession, and supervision over the airport. In addition, under section (E) may fix, alter, and collect rates and rentals and other charges for the use of airport and airport facilities under its jurisdiction. The authority does have a remedy if it wants to exercise its authority. Under section 308.06 paragraph (A) the authority may sue the county to stop it from interfering with the airports authority.
In order for airports to receive FAA grant funding, airports must be able to come up with a percentage of their own money. The money that could have been generated from the speedway under the FAA's initial plan could have allowed the airport to receive federal funding which would have allowed needed work that would have improved safety and security at the airport.
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