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GLENDALE MUNICIPAL AIRPORT
BUSINESS PLAN
FINAL REPORT
OCTOBER 2022
Glendale Municipal Airport Business Plan
Final Report
October 2022
Prepared For:
City of Glendale
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Airport Business Plan
Table of Contents
I.
Airport Business Plan ............................................................................ 1
A. Introduction ......................................................................................................................................... 1
B. Methodology ........................................................................................................................................ 1
C. Stakeholder Panel ............................................................................................................................... 2
II.
Situational Analysis .............................................................................. 4
A. Introduction ........................................................................................................................................ 4
B. City of Glendale .................................................................................................................................. 4
1.
Population ...................................................................................................................................................... 5
2. Development ................................................................................................................................................. 5
3. Economic Development Focus Areas ...................................................................................................... 6
C. Envision Glendale Planning Guide .................................................................................................... 9
D. City of Glendale Governance Structure .............................................................................................. 9
E. Glendale Municipal Airport Overview .............................................................................................. 10
1.
Airport History and Background ............................................................................................................ 11
2. Airport Guiding Documents ..................................................................................................................... 11
3. Airport Users, Tenants, and Businesses ................................................................................................ 13
4. Historic Aviation Activity ......................................................................................................................... 14
F. Existing Airport Infrastructure and Available Developable Space ................................................... 15
G. Glendale Municipal Airport Economic Impact ................................................................................. 16
III.
Analysis of Business Opportunities ....................................................... 18
A. Introduction ....................................................................................................................................... 18
B. Corporate and Facilities Development .............................................................................................. 18
1.
Business Aviation ....................................................................................................................................... 18
2. Charter Airlines .......................................................................................................................................... 20
3. Flight Training Schools ............................................................................................................................ 22
4. Heavy Maintenance .................................................................................................................................. 23
5. Based Corporate Aircraft ......................................................................................................................... 24
C. Emerging Technologies .................................................................................................................... 25
1.
Advanced Air Mobility .............................................................................................................................. 25
2. Unmanned Aerial Systems ....................................................................................................................... 27
D. Concessions and Other Services ....................................................................................................... 28
1.
Concessions ................................................................................................................................................ 28
2. Other Specialty Facilities ......................................................................................................................... 30
E. Conclusion ......................................................................................................................................... 31
IV.
Airport Financial Analysis .................................................................... 32
A. Overview ........................................................................................................................................... 32
B. Current Airport Financials ............................................................................................................... 32
1.
Annual Budgets .......................................................................................................................................... 32
2. Airport Ground and Facility Leases ...................................................................................................... 34
3. Current Airport Rates and Fees .............................................................................................................. 35
4. Other General Sources and Uses of Funds ........................................................................................... 35
C. GEU Airport Capital Funding Programs .......................................................................................... 36
1.
Historic Federal Funding ......................................................................................................................... 36
2. Current GEU Airport Capital Improvement Program ....................................................................... 36
D. Existing, Potential, and Future Financial Mechanisms ................................................................... 39
1.
FAA and ADOT Aeronautics Grant Programs ..................................................................................... 39
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2. Debt – Capital Improvements ................................................................................................................ 39
3. Bonding – Capital Improvements ......................................................................................................... 39
E. Summary, Conclusions, and Recommendations ............................................................................. 43
V.
Airport Peer Exchange ........................................................................ 45
A. Introduction ....................................................................................................................................................... 45
B. Overview of Interview Findings and Outcomes ............................................................................... 45
C. Peer Review Analysis ......................................................................................................................... 47
1.
Municipal Financial Structure .................................................................................................................47
2. Revenue Generating Sources ...................................................................................................................47
3. Future Development Considerations .....................................................................................................47
D. Peer Exchange Takeaways ................................................................................................................. 47
E. Conclusion ........................................................................................................................................ 48
VI.
Potential Development Areas ............................................................... 49
A. Overview ............................................................................................................................................................... 49
B. Zone Methodology and Site Map ..................................................................................................... 49
1.
Zone 1 – Existing Operations and Development ................................................................................ 49
2. Zone 2 – Future Multi-use Aeronautical Development .................................................................... 49
3. Zone 3 – Future Landside Development (North) ............................................................................... 50
4. Zone 4 – Future Landside Development (West) ................................................................................ 50
VII.
Implementation Plan .......................................................................... 52
A. Introduction ...................................................................................................................................... 52
B. Methodology ..................................................................................................................................... 52
C. Implementation Plan and Actions ................................................................................................... 52
1.
Develop Comprehensive Marketing and Public Relations Plan for GEU ...................................... 53
2. Implement Financial Structure Upgrades to Reach Fiscal Sustainability .................................... 54
3. Landside Development ............................................................................................................................ 56
4. Infrastructure Improvements (Airside) ................................................................................................. 57
5. Develop Business Center and Airport Administrative Offices ......................................................... 58
D. Implementation Plan Summary ....................................................................................................... 60
VIII. Airport Business Plan Conclusion .......................................................... 61
List of Figures
Figure 1 - Airport Business Plan Methodology ................................................................................................ 2
Figure 2 - Glendale and Surrounding Areas .................................................................................................... 4
Figure 3 - Glendale Development Areas .......................................................................................................... 6
Figure 4 - Loop 303 Annexation Boundaries .................................................................................................. 7
Figure 5 - City of Glendale Organizational Chart .......................................................................................... 10
Figure 6 - Glendale Municipal Airport ........................................................................................................... 11
Figure 7 - Arizona Aviation Economic Impact Study - GEU .......................................................................... 17
Figure 8 - GEU Annual Revenues and Expenses (FY 2022) ......................................................................... 34
Figure 9 - Potential Development Areas ........................................................................................................ 51
List of Tables
Table 1 - Fastest Growing Cities in Phoenix Metro Area ................................................................................ 5
Table 2 - GEU Historical Budget Summary .................................................................................................. 33
Table 3 - Overview of Peer Exchange Topics ................................................................................................. 46
Table 4 - Strategic Plan Critical Goals ........................................................................................................... 53
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Executive Summary
Introduction
The Glendale Municipal Airport (GEU) has developed an Airport Business Plan (ABP) to
determine how to better utilize, expand, and acquire new aviation related businesses at the
Airport. The focus of the ABP included regional economic factors and drivers, the City of
Glendale’s current economic development efforts, current business functions at GEU, and
infrastructure conditions that will affect future growth. In addition, an analysis of aviation
business opportunities and potential financial avenues were explored. As a result, an
implementation plan was adopted to take the GEU to the next level.
Background
The City of Glendale has developed an economic development strategy that focuses on making the
area a West Valley center of employment. Glendale has targeted specific industries and distinct
geographic areas of the city, as found in the Economic Development Department Plan for the City
of Glendale. The Office of Economic Development has identified five targeted industries that
balance the City’s existing strengths while also actively exploring opportunities for industry
diversity to best support sustainable, future economic growth. These industries include:
Aerospace, Aviation, & Defense
Manufacturing
Advanced Business Services
Healthcare & Bioscience
Technology & Innovation
The Airport’s role is to provide access to Glendale and its many attractions and resources. In turn,
those attractions and their travel or access requirements drive increased traffic to the Glendale
Municipal Airport. This constitutes an economically beneficial relationship where both the airport
and the individual development areas benefit and utilize the strengths and attractions of the other
to continue growing the market and developing into the future.
Glendale Municipal Airport is located seven (7) miles west of the government center of the City of
Glendale on approximately 447 acres of property, of which approximately 125 acres is undisturbed
land slated for future development. The Airport is home to many businesses and more than 474
privately owned general aviation aircraft. GEU is classified as a general aviation reliever facility
and is included in the National Plan of Integrated Airport Systems (NPIAS). The Airport is a
designated reliever for Phoenix Sky Harbor International Airport (PHX), which is 18 miles east.
It is a full-service general aviation (GA) airport offering hangar storage, a fixed base operator
(FBO), fueling and major maintenance, flight schools, a terminal building, air traffic control
tower, and general services.
Potential Business Opportunities
The business plan for Glendale Municipal Airport has examined traditional GA business
opportunities, as well future aviation technological and business changes, that will enhance and
grow the Airport. The range, level, and quality of aviation products, services, and facilities being
provided at a general aviation airport are key in achieving financial self-sufficiency and
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accomplishing the development goals established for GEU. Specifically, the GEU Business Plan
recommends the following areas of future development:
•
Corporate and Facilities Development – Examples include business aviation, charter
airlines, flight training schools, heavy maintenance, and based corporate aircraft.
•
Emerging Technologies – Examples include Advanced Air Mobility (AAM) and
Unmanned Aerial Systems (UAS).
•
Concessions and Other Services – Examples include concessions (food & beverage,
convenience and specialty retail, advertising, rental cars, and other ancillary services) and
specialty facilities (U.S. Customs, Immigration, and Agricultural Services, aviation
museum, and an aircraft wash rack).
There are many opportunities for the Glendale Municipal Airport to expand upon its existing
business base, and to cultivate targeted new markets in the future. Additionally, the airport also
has ample vacant land to accommodate many new enterprises. The key to success will be for the
airport to target those specific markets such as corporate aviation and support services that are
integral to its future development and financial goals. For example, one of the conclusions drawn
from the Airport Strategic Plan published in 2021, indicated that the future of the Airport lies in
the development of the east-side property, and other currently undeveloped airport sites, which
would provide strategic solutions to issues such as financial sustainability, business development,
and infrastructure improvements. This vision of the future would contain a mix of private and
commercial aviation operations that financially support the airport and its development into the
future; types of businesses may include corporate aviation services, heavy aircraft maintenance
facilities, and associated businesses which will culminate into a well-coordinated and attractive
facility for the betterment of City and region.
Funding Sources
Major capital improvement or planning projects are traditionally funded by appropriate grant
programs from the Federal Aviation Administration (FAA) or the Arizona Department of
Transportation (ADOT), Aeronautics Group, Aviation Fund. In the case of ADOT Aeronautics,
project assistance can come in the form of grants, or the State’s Airport Pavement Maintenance
System Program for specific runway, taxiway, or apron area pavement preservation projects.
Federal Airport Improvement Program (AIP) grant funding is available to support a broad
spectrum of uses. As a general aviation airport, the federal share of eligible capital improvement
projects for GEU is 91.06 percent. In exchange for this level of funding, the airport sponsor is
required to meet various Grant Assurances, including maintaining the improvement for its useful
life, usually 20 years.
A variety of funding resources are available to the City of Glendale for airport infrastructure and
development programs. Depending on the project, several considerations are involved in making
the proper selection of a funding mechanism to fit specific applications on the airport. Grants that
generally have no repayment requirements are the preferred choice whenever possible. However,
the scope and scale of any future airport development should also include investigating other
options such as debt and bonding options, private investment, and alternative revenue options.
A composite picture of the future Glendale Municipal Airport is not yet complete. However,
acceptance and implementation of the Airport Business Plan will dramatically change the
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structure and financial needs of the overall Capital Improvement Program immediately. In
addition to the traditional federal and state grant funding resources, it is highly likely that debt
service, bonding, public/private partnerships, and other financial resources will be engaged to
accomplish the future build out of GEU. The speed with which these future development projects
can be accomplished will be governed by the Airport’s ability to identify funding vehicles sufficient
to carry the economic load of its development.
Informational Peer Exchange Sessions
During the months of November and December 2021, structured interviews were held at three
airports within the Phoenix Metropolitan area – Chandler Municipal, Mesa Falcon Field, and
Scottsdale, for a peer exchange of information. These three airports were selected for this
exchange because they represent different Valley locations, are experiencing dynamic growth, and
incorporate business savvy management practices. The most prominent takeaways from the peer
exchange sessions that proved enlightening for GEU management were:
1. The involvement of the city management and a dedicated development
services/marketing professional is a key factor in the success of attracting new business
at an airport.
2. Municipalities should treat airports as economic engines rather than just a
transportation mode.
3. Ownership and control over an airport’s hangar facilities, whether large corporate
buildings or box hangars, can have a greater impact on an airport’s revenue than just
land leases alone.
4. The use of a city’s bonding program can be a successful non-traditional avenue for
building specialty facilities, such as a business center, restaurant, meeting rooms, and
even a U.S. Customs and Immigration Office.
Potential Development Areas at GEU
To effectively utilize the land mass at GEU, existing and future development were organized into
specific zones based on certain criteria. The concept involves segregation by use, which allows for
the most efficient development of similar businesses within the airport boundaries. The four zones
suggested include: Existing operations and development, future multi-use aeronautical
development, future landside development (North), and future landside development (West).
Implementation Plan
A total of five implementation actions were developed for the Glendale Municipal Airport
Business Plan. The actions have been tied into the previous Strategic Plan Critical Goals so that
both documents mirror the same direction and purpose of all work combined. To fulfill the agreed
upon Critical Goals of the Strategic Plan and to implement the more detailed plans and actions of
the Business Plan, several actions are recommended.
•
Develop Comprehensive Marketing and Public Relations Plan
•
Implement Financial Structure Upgrades to Reach Fiscal Sustainability
•
Landside Development
•
Infrastructure Improvements (Airside)
•
Develop Business Center and Airport Administrative Offices
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The Glendale Municipal Airport Business Plan has evaluated the existing business environment
of the area, analyzed the current financial position of the Airport, provided potential business
opportunity recommendations and development zones, and outlined an implementation plan
with the goal of successfully and prosperously bringing GEU into the future. In addition, the Peer
Exchange process provided valuable insight to GEU management on the how other similar
airports in the Phoenix Metropolitan area have used various techniques and strategies to increase
revenue and business ventures on and around their airports. The Business Plan is a valuable asset
to be used for the Airport’s ever-growing path to future self-sufficiency and financial prosperity.
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I. Airport Business Plan
A. Introduction
The Glendale Municipal Airport (GEU) is undertaking the development of an Airport Business
Plan (ABP) to determine how to better utilize, expand, and develop new aviation related
businesses at the Airport. As a key community economic asset, it is believed that through product
development and more aggressive marketing, the Glendale Municipal Airport can play an
important role in Glendale’s future vision as an employment center and business asset to the
surrounding area.
The focus for the ABP will include regional economic factors and drivers, the City of Glendale’s
current economic development efforts, current business functions at GEU, and infrastructure
conditions that will affect future growth. In addition, aviation business opportunities will be
analyzed, financial avenues will be provided, and finally, an implementation plan will be adopted
to take the airport to the next level.
B. Methodology
Among the fundamental questions to be addressed with the assistance of this ABP is what the
“primary” purpose or role of the Airport should be going forward. Will the community obtain
maximum benefit from the Airport’s operation by maintaining its focus on general aviation (GA)
or should that scope be expanded to include additional pursuits such as increased charter,
corporate, and other GA light aircraft operations. Establishing the “primary” purpose, or
direction, through this study ultimately provides focus and guidance for subsequent planning and
development efforts.
In general terms, the ABP will ascribe to the following approach:
Chapter One – Introduction of the Business Plan’s purpose, approach, and stakeholders.
Chapter Two – Generation of a Situation Analysis of the City of Glendale’s and the Glendale
Municipal Airport’s environs that will affect future business development efforts.
Chapter Three – Establishment of a reasonable range of potential aviation activities that may be
accommodated at the Glendale Municipal Airport, along with descriptions of the benefits and
impacts such activities will have on the airport.
Chapter Four – Analyze GEU’s current financial mechanisms and potential for future financial
sustainability. From there, establish a realistic airport development scenario and assessment of
the potential physical and financial implications of each.
Chapter Five – Peer Exchange and comparative analysis of selected airports economic and
operational development.
Chapter Six – Develop a reasonable implementation plan that incorporates all information from
the Business Plan development and the previously developed Airport Strategic Plan.
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Figure 1 graphically depicts the methodology for the ABP.
Figure 1 - Airport Business Plan Methodology
C. Stakeholder Panel
GEU has selected a Stakeholder Panel to assist in the development of the Airport Business Plan.
The function of the Panel is to analyze, comment on the data presented, the reasonableness of
suggested business actions, and use their subject matter expertise to agree to a proposed
implementation plan. The Stakeholder Panel for the Airport Business Plan is made up of the
following individuals:
Carl Newman, AAE - Airport Administrator
Glendale Municipal Airport
Jessi Pedersen, Assistant Director
City of Glendale, Economic Development Department
Jim Gum, Airport Operations Supervisor
Glendale Municipal Airport
From Strategic Plan
S.W.O.T.
From Strategic Plan
Critical Goals
& Priorities
From Strategic Plan
Strategic
Initiatives
GEU Business
Plan Process
Situational
Analysis
Business
Opportunities
Financial
Analysis
Peer Exchange
Airport
Development
Implementation
Plan
Final
Airport
Business
Plan
From Strategic
Plan
Mission,
Vision, &
Values
Statements
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Roxanne Alexander, Management Assistant
Glendale Municipal Airport
Erin Steffa, Management Assistant
City of Glendale, Transportation Department
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II. Situational Analysis
A. Introduction
A situational analysis helps develop a basis of understanding the environment in which the ABP
will be delivered. After the ABP is completed and approved, an Implementation Plan will be
developed to enhance and identify specific business actions for the Airport. Using data from
previous plans and studies as a baseline, a situational analysis will determine the current role,
assets, capabilities, and market position of GEU. A review of existing and completed planning
documents and studies will be utilized to gather data as well as new research.
B. City of Glendale
Glendale is a landlocked City and is bordered by numerous other West Valley cities. Glendale is
bordered on the north and west by the cities of Peoria, El Mirage, Sun City, Surprise, and Sun
City West, on the far west by Maricopa County, and on the south by the cities of Avondale,
Litchfield Park, and Goodyear. The City of Glendale’s eastern boundary is adjacent to the City of
Phoenix. The Phoenix metropolitan area, which encompasses all the aforementioned cities, is the
fastest-growing area in Arizona, according to newly released 2020 census data. Figure 2
illustrates the location of Glendale within the greater-Phoenix area.
Figure 2 - Glendale and Surrounding Areas
Source: City of Glendale Transportation, October 2021
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1. Population
The U.S. Census Bureau released statistics, from the 2020 Census, which illustrates population
changes for the nation, states, and communities down to the block level. The data, which shows
an increase in the population of the nation's metro areas compared to a decade ago, also shows
population changes in smaller cities. The data represents where people were living as of April 1,
2020. These are the top ten fastest growing Phoenix Metro cities by number of residents added,
according to the census data. As illustrated in Table 1, the West Valley is the fastest growing
region in the Phoenix Metropolitan Statistical Area and Glendale is among that group.
Table 1 - Fastest Growing Cities in Phoenix Metro Area
City
Population 2020
Increase
Phoenix
1,608,139
(+162,507)
Mesa
504,258
(+65,217)
Buckeye
91,502
(+40,626)
Chandler
275,987
(+39,864)
Peoria
190,985
(+36,920)
Goodyear
95,294
(+30,019)
Surprise
143,148
(+25,631)
Scottsdale
241,361
(+23,976)
Tucson
542,629
(+22,513)
Glendale
248,325
(+21, 604)
Source: U.S. Census Data – MSA, 2020
2. Development
The City of Glendale has developed an economic development strategy that focuses on making the
area a West Valley center of employment. Because of previous agreements with Maricopa County
and smaller unincorporated cities within the footprint of the City, there are numerous restrictions
and monetary roadblocks for Glendale to develop large housing tracts. The City therefore has
developed a strategy of seeking development and markets that will support high level employment
centers and activities.
Glendale has targeted specific industries and distinct geographic areas of the city, as found in the
Economic Development Department Plan for the City of Glendale. By aligning resources and
priorities, the City of Glendale has dedicated its focus to diversify its economy and build upon an
existing foundation for quality employment centers and opportunities. The Office of Economic
Development has identified five targeted industries that balance the City’s existing strengths while
also actively exploring opportunities for industry diversity to best support sustainable, future
economic growth. These industries include:
Aerospace, Aviation, & Defense
Manufacturing
Advanced Business Services
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Healthcare & Bioscience
Technology & Innovation
3. Economic Development Focus Areas
The Glendale Municipal Airport is surrounded by several development areas and transportation
systems that influence and contribute to its daily business and operations functions. Figure 3
depicts these areas as described by the City of Glendale’s Office of Economic Development.
Source: Glendale Economic Development Department, 2021
a.
The New Frontier
The New Frontier District is Glendale’s emergent area for development providing new industrial,
office, and retail opportunities for Glendale and the entire West Valley. This district is over 23-
square miles and is easily accessible for businesses and residents as it is served by the Loop 303,
which connects to the I-10 to the south and runs north to the US 60. Glendale has five miles of
double-sided frontage road along the freeway for development. Northern Parkway provides
additional connectivity in the area giving vehicles easy east/west access in the area. Future
expansions of the Parkway will connect it to Loop 101 and the Sports and Entertainment District.
This district has more than 5.5 miles of rail served property through the Burlington Northern
Santa Fe Railroad. Coupled with the large land sites available for development, this district
provides an opportunity for manufacturing and logistics companies looking to establish a
presence in the Phoenix Metro Area.
Key Assets:
Loop 303, Luke Air Force Base, Northern Parkway, available land, BNSF rail-service, Woolf
Logistics Center
District Focus:
Glendale is focused on smart growth and The New Frontier District provides the prime
opportunity for the city to strategically attract new employers that provide increased employment
opportunities and businesses that have a positive economic impact on Glendale. Because of the
proximity to Luke Air Force Base and the Loop 303, property within this district is prime for
manufacturers and ancillary uses that support the military base. Frontage along the Loop 303 also
Figure 3 - Glendale Development Areas
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offers additional commercial opportunities for potential retail development and e-commerce end
users that will support growth of the city’s revenue base. Also, a significant focus for this district
is the available rail-served property that is highly sought-after and attractive to industrial users.
In 2003, Glendale, Planning Division, adopted an Annexation Policy. It has been amended twice
- in 2005 and 2014. As of 2014, a policy of annexation was established for the Loop 303 and
Northern Parkway Corridors, in which it stated, “The City will pursue voluntary annexation in the
Loop 303 Corridor.” The Loop 303 Corridor is bounded by Peoria Avenue, Sarival Avenue,
Camelback Road, and Cotton Lane. Northern Parkway is presently under development in this area
to connect the Loop 303 Corridor with other portions of the MPA. Figure 4 illustrates the
boundaries of the annexation.
Figure 4 - Loop 303 Annexation Boundaries
b.
Downtown
Glendale’s Downtown District encompasses less than 0.2 square miles of commercial space that
is prime for redevelopment opportunities. Glendale’s downtown was built to support a
pedestrian-friendly experience that now provides significant benefit to an urban revitalization.
High vacancy rates, prohibitive zoning, and aged infrastructure are some of the challenges that
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plague this district. The Downtown District is however within the city’s designated redevelopment
area and within an Opportunity Zone which provides additional investment tools and
opportunities for this strategic district.
Key Assets:
City-owned assets (including City Hall, Library, Civic Center), Murphy Park (green space),
Available parking, Amphitheater, urban environment, Adaptive Reuse Program, Opportunity
Zone
District Assets:
Revitalization and future growth within this district will require new investment with a focus on
the experiential market. Traditional retail will not support the future sustainability of this area,
rather a mix of uses that increase consistent density in this area is needed. Food & Beverage, Arts
and Culture, Interactive/Entertainment-based Retail are all attractive opportunities for this
district.
c. Sports and Entertainment
Glendale is home to one of the most dynamic Sports and Entertainment Districts in the United
States. The 6-square-mile, mixed-use district is the location of the:
•
State Farm Stadium, home of the National Football League (NFL), Arizona Cardinals,
and annual VRBO Fiesta Bowl,
•
Desert Diamond Arena, an entertainment center owned by the City of Glendale,
•
Los Angeles Dodgers and Chicago White Sox Spring Training facilities, and
•
the future home of the Crystal Lagoons®, Island Resort.
This district has hosted Super Bowls, Bowl Championship Series (BCS), National Collegiate,
football games, World Cup Friendly Soccer matches, NCAA Final Four Men’s Basketball
Championship, and countless world-class concerts.
The area continues to be a major driver for additional hotel and entertainment development. This
vibrant, regional destination is becoming a major employment corridor including offices for Ring,
Bechtel, Humana, Terminix, and others who employ over 2,500 professionals within the district.
With significant land opportunities for new office development projects specifically along the
Loop 101 freeway, this dynamic district is the prime location for new employment growth.
Key Assets:
Westgate Entertainment District, Tanger Outlets, Desert Diamond Arena, State Farm Stadium,
Camelback Ranch, Topgolf, city-owned land, growing hotel sector, prime land availability with
Loop 101 frontage and major arterial exposure, flexible zoning, CVB, committed investment
partners, freeway access, major league sports franchises, signature retailers, major employers
District Focus:
The City of Glendale continues to focus on attracting strategic investment and development within
this district that provides, unique, innovative entertainment and experiential opportunities for
residents and visitors. Additionally, Glendale is focused on building an even stronger employment
base and is seeking corporate partners that are interested in calling this world-class district home
to their business operations.
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The Glendale Municipal Airport is not physically located in any of the development areas
discussed above. However, in its role as an economic engine the Airport enjoys a symbiotic
relationship with each of those entities by providing local transportation options for people,
services, and materials. The Airport’s role is to provide access to Glendale and its many attractions
and resources. In turn, those attractions and their travel or access requirements drive increased
traffic to the Glendale Municipal Airport. This constitutes an economically beneficial relationship
where both the airport and the individual development areas benefit and utilize the strengths and
attractions of the other to continue growing the market and developing into the future.
C. Envision Glendale Planning Guide
The Envision Glendale 2040 General Plan document (also referred to as “Envision Glendale
2040” or simply the "General Plan") will guide Glendale’s future relative to land use planning,
public services, infrastructure, and resource management. This General Plan will help guide the
changes of the future while retaining the community’s distinctive character and culture. This is an
excellent reference document to supplement airport planning that is consistent with the
surrounding community and its resources.
This and other documents utilized by the Airport and City both govern and guide the daily
operations and development of the Glendale Municipal Airport. Reference and adherence to the
direction of each of these “guiding documents” provide the structure for all future airport
developments.
D. City of Glendale Governance Structure
The City of Glendale operates under a mayor–council–manager form of governance. Elected
Mayor and City Councilmembers serve as the City's primary legislative body and appoint a chief
executive officer (City Manager) to oversee day-to-day municipal operations, draft budgets, and
to implement and enforce the council's policy and legislative initiatives. The mayor is elected at-
large every four years. Councilmembers also are elected to four-year terms from one of six
electoral districts in Glendale. One of the highest priorities of the mayor and council is to involve
the public in their decision-making process through public participation. They regularly appoint
citizens to 17 advisory boards and commissions and often form public committees to address
specific citywide issues. As illustrated in Figure 5, the City of Glendale Organizational Chart,
Glendale Municipal Airport is a division within the Transportation Department, and the Airport
Administrator reports to the Director of Transportation.
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Figure 5 - City of Glendale Organizational Chart
Source: City of Glendale, August 2022
E. Glendale Municipal Airport Overview
The airport is one of four divisions under the City of Glendale Transportation Department; these
divisions include Airport, Street Maintenance, Traffic Engineering, and Transit. The
Transportation Department reports to a chain of command that includes the Assistant City
Manager, the City Manager, and City Council. The Airport Administrator serves as a Division
Head and is responsible for the day-to-day operations and management of the airport facility, and
administration of its policies and procedures.
There are six additional full‐time employees aside from the Airport Administrator that include
five airfield operations personnel and one management assistant. A seven‐member Aviation
Advisory Commission advises the City Council on maintenance and operation of the Glendale
Municipal Airport and its role in statewide air transportation. The Commission meets once a
month to discuss airport matters.
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1. Airport History and Background
The first municipal airport was built in 1971 and due to restricted expansion possibilities, the
current location was sited and construction in 1987. The present-day Glendale Municipal Airport
is located seven (7) miles west of the government center of the City and owns 447 acres of property
within the fence, of which approximately 125 acres is undisturbed land slated for future
development. The Airport is home to many businesses and more than 474 privately owned general
aviation aircraft.
The Glendale Municipal Airport (GEU) is classified as a general aviation reliever facility and is
included in the National Plan of Integrated Airport Systems. The Airport is a designated reliever
for Phoenix Sky Harbor International Airport (PHX), which is 18 miles east.
The Airport's single runway is 7,150 feet in length and 100 feet wide. In 2019, the Glendale
Municipal Airport reported a total of 90,144 aircraft operations. The existing runway (oriented at
10/190 degrees magnetic) has a 1,001-foot displaced landing threshold on Runway 19, and a 701-
foot displaced landing threshold on Runway 1. An aerial of the Airport is shown in Figure 6.
Figure 6 - Glendale Municipal Airport
Source: Glendale Municipal Airport, Airport Layout Plan, 2018
2. Airport Guiding Documents
The Glendale Municipal Airport has numerous established policies and procedures contained in
various “guiding documents” that provide direction for many of the Airport’s daily processes.
Included among these are planning documents, standards, financial references, City and Airport
policies and procedures.
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a.
Glendale Municipal Airport Strategic Plan (ASP), 2021
A plan developed and envisioned as a measured and comprehensive approach to future
development efforts. The goal of the ASP is to enhance the Airport’s ability to become an effective
and relevant transportation resource for the long-term benefit of the City of Glendale and
surrounding communities.
The Airport Strategic Plan is a resource document for the Airport that uses a logical and
disciplined structure to meet the Airport’s goals, objectives, and action plans. This plan will drive
the day-to-day operation, management, and economic development of the Airport, and as such
will be frequently referenced to assure future development is consistent with the primary
directions contained therein.
b.
Glendale Municipal Airport Master Plan (AMP), 2009
The GEU Master Plan Study (2009) evaluates the airport’s capabilities and role to forecast future
aviation demand and to plan for the timely development of new or expanded facilities that may
be required to meet that demand. The goal of the master plan is to provide systematic guidelines
for the airport’s overall maintenance, development, and operation. The master plan is intended
to be a proactive document which identifies and then plans for future facility needs well in advance
of the actual need for the facilities. This is done to ensure that the City of Glendale can coordinate
project approvals, design, financing, and construction to avoid experiencing detrimental effects
due to inadequate facilities. This document constitutes a baseline of information about the airport
that should be referenced periodically to assure that airport development and operations are
consistent with the established plan, or to identify variances from the planned direction and
reasons for that deviation. GEU is scheduled to update the Master Plan in 2025.
c.
GEU Airport Layout Plan (ALP) Update, 2018
The Airport Layout Plan (ALP) was updated in 2018. This update to the ALP was accompanied by
a narrative report supporting the proposed changes and/or revisions to the Glendale Municipal
Airport ALP. This report focuses on the facility changes and development direction of the Airport
that has occurred since the preparation of the previous Airport Master Plan and associated ALP
(2009). The ALP Narrative Report includes the identification of future facility needs and capital
improvement scheduling and costs. The ALP Narrative Report and the updated ALP drawing set
also reflect new policies and development direction provided by the City of Glendale. This
document constitutes an update of baseline airport information that should be referenced
periodically to assure airport development and operations are consistent with the established plan
or identify variances from the planned direction and reasons for that deviation.
d.
Glendale Municipal Airport Rules and Regulations, 2014
The Airport Rules and Regulations are intended to facilitate the safe, orderly, and efficient
operation of the Airport and apply to all tenants, commercial aeronautical activity providers, and
other persons using the Airport for any reason. These regulations are referenced regularly by
Airport Management and Operations to maintain operations consistent with safe development
and function of the facility. As of 2022, an update to the Airport’s Rules and Regulations is
currently underway.
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e.
Glendale Municipal Airport Operating Standards, 2014
It is the prerogative of the airport owner (sponsor) to impose minimum operating standards to
establish the threshold entry criteria for those wishing to engage in providing aeronautical
services to the public on the airport. Airports receiving federal funding provide the assurance that
they will make the airport available for public use on fair and reasonable terms and without unjust
discrimination to all types, kinds, and classes of aeronautical use. This assurance is met through
the adoption and enforcement of these Minimum Operating Standards.
All persons conducting commercial activities or commercial aeronautical activities at the Airport
shall obtain a lease, license, permit, and/or agreement with or from the City authorizing such
activities and comply with all applicable requirements concerning such activities as are set forth
in the airports Minimum Operating Standards. These standards will be applied and monitored in
conjunction with each lease or operating agreement issued by the airport.
3. Airport Users, Tenants, and Businesses
The Airport is currently home to several long-standing users, tenants, and businesses.
a.
Fixed Base Operator and Aviation Fueling Facilities
The City of Glendale owns the fuel farm and leases it to the fixed base operator (FBO). There are
three 20,000‐gallon above‐ground fuel storage tanks: two used for Jet‐A and one for 100LL. There
are three fuel delivery vehicles: two with 3,000‐gallon capacity for Jet‐A and one with 1,200‐
gallon capacity for 100LL. There is also a 3,600‐gallon self‐serve facility used for 100LL. The
current facilities are deemed adequate for the current level of traffic at Glendale Municipal.
However, accommodations should be identified for additional capacity or operators as air traffic
grows into the future.
b.
Hangar Facilities
A variety of aircraft storage options are available at the Airport. There are 215 individual aircraft
storage positions in T‐hangar/shade facilities and approximately 10 conventional hangar
positions available in several separate buildings. Within box hangars, it is estimated there are 175
positions and 363,000 square feet of space. In total, there is approximately 661,000 square feet
of aircraft storage hangar space and 400 individual units. It is estimated that 20,000 square feet
of space is dedicated to various aircraft maintenance activities.
Hangar utilization has typically been high in recent years at Glendale, with very few vacancies
across the airport. New large-scale hangars are currently being developed in anticipation of
growing corporate and other future larger aircraft activities. Additionally, recent studies suggest
that the airport needs to expand its available developable space to accommodate more storage
and maintenance space, to accommodate future demand for space and services.
c.
Terminal Building
Glendale Municipal Airport has a 22,000 square foot, two‐story terminal building located on Glen
Harbor Boulevard at midfield. The Airport administrative offices are located on the second floor.
In addition to the airport administrative offices, there are currently numerous businesses
occupying office space within the first and second floors of the building. Approximately 80 vehicle
parking spaces are available adjacent to the terminal building. Approximately 120 vehicle parking
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spaces are available in an overflow parking lot located west of Glen Harbor Boulevard. The main
airport electrical vault is located adjacent to the east side of the terminal building along the aircraft
parking apron.
Historically, there has also been an active restaurant to serve the airport community, however
that facility is currently closed. No other restaurants or retail facilities exist on the airport at this
time. However, as future development occurs it is possible that demand will allow additional food
service or catering operators to enter the market. Additionally, development of a gift shop or other
small retail establishments may be appropriate as well in the airport’s future.
d.
Support and Maintenance Facilities
One Fixed Base Operator currently provides fueling serves, major aircraft maintenance, and
associated aircraft services at the Airport. In total, there are over twenty airport related businesses
that service the regional airport community with a variety of services, including, flight training,
storage services, aircraft repair, and maintenance.
The Glendale Municipal Airport still retains significant developable space adjacent to the airfield
to accommodate future growth. Additional FBO’s, or major maintenance facilities, along with
large and small hangar developments, support services, and even aviation related research and
development, and emerging technologies can be effectively established within properly zoned and
structured development areas on and adjacent to the airport.
Maintenance, Repair, and Overhaul (MRO) facilities encompasses a multitude of maintenance
functions, and service providers that may be present on an airport. Glendale Municipal Airport
already has an established base of operators capable of providing some heavy maintenance,
repair, and overhaul services in its various forms. Based on that history, and the forecasts for
increasing use of the airport by heavy aircraft, Glendale has an opportunity to develop its
reputation as a major maintenance base for aircraft throughout the region. As operations increase,
and as demand for such services for newer and larger aircraft grow as well, new opportunities for
MROs will present themselves.
e.
Flight Training Operators
The Glendale Municipal Airport currently indicates that ten flight training operators are located
on the field offering a variety of flight training curriculums and disciplines. Most of these facilities
utilize small single engine and light twin engine aircraft for pilot training activities and offer a
broad range of flight training curriculums including private pilot, commercial pilot, instrument,
and Certified Flight Instructor (CFI) ratings.
4. Historic Aviation Activity
Historic aviation activity at Glendale has varied dramatically over the last twenty-five years due
to a number of factors. A summary of the aviation activity and forecasts for Glendale Municipal
Airport taken from the last Airport Master Plan and ALP updates was compared to current
conditions and differences between the predictions and actual performance noted as follows:
Based aircraft at Glendale Municipal Airport were projected to grow from 380 in 2005,
to 703 in 2025. In fact, due to a downturn in the national economy in 2008, and other
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economic events that affected growth and facility use based aircraft numbers actually
declined to a total of 449 aircraft in 2021.
Business jets were anticipated to show the strongest rate of growth into the future,
reflective of what was happening in the national industry. Based jets were expected to
increase from five in 2005 to 20 in 2025 or growing from 1.3 percent to 2.2 percent of
the Glendale Municipal Airport based aircraft fleet. In 2021, no corporate jets were
listed as being based at Glendale, although the transient corporate traffic has increased
around local special events and business travel.
Annual operations were forecast to grow from 132,751 in 2005, to 234,000 by 2025.
Here again due to changes in the economy and price in fuel annual operations did not
reach forecast goals, instead they were reduced to approximately 86,332 operations in
2020. It is felt that a general decline in use and flight time by local tenants also
contributed to the decline.
Military operations will remain a minor part of activity at the Glendale Municipal
Airport, and air taxi operations continue to constitute less than one percent of the
annual operational traffic counts. Flight training is expected to be prominent at
Glendale Municipal Airport into the future.
Local operations used to account for 63 percent of all operations and were expected to
maintain a similar share throughout the planning period. Today’s numbers reflect
about 65 percent of all operations are performed by local fliers with 34 percent by
transient operators. So even though the total operational numbers dropped, the
percentage of flyers conducting those operations remained constant.
Even though performance indicators from previous years have fallen short of forecasts,
nationally, the composition of aviation services is changing. Traditional airport traffic
at general aviation (GA) airports consists of small- to mid-sized single- and twin-
engine aircraft. According to FAA Aerospace Forecasts for FFY 2020 – FFY 2040, as
this composition is beginning to subside, activities from larger corporate jet traffic
appears to be on the verge of an upswing of approximately 6.9 percent annually.
Turbine helicopter traffic is also increasing at approximately 1.8 percent annually.
These activities are expected to translate into demand for higher volumes of fuel sales,
maintenance services, and associated facilities within the next few years at GA
airports. This change to heavier aircraft traffic is expected to impact Airport’s runways,
taxiways, and parking facilities as aircraft that exceed the current load bearing capacity
and/or the required separation requirements of the pavements and airfield layout
begin to utilize on a more regular basis. This trend will also serve as the basis for the
need to upgrade and repair existing facilities at GEU.
F. Existing Airport Infrastructure and Available Developable Space
Glendale Municipal Airport is located on approximately 447 acres of property in the City of
Glendale, Arizona. It is a full-service General Aviation airport offering hangar storage, an FBO,
fueling and major maintenance, flight schools, a terminal building, air traffic control tower, and
general services.
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The majority of the developed airfield currently exists on approximately 300 acres inclusive of the
existing runway/taxiway complex, and large aircraft apron areas on the west side of the runway.
The west side also accommodates 215 individual aircraft storage positions in T‐hangar/shade
facilities and approximately 10 conventional hangar positions available in several separate
buildings. Within box hangars, it is estimated there are 175 positions and 363,000 square feet of
space. In total, there is approximately 661,000 square feet of aircraft storage hangar space and
400 individual units. It is estimated that 20,000 square feet of space is dedicated to various
aircraft maintenance activities.
A contract Air Traffic Control Tower, also located on the west side, provides communication and
coordination of local air traffic within the complex airspace of the greater Phoenix Metropolitan
Area, and numerous other local airports. The Airport Terminal is located in a 22,000 square foot,
two‐story building located on Glen Harbor Boulevard at midfield, and accommodates the airport
administration offices, several tenant spaces, and a restaurant space.
One of the conclusions drawn from the Airport Strategic Plan indicates that the future of the
Airport lies in the development of the east-side property, and other currently undeveloped airport
sites, which would provide strategic solutions to issues such as financial sustainability, business
development, and infrastructure improvements. This vision of the future would contain a mix of
private and commercial aviation operations that financially support the airport and its
development into the future; it would contain corporate aviation services, heavy aircraft
maintenance facilities, and associated businesses; and would be a well-coordinated and attractive
facility for the betterment of City and region.
The largest of the remaining developable spaces on the airport is the east-side property with
potential development space of approximately 122 acres of land. The land is situated east of
Runway 1-19, south of Glendale Avenue and west of the New River Channel. A study to identify a
specific recommended development plan for the eastside of the Airport is underway (2022). This
study will consider alternatives that detail aircraft access from the airfield system, various hangar
development layouts, variable parcel sizes, existing and ultimate infrastructure needs, vehicle
access, and a phased development approach to achieve the ultimate build‐out of the area. The
evaluation of this site will also consider taxiway/taxilane connections to the airfield system,
airside and landside access, and utility needs. The plan will also consider potential non‐aviation
development on the east side of the Airport given physical land constraints and other factors to
be further analyzed during the study.
While the west-side of the airport is already largely “built out,” there are still opportunities for “in
fill” development between some of the existing hangars on the west and southwest side of the
airfield. Additionally, there is opportunity for large apron development and large hangar
construction in the southwest corner of the west-side. Chapter VI of this Business Plan will further
detail the potential developable land within the Airport footprint and suggest future utilization.
G. Glendale Municipal Airport Economic Impact
The 2021 Arizona Airport Economic Impact Study commissioned by the Arizona Department of
Transportation (ADOT) Aeronautics Group quantified the size and scope of the impacts generated
by airports, the aerospace manufacturing and research industry, and principal military
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Figure 7 - Arizona Aviation Economic Impact Study - GEU
installations on the Arizona economy (2019 study year). The 2021 economic impact of GEU is
depicted in Figure 7.
Source: Arizona Department of Transportation, 2021
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III. Analysis of Business Opportunities
A. Introduction
The business of general aviation (GA) is a commerce category all its own. While a general aviation
enthusiast sees the opportunity to take their personal aircraft to points beyond their localities,
general aviation operators see the need to develop a thriving business at their GA facility. A
business plan for Glendale Municipal Airport, therefore, needs to examine traditional GA business
opportunities, as well as have an awareness of future aviation technological and business changes
that will enhance and grow the airport. This section will examine legacy aviation business models,
growing aviation business trends, and emerging technologies that will affect the general aviation
market into the future. In addition, this section will analyze which business models will potentially
meet with success at Glendale Municipal Airport, and what kinds of actions will be required to
grow a particular business sector at the airport. The range, level, and quality of aviation products,
services, and facilities being provided at a general aviation airport are key in achieving financial
self-sufficiency and accomplishing the development goals established for GEU.
B. Corporate and Facilities Development
Comprehensive surveys developed as part of the Glendale Municipal Airport Strategic Plan
(2021), indicated that the Airport primarily needs to expand its resources and associated revenue
streams to achieve financial self-sufficiency. Survey participants consistently voiced the need for
development of future corporate business facilities and support services, such as heavy
maintenance, avionics, and contract fuel services. In addition, the surveyed participants
categorically agreed that the future role of GEU should include opportunities for corporate growth
tied to the Airport’s connection to the City’s Entertainment District, New Frontier, Downtown,
and other development areas.
1. Business Aviation
According to the National Business Aviation Association (NBAA), business aviation is the use of
any “general aviation aircraft for a business purpose.” The Federal Aviation Administration (FAA)
defines general aviation as all flights that are not conducted by the military or the scheduled
airlines. As such, business aviation is a part of general aviation that focuses on the business use of
airplanes and helicopters.
The ever-increasing pace of commerce forces individuals and companies to search for faster and
more efficient tools to conduct their business. The need for timely transportation of people and
services to strategic locations and markets are driving the dynamic growth of business aviation
today. Business aviation resources provide formidable tools for success by providing expedient
dedicated air service that delivers people and services directly to critical destinations. Demand for
such services has already created an increase in demand for qualified pilots, and a new marked
interest in private jet travel.
a.
Factors Contributing to Growth
Business aviation is used by some of the world’s largest companies and is their tool to enhance
productivity, enable direct customer interaction, minimize travel time, and ensure employee
safety. According to NBAA, most business travel is conducted by technical and engineering staff,
marketing and sales personnel, middle managers, and company customers, not corporate
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executives. Customer service and speed of delivery are, therefore, the driving force in the growth
of business aviation industry.
Growth is coming from a younger, digitally connected generation of business leaders and
technical managers who value their productive time, and they appreciate the increased
accessibility that private aviation provides.
Increase in regulation and safety - Safety within the business aviation industry is the number one
priority. Many private jet operators seek safety approvals through independent auditing systems.
Business aviation companies continue to differentiate themselves by adding safety measures in
addition to existing regulatory requirements for the benefit of their clients and aircraft owners.
Traditional buying patterns are changing - Today’s aviation customer has options other than
owning an aircraft; for example, fractional ownership, shares, and a-la-carte models. This means
that business aviation service providers will need to be agile and flexible in terms of what is
offered, how it is offered, and who they partner with.
Influence of technology - Digital advancements are a driving force across many industries,
including business aviation. Here are some of the technological advances that are having an
impact on the aviation industry:
Ground and satellite-based in-flight Wi-Fi (with speeds over seventy mbps)
The ability to conduct in-flight video conferencing
Charter booking systems
Improvements to safety and situational awareness in the cockpit
For today’s business traveler, this translates into “flight time” not having to correlate to “lost work
time.” Today’s technologies allow computer and video meeting access and services throughout
the duration of flight. One of many improvements over the standard airline flight.
COVID-19 Pandemic – The impact of the Covid-19 pandemic had a dramatic effect on travel
worldwide. Many countries closed their borders and limited internal and external travel by air
and sea to contain the virus. Commercial airline service in this country was severely constrained
by the uncertainties and risks of spreading the disease by placing large numbers of unvaccinated
people in close proximity on an aircraft. Even if passengers chose to risk an airline flight, when
they arrived at their destination, they faced businesses locked down, bans on large public
gatherings, and other restrictions as federal and state governments struggled to slow the progress
of the pandemic. Commercial airlines were particularly hard hit as passenger ridership
plummeted to lows never seen in the history of the industry. Although the general impacts of the
pandemic have lessened somewhat due to a worldwide vaccination campaign, many issues still
remain. The World Health Organization indicates that much of the pandemic and its associated
impacts continue, as world nations try to control the many variants of the original Covid virus still
present in their populations.
Conversely, the business aviation world did not suffer the same fate during this period. In fact,
they benefitted from the exodus of passengers from the airlines. While most regular air travelers
simply chose to stay home, many essential service and business travelers recognized the flexibility
and safety of business aviation and charter flying, and shifted their travel focus from scheduled
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commercial air service to dedicated corporate and general aviation service opportunities. This is
a trend that continues today. Information obtained from the recent 2021 National Business
Aircraft Association (NBAA), Annual Conference indicates that most corporate aircraft
manufacturers are having difficulty today keeping up with new aircraft and service orders due to
this recent shift in the business flying market.
b.
Evaluation Factors for GEU
A full-service FBO catering to the fueling and service needs of regional GA and transient corporate
operators already exists at GEU. Many small aircraft hangars and maintenance operations are
present on the airfield as well. A general analysis of the Glendale Municipal Airport’s current
capabilities show it is well positioned to take advantage of current national trends that indicate
strong corporate aviation growth into the future. However, there is a need for large hangar space
at GEU. Forecasts from the Airport’s last Master Plan indicated that approximately twenty
corporate jets would be based at GEU by 2021. However, currently as of this writing, there are no
corporate jets based at the Airport. This can be attributed to a lack of large hangar availability to
accommodate the temporary storage and maintenance needs of a based corporate fleet.
c.
Entry Into Market by GEU
Business aviation is already in existence at Glendale Municipal Airport and includes local and
regional businesspeople utilizing smaller single- and twin-engine aircraft, and to some extent,
larger corporate entities transiting with mid-to large-sized corporate jets. Many more
opportunities to capitalize on the growing business aviation market could materialize in the near-
term, and Glendale should highlight its resources and concentrate its marketing efforts on that
segment of the industry. Attendance at, or even hosting an information booth at key aviation
conferences such as the NBAA can raise the awareness of potential new customers to the
opportunities available at the Glendale Municipal Airport.
d.
Recommendations
The Glendale Municipal Airport needs to address the needs of its future corporate aircraft
community, both with its facility development, services planning, and new marketing efforts to
attract new business and operators that will support the dynamic business aviation community.
2. Charter Airlines
What is a charter airline company? Air charter is the business of renting an entire aircraft (i.e.,
chartering) as opposed to individual aircraft seats (i.e., purchasing a ticket through a traditional
airline). Charter airlines operate on a leased basis by individuals, groups, or organizations for
transportation to specific destinations. This can be a very efficient and cost-effective way to fly to
special events or destinations. Charter services can be broken down into two subsets – private
airline operations and airplane rentals.
Charter airlines can fly popular full-sized airline equipment such as a Boeing 737, Boeing 757,
Airbus A320, or Bombardier Regional Jet types or they may operate turboprops like the
Beechcraft King Air 350. There are several airports in Arizona where private companies provide
regional charter flights. For example, Scottsdale Airport offers charter flights through a company
called Surf Air.
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a.
Factors Contributing to Growth
As previously discussed, many organizations are beginning to recognize the benefits of charter
flight. The ability to fly a dedicated service to a destination of your choosing, the control of
determining exactly how many and who the passengers are, and the safety of being able to isolate
from the public and other unknown risks during critical times associated with the pandemic, are
of major importance to business travelers today. Additional benefits include escape the mass
crowds of public airport terminals and crowded commercial aircraft, to the relative spaciousness,
comfort, security, and timeliness of private charter service.
b.
Evaluation Factors for GEU
The benefits of charter airline traffic utilizing GEU are multifold. They purchase fuel, ground, and
baggage services, and pay landing and/or parking fees. They also contribute to the annual
operations count of the airport, and generally raise passenger and operator awareness of the
resource that is the Glendale Municipal Airport. Occasional charters for sporting events and other
attractions have been a regular part of GEU’s transient aircraft traffic for many years, starting
with the first time the NFL Super Bowl was held in 2008.
Marketing the proximity of the Glendale Municipal Airport to the many attractions of the area,
and lower transitional costs than commercial hubs like Phoenix Sky Harbor International Airport
(PHX), can be instrumental in a charter company’s decision of where to operate their aircraft on
any given day. To maximize their profits, charter airlines must look at how to bring the most
convenience to their customers, while acquiring the lowest cost of operation, fuel, and associated
logistics for each flight. If Glendale can be competitive in those areas, then charter airlines will
prefer to utilize GEU as opposed to other regional airports in the surrounding metro-Phoenix
area.
c.
Entry Into the Charter Operations Market at GEU
Glendale Municipal Airport is already in the charter airline market. A number of charter
companies have utilized the facilities and services of Glendale for many years. These services,
however, are event driven and currently do not provide a consistent or regular source of utility.
GEUs ability to attract more consistent high-end attractions and events to the region, coupled
with a strong marketing effort will be necessary to grow the charter market.
d.
Recommendations
Charter airlines utilize their services to carry passengers and groups to specific places they want
to go. Therefore, the primary factors involved in the future growth of charter traffic at Glendale
Municipal Airport will be the attractions and activities of Glendale itself. As long as the City of
Glendale continues to be a catalyst for business and industry, and as long as specialty attractions
such as those found in the entertainment district flourish, then Glendale will be attractive to
charter airlines. Airport marketing efforts should target charter companies and organizations with
a program that highlights the resources and attractions of the Glendale area, along with the cost
effectiveness of utilizing the Glendale Municipal Airport compared to competing facilities, such
as Scottsdale, Deer Valley, or Goodyear Airports.
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3. Flight Training Schools
Flight schools have been an integral part of general aviation airports since the beginning of piloted
aircraft. The Wright Brothers opened and operated their first flying school from 1910 to 1916 near
Montgomery, Alabama, where they trained over one hundred pilots to fly their Wright Aircraft
(various models). General aviation flight schools not only are a place to train future pilots, but
they are also a source of revenue for GA airports. Aircraft from flight schools pay tie-down or
hangar fees, buy fuel, pay for mechanical services, rent office space, and pay other airport fees
associated with their operating agreements. They also contribute to the operational counts that
much of an airport’s federal or state funding is predicated on. In general, flight schools are a staple
industry that contributes to a healthy local airport economy.
a.
Factors Contributing to Growth
Due to a nation-wide pilot shortage, the current demand for the training of new pilots is high
across the board. Current demand for private pilot, commercial pilot, instrument flight ratings,
Air Transport Pilot (ATP), and other training options will continue to be strong into the near
future. There are currently ten flight training operators at Glendale, which is a high number for a
facility of its size. However, the market drives the number of firms that want to be in the flight
training business. If demand is strong and excess students are available, new training entities will
want to enter the market, or expand their existing market share.
b.
Evaluation Factors for GEU
The Glendale Municipal Airport currently indicates that ten flight training operators are located
on the field offering a variety of flight training curriculums and disciplines. Most of these facilities
utilize small single-engine and light twin-engine aircraft for pilot training activities and offer a
broad range of flight training curriculums including private pilot, commercial pilot, instrument,
and Certified Flight Instructor (CFI) ratings. One training organization specializes in ATP, or Air
Transport Pilot, ratings that specifically targets pilots pursuing a career in the commercial airline,
air cargo, or corporate aviation fields. Commercial and corporate aviation in this country is
currently facing a nation-wide pilot shortage. The current older generation of pilots are retiring,
military aviation is providing fewer pilots transitioning out of the service to commercial aviation
than in previous years, and the industry seems to be having difficulty training new pilots fast
enough to fill the demand.
c.
Entry Into the Market by GEU
Glendale is already well placed in the flight training market. If demand remains strong, the
existing flight training businesses should continue to do well. Additionally, new operators wanting
to enter the industry at GEU and claim their own piece of the market share are not out of the
question. This section of GEU’s market could continue to grow as long as there are facilities to
accommodate them.
d.
Recommendations
As the Airport continues its marketing efforts into the future, it should emphasize the GEU as a
prime location for flight training, and Glendale as being “flight school friendly” to attract new
students and operators.
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4. Heavy Maintenance
Maintenance, Repair, and Overhaul (MRO) facilities can encompass a multitude of maintenance
functions and service providers that may be present on an airport. Heavy aircraft engine
maintenance, avionics, airframe specialties, painting, and other major maintenance specialties
are all covered under this definition.
a.
Factors Contributing to Growth
Business aviation serves ten times the number of U.S. airports (more than 5,000) served by
commercial airlines (about 500). The ability to use smaller, less congested airfields located closer
to one’s final destination is a vital part of the utility and flexibility. It means companies can
maintain or establish plants or facilities in the growing number of small towns or rural
communities with little or no commercial airline service. These aircraft require FAA and
manufacturer scheduled maintenance and certification requirements; therefore, the need for
easily accessible MROs within their corporate venue is key. Based on the FAA’s latest Annual
Aviation Activity Forecast, current national trends indicate strong corporate aviation growth into
the future. There are more corporate aircraft in the air and under production than ever before.
b.
Evaluation Factors for GEU
Based on the Airport’s 2016 ALP Narrative and Update Forecast, there could be an increased use
of the airport by heavy aircraft. Glendale has an opportunity to develop its reputation as a major
maintenance base for aircraft throughout the region. Additionally, MROs can be more than
passive resources providing services for aircraft already destinated for Glendale. MROs that offer
specialty services for such things as major FAA maintenance checks, avionics, or painting, or for
specific aircraft brands like Gulfstream or Bombardier, can attract increased corporate traffic that
might not otherwise fly to Glendale.
When evaluating the “fit” of a new MRO business wishing to relocate to GEU, the airport must
first consider limiting factors that may be associated with the new entrant’s market. The length of
the airport’s runway will impose a practical limit to the size of aircraft that can utilize the airport.
Most large corporate jets can be accommodated, but larger commercial airline type aircraft
probably cannot. Most of the maintenance or specialty work will likely be conducted inside,
therefore appropriately sized hangars and maintenance buildings must be available. The impact
of the aircraft operations themselves are a factor and must be evaluated to determine if they will
impact the existing airport noise contours or pose other burdens on the surrounding community,
such as environmental concerns. And finally, the airport must have available and appropriately
sized development areas that will facilitate the smooth ingress and egress of the various aircraft
being services at GEU. Examples of general aviation airports in Arizona that have successful MRO
operations include Phoenix Goodyear Airport (GEU’s neighbor to the south) and Pinal Airpark.
c.
Entry Into the Market by GEU
Glendale already supports an initial entry into the MRO market with the heavy maintenance
elements of its existing FBO and other specialty operators on the field. However, the
establishment of larger or more specialty operators would not only benefit the Airport’s current
capabilities, but those entities would likely bring some of their existing customers to GEU with
them.
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The Glendale Municipal Airport would be well served to target potential MROs that could be
recruited to Glendale as part of its future development efforts. The Airport should also zone
appropriate development parcels for these operations within its proposed east side development
area and other areas that have reasonable access to the airport runway and taxiways. Again, using
Goodyear Airport as an example, the airport is located in an established Military Reuse Zone (it
used to be a former naval air station) under state law, which provides certain tax benefits to
companies looking to relocate within the zone. Airports can also be located within Foreign Trade
Zones, which also offer similar tax and operating incentives for businesses.
d.
Recommendations
While the airport management does not currently reflect any large corporate aircraft permanently
based at GEU, the airport does support a reasonable number of transient corporate flights during
the year. As operations increase, and as demand for such services for newer and larger aircraft
grow as well, new opportunities for MROs may present themselves. The Airport should target its
marketing efforts towards acquiring the specialized businesses and resources that will attract and
support the corporate market, of which MROs are a sector.
5. Based Corporate Aircraft
Corporate aircraft are generally perceived as “business jets” utilized by individuals and companies
to move executives and clients around the country to various company holdings. However, a
“corporate aircraft” may be a non-turbine aircraft with as few as four to six seats for their business
transportation on a regular basis. A corporate aircraft may also include helicopters, which are
often used to supplement the role of corporate jets and provide flexibility for more local or
regional air access. However, for purposes of this report we will utilize the term “corporate
aircraft” to generally mean a mid- to large-sized turbine powered business aircraft.
a.
Factors Contributing to Growth
The last Glendale Municipal Airport Master Plan and ALP Update indicated that business jet
operations were anticipated to show the strongest rate of growth into the future, reflective of what
was happening in the national industry. Based jets at Glendale were expected to increase from
five in 2005 to 20 in 2025 or growing from 1.3 percent to 2.2 percent of the Glendale Municipal
Airport based aircraft fleet. However, in the year 2021, no corporate jets were listed as being based
at GEU, although the transient corporate traffic has increased around local special events and
business travel.
b.
Evaluation Factors for GEU
The Glendale Municipal Airport is certainly capable of attracting corporate aircraft that would use
the airport as their “home base,” and a couple of large hangar developers are anticipating just that.
The benefits of increasing the Airport’s resident corporate aircraft population, as opposed to
transient aircraft, is that resident aircraft generally generate more income to the airport. Transient
aircraft are generally in the market for fuel or services necessary to their transition to somewhere
else on that day. Sometimes transit aircraft “tanker” fuel, and do not even need to avail themselves
of local fueling services. Proportionally, based corporate aircraft pay more in tie down and hangar
fees, along with maintenance fees and fuel when they are at their home base. So, it is simply good
business to offer services and facilities that will attract larger corporate entities to base their
aircraft or fleet services at the Glendale Municipal Airport. Even though performance of corporate
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aircraft has been lower than expected in recent years, it should be noted that all national indicators
predict a sharp rise in corporate activity in the immediate future. Discussions among aircraft
manufacturers at the 2020 NBAA Annual Conference focused on the difficulty they were having
keeping up with new aircraft orders.
c.
Entry Into the Market by GEU
Glendale Municipal Airport already accommodates a regular flow or transient corporate aircraft
and provides essential services and support for their operations. What GEU currently lacks are
any based corporate aircraft and/or their associated flight departments. Entry into this market
will require the development of additional large corporate hangars and associated services.
Owners and operators of larger corporate aircraft, including helicopters, are usually reluctant to
leave them outside in the elements or wind for any length of time when they are parked or stored.
d.
Recommendations
As the City and Airport develop future marketing efforts, research efforts should be aimed at
specific large corporate entities within the Glendale development areas. In addition, the City of
Glendale, could with the assistance of the Airport, market the availability of flight departments
and other corporate space within the Airport footprint.
C. Emerging Technologies
Today the aviation world stands on the brink of a new era. A paradigm shift in the technologies
utilized in aviation and transportation for both manned and autonomous vehicles is upon us. New
materials for vehicle construction, new power sources, and new or more advances operational
profiles such as eVTOL vehicles will revolutionize industry, and transportation in general. Within
the coming revolution are opportunities for existing airports, but only if they are properly
prepared. To remain current in a changing industry, airports of the future must plan now to
accommodate the operational requirements of these new vehicles, infrastructure requirements,
such as adequate electric power and charging facilities, and air traffic control access into both
local routes and the national airspace system. Failure to adequately plan for new transportation
technologies will cost the airport future business opportunities, which will divert to airports that
have kept pace with the changing technologies.
1. Advanced Air Mobility
Advanced Air Mobility, or AAM, is a new concept in the industry, which promises to change how
we travel, especially locally, by providing alternatives to aging ground transportation systems
struggling to keep up with current demand.
a.
Factors Contributing to Growth
The key to the AAM concept is an entirely new type of aircraft. Safer, quieter, and more versatile
than small planes or helicopters operating today. Known as electric vertical takeoff and landing
(eVTOL) aircraft, this new class of vehicles will deliver more benefits, at a fraction of the
environmental impact of traditional aviation. The new, eVTOL platforms are essentially part
helicopter and part airplane, with smaller operating and space requirements than traditional
aircraft. This makes them uniquely suited for today’s urban environments and creates a unique
opportunity for community and regional airports to transform their functions from being a source
for occasional travel to becoming key transportation hubs.
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By connecting the GEU to other transportation hubs, like Sky Harbor, other area airports, and
even businesses and other natural gathering places, eVTOL flights can skip over ground
transportation bottlenecks for airport access making it easier for passengers making their way to
and from the airport for their commercial airline flight or other business destination. For example,
an out-of-town client arriving at Sky Harbor International Airport could essentially fly an AAM
vehicle to Glendale, or even an office or industrial location in 10 or 15 minutes, leaving the 45
minutes to an hour drive time on the ground behind. It is a modern-day air taxi concept that could
be well applied to local passenger and cargo movements.
b.
Evaluation Factors for GEU
The application of this new technology to small-to-mid-sized airports such as GEU will be
essential to the future growth of the AAM industry. In turn, an airport’s investment in short term
infrastructure improvements and operational adjustments necessary to accommodate the new
AAM technologies has the potential to deliver substantial long-term benefits for Glendale and
surrounding communities.
New generation AAM vehicles will in most cases require less space and have fewer facilities
requirements than current generation aircraft. However, the airport should evaluate its current
capabilities against the special requirements of AAM vehicles whose power sources are likely to
be primarily rechargeable electric. The four main infrastructure considerations are:
Electrical grid capacity and charging capability
Takeoff and landing locations
Landside (e.g., parking) and airside (e.g., secure area) access
Emergency response equipment
Providing for the necessary electrification and capacity of AAM operations is one of the first steps
the airport should consider. Initial studies indicate that AAM flights consisting of roughly one
hundred aircraft operations a day would likely need dedicated charging capabilities about 4,500
kW to support consistent operations. Moderate levels of operations could require less than 6,000
square feet of dedicated space for a takeoff and landing zone to support a meaningful number of
aircraft at any one time. Just as many helicopter operations today are conducted from ramp space
or other areas at an airport that are not officially designated as a “heliport,” it is expected that at
least in the early phases of eVTOL, integrating a similar organic approach will be taken for on-
airport operations. Finally, the configurations of AAM operations areas will be determined by the
program the airport establishes, and the operational requirements of the critical aircraft.
Another airport infrastructure or support service which needs to be considered with eVTOL
operations is emergency response equipment. The electric nature of eVTOL aircraft and batteries
on board, require firefighting equipment that can accommodate different emergency situations
than those encountered with conventionally fueled aircraft. While the aircraft are designed to be
safer than traditional small aircraft thanks to distributed propulsion and autonomy, it is
nonetheless essential that airport emergency responders coordinate with aircraft manufacturers
and operators to ensure proper equipment and procedures are in place.
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c.
Entry Into the Market by GEU
The full capabilities of the AAM market are not fully defined yet as to how they may best benefit
the Glendale Municipal Airport. Arguably this new technology could produce major
improvements and increases in efficiency in the airports access, and ability to move people and
products. However, more research into the specifics of an AAM function, its aircraft, associated
operating requirements, and costs are necessary before determining exactly how well an AAM
function will fit into GEU’s future.
d.
Recommendations
Glendale Municipal Airport is in the planning stages of a major development and expansion effort
that will structure how the airport does business well into the future. It is important that those
planning efforts correctly evaluate all available factors and produce a plan that places GEU in the
most advantageous position to meet its future market opportunities. This can be particularly
difficult when judging the merits of an emerging industry without a proven history.
It seems reasonable that AAM represents the wave of the future. It is appropriate to initiate follow
up research to determine how imminent this new technology is, and how it might best benefit
Glendale in the future. As planning moves forward on the remaining developable land on the
airport, it is also appropriate to reserve a designated area that could accommodate this and other
emerging technologies beneficial to the airport’s future.
2. Unmanned Aerial Systems
Unmanned Aerial Systems (UAS), or drones, have been part of the aviation equation for some
time now but are still not well understood by the public. However, they continue to grow their
capabilities at an exponential rate, becoming “smarter” and more automatous as the industry
grows. The commercial applications of UAS are also growing as they find favor in the movement
of small packages, medical supplies, or other critical materials by air within the national airspace
system.
a.
Factors Contributing to Growth
A wide variety of UAVs/drones and other automatous vehicles are already rapidly evolving in
today’s industry and being utilized for everything from law enforcement, security, and inspections
activities to a variety of survey, agricultural, package and material movements, and industrial
applications. A broad variety of automatous ground and air vehicles are poised for a massive
injection into the way the world does business.
b.
Evaluation Factors for GEU
An appropriate location for research and development, product assembly, and testing of many of
these new UAS and automatous technologies can be a community’s local airport. This is especially
true if flight operations are involved, or if critical supply chain issues that depend on air delivery
services are involved. The City of Glendale already supports many technical and medical
enterprises that depend on the availability of timely transportation for critical equipment or
testing processes. Targeting industries with some of those same requirements, along with a
required flight or testing component, can be a natural extension of the Airport’s mission.
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c.
Entry into the Market by GEU
Most airports do not have an active UAS component to their operations. The industry is too new,
and while the various applications of UAS platforms are more widely accepted today, they are still
not well established on most airports. That practice is likely to change in the near future. As UAS
and its associated applications become more dependable, and capable, acceptance within the
industry will grow and we can expect to see UAS based operations become established at hospitals,
businesses, and certainly airports to support those UAS functions.
d.
Recommendations
The UAS equation is a smaller version of the AAM concept previously discussed, but centered on
the movement of critical materials, or other specialty functions. Here as well, it is appropriate to
initiate follow up research to determine how imminent this new technology is, and how it might
best benefit Glendale in the future. The airport should also identify areas that could accommodate
this and other emerging technologies beneficial to the airport’s future.
D. Concessions and Other Services
An industry definition of airport concessions includes a variety of different businesses supporting
the ancillary needs of customers, passengers, and operators associated with an airport’s
operation. Concessions are basically service-based support businesses that offer transient
customers everything from hot coffee to retail and other special services.
1. Concessions
Commercial airports with large passenger volumes are generally the environments where the
largest variety of concessions thrive and grow. Major commercial services airports have been
called shopping malls, where planes happen to fly. The GA airport, however, offers a different
environment and draws from a different clientele than the higher volume commercial facilities
with airline-based traffic.
For an airport concession to be successful, the business needs to satisfy several criteria: First and
foremost, the concession must offer a product or service that is generally in demand by the
clientele under the circumstances that exist at the airport. Food services, retail, or other specialties
that are convenient and easy to access usually draw the most attention. The second critical factor
for all concessionaires or operators is volume. Without an appropriate and sustained volume of
paying customers concessions simply will not make ends meet. This is a particular issue for
smaller GA airports. Even with a strong business aviation component, the number of through
passengers or operators may only supply marginal support for onsite concessions.
a.
Factors Contributing to Growth
Even with the obvious challenges, several traditional concessions have found success at GA
airports. Foremost among these airport concessions are Food and Beverage businesses that run
the gambit from restaurants to snack bars to vending machines. A synopsis of the factors involved
in a successful food and beverage concession follows:
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i.
Food and Beverage Concession
These concessions generally occupy the most space and are the most productive in relative terms
of sales and revenue. The types of food and beverage services offered at airports generally include
the following:
Casual dining restaurants - offering meals, snacks, and full bar service, typically with wait
staff and table service.
Quick-serve units - offering specialized meals, snacks, and nonalcoholic beverages,
typically using counter service. This is the broadest service category and may include snack
concepts (ice cream, frozen yogurt, cookies, and generic snack bars).
Bars - offering a full range of alcoholic beverages, as well as snacks and counter service.
Specialty coffee units - offering premium coffee and espresso drinks, tea, pastries, etc.
ii. Convenience Retail Concessions
Convenience retail includes traditional airport retail concepts such as newsstands and news/ gift
shops, as well as newer hybrid retail concessions, such as convenience stores. Newsstands are the
most ubiquitous convenience retail concession, offering a merchandise mix of newspapers,
magazines, and hardback and paperback books. There are a couple of convenience retail
concessions currently operating at GEU, and this concept should be well supported into the
future.
iii. Specialty Retail Concession
Specialty retail refers to a retail shop offering a specialized line of merchandise, such as a pilot
shop and associated merchandise. Different operations may also offer jewelry, leather goods,
personal care products, luggage, gadgets, travel accessories, sports apparel, shoes, cosmetics,
regional arts and crafts, clothing, toys, candy/chocolates, or other merchandise as well. These
concessions often require high volumes of passengers to be successful, and while some specialties
like a pilot shop may do well, most would be challenged to remain viable over the long term in a
GA airport.
iv. Advertising
In-terminal advertising includes traditional static airport advertising displays such as wall
posters, backlighted wall displays, wall wraps, and large-format displays. The Glendale Municipal
Airport already engages a managed advertising function inside the terminal building. However,
this program should be continued and monitored for new opportunities to expand advertising
opportunities into the future.
v. Rental Car Services
Airport rental car services provide a critical link in the transportation chain for airport patrons,
and primarily serve people who require a temporary vehicle for business or personal travel to
reach their final destination. They are an expected convenience for business travelers in town for
the day, and other travelers who need local transportation after arrival. Sometimes rental car
operators offer services through a local FBO and deliver vehicles to the airport upon customer
request. A more common approach is to physically locate an office, counter space, and vehicle
parking at the airport.
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vi. Ancillary Services
Many small airports offer an additional variety of ancillary services as well for the convenience of
its passengers and operators. Some of those that may work well at the Glendale Municipal Airport
are listed as follows:
Automated teller machines (ATMs), usually provided through a bank, are sometimes
installed in airports by commercial vendors.
Business centers offering express delivery pickup, copying, printing, computer use, and
other business services. This type of concession is probably limited in demand at this time
but may find more acceptance as the airports business environment grows in the future.
Internet services, which can be offered on a pay or subscription basis but is often offered
by many airport operators through sponsorships or as a free service. The viability of these
services will depend upon such factors as the layout of the terminal building, numbers of
passengers and other customers, and availability of suitable locations.
b.
Evaluation Factors for GEU
The most common types of concessions described above are most often found in scheduled
commercial passenger airport environments. As a GA facility, GEU will typically provide less
passenger and outside customer flow through its passenger terminal building than commercial
airports. However, “volume” continues to be the name of the game, and GA airports typically have
a much narrower margin of profitability and must work harder to attract a consistent flow of
customers. As noted in previous studies of GEU, the absence of a restaurant has been one of the
most vocal criticisms of GEU service offerings.
c.
Entry into the Market by GEU
The Glendale Municipal Airport has an established history with airport concessions, including an
airport restaurant, advertising, and specialty shops. Unfortunately, the rise and fall of the market
has caused a number of failures for the Airport’s restaurant business. There simply has been an
insufficient consistent volume of customers over the long-term.
d.
Recommendations
Perhaps a larger diversification of services to include a catering element, mobile truck services, or
other food and beverage entrants would help the next restaurant be more successful. Advertising
and specialty shops have exhibited more stability.
The Glendale Municipal Airport supports all its existing concessionaires by highlighting and
promoting them through its web page, marketing program, its advertising program, and other
public communications media. Concessions should continue to be highlighted as resources that
help promote the overall mission of the airport.
2. Other Specialty Facilities
Previous discussions addressed primary existing aviation business types and entities. The
following is an extended discussion of other resources that may also be a good fit for GEU.
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a.
U.S. Customs, Immigration, and Agricultural Services
All international, commercial, and private flights arriving in this country are subject to inspection
and clearance by the U.S. Customs, Immigration and Agriculture Services. Typically, these
services are provided at larger entry port airports. However, these services can often be provided
at other airports upon prior request when appropriate facilities and security are present to
accommodate their operations. This represents a major convenience to private flyers who wish to
avoid the additional delay and congestion of clearing customs elsewhere, on the way to their final
destination.
The Glendale Municipal Airport should investigate the requirements and costs of such “On-Call”
governmental services and determine if demand warrants establishing a place for those functions
on the airport. A notable advantage of doing so is that aircraft that land at an airport to clear
governmental services often time purchase fuel, maintenance, catering, and other services while
the Customs and Immigration clearance is underway. Two example airports in Arizona that
include Customs, either with a permanent facility on airport, or by request/call-out only include
Scottsdale Airport (on-site U.S. customs facility) and Bisbee-Douglas International Airport (on-
call U.S. customs).
b.
Aviation Museums
Many communities offer the public an opportunity to view the history and advancements of
aviation in pictures and displays at a local museum. Usually, this facility ties the educational
message about aviation to the history of the airport and surrounding community, creating a public
interest draw to the airport and its operations. The museum can usually be accommodated within
a small building or even the terminal building where its location does not infringe on other airport
operations. One of the most successful airport museums in the state of Arizona is located at Mesa
Falcon Field in Mesa – the Arizona Commemorative Air Force Museum.
c.
Aircraft Wash Rack
Airport wash racks are generally open-air facilities where small aircraft owners can have access to
water, air, and other facilities to clean their own planes. More than just a convenience, they
provide an environmentally responsible answer to controlling the pollutants and toxins that may
shed from the aircraft during the wash process. Professionally designed wash racks are attached
to drainage systems with fuel/oil separators or other filters to properly treat residual runoff from
aircraft before it enters the storm drain system.
E. Conclusion
There are many opportunities for the Glendale Municipal Airport to expand upon its existing
business base, and to cultivate targeted new markets in the future. Additionally, with appropriate
planning, the airport also has ample vacant land to accommodate those new enterprises. The key
to success will be for the airport to target those specific markets such as corporate aviation and
support services that are integral to its future development and financial goals. New planning
programs such as the Eastside Development program and others will help identify the “highest
and best” use of available development property and evaluate the revenue potential of selected
new business opportunities as the airport moves towards self-sufficiency.
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IV.
Airport Financial Analysis
A. Overview
Today, Glendale Municipal Airport does not cover its full financial obligations with its own
internal revenues. The airport is operationally sustained by a combination of on airport revenue
generation (approximately 70 percent of budget), plus city general fund support and other
sources. Capital programs are generally supported through state and federal grant programs,
including relatively small required local shares. As recipients of federal funding for eligible
projects the airport complies with Federal Aviation Administration’s Airport Improvement
Program (AIP) grant assurances such as Airport Sponsor Assurance No. 24 requiring that any AIP
funded airport be as financially self-sustaining as possible given the circumstances that exist at
the airport.
The Airport maintains a modest, but growing annual budget providing for airport management,
operations, and basic maintenance services necessary to meet basic facility obligations. Most
capital projects are funded by the FAA and/or the State of Arizona Department of
Transportation’s (ADOT) grants and programs, with required matching funds provided by the
City of Glendale. However, assessment of future demands including east side development, and
other major “in fill” development and infrastructure projects signals the need for a major re-
evaluation of future funding sources.
B. Current Airport Financials
An analysis of an airport’s financial statements, budgets, and other performance measures are
considered essential tools for measuring its ability to achieve its goals and accomplish the mission
and vision of the facility. There are several financial vehicles that require examination before this
study approaches new and innovative financial mechanisms, including historic and current
budgets, various revenue sources, available grant programs, and other funding sources that affect
the performance and ability of the airport to meet its obligations.
1. Annual Budgets
Since 2016, annual budget figures for the Glendale Municipal Airport covering airport operating
costs have increased approximately 41 percent over six years. During each of those years annual
revenues trended upwards. However, annual expenses did as well, requiring General Fund and
GO Fund (Transportation Sales Tax) monies from the City of Glendale to balance the budget.
Table 2 depicts the historical budget summary for the Airport from 2016 through 2022.
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Table 2 - GEU Historical Budget Summary
Fiscal Year (FY)
Budget
Income:
Direct Airport
Revenue and
General Fund
Income:
Estimated
Glendale On-
Board sales
tax Funds and
Other Sources
Expenses
FY 2016
$638,647.00
$654,422.73
$35,018.96
$689,441.69
FY 2017
$680,884.00
$749,769.34
$0
$747,811.91
FY 2018
$692,826.00
$753,541.78
$28,130.24
$781,672.02
FY 2019
$775,378.00
$832,540.86
$16,067.76
$848,608.62
FY 2020
$854,916.00
AR $623,479.10
GF $147,047.00
$120,148.10
$890,674.20
FY 2021
$972,322.00
AR $657,569.96
GF $248,215.89
$66,871.62
$972,657.47
FY 2022
$1,183,753.56
AR $677,000.00
GF $429,097.94
$147,000.00
$1,106,097.94
Note: AR=Airport Revenue, GR=General Fund
Source: Glendale Municipal Airport Administration, September 2022
As illustrated in Table 2, the airport generated $677,000.00 in Direct Revenues against its
Annual Airport Expenses of $1,106,097.94, or approximately 61.2 percent of its total annual
operating costs. The remaining 38.8 percent, or $429,097.94, necessary to balance the budget
was supplied by the City General Fund ($282,097.94) and the “Glendale On-Board -
Transportation Sales Tax” Fund or other sources ($147,000.00). This scenario appears to be
typical of the Airport’s current financial picture and illustrates the “gap” in revenues the Airport
must strive to overcome to achieve self-sufficiency without external subsidy (see Figure 8).
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The airport reviews and updates its rates and fees on a periodic basis, and diligently pursues other
available methods intended to maximize its revenue streams and control its expenses.
Nonetheless, a backlog of capital projects, increasing costs of repairs and operations, and an
urgent need to upgrade facilities to accommodate new business continues to translate into
increased annual expenses for the airport. Additionally, new studies and initiatives are about to
propel the airport into a new large-scale development phase, with associated costs yet to be
determined.
2. Airport Ground and Facility Leases
There are several major facility owners on the Airport, divided up into North and South
Associations. These facility owners generally hold long-term land leases that have many years yet
to run, with terms and conditions that currently do not reflect fair market value. Historically many
of the airports existing leases were established when ground lease rates were low and did not
usually contain appropriate escalation or renegotiation clauses designed to maintain fair market
value. While many also contain reversion clauses that return ownership of the hangars to the
airport at the end of the lease term, there is for the most part years left on most of the current land
leases. The effect of this situation is the airport receives fewer revenue dollars than it should at
fair market value.
Lease rates should be tied to fair market value, and duration of lease terms structured to allow
recovery of investment and operation appropriate to each type of business. This is typically
accomplished by having such leasing arrangements contain appropriate “escalation clauses”
Annual
Airport
Expenses
Annual
Airport
Revenue
Glendale On-
Board Fund
$147,000
City General Fund
$282,097.94
Direct revenue
$ 677,000
$1,106,097.94
Figure 8 - GEU Annual Revenues and Expenses (FY 2022)
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throughout its duration to ensure that “fair market value” revenue to the airport is always
maintained.
In the future opportunities may exist to renegotiate some of the older agreements. It is possible
the tenant could retain ownership of the hangars or buildings on the leased premises, along with
its retained value, in exchange for upgrading the lease agreement to current standards with
appropriate escalation or renegotiation clauses. All such agreements would have to be evaluated
on a case-by-case basis to determine if such renegotiations would be beneficial to both parties.
However, such evaluations could provide a way forward to improving the airports overall financial
picture and developing contracts consistent with fair market value returns to the airport.
3. Current Airport Rates and Fees
The Glendale Municipal Airport collects fees for many direct services to its based and transient
customers, including parking, tie-down, Special Aviation Service Organization (SASO), various
commercial business fees, fueling fees and permits. The compilation of all such direct fees
constitutes the Glendale Municipal Airport’s Rates and Fees Structure and is updated periodically.
The Glendale Municipal Airport Rates & Fees structure was updated and published in October
2022. The process involved selecting several local airports for comparison to current Glendale
Municipal Airport rates and charges including Scottsdale Airport, Mesa Falcon Field Airport, and
Chandler Municipal Airport, among others. The overall Glendale charges appear to be reasonably
consistent and competitive with these and other general aviation airports in the region. The
revenues derived from such direct airport charges are generally applied as an offset to its expenses
and costs of operation. If revenues are sufficient, they can also be applied against local share
requirements for state and FAA grants. The amount of revenue the Glendale Municipal Airport
receives from this category of funding varies from year to year depending on the amount and type
of aviation traffic that frequents the facility and the number and type of other special events that
may occur during that year, however, these fees have not historically met or exceeded annual
operating costs.
4. Other General Sources and Uses of Funds
Other non-operating sources of funds typically come from external sources, are not debt or
bonding related, and are not related to the use of the airport or the leasing of airport land,
improvements, and facilities. Some specific examples of non-operating sources of funds include
the following:
Special taxation or subsidy - In many cases, a general aviation airport can receive
subsidies from the airport sponsor to cover operating deficits or provide matching funds
required to receive federal and state grants. Some airports may also receive subsidies from
other municipalities or counties that benefit from the presence of the airport.
Investment income - is associated with interest or gains directly tied to the investment of
airport funds. Currently this study has not identified any direct airport resources available
for outside investment. However, the City of Glendale may pursue such investments from
time to time as circumstances warrant.
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Public/Private partnership - applicable to airport or project development may present
themselves in the future that provide a broad range of financial opportunities for
addressing development projects.
C. GEU Airport Capital Funding Programs
1. Historic Federal Funding
Major capital improvement or planning projects are traditionally funded by appropriate grant
programs from the Federal Aviation Administration (FAA) or the Arizona Department of
Transportation (ADOT), Aeronautics Group, Aviation Fund. In the case of ADOT Aeronautics,
project assistance can come in the form of grants, or the State’s Airport Pavement Maintenance
System Program for specific runway, taxiway, or apron area pavement preservation projects.
Federal AIP grant funding is available to support a broad spectrum of uses including the purchase
of land; the development, major maintenance or repair, and replacement of infrastructure,
improvements, and facilities; the purchase of airside maintenance vehicles, equipment, and tools;
and airside planning efforts. The source for AIP funds is the Aviation Trust Fund. The Aviation
Trust Fund was established in 1970 to provide funding for aviation Municipal Airport capital
investment programs (aviation development, facilities and equipment, and research and
development). Any public-use general aviation airport included in the National Plan of Integrated
Airport Systems (NPIAS) is eligible to obtain grant funding that can cover a substantial portion of
eligible improvement costs. The FAA’s authorizing legislation delineates the total number of funds
available through the AIP, the classification and distribution of such funds (e.g., entitlement, set
aside, or discretionary), and the extent of matching funds required.
Funding for AIP‐eligible projects is undertaken through a cost‐sharing arrangement in which the
FAA share varies by airport size: generally, 75 percent for large‐ and medium‐hub airports, and
90 percent for all other airports. Since the early days of federal participation in airport
infrastructure projects, Congress has provided a higher federal share for airports located in states
with more than five percent of their geographic acreage comprised of public lands and nontaxable
tribal lands. For states that qualify, such as Arizona, the federal share is increased depending on
the airport classification. As a general aviation airport, the federal share of eligible capital
improvement projects for GEU is 91.06 percent. In exchange for this level of funding, the airport
sponsor is required to meet various Grant Assurances, including maintaining the improvement
for its useful life, usually 20 years.
2. Current GEU Airport Capital Improvement Program
The Airport works closely with the FAA Phoenix Airports District Office (ADO) and ADOT
Aeronautics Group throughout the year on planning and funding priorities for eligible AIP
projects. The Airport maintains a current FAA approved Capital Improvement Program (CIP) and
project estimates that are modified from time to time as circumstances and priorities warrant.
The current Glendale Municipal Airport CIP contains over twenty-four million dollars in capital
projects over the next five years, for projects to meet FAA standards and promote the safe and
efficient operation of the facility under its current configuration. The Program, estimated at
$24,600,000, will improve various sections of the Airport over the next five years 2024-2028.
These projects are phased annually and are generally accomplished in order of priority as funding
becomes available.
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a.
Apportionment (Entitlement) Funds
AIP provides funding for eligible projects at airports through an apportionment (entitlement)
program. General aviation airports included in the National Plan of Integrated Airport Systems
(NPIAS) can receive up to $150,000 each year in non‐primary entitlement (NPE) funds. These
funds can be carried over and combined for up to four years, thereby allowing for completion of a
more expensive project. It should be noted that GEU is eligible for and receives NPE funds. The
FAA also provides a state apportionment based on a federal formula that considers area and
population. The FAA then distributes these funds for projects at various airports throughout the
state.
b.
Small Airport Fund
If a large‐ or medium‐hub commercial service airport chooses to institute a passenger facility
charge (PFC), which is a fee of up to $4.50 on each airline ticket for funding of capital
improvement projects, then their apportionment is reduced. A portion of the reduced
apportionment goes to the small airport fund. The small airport fund is reserved for small‐hub
primary commercial service airports, non‐hub commercial service airports, reliever, and general
aviation airports. As a general aviation airport, GEU is eligible for funds from this source.
c.
Discretionary Funds
In several cases, airports face major projects that will require funds more than the airport’s annual
entitlements. Thus, additional funds from discretionary apportionments under AIP become
desirable. The primary feature about discretionary funds is that they are distributed on a priority
basis. The priorities are established by the FAA, utilizing a priority code system. Under this
system, projects are ranked by their purpose. Projects ensuring airport safety and security are
ranked as the most important priorities, followed by maintaining current infrastructure
development, mitigating noise and other environmental impacts, meeting standards, and
increasing system capacity. It is important to note that competition for discretionary funding is
not limited to airports in the State of Arizona or those within the FAA Western‐Pacific Region.
The funds are distributed to all airports in the country and, as such, are more difficult to obtain.
High priority projects will often fare favorably, while lower priority projects may not receive
discretionary grants.
d.
Set-aside Funds
Portions of AIP funds are set asides designed to achieve specific funding minimums for noise
compatibility planning and implementation, select former military airfields (Military Airports
Program), and select reliever airports. As a reliever airport, GEU qualifies for set‐aside funding.
e.
FAA Facilities and Equipment (F&E) Program
The Airway Facilities Division of the FAA administers the Facilities and Equipment (F&E)
Program. This program provides funding for the installation and maintenance of various
navigational aids and equipment of the national airspace system. Under the F&E program,
funding is provided for FAA airport traffic control towers (ATCTs), enroute navigational aids, on‐
airport navigational aids, and approach lighting systems. While F&E still installs and maintains
some navigational aids, on‐airport facilities at general aviation airports have not been a priority.
Therefore, airports often request funding assistance for navigational aids through AIP and then
maintain the equipment on their own.
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f.
Arizona Department of Transportation (ADOT), Aeronautics State
Funds
In the state of Arizona, ADOT has a Multimodal Planning Division to oversee the state’s
transportation systems including airports. The ADOT – Aeronautics Group recognizes the
valuable contribution to the state’s transportation economy that airports make and administers
several programs to aid in maintaining state airports. The source for state airport improvement
funds is the Arizona Aviation Fund. Taxes levied by the state on aviation fuel, flight property,
aircraft registration tax, and registration fees (as well as interest on these funds) are deposited in
the Arizona Aviation Fund. The State Transportation Board establishes the policies for
distribution of these state funds. Under the State of Arizona’s grant program, an airport can
receive funding for one‐half (currently 4.47 percent) of the local share of projects receiving federal
AIP funding. The state also provides 90 percent funding for projects which are typically not
eligible for federal AIP funding or have not received federal funding. Additionally, projects
focused on airport operations, such as the development of primary planning and guiding
documents, and revenue-generating improvements, such as hangars and fuel storage facilities,
may also be eligible. GEU is eligible for these funding allocations.
i.
Pavement Maintenance Program
An additional source of funding for some infrastructure projects is the state pavement
maintenance program. The airport system in Arizona is a multi‐million‐dollar investment of
public and private funds that must be protected and preserved, and State aviation fund dollars
are limited. The State Transportation Board recognizes the need to protect and extend the
maximum useful life of the airport system’s pavement. Therefore, the Arizona Pavement
Management System (APMS) has been established to assist in the preservation of Arizona
airports’ system infrastructure.
Public Law 103‐305 requires that airports requesting federal AIP funding for pavement
rehabilitation or reconstruction have an effective pavement maintenance program system. To this
end, ADOT – Aeronautics Group maintains the APMS. The Arizona APMS uses the Army Corps
of Engineers’ “Micropaver” program as a basis for generating a Five‐Year Arizona Pavement
Preservation Program (APPP). The APPP consists of visual inspections of all airport pavements.
Evaluations are made of the types and severities observed, and then entered into a computer
program database. ADOT – Aeronautics Group ensures that the APMS database is kept current,
in compliance with FAA requirements. Every year, ADOT – Aeronautics Group, utilizing the
APMS, will identify airport pavement maintenance projects eligible for funding for the upcoming
five years. These projects will appear in the state’s Five‐Year Airport Development Program. Once
a project has been identified and approved for funding by the State Transportation Board, the
airport sponsor may elect to accept a state grant for the project and not participate in the APPP,
or the sponsor may sign an Inter‐Government Agreement (IGA) with ADOT‐MPD–Aeronautics
Group to participate in the APPP. GEU participates in this program.
The Glendale Municipal Airport enjoys a viable working relationship with ADOT, and generally
receives a grant offer every year they have an eligible project. This type of coordination and
planning helps maximize available funding opportunities for Glendale projects.
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D. Existing, Potential, and Future Financial Mechanisms
A variety of funding resources are available to the City of Glendale for airport infrastructure and
development programs. Depending on the project, several considerations are involved in making
the proper selection of a funding mechanism to fit specific applications on the airport. Grants that
generally have no repayment requirements are the preferred choice whenever possible. However,
the scope and scale of any future airport development should also include investigating other
options such as debt and bonding options, private investment, and alternative revenue options.
1. FAA and ADOT Aeronautics Grant Programs
The primary funding source for eligible airport projects are the FAA AIP and the ADOT-
Aeronautics grants-in-aid programs. These grants are specifically designed for airport planning,
design, and construction projects, and together they usually pay approximately 90-95 percent of
an eligible projects cost. The sponsor is responsible for matching the remaining 5-10 percent of
project costs. These programs are limited by the fact that total grant monies available may be
limited in any given year, and grants are awarded on a priority basis. However, the FAA AIP and
ADOT- Aeronautics grant programs represent the best and most efficient use of the sponsor’s
available funding and should be utilized first whenever possible. Matching funds may be drawn
of any of the Airport’s operational revenues as available, or otherwise provided by the City of
Glendale.
2. Debt – Capital Improvements
The Capital Improvement Program (CIP) infrastructure and development projects identified on
the Airport’s most current ACIP covering FFY 2024 through FFY 2028 for the Glendale Municipal
Airport total in excess of twenty-four million dollars. The Glendale Municipal Airport should
utilize federal and state funding opportunities wherever possible. However, in some instances,
certain infrastructure projects both on and off the airport may not be eligible for grant funding,
or such funding may not be available on a timely basis. These cases may be addressed with debt
financing and satisfied with future revenues from the Airport and City. In these circumstances the
“cost of money” including total interest and other related charges associated with a loan package
is the primary consideration. Municipalities may be eligible for low interest loans, and it is clearly
in the best interest of the City and Airport to investigate such available loan programs to locate
the best deals.
3. Bonding – Capital Improvements
Bonding is another vehicle that can be especially useful for medium- to long-term funding. Often
the best deals in the current bond market are dependent on current interest rates, the available
bond rating that can be obtained for the project or program, and the current market interested in
purchasing such bonds. Several unique bonding opportunities are available that could potentially
fund initial development of an airport program and defer material asset or collateral requirements
until revenue generation from said development can begin. Some of these opportunities can be
found in a public purpose bond (PPB) mechanism. A PPB is a kind of general obligation bond
(GOB); as such, municipalities are not required to provide assets for collateral. Instead, they look
to repay the debt through taxation and any revenue from the project. A PPB is a specific kind of
municipal bond that funds a public project. A more specific description of General Obligation,
Revenue bonds, and others include:
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a.
General Obligation (GOB) Bonds
Bonds backed by the full faith and credit of the taxing power of the issuing city, county, or state.
GO bonds have been viewed historically as the type of bonds that offer the greatest security and
stability in the fixed income sector.
b.
Revenue Bonds
Bonds backed by the operations and revenue of municipal facilities such as airports, toll roads,
and water and sewer systems.
In addition to the credit backing of GOB and Revenue bonds, for potential additional protection,
many municipal issues include credit enhancements from third-party insurers, special
government appropriations or even the “Double Barrel” protection of bonds backed by pledged
revenue and GO taxing power. All municipal bonds, if held to maturity or redeemed at an early
call date, are designed to pay 100 percent of face value, regardless of market value changes during
the time since the owner purchased the bonds. For many investors, the main advantage of
municipal bonds over other comparable fixed-income investments, such as corporate bonds or
bank CDs, is that interest earned from municipal bonds is exempt from federal income taxes, and
depending on the residence of the bondholder, may also be free of state and local taxes.
c.
Municipal Property Corporations (MPC)
MPC’s are legal entities established to provide a financing mechanism for certain capital
improvement projects. Historically, these corporations have been used to finance debt for growth-
related projects with much of the debt service paid by system development fees. Participation and
expectations may vary tremendously from year to year. Glendale has utilized MPC bonds
extensively over the years for major projects as evidenced by the historical excerpt drawn from
Glendale’s 2020 Audited Annual Financial Statements which states:
“In 1982, 2002, 2003, 2006 and 2008 the MPC, a non-profit corporation,
issued bonds to finance the construction of a new municipal office complex,
hockey arena, public safety training center, parking garage, media center,
convention center and city infrastructure, respectively. On October 19, 1982,
July 31, 2002, May 1, 2003, and June 1, 2006, the City entered into a lease
purchase agreement with MPC, whereby, the City purchased the constructed
municipal office complex, hockey arena, public safety training center, parking
garage, media center, convention center and city infrastructure, respectively,
from MPC. In addition, on April 1, 2004, the City entered into a lease
agreement with the MPC to issue bonds to finance an escrow account to refund
certain outstanding City improvement district bonds. In June 2008, the City
entered into a lease agreement with the MPC to issue bonds to refund
outstanding 2006B bonds. In February 2012, the City entered into a lease
agreement with the MPC to issue bonds to partially refund outstanding
maturities of the bond series 2003, 2004, and 2006. In December 2012, the
City entered into a lease agreement with the MPC to issue bonds to partially
refund outstanding maturities of the bond series 2003 and 2004, and to fully
refund outstanding maturities of the Western Loop 101 Public Facilities
Corporation bond series 2008. In March 2015, senior excise tax revenue bonds
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were issued to refund MPC bonds series 2002B, 2003B, 2006A, and series
2012D, respectively. In April 2016, senior excise tax revenue bonds were issued
to refund MPC bond series 2003 D in full as well as several maturities of the
MPC bond series 2008A. An amount equal to the MPC debt service and related
miscellaneous fees, is payable to the MPC in monthly installments by the City.”
d.
Bonding Program Structure
Bonding and debt processes are complex, and municipalities usually contract with professional
investment and bonding firms to navigate the opportunities most beneficial to the City, its project,
and the investor.
The City of Glendale has appointed the Citizen Bond Election Committee which reviews the City's
financial information and bonding capacity. They also assess the need for additional voter
authorization, recommend ballot language to be considered by the Council, and educate Glendale
residents on the City’s Capital Improvement Program (CIP) and future bond authorization needs.
For specific Glendale Municipal Airport projects, it is recommended that the committee evaluate
the Airport’s needs against several categories as follows:
Glendale’s current Airport Capital Improvement Program (ACIP), including projects that
would be the best candidates for funding with a specific bond program or issue, as opposed
to more traditional FAA or ADOT funding alternatives.
Tracking the remaining bond authorization and property tax rate. Most bonds are backed
by projected tax revenues or other income resources, and bond issues are usually capped
at an amount that can be supported by projected tax revenues.
Tracking statutory debt capacity and total outstanding debt is a similar function wherein
the Board would manage/track the current overall bonding debt load against the total
capacity the City has to offer. As portions of existing debt are retired, more room becomes
available in the budget for new debt, or bond issues.
Performing evaluations and making recommendations pertaining to bonding
authorization that will not increase the current tax rate. Additional bond authorization
does not necessarily mean taxes will increase.
o Bond authorization is like a credit limit to pull from when needed.
o To achieve no tax increase requires a balance between Assessed Value and Tax
Rates.
o This formula generates the revenue (tax levy) required to pay the debt service on
GOB Bonds, and as debt is paid down, new debt can be added, leaving taxes
neutral.
Managing public outreach and information programs pertaining to City bond programs.
These would include public gatherings or programs with appropriate members of City or
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Department management to present and receive feedback from the general public on
specific bonding and program issues.
e.
Legal Debt Margin
The Arizona Constitution provides that the general obligation bonded indebtedness for a city for
general municipal purposes may not exceed 6 percent of the limited assessed valuation of the
taxable property in that city. In addition to the 6 percent limitation for general municipal purpose
bonds, cities may issue general obligation bonds up to 20 percent of the limited assessed valuation
for supplying such city with water, sewer, artificial light, public safety, law enforcement, fire and
emergency services, streets, and transportation facilities, and for the acquisition and development
of land for open space preserves, parks, playgrounds, and recreational facilities.
The City’s unused bonded debt borrowing capacity as of June 30, 2020, is as follows:
(Figures shown are in thousands)
6%
20%
Capacity to incur bonded debt
$ 88,697
$ 295,656
Less: Bonded debt applicable to limit
($9,039)
($89,861)
Unused bonded debt capacity
$ 79,658
$ 205,795
The various bond indentures contain significant limitations and restrictions on annual debt
service requirements, maintenance, and flow of monies through various restricted accounts, and
minimum revenue and bond coverage. The City follows all such significant limitations and
restrictions.
f.
City of Glendale Bond Ratings
A municipalities’ bond rating is an indicator of the estimated level or grade of investment safety
offered by the issuer. Triple-A bonds, or AAA bonds, are those considered the absolute safest by
bond rating agencies (Fitch, Moody’s, and Standard & Poor's), while grades can go as low as D. By
granting AAA rating, the bond rating agencies are signaling that they think default is all but
unthinkable except in the most remote of circumstances. Therefore, higher bond ratings mean
more investor interest, and likely higher returns on investments. A recent snapshot of the City of
Glendale’s bond rating from Fitch Ratings yielded the following:
Fitch Ratings - Austin - 03 May 2021: Fitch Ratings has assigned a 'AAA' rating to the $12,570,000
unlimited tax general obligation (ULTGO) bonds, series 2021, and an 'AA' rating to the
$253,190,000 certificates of participation (COPs) of Glendale, AZ. The Rating Outlook is Stable.”
Glendale’s AAA (Premium) and AA (High Grade) bond ratings indicate that its bonds represent
strong opportunities for investors, and this makes the associated bonds attractive vehicles for
long-term financing of capital projects.
In summary, the City of Glendale appears well positioned to support future bond issues that may
be utilized to accomplish many aspects of the airport’s future growth. The final form that such
bond issues take, and the City’s capacity to rally voter support to pass those initiatives is still up
for discussion. However, with the correct public and political will, the City of Glendale could
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develop a bond program sufficient to meet many of the Airport’s future financial development
needs.
g.
Private Investment
Private investment is most likely to occur when the buildings, infrastructure or assets are the
actual property of individuals or companies involved. While the ownership of that property may
be sold or reverted under certain contract stipulations in the future, the initial purchase and
ownership is with a private investor or buyer. As an example, a person or firm may lease property
from the airport for hangar use, but the actual purchase or construction of the hangar itself is by
a private investor or buyer.
h.
Non-aviation Development
In addition to generating revenue from traditional aviation sources, airports with excess land can
permit compatible non‐aviation development. Generally, an airport will extend a long‐term lease
for land not anticipated to be needed for aviation purposes in the future. The private developer
then pays the monthly lease rate, constructs, and uses the compatible facility. Certain areas at
GEU may be reserved for non‐aviation development. It should be noted that each individual
proposed non‐aviation development must be reviewed and approved by the FAA.
There are exceptions to every rule of course, one of which would be a public/private partnership,
wherein a facility might be financed with both public money from a city or airport, and private
investment to achieve a mutual goal.
E. Summary, Conclusions, and Recommendations
Today the Glendale Municipal Airport stands on a line separating the standards and requirements
of the past from those of the future. The airport is about to encounter a major increase in demand
for aviation business and services, along with an unprecedented surge in development. The
airports success depends on its ability to accommodate and manage this market during these
critical development years.
When the Eastside Development Planning program is complete the airport will have a more
complete picture of what future business demand and associated locations will look like. It should
also have solid estimates of development costs and associated phasing, along with perceptions of
what federal and state grant funding opportunities may be in the future.
With this information in hand the airport will reevaluate its financial position including debt and
bonding resources, and prepare a new financial approach structured towards achieving the
requirements of major new development over the long term. This is the point where all financial
assets and opportunities need to be focused upon achieving success for the long-term goals of the
airport’s eastside and “in fill” development areas.
The currently identified CIP infrastructure and development projects, FFY 2024 – FFY 2028,
needed for the Glendale Municipal Airport today total twenty-four million six hundred thousand
dollars. Cost for the future airport development could top five times that much. Preparation needs
to begin today to identify all available funding resources and development avenues necessary to
the long-term success of the coming airport demands and expansion.
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A composite picture of the future Glendale Municipal Airport is not yet complete. However,
acceptance and implementation of this planning study will dramatically change the structure and
financial needs of the overall Capital Improvement Program immediately. In addition to the
traditional federal and state grant funding resources, it is highly likely that debt service, bonding,
public/private partnerships, and other financial resources will be engaged to accomplish the
eastside development program. The speed with which these future eastside projects can be
accomplished will be governed by the airports ability to identify funding vehicles sufficient to
carry the economic load of its development.
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V. Airport Peer Exchange
A. Introduction
Since the mid-1990s, airport managers have formalized a methodology of looking to peers for
advice and guidance when facing challenging and/or new developments at their respective
airports. Collaboration, having always been a part of the airport industry; those shared lessons
and technical guidance have been a continuing part of the industry. While “peer review” has been
a term used outside the airport industry to denote formal audits, or evaluations, the term “peer
exchange” is the preferred terminology when the emphasis is on information sharing for the
purposes of improving quality and performance.
During the months of November and December 2021, structured interviews were held at three
airports within the Phoenix Metropolitan area. Those three airports were selected for Peer
Exchange because they represent different valley locations, are experiencing dynamic growth,
and are managed by some of the most accomplished aviation professionals in the business. Each
Peer Exchange was attended by the Glendale Municipal Airport Administrator and the consultant
team. Interviewees included Airport Managers, Financial Administrators, Assistant City
Managers, and Airport Marketing staff. All interviews were documented via notes and minutes.
Chandler Municipal Airport (CHD) Chandler, Arizona
Ryan Reeves, Airport Manager (Former Airport Business Coordinator)
Steve Turner, Assistant to the City Manager (Former Acting Airport Manager)
Mesa Falcon Field Airport (FFZ), Mesa, Arizona
Corrine Nystrom, A.A.E., Airport Director
Scottsdale Airport (SDL), Scottsdale, Arizona
•
Gary L. Mascaro, C.M., C.A.E., Airport Director
•
Carmen Williams, Financial Management Analyst
B. Overview of Interview Findings and Outcomes
All interviewees were presented with the set of questions that correlated with common focus areas
in the general aviation business. They included operational funding sources, corporate presence
in the form of maintenance, repair and overhaul companies, hangar facilities and ownership,
development processes, and preparation for emerging technologies that will affect future general
aviation operations. There were steps taken to bring a level of objectivity to interviews, such as
common theme inquiries and standardized questions; however, the process was inherently
subjective. To provide content value, the procedures for documentation and analysis included
transcribing of interview notes, review of categories of discussion, notation of common themes
within each interviewee group, and documentation of conclusions and observations. Table 3
provides an overview of the Peer Exchange topics
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Table 3 - Overview of Peer Exchange Topics
Airport
Chandler Municipal
(CHD)
Mesa Falcon Field (FFZ)
Scottsdale (SDL)
Glendale Municipal
(GEU)
Municipal Structure
Funding Source
Airport Finances Subsidized
by City General Fund
Enterprise Fund– Self
Sustaining
Enterprise Fund - Self
Sustaining
Airport Finances Subsidized
by City General Fund
Bonding History
Bonds structured for
infrastructure development
No bonding program
Bonds structured for Business
Center/Corporate Hangar
(Airport Owned)
No bonding program
Economic
Development
Partnership
Economic Development
Business Outreach within City
organization
Dedicated Economic
Development Manager part of
airport staff
Marketing/Public Outreach
Manger part of airport staff
No in-house Marketing and/or
Economic Development
Manager
Revenue Generating Source
Land Leases
Land Leases Managed by
Airport
Land Leases Managed by
Airport
Land Leases Managed by
Airport - Through the fence
operations
Land Leases Managed by
Airport
Concessions,
Beverage
and Other
None
None
Restaurant Business Center
U.S. Customs & Immigration
Pilot Shop
Fueling (Flowage fee)
FBO – Jet A/AV Gas
AV Gas by Airport
FBO (2) - Jet A/AV Gas
FBO (3) - Jet A/AV Gas
FBO –Tanks owned by Airport
and FBO leases fueling facility
Car Rental Providers
FBO
Percentage of Revenue
FBO
Percentage of Revenue
FBO
Percentage of Revenue
FBO – Arrange Transportation
No Percentage of Revenue
Airpark
Airport is located within
Chandler Airpark
Airpark adjacent to Airport
Airpark adjacent to Airport –
Through the fence operations. No Airpark
Hangar Ownership
Airport owns box hangars
410 Hangars + tie-downs
Airport owns executive and
box hangars
No hangar ownership
Owns tie-downs on public apron
Aircraft Maintenance
Repair, Overhaul
Yes
Yes, Major Facilities
Yes, Major Facilities
Yes
Emerging Technologies
Advanced Air
Mobility capabilities
Yes, future AAM site located
and preserved
No immediate plans, but
preserving location on the
airfield
Potentially in Airpark only;
power source and airspace
concerns
Not currently under
consideration
Source: Genesis Consulting Group analysis, February 2022
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C. Peer Review Analysis
Based on the Internal Stakeholder interviews, the following feedback was prominent among all
interviewees and categorized as follows:
1. Municipal Financial Structure
This topic is of major importance to GEU, as it is one of the primary reasons for undertaking of
the Business Plan. How does the Airport reach financial sustainability and become an enterprise
entity? Based on the feedback from the Peer Exchange, those airports that have an enterprise
status, have become so with the concerted efforts of both the respective airport management and
the management of the city organization. Both airports that are currently enterprise funded, have
had the support of an initial financial mechanism, bonding programs, and concentrated
development plans to position their airports to not rely on any city general funds for their
operations.
2. Revenue Generating Sources
All of the Airports interviewed managed their own land leases and any through the fence
operations. In addition, fuel flowage, concessions, and other revenue generating sources were
managed through the Airports in-house staff. Of note, is the Scottsdale Airport, which has through
both the efforts of the Airport Management and the City of Scottsdale, developed airport owned
corporate hangars, box hangers, and a thriving business center and restaurant. Of all the Airport’s
interviewed, this Airport has developed the most robust management practice of monetizing any
private business enterprises within its boundaries.
3. Future Development Considerations
A discussion of emerging technologies was included in the Peer Exchange, because of the
emergence of technologies that will in many cases change the face of urban transportation. The
new type of Advanced Air Mobility unlocked by electric aviation, (also known as Urban Air
Mobility), needs to address airport compatibility, including capacity and delay, infrastructure and
utility development, safety and security, funding, and local community dynamics. The inclusion
of this discussion was to gauge the awareness of the peer urban airport managers to the disruptive
technologies that are occurring and the speed with which they are developing.
D. Peer Exchange Takeaways
The most prominent takeaway from the peer exchange process was:
1.
The involvement of the city management and development service/marketing
professionals in the success of the respective airports
2.
All airports interviewed were treated as economic engines rather than just a
transportation mode.
3.
All interviewed airports owned hangar facilities, whether large corporate buildings or
box hangars, therefore, not relying on land leases only for property revenue.
4.
The most financially successful interviewed airport, had used their city’s bonding
program to build a business center, containing a restaurant, meeting rooms and U.S.
Customs Office.
5.
Major aircraft maintenance, repair, and overhaul services (MRO) were prominent in
revenue generation at the most financially successful peer airports.
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6.
Advanced Air Mobility technologies and future investments by general aviation airports
is a concern. There is currently no funding mechanism for aviation facilities to provide
for aircraft electric charging stations and the other necessary infrastructure
improvements.
E. Conclusion
The Glendale Municipal Airport has sought operating and management insights from three highly
successful local airports with a structure and mission similar to its own. These airports shared
common concepts about their approach to successfully doing business in today’s environment.
The most basic of which was “run the airport like a business.” Engage management, development,
and marketing professionals to build a coordinated operating and business structure with an eye
towards maximizing future development and revenue generation. Identify and pursue your target
markets such as corporate aircraft and associated support businesses like major Maintenance,
Repair, and Overhaul (MRO) operators, fueling and associated governmental and corporate
services. Additionally, these airports diversified their revenue sources including airport
ownership of hangars or other large corporate buildings to lessen their dependence on single
source revenues like land leases. All airports interviewed were treated as business operations and
economic engines rather than just a passive transportation center.
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VI.
Potential Development Areas
A. Overview
To effectively utilize the land mass at GEU, existing and future development should be
coordinated using a “Zone” criteria. A Zone criterion is a type of segregation by use, which allows
for the most efficient development of similar businesses within the airport boundaries. As noted
in previous discussions, GEU has grown “organically” over the years, and one of this Business
Plan’s goals is to provide a more systematic approach to future development and growth.
B. Zone Methodology and Site Map
Illustrated on Figure 9 are several proposed development zones that will support redevelopment
efforts and new development scenarios into the future. While this discussion is high-level for the
purposes of identifying future business opportunities, GEU will embark on a more finite analysis
of development sites in future projects and programs. For the purposes of this Plan the
recommended business zones are as follows:
1. Zone 1 – Existing Operations and Development
This zone represents most airport support facilities and services as they exist today. This area
houses the Airport’s FBO, flight schools, large and small aircraft storage hangars (private), fuel
farms, airport terminal building, public parking and GEU controlled aircraft parking aprons.
a.
Zone 1A – Short-term Corporate Development
This sub-zone represents short-term development potential for facilities to support corporate
aviation and support services. The current FBO is providing for the expansion of their facilities
and ability to support larger corporate aircraft services. Within Zone 1A, future opportunities exist
for related development and continued support of corporate activities while future development
areas in Zone 1B and Zone 2 are being prepared with initial development infrastructure for future
use. Of note is the current terminal building, occupying valuable road and business frontage,
which in the future might be a better location for expanded aeronautical uses such as corporate
flight departments or specialty services.
b.
Zone 1B – Mid-term Corporate Development Zone
This is an additional area with a similar use function as Zone 1A, where the airport can choose to
extend corporate development in the midterm after the addition of required infrastructure, (fill,
grading and drainage, and utilities) for larger corporate hangars, fuel farms, or related support
functions.
2. Zone 2 – Future Multi-use Aeronautical Development
This zone represents the Airport’s largest future development opportunity, and with the addition
of required grounds preparation and infrastructure, can accommodate multiple segregated
aviation operations and support functions such as, corporate area hangar development, Airport
Business Center Offices (including airport management and operations staffing center), major
maintenance and repair operations (MRO) and support services. In addition, U.S. Customs,
Immigration, and Agriculture services, can be housed within the new development. When
complete, the Airport may wish to segregate transient hangar and support services into Zone 2,
while leaving based aircraft and corporate services in Zone 1A.
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3. Zone 3 – Future Landside Development (North)
This zone represents development opportunities around the perimeter of the Airport’s approach
surfaces, and may be well suited to smaller business operations, storage, and office space,
including operations that will benefit from locations immediately adjacent to airfield.
4. Zone 4 – Future Landside Development (West)
This zone represents a landside opportunity for office space development, and other non-aviation
building and storage functions that will benefit by being located immediately adjacent to the
airport. This would be an excellent location for corporate flight departments.
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Figure 9 - Potential Development Areas
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VII. Implementation Plan
A. Introduction
Previous chapters have explored the environment that will affect business development at GEU,
its financial status, and the potential range of aviation activities that may be accommodated in the
short and long-term. The next step is to develop a logical and structured action plan for each of
the developed goals and move the Airport forward on its infrastructure and business development
journey.
This Chapter will address those previously developed goals (Strategic Plan) and outline the
required action necessary for proper implementation of each recommendation as it is imbedded
in the Business Plan.
B. Methodology
A total of five implementation actions were developed for the Glendale Municipal Airport
Business Plan. The actions have been tied into the previous Strategic Plan Critical Goals so that
both documents mirror the same direction and purpose of all work combined. Each element of
the implementation plan will address the following four questions:
What is the purpose for the objective?
What action(s) are necessary for an objective to be accomplished?
Who at GEU or identified outside resource (key participants) will be responsible
for the specific objectives?
What are the measured outcomes?
When (timeframe) does the objective need to be initiated?
The answers to these questions are vital to the Implementation Plan in order to understand the
required actions needed. To make the Implementation Plan most useful, the components should
be developed as realistically as possible considering budgetary limitations and staffing resources.
C. Implementation Plan and Actions
To fulfill the agreed upon Critical Goals of the Strategic Plan and to implement the more detailed
plans and actions of the Business Plan, several actions are recommended. The Business Plan
implementation recommendations have been tied into the goals of the Strategic Plan. Table 4
summarizes the goals identified from the Airport’s Strategic Plan.
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Table 4 - Strategic Plan Critical Goals
Rank
by
WG
Critical Goal
Secondary
Related
Goal
Strategic
Initiative
Alignment
Low
Benefit
High
Benefit
Low
Cost
High
Cost
Short
Term
1-2
yrs.
Long
Term
3-5
yrs.
1
Airport
Business Plan
Financial
Assessment &
Plan
Corporate &
Facilities
development
Lease Rates
• Marketing &
Business
• Financial
Sustainability
X
X
X
2
Airport
Marketing Plan
External &
Internal
Marketing
Public Relations
• Marketing &
Business
• Financial
Sustainability
X
X
X
3
Develop
comprehensive
Eastside/Airport
development
plan
Infrastructure
development
• Infrastructure
• Financial
Sustainability
X
X
X
4
Assess
organization
Staffing Levels
Skill Set
Requirements
Benchmarking
• Customer
Satisfaction
• Safety
X
X
X
5
Develop
architectural
design
standards
Infrastructure
Assessment
• Infrastructure
• Customer
Satisfaction
X
X
X
6
Facility
aesthetic
updates
Beautification
Plan
Roadway
Improvements
• Infrastructure
• Customer
Satisfaction
X
X
X
Source: Genesis Consulting Group analysis, March 2021
1. Develop Comprehensive Marketing and Public Relations Plan for GEU
During the development of the Airport Strategic Plan (May 2021), the first and second Critical
Goals recommended by the Working Group included completion of a Business Plan and a
Marketing Plan. Thus, after completion of the Business Plan, the first Implementation Plan action
item is to conduct the next critical item in the Strategic Plan – a Marketing and Public Relations
Plan.
a.
Purpose
An effective Marketing Plan will develop specific corporate target markets, an organized outreach
process, messaging, and branding language that the Airport and City wish to convey to prospective
clients, development prospects, and stakeholders. Airports today must market effectively to
attract activity and achieve financial self-sufficiency. Airport Administrators use public relations
and marketing to communicate with their customers, a diverse group that can include airport
sponsors, tenants, charter airlines, business prospects, and the community.
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b.
Actions
1. Together with the Office of Economic Development, GEU should develop a Scope of Services
for a Marketing/Public Relations Plan.
2. The Marketing Plan should target specific portions of the aviation market that have shown
potential for growth and require the services and capabilities that GEU has to offer.
3. Additionally, A Public Relations Plan is recommended to enhance the positive image of GEU,
both with the framework of City governance and the community at large.
c.
Involvement (Key People)
Development of a relevant Marketing Plan requires the participation of key Airport Management,
Office of Economic Development officials, and a consulting firm experienced with airport
marketing requirements and economic operating parameters.
d.
Measured Outcomes
The primary deliverable for this effort will be an executable Marketing Plan that identifies and
targets appropriate new business prospects for the Glendale Municipal Airport. Marketing Plans
should contain a number of key work tasks, including:
Define marketing goals and objectives
Assemble the team (critical stakeholders to successful implementation)
Develop the marketing issues that will support a better understanding of the contributions
of the Airport to the West Valley community
Develop measurable outcomes and time sensitive achievements
e.
Timeframe for Initiation Actions
A marketing and public relations plan is an integral element necessary to future business and
development efforts of the airport. Development of such a plan should begin immediately
(2022/2023), and implementation begin within the first year.
2. Implement Financial Structure Upgrades to Reach Fiscal Sustainability
As previously stated in this program, “Proper execution of an airport’s fiduciary responsibilities
is key to an airports long-term success.” Additionally, under the Federal Aviation Administration’s
Airport Improvement Program (AIP) grant assurances require that any AIP funded airport be as
financially self-sustaining as possible given the prevailing circumstances. Therefore, it is
incumbent upon the Airport to develop responsible financial and business programs capable of
supporting that mission to the greatest extent possible.
a.
Purpose
The Glendale Municipal Airport is a full-service general aviation (GA) airport accommodating
numerous aviation business functions such as hangar storage, tie downs, Fixed Base Operators,
maintenance facilities, flight instruction, and other aviation support functions. The City of
Glendale, through the Glendale Municipal Airport, provides management, operation, and
maintenance of the facility, and is in turn funded in part by a variety of operational fees derived
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from various airport services, leases, and operating agreements. The Airport is not operationally
self-sufficient today. However, one of its goals, and the purpose of this Business Plan, is to
continually assess its financial structure and business practices, develop new business and
revenue streams, and ultimately grow the Airport into the future with financial resources
sufficient to support total self-sufficiency.
b.
Actions
To continue moving GEU on a path to fiscal self-sustainability, several coordinated actions and
upgrades to the Airport’s financial processes need to occur. Initial actions must include
maintenance of current financial structure and reporting processes while accommodating
expansion as new resources and revenue streams come online in the future. This requires that
programs relevant to current and future revenue production be systematically updated and
improved including:
1. Tenant building and land lease standards
2. Rates and fees structure upgrades to reflect current market
3. Update of financial tracking systems and guiding documents
4. Exploration of new revenue centers, such as airport owned fueling concessions, airport hangar
ownership, and new aviation services.
5. Conduct a Pro-Forma analysis of airport revenue and expenses to determine a ‘self-
sustainability” breakeven point.
In the search for new financial resources, key staff must evaluate external opportunities such as
bonding, economic partnerships, and other financial vehicles and their application to future
airport development programs. As an example, the Airport should establish a regular presence
and working relationship with Glendale’s Citizen Bond Election Committee to stay abreast of the
latest bonding opportunities. Additionally, opportunities to integrate specific airport CIP
programs with City CIP programs that identify specific programs that can benefit from future
bonding efforts should also be sought.
The Airport should form a core group of representatives from the GEU staff, the City Finance
Department, and Citizen Bond Election Committee to regularly monitor factors affecting the
financial operation of the Airport and future financial needs.
c.
Involvement (Key People)
The ongoing financial coordination between the Airport and the City of Glendale will require the
active participation of several individuals and departments including:
Airport Administrator and Administrative staff
Transportation Department and City Manager’s Office
Office of Economic Development
Finance Department
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Glendale Citizen Bond Election Committee
Each of the entities identified above will have a role to play in the development of the airports
financial structure as it evolves into the future.
d.
Measured Outcomes
The deliverables for the Glendale Municipal Airport’s financial upgrade efforts will include:
Updated and current Rates and Fees structure
Bond coordination program with Public Works, City Finance, and the Citizen Bond
Election Committee
Pro-Forma Analysis (break-even analysis) for future GEU budgetary projections
Updated lease and property agreements
e.
Timeframe for Initiation of Actions
The Glendale Municipal Airport should establish an amended financial structure that accounts
for all potential funding resources necessary to the airport’s future development within the first
year of implementation.
3. Landside Development
The Glendale Municipal Airport is launching an effort to attract new corporate aviation and
associated support services to the airfield. As business grows, a component of that development
will need to be accommodated outside of the active airfield in an adjacent landside location.
a.
Purpose
The Airport wishes to accommodate the landside requirements of airport tenants and needs to
develop a plan to develop/improve the infrastructure necessary for related future corporate office
space, storage, or other services requirements.
b.
Actions
To evaluate the future landside development potential, the Airport must develop a clear picture
of what services are required, and what their infrastructure requirements are. The following
assessments should be made.
1. Assess corporate redevelopment areas (Eastside development area and west side infill.)
2. Assess non-aviation development zones
3. Evaluate Business Center requirements
4. Evaluate U.S. Customs and Immigration requirements
5. Land Use Planning (protecting the airport’s ability to grow)
6. Master Plan Update to assess appropriate landside development opportunities.
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c.
Involvement (Key People)
Formulation of an appropriate landside development plan requires the participation of key
members of the Airport Management team, Glendale Office of Economic Development officials,
and a consulting firm experienced with airport requirements and economic operating parameters.
d.
Measured Outcomes
Evaluations of initial markets and infrastructure requirements should be complete in the near-
term within one to two years. Marketing and recruiting of new businesses should begin as soon as
infrastructure support is available for identified market targets.
e.
Timeframe for Initiation of Actions
Evaluations and considerations for the various landside development parcels is another key
element for coordinated future airport development. Initial planning and actions should occur in
the near term and be ready for implementation within the timeframe as approved by the GEU
Strategic Plan, Goal and Objectives.
4. Infrastructure Improvements (Airside)
The Glendale Municipal Airport seeks to grow its airport service levels in the future for both
smaller GA and larger corporate aircraft customers and activities. This vision requires a concerted
effort to improve the Airport’s position and make it more accommodating to such future goals. As
such, the development of additional large hangar facilities, and aircraft support services is a key
factor in attracting new corporate aircraft operations. New corporate business customers actively
seek airports with convenient locations, hangar facilities, and services that can meet their based
or transient aircraft needs. This goal is closely tied into the development of the Marketing Plan
and the Eastside Development Critical Goals for the airport, as such is a key factor in airport
potential growth and financial sustainability.
a.
Purpose
The purpose of the airside development initiative is to gather market demand and planning
information necessary to execute future airside development and improvements that can
accommodate Glendale’s future aviation markets.
b.
Actions
The Eastside Development Planning Process represents a Critical Goal from the Strategic Plan;
therefore, the implementation of this project is the first step in assessing both future corporate
development and infrastructure needs for that development including:
1. Potential taxiway addition, taxilane, and apron configurations
2. Airport NAVAID and instrumentation expansions and upgrades
3. Airside roadway configurations
4. Identify utility, drainage, and site needs for future development airside development
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c.
Involvement (Key People)
Airport Administrator and Staff
City of Glendale, regulatory departments
Eastside Development Consultant
Federal and state funding agencies
d.
Measured Outcomes
Based on the analysis and criteria developed with the Eastside Development Plan, a number of
alternatives for airside development will be determined, with the highest and best use scenarios
selected for final recommendations. Included in the final recommendations will be layouts, costs
estimate, and a future development schedule.
e.
Timeframe for Initiation of Actions
Evaluations and considerations for the various airside infrastructure and development parcels is
another key element for future airport development. In coordination with the existing ACIP
program, initial planning and actions should occur in the near term and be ready for
implementation within the first one to two years.
5. Develop Business Center and Airport Administrative Offices
The existing Terminal Building was constructed by the City of Glendale and opened in 1986. The
36-year-old building has over the years housed a number of private businesses, numerous
restaurants, and the administrative staff of the Airport.
a.
Purpose
A new Business Center strategically located in the heart of the Airport’s new corporate and
business activity development would provide the most effective and customer friendly location
for airport administration offices, government services, public meeting rooms, rental space and
other critical business and operational needs for all clientele. An airport entry and Business Center
acts as a front door or first impressions of all users to the community and the offerings of the
Airport.
i.
GEU Strategic Plan
During the development of the GEU Strategic Plan, there were a number of concerns voiced by
the City of Glendale senior managers and its elected officials about the unsightly façade of the
terminal building and the poor visual image the road and building presented as an entry into the
Airport. Based on the numerous negative observations received about the Terminal Building and
the Airport campus, a Critical Goal was developed to address these concerns and issues. In
addition, the development of the Business Plan, other issues concerning the Terminal and its
location were identified.
•
Facility Aesthetics Upgrades
•
Infrastructure Assessment and Beautification Plan (Secondary Goals)
•
Goal is a high benefit, high cost, and achieved in the long-term (3 to 5 yrs.)
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ii. Peer Review Findings
The need for high-quality facilities for airport clientele, and customer amenities was a recurrent
theme by the Peer Exchange group. Two peer airports have in recent years upgraded their
business centers and in one case through a bonding program, build a corporate hangar facility
and a business center, along with a lease back arrangement, which will contribute to the airport’s
bottom line for years to come. This kind of development can be replicated with the future Eastside
Development Plan.
iii. Business Plan Development Zone Analysis
Development of the 2022 Airport Business Plan identified a number of other important issues
regarding the Terminal Building and its location. A utilization map that visually presents the
future developable land within the airport property boundaries was created as a part of this
process (see Figure 9). That map provides not only a breakdown of areas by Zone, but also shows
the adjacent usage of the land that could affect future development.
The terminal currently sits in one of the most desirable private development areas in the whole of
the existing Airport footprint. It is flanked in the southside by a number of private aviation
businesses, and on the northside by the Airport’s Fixed Base Operator, who is now under contract
to build a larger and more corporate ready hangar. In addition, the public apron that fronts the
east flank of the Terminal Building is currently one of most utilized Apron locations on the
Airport.
Coupled with the analysis of the Zone Development map and the current need for an upgrade to
the Terminal Building, this Business Plan recommends instead the development of a plan that
would place a Glendale Municipal Airport, Business Center strategically located within the future
Eastside Development.
b.
Actions
Develop a scope of services to be accommodate the new Business Center, and a potential location
requires the following measures.
1. Research potential site locations
2. Develop Business Center function and services scenario
3. Include potential locations into Eastside Development Planning
4. Secure consensus for new location
5. Identify funding, refine location, and implement design
c.
Involvement (Key People)
Appropriate site location of a Business Center/Airport Administration office within the Eastside
Development Plan, requires the participation of many key members of the Airport Management
team and the City of Glendale:
Glendale Office of Economic Development
Finance Department
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Bonding Committee (Potential Bonding Opportunity)
Public Works Department
City Manager’s Office
d.
Measured Outcomes
Determination of a new Business Center location representing a new entry and image upgrade for
the airport, and home to associated services such as:
Airport administration offices
U.S. Customs and Immigration
Corporate flight department offices
Restaurant
Meeting space
e.
Timeframe for Initiation of Actions
The eventual location and scope of a new Airport Business Center is dependent on the analysis
and conclusions of several planning efforts. This is a longer-term goal that should be
accomplished within three to five years (Strategic Plan).
D. Implementation Plan Summary
The Glendale Municipal Airport Business Plan has evaluated the existing business environment
of the area, analyzed the current financial position of the Airport, provided a potential
development scenario, and constructed an Implementation Plan that will carry it into the future.
In addition, the Peer Exchange process conducted with the Consultant Team and Airport
Management, provided the Team with the benefit from the experiences and insights of other in
the field that have been successful, and the paths that led to each Airport’s success.
The information contained in this document and the Strategic Plan is time sensitive and economic
conditions continually change. The Glendale Municipal Airport has already started to execute the
guidelines set in the Strategic and Business Plan. It has and will move forward with it is the Critical
Goals as envisioned the Business Implementation Plan. Therefore, it is recommended that GEU
continue its momentum and follow through on the development of the Marketing plan and
execution of its goals as soon as possible.
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VIII. Airport Business Plan Conclusion
The development of the Glendale Municipal Airport Business Plan was structured around the
following key directives:
•
Conduct a Situational Analysis to determine the current role, assets, capabilities, and
business position of GEU and form a baseline for future recommendations.
•
Analyze business opportunities that would provide future development options for GEU
and review future emerging technologies that potentially would benefit airport.
•
Develop a detailed financial analysis of GEU’s current financial mechanisms and
recommend future financial vehicles that will move the Airport towards self-sufficiency.
•
Perform a Peer Review comparative analysis between the Glendale Municipal Airport and
other similar facilities in the region to determine Glendale’s approximate position in the
market.
•
Develop a high-level land use plan to effectively utilize the land mass at GEU for existing
and future development.
•
Develop an implementation plan to identify specific action items and incremental steps to
achieve the Airport Strategic Plan’s goals and objectives.
The resulting data produced a complex picture of current and future airport demand
requirements, potential new technologies, and numerous opportunities for future airport
businesses. Potentially many more new technologies and opportunities exist than can be
reasonably accommodated by any one facility; however, the Business Plan, coupled with and the
Strategic Plan, should provide a road map for the opportunities the Glendale Municipal Airport
faces in the near future. These two documents will assist the prioritization and pursuit of specific
businesses and development opportunities that best fit the Airport’s capabilities. The Glendale
Municipal Airport has many viable options for the future as outlined within the Business Plan.
For example, major opportunities exist with the Eastside Development Program, (kicking off in
2022), Airport Design Standards (2022), future marketing efforts for corporate aviation and
associated large scale maintenance, and support facilities.
There are also large-scale challenges on the horizon, which include the identification and funding
of large-scale capital improvements necessary to meet future demand in a timely manner. The
Airport Business Plan helps to establish a baseline for the future management, administrative,
and development efforts to come, ensuring a bright future ahead for the Glendale Municipal
Airport.
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