Airport Business Plan and Impact Study Presentation
Extracted text (via pymupdf)
18534 characters
Airport Business Plan & Impact Study City Council Work Session November 4, 2024 Council Focus Areas Connectivity • “Forward-thinking transportation & technology networks with…multi-modal, integrated options to access Chandler’s employment corridors, local destinations and connections with Valley cities.” Economic Vitality • “Strategic economic development with…A modern airport that supports business aviation and airpark area development.” • 17th busiest GA airport in US 251,000+ operations - 48th busiest airport in US - 6th busiest airport in Arizona - “Regional Reliever” classification by FAA • Two parallel runways (4,870 ft. and 4,401 ft.) - Only public airport in Maricopa County with runways <5,000 ft. - One of three GA airports in Maricopa County with two runways Facility Overview Chandler Airspace Chandler Airport’s Reach Facility Overview Category Quantity Land Area ~550 acres Total Building Square Footage ~465,000 sf Based Aircraft (as of 8/7/2020) 443 City-owned Hangars 116 City-owned Open Tie Downs 233 City-owned Shaded Tie-Downs 12 Privately-owned Hangars 141 • ~100 unleased, developable acres • ~20 acres on the north • ~80 acres on the south Facility Overview Aeronautical businesses include: oFlight training oFixed base operator oCharter services oAircraft repair & maintenance oAircraft sales oAircraft avionics oAircraft rental Facility Overview oPredominately flight training, private recreational flying and business aviation oAnchors the Chandler Airpark, second largest employment center in Chandler oOne of the busiest contract control towers in the nation oTower is owned and maintained by Chandler oLarge heliport oSeven Airport staff oThree in Business & Administration oFour in Operations & Maintenance Facility Overview AGENDA Airport Projects Overview Airport Strategic Business Plan Community Impact Study Airport Projects Overview Past Projects •2020 Airport Master Plan •2021 Airpark Area Plan •2020 Bond Projects •Replace Tower Transceiver Radios •Wildlife Exclusion Fence •ADOT Pavement Maintenance (multiple phases) •Taxiway C Rehabilitation •Control Tower Internet •Terminal Renovations •Terminal Sewer Replacement •North Terminal Apron Rehabilitation – Phase 1 •Runway & Taxiway Safety Area Infield Drainage Improvements/Low-Flow Channel •Control Tower Signage •Hangar Electrical System Upgrades •Gate Access System Replacement Current Projects •Airport Strategic Business Plan •Runway Community Impact Study •K&K Environmental Remediation •Taxiway B Extension - Phase1 •Taxiway C Electrical Replacement •West Facilities Upgrade •Aircraft Observation Area •Airport Operations Garage •Airport Weather Observation System •Former Heliport Redevelopment •2021 Bond Projects •Cooper Road/Insight Way Collector •Airport Fuel Tank Replacement Future Projects •Hangar Area Pavement Reconstruction •South Runway Rehab •Private Hangar Development •North Airfield Lighting Replacement •Replace Precision Approach Path Indicators •North Runway - Runway End Lights •Armory Ramp Rehabilitation – Phase 1 •Armory Ramp Rehabilitation – Phase 2 •North Terminal Apron Rehabilitation – Phase 2 •Reconstruct North Terminal Taxilane •Reconstruct San Tan Apron Phase 1 •Reconstruct San Tan Apron – Phase 2 •Reconstruct Heliport Pavement •Construct Taxiway Connectors Past Airport CIPs Replace Tower Transceivers Wildlife Perimeter Fence “Bump” Gates Installation Annual Pavement Maintenance ADOT APMS Grant Pavement Sealing Current Airport CIPs Future Airport CIPs West Facilities Upgrade Hangar Area Pavement November Loop Hot Spot ADOT Grant - Taxiway Bravo Extension o100% ADOT Grant FAA Grant – RWY 4R-22L Rehabilitation AGENDA Airport Strategic Business Plan Project Overview SWOT Results Market Analysis Mission, Vision, & Values Statements Financial Analysis Goal Setting Next Steps Community Impact Study Airport Day Project Overview Project Approach Stakeholders Phasing Plan AIRPORT STRATEGIC BUSINESS PLAN Airport Strategic Business Plan - Introduction - In essence, a Strategic Airport Business Plan transforms the Mission and Vision for the Airport into specific Goals, Objectives, and Action Plans for each functional area of the Airport. A Strategic Airport Business Plan uses a logical and disciplined structure to set out the mission, vision, values, goals, objectives, and actions plans that drive the day-to- day management of the Airport. Airport Strategic Business Plan - Reasons for a Business Plan - Generate More Revenue Reduce or Eliminate Expenses Secure More Funding Rely Less on Subsidies Create More Jobs Financial Analysis - Recommendations - AIRPORT BUDGET OVERVIEW Financial Analysis - Recommendations - AIRPORT BUDGET – CAPITAL – Financial Analysis - Recommendations - AIRPORT BUDGET OVERVIEW Airport Strategic Business Plan - Reasons for a Business Plan - AIRPORT BUDGET OVERVIEW Airport Strategic Business Plan - Reasons for a Business Plan - Since FY 2021, the Airport received $5,119,017 in FAA and ADOT capital project grants. The City’s local match for these grants totaled $132,820 for a return on investment of 3,854% or more than 38 times the local match amount. Airport Strategic Business Plan Elements Mission Statement Reason for the Airport’s existence Airport core competencies Vision Statement Articulates aspirations Picture of success Values Statement Outlines the Airport’s collective beliefs Enduring and will not be abandoned. Airport Strategic Business Plan Elements Goals Help realize the Airport’s mission & vision Objectives Steps to achieve the Airport’s goals Action Plans Steps to achieve the Airport’s objectives Airport Strategic Business Plan Airport Management Consulting Group Council Approval on February 23, 2023 Phases Phase I Preparation Phase 2 Development Phase 3 Implementation Strategic Airport Business Plan Airport Strategic Business Plan Elements Education Policymaker Buy-In Determine Approach Form Planning Team Brief Planning Team Phase 2 Development Approach Airport/Market Assessments (complete) SWOT Analysis (complete) Develop Mission, Vision, & Values Statements Establish & prioritize Goals (complete) Develop & prioritize Objectives (in progress) Formulate Action Plans & Budgets (in progress) Draft, review, & finalize the Plan Obtain approval of the Plan Steering Committee Andy Bass, CoC, Deputy City Manager Ryan Reeves, Airport Manager Scott Rinkenberger, Airport Operations Manager Chris Andres, Airport Planning Administrator Michael Winer, CoC Economic Development Terri Kimble, Chandler Chamber of Commerce Thomas Mathew, Chandler Air Service Neil Jones, Quantum Helicopters Frank Setzler, Chandler Aviation Chris Schuld, CHD Tenant & Local Business Owner Chris Hawley, Chairman, CHD Airport Commission Jared Yoshiki, Aircraft Owners & Pilots Association Phil Derner, National Business Aviation Association SWOT Analysis - Outline - Strengths & Weakness Elements (Internal to the City) Airport Sponsor Organization Airport Organization Airport Finance Airport Planning, Management, & Compliance Airport Facilities & Improvements Airside Land & Infrastructure Landside Land & Infrastructure Opportunity & Threat Elements (External to the City) Airport Location Airport Demographics Market Demographics General Aviation Products, Services, & Facilities Community Environment General Environment All Airport Tenants canvassed through physical and electronic means. Timeline extended beyond our January 2024 Airport Day Open House. Responses: 39% from the Airport Sponsor, Elected Officials, Management, or Staff 50% from Airport Tenant or User 11% from a Community Member SWOT Analysis - Results - SWOT - Key Takeaways - Strengths Airport Customer Service Facility Maintenance Airport Layout Plan Land Availability for Development SWOT - Key Takeaways - Weaknesses Marketing Program Aeronautical Rents Hangar Availability Runway Length Runway Ordinance SWOT - Key Takeaways - Opportunities Proximity to Major Highways Number & Type of Aircraft Operations Aircraft Charter Operations Local Economy Airport Economic Impact SWOT - Key Takeaways - Threats Proximity to Residential Areas Hangar Availability Political Climate (local, state, & federal) Capital Funding (local, state, & federal) Market Assessment - Key Takeaways - Economic Impact 58,600 out-of-state visitors $11.5 million in visitor spending 479 total jobs $20.7 million in employee earnings $55.8 million in total impact to the state economy Direct Competitors Mesa Gateway Falcon Field Scottsdale Deer Valley Glendale Goodyear Casa Grande Ak-Chin Pegasus Market Assessment - Direct Competitors - Only 2 have less than 5,000-ft runways 14,836 fewer average arrivals of air taxis or air carrier ops 17 less jets than average (8 total) 4th highest in operations CHD’s size is 275 acres less Closest to a 4-lane highway 117 more storage units (554 total) Pricing & services commensurate Market Assessment -Indirect Competitors - McLellan Palomar Yuma Scottsdale Tucson Montgomery-Gibbs Buckeye Marana Ryan Coolidge Market Assessment - Indirect Competitors - 2nd shortest runway length 2nd smallest property size 240 more aircraft (445 total) 22 less jets (8 total) 2nd most annual operations 1,337 more air taxi/air carrier operations (11,785 total) 230 more storage units (554 total) - The Flightpath Forward – - Council Input Needed - - Mission - - Vision - - Values - Mission & Vision Statements - Drafts - Mission “Chandler Municipal Airport is a vibrant and accessible gateway for aviation, contributing to the City’s economic growth. We promote superior products, services, and facilities; and a culture focused on safety, efficiency, and a welcoming community spirit. The Airport is a pivotal part of the region's transportation infrastructure and aims to deliver an exceptional aviation experience.” Vision “Chandler Municipal Airport aims to lead the region in aviation, serving as a model in safety, innovation, accessibility, and strong community ties. With an eye on responsible development and embracing modern technologies, we plan to foster economic growth and learning opportunities, strengthening the airport’s role as a vital community asset. Our commitment to the Airport's future, informed by our general aviation legacy, will guide us toward being a celebrated, inclusive space for all.” Values Statement - Draft - Safety: Our top priority is the safety of the flying public and all airport users. We pledge to uphold the highest standards of safety in every aspect of airport operations. Commitment: Through our commitment to serve all sectors of the general aviation industry, we ensure Chandler Municipal Airport continues to be an indispensable community asset. Accessibility: We support uniform and equitable access to the airport for all aeronautical activities, in strict adherence to local, state, and federal obligations. Innovation: Embracing the future of aviation, we integrate innovative, regulatory compliant solutions and new technologies to establish our airport as a leader in forward-thinking practices. Community: We forge strong connections with our local community, proudly preserving our City's rich general aviation heritage and encouraging community collaboration. Strategic Business Plan Next Steps - Objectives - Prioritize & Refine Objectives “Must Do” “Should Do” “Would like to Do” Identify Objectives Within Airport Areas Organization Operations Marketing Products, Services, & Facilities Financial Strategic Business Plan Next Steps - Action Plans - Develop Action Plans & Budgets Final Draft of the Plan Obtain Council Plan Approval Financial Analysis - Recommendations - RESTRUCTURING OF AIRPORT FINANCIAL STATEMENTS FOR BETTER ANALYSIS OF OPERATING PERFORMANCE ADJUSTMENT OF FUEL FLOWAGE & ASSOCIATED AIRSIDE FEES ESTABLISH A COMMON AREA MAINTENANCE FEE FOR TENANTS WHO BENEFIT FROM SAID AREAS ENSURE ALL LEASE RATES REMAIN AT CURRENT MARKET VALUE Financial Analysis - Recommendations - RESTRUCTURING OF AIRPORT FINANCIAL STATEMENTS FOR BETTER ANALYSIS OF OPERATING PERFORMANCE Arrange financial reporting around revenue cost centers Airside (runways, taxiways, apron, etc.) Common Use Areas (Terminal, Landside) Aviation Real Estate - Land Aviation Real Estate – Improvements Aviation Fuels Allows for finite analysis of specific revenue cost centers vs general operating costs across the facility. Financial Analysis - Recommendations - ADJUSTMENT OF FUEL FLOWAGE & ASSOCIATED AIRSIDE FEES To offset operating & non-operating expenses: Increase the fuel flowage fees CHD is at $0.10/gallon Other airports range from $0.09 to $0.12/gallon Increase commercial use permit fees Percentage of annual gross revenue, or; Scottsdale Airport Percentage of hourly billable aviation activity City of Phoenix Airports Financial Analysis - Recommendations - ESTABLISH A COMMON AREA MAINTENANCE FEE FOR TENANTS WHO BENEFIT FROM SAID AREAS Add a Common Area Maintenance Fee Offset expenses for new property developments Applied to tenants who benefit from common areas Based on individually leased properties Cost divided on a per-square-foot basis Variable & based on actual annual costs Financial Analysis - Recommendations - ENSURE ALL LEASE RATES REMAIN AT CURRENT MARKET VALUE Market assessments are historically sporadic Perform regular regional aviation market assessments Example: every 5 years with market adjustments All City of Phoenix Airports & Scottsdale perform regular market adjustments. Assures property revenues keep pace with fair-market values Next Steps - Goals Draft- Lease 30 acres of additional airport land for development, including the development of 100,000 sq-ft of aircraft storage facilities by 2029. Lease Increase revenues 15% by 2029, including the establishment and/or adjustment of market rents (for the lease of land & improvements) and cost-based fees (for use of the Airport). Increase Develop & implement a staffing plan with airport stakeholders for the continued safe operation of the Airport by 2026, especially to include operational coverage during Tower operating hours. Develop & Implement Develop & update the Airport’s Primary Management Compliance Documents (e.g., Rules & Regulations, Minimum Standards, Leasing Policy, Rents & Fees Policy, and Development Standards) by 2026. Develop & Update Complete the Community Impact Study by 2025 and revisit the extension of RWY 4R/22L by 2027. Plan & Implement “A Mile of Runway…” The Impact of Runway Length AIRPORT COMMUNITY IMPACT STUDY - 2024 Airport Day - First public “Open House” in 7 years Expected between 3,000 and 5,000 attendees Between 8,000 and 10,000 attended Highlighted every decade and type of flight at CHD Reacquainted our flying to community to our residential community MARKETING & INDUSTRY ENGAGEMENT RWY 4R-22L Improvement - Community Impact Study - - What the Community Impact Study Means - The Study is a long-term approach with a near-term objective of illustrating the Airport’s need of a Runway Extension for a safe, efficient, and economically advancing community. Through the Study, we will build lasting interconnected relationships between the Airport and the community by fostering an understanding of the Airport as part of Chandler’s critical community infrastructure. RWY 4R-22L Extension - Community Impact Study – - 4-Phased Approach - Scope of Work - 1. Establish Research, Project Definition, & Study Programming 2. Prepare Conceptual Runway Design, Economic Analysis, & Outreach Material Development 3. Engage Community Outreach, Information Sharing, & Feedback Collection 4. Sustainability Ongoing Community Partnerships & Support Implementation We are here: RWY 4R-22L Improvement - Community Impact Study - Project Kickoff Phase 1 – February 2024 Initial Inventory provided for Analysis: Internal & External Stakeholders All studies and plans, both completed and underway, to inform the scope Qualitative & Quantitative questions to shape technical analyses. Airport Noise Report history. Comprehensive list of upcoming City events to frame Public Outreach. RWY 4R-22L Improvement - Community Impact Study – - Phase 1- Establishing Focus: Proactive community engagement at the outset Actions: Preliminary Research Project Definition Study Programming Timeline: Approximately 5 to 8 months in duration RWY 4R-22L Improvement - Community Impact Study – - Phase 1 - Preliminary Research Collect key background information on airport operations, historical economic development, and known or perceived development issues Conduct a gap analysis & needs assessment of Airport marketing materials and outreach methods Establish current impact of the Airport within the community Analysis of policy, case studies, and recommendations for runway extension RWY 4R-22L Improvement - Community Impact Study – - Phase 1 - Project Definition Establish project team leaders, City, and internal stakeholders Hold a 1-day In-Person Workshop (NTP +45 days) Stakeholder mapping Issues Mapping SWOT Analysis Conduct up to 8 Interview Sessions Policy Makers Stakeholders Key Officials RWY 4R-22L Improvement - Community Impact Study – - Stakeholders - • Airport • Mayor & Council • City Manager • Key Departments Internal • Chandler Residents • Airport Users • Major Employers • Community Businesses & Organizations • Nearby Neighborhoods • Aviation Enthusiasts External RWY 4R-22L Improvement - Community Impact Study – - Phase 1 - Study Programming Complete a draft Study Program (NTP +120 days) outlining: Communications & Informational Plan Public Engagement Plan Progress Checkpoints Project Schedule (Phases 2 through 4) Coordinated Timelines Strategic Business Plan Goal & Objectives Setting (Early 2Q 2025) Business Plan Draft (immediately after Goals & Objectives) Early 2Q 2025 Final Business Plan Approval (at Council discretion) Projecting 3Q 2025 Community Impact Study Preliminary Research (Early 2Q 2025) Conceptual Design, Analysis, & Outreach (TBD based upon Phase I Findings) Community Engagement (TBD based upon Phase I Findings) Community Partnership Implementation (TBD based upon Phase I Findings) THANK YOU!