Attracting Aviation Businesses -- How?

[Jay Honeck]

Many of you know that our local newspaper has been on the war-path to close
our local airport. Oh, they don't say it *that* way -- they couch it in
terms of "profitability" and "taxpayer's subsidies" -- but that's what they
really mean. No one -- from the Mayor on down to the citizenry -- seriously
believes that the airport (a GA airport all the way) could be made
"profitable".

But what if we could close the gap a bit? Our inn has come a long ways in
the first 11 months we've been open, and we're generating a pretty steady
stream of fly-in visitors from all over the country -- which has helped --
but what if we could make Iowa City a "one-stop shopping center" for you
airplane owners?

What if you could come here and visit a first-class avionics shop, along the
lines of a "Pacific Coast Avionics"? And what if you could get your
interior reupholstered here, too? And how about a paint shop, while we're
dreaming?

Currently Iowa has successful versions of all these services, but they are
scattered all over the map. We've got a paint shop in little Maquoketa, and
an aircraft upholstery shop in Clinton, and an avionics place in Waterloo.
Getting anything done is a royal pain in the butt. Wouldn't it be cool --
and beneficial to ALL -- if we could consolidate them all here in Iowa City?

A pilot (such as yourself) could come visit for a few days, enjoy a Big Ten
basketball/football/wrestling/baseball (whatever!) game, take in a play or
performance, enjoy the college town ambiance, stay at our aviation themed
inn -- all while having your new leather interior installed! Or while
having that GNS-430 put in the panel.

I personally think this would be great for ALL the businesses (sort of the
same theory as putting all the car dealers on the same stretch of road in a
city), and would generate a self-sustaining perpetual motion machine of
aviation business in Iowa City -- thus saving the airport, and (of course)
enhancing our business.

But how? How the heck do you attract business like this to your airport?
Any ideas?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

[john smith]

Jay Honeck wrote:
> But how? How the heck do you attract business like this to your airport?
> Any ideas?

Biggest attraction/repulsion will be the taxation of a local business on
the airport.
Is there an economic advantage/disadvantage to being an airport based
business?
How does your city tax airport based businesses?
Is there a gross receipts tax placed on any business operating on the
airport?
What are rents like?
Is there a difference in how much rent a business is charged across the
street from the airport?
Is there difference in how much a business is taxed if they are located
across the street from the airport?
Are rents calculated on square footage of ramp space? Hangar space?
Office space? Combinations?
How much are additional state/local (county/city) taxes?
What are potential businesses looking for to locate at your facility?
What are the advantages of operating at IOW?
If I fly my airplane in for services, how do I get home if I leave it
there?
What is the labor market like? Union/non-union? Skilled/un-skilled?
How trainable are the graduates of the local secondary schools?
Access to materials?
If the local controlling body doesn't make the facility attractive to
business, it won't be.
These are some of the questions I have heard brought up at various
meetings I have attended.

[Jim Weir]

John nailed it. I've been in the aviation manufacturing game for 31 years, and
I have yet to come across an airport that didn't think that the thrill and
privilege of doing business on the airport wasn't worth a whole bunch of money.
When I was in San Diego, the business was located exactly 100 yards from the
airport boundary. The airport wanted double the square foot rent for a lesser
quality building AND 10% of the gross. Thank you no.

When we moved to Nevada County, it was far worse. YOU put up the building and
deed it to the county and rent it back for double the going rate PLUS an annual
gross sales fee that you had to negotiate from year to year. Again, the
business park around the airport had half the rent and no fees.

Jay, you could always do what I did. Run for your city/county board (whichever
the airport is located in) and then YOU get to make the rules on how the airport
is run. Be forewarned that it may cost you an airplane, a business, and a wife.
My two terms of office did.

Jim



john smith >
shared these priceless pearls of wisdom:

->Jay Honeck wrote:
->> But how? How the heck do you attract business like this to your airport?
->> Any ideas?
->
->Biggest attraction/repulsion will be the taxation of a local business on
->the airport.

Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com

[Jay Honeck]

> Jay, you could always do what I did. Run for your city/county board
(whichever
> the airport is located in) and then YOU get to make the rules on how the
airport
> is run. Be forewarned that it may cost you an airplane, a business, and a
wife.
> My two terms of office did.

Ouch.

In a failed attempt to make the airport more self-sufficient, our airport
commission has carved out a piece of land along the northern boundary of the
airport and called it a "commercial zone". It is right next to our hotel,
and we would LOVE to see some aviation related businesses locate there.
(There are a dozen or so parcels available.)

Current problem: There is no access from the airport to this strip of
businesses. The solution is to install a simple gate in the fence, and when
they close RWY 18/36 in a year or two this strip of concrete will be a good
taxi-way right up to the fence.

They *were* trying to lease this land, but got no takers -- so now they're
trying to sell it. We live in fear that they will sell to some auto salvage
yard (or worse), so it's truly in my best interest to figure out how to make
my dream of turning IOW into a one-stop-shopping destination come true.

As for running for office, I do believe my wife would kill me. Not because
she isn't all for the concept, but because she's already carrying more of
the load than she should during these "start-up" years...
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

[Jim Weir]

Unless Iowa runs by different rules, your airport commission is appointed by the
county board of commissioners. THAT is the place to apply pressure. I'd ask
for a rezone on that carved out parcel that is tied to a conditional use permit
process. That way everybody gets a say in what goes in.

Jim



"Jay Honeck" >
shared these priceless pearls of wisdom:

->Ouch.
->
->In a failed attempt to make the airport more self-sufficient, our airport
->commission has carved out a piece of land
Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com

[Jay Honeck]

> Unless Iowa runs by different rules, your airport commission is appointed
by the
> county board of commissioners. THAT is the place to apply pressure. I'd
ask
> for a rezone on that carved out parcel that is tied to a conditional use
permit
> process. That way everybody gets a say in what goes in.

Close. They're appointed by the City Council. (The county wants NOTHING to
do with the airport, which bugs the crap out of me. Probably 50% of the
guys who base planes at Iowa City don't live inside the city limits, and
therefore have NO say in who or what happens there.)

Good idea on re-zoning, though. To be honest, I'm not sure what it IS zoned
now.

Time. I need, like, 30 hours in each day...
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

[Ron Natalie]

"Jim Weir" > wrote in message ...

> When we moved to Nevada County, it was far worse. YOU put up the building and
> deed it to the county and rent it back for double the going rate PLUS an annual
> gross sales fee that you had to negotiate from year to year. Again, the
> business park around the airport had half the rent and no fees.
>
This is how a brand new airport operates here. And they wonder why nobody
wants to even submit a proposal for a maintenance shop or FBO there. Last
I heard they finally got a fuel truck and a trailer for an office.

[Jay Honeck]

> *investing 5 seconds on google* .. *voila*

Great stuff. Ain't the internet grand? :)
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

[Jay Masino]

Jay,

The situation you describe (as well as Jim) is apparently VERY common.
In fact, it would seem that mid-size municipally owned airports almost
never operate without subsidies and grants. I've been researching the
same issues, recently, as it applies to my own airport in Ocean City. Most
would never be able to do large scale improvements like runway re-paving,
etc. without being involved in the FAA's Airport Improvement Program
(AIP). I even went to a one-day conference of Maryland airport managers,
so that I could listen to the topics involved. From my research, it would
seem that most of the opinions on this newsgroup are fairly one-sided
relative to all the issues involved. You might want to do some Googling
on the following topics:

Airport Management
Airport Improvement Program
Through the Fence Operations

It would appear that it's a farely rare situation that a mid-size
municipal airport can bring in enough business to operate in the black.
Forward thinking municipalities probably consider the loss incurred
supporting the airport as an investment in the greater good of the city,
but I suspect that it's very difficult to convince a city council, or city
manager, of this.

-- Jay

__!__
Jay and Teresa Masino ___(_)___
http://www2.ari.net/jmasino/ ! ! !

Checkout http://www.oc-adolfos.com/
for the best Italian food in Ocean City, MD and...
Checkout http://www.brolow.com/ for authentic Blues music on Delmarva

[john smith]

Jay Masino wrote:
> Through the Fence Operations

Not there is a VERY delicate topic. Unless you are dealing with total
morons, you have less than a snowball' chance in Hell of getting
something like that through a municipally owned facility. Remember, they
are looking for as much money as they can get. If it isn't going to
generate revenue, you aren't likely to get it.

[Jay Masino]

john smith > wrote:
> Jay Masino wrote:
>> Through the Fence Operations

> Not there is a VERY delicate topic. Unless you are dealing with total
> morons, you have less than a snowball' chance in Hell of getting
> something like that through a municipally owned facility. Remember, they
> are looking for as much money as they can get. If it isn't going to
> generate revenue, you aren't likely to get it.

From what I understand, there are some municipal airports that allow it,
but they charge a fee to the Through the Fence operator. Some do it as a
monthly fee, some do it every time the operator taxies onto the airport
(using a card key and electric gate setup).

-- Jay
__!__
Jay and Teresa Masino ___(_)___
http://www2.ari.net/jmasino/ ! ! !

Checkout http://www.oc-adolfos.com/
for the best Italian food in Ocean City, MD and...
Checkout http://www.brolow.com/ for authentic Blues music on Delmarva

[john smith]

Jim Weir wrote:
> Unless Iowa runs by different rules, your airport commission is appointed by the
> county board of commissioners. THAT is the place to apply pressure. I'd ask
> for a rezone on that carved out parcel that is tied to a conditional use permit
> process. That way everybody gets a say in what goes in.

The FAA has an Advisory Circular on Compatible Land Use.
Getting Zoning Codes changed MAY take quite a bit of time, depending on
the bureaucracy you are dealing with.
In Columbus Ohio, it took us six years to implement Airport Environs
Overlay Zoning Ordinances from inception to legislation passage. This
deals primarily with residential construction and remodeling on land
underlying and within the 65 ldn noise contours (see your Part 151 Noise
Study for your airport, these should be updated every five years). Also,
have you obtained a copy of your Airport Master Plan? This lays out the
5-, 10-, 20-year goals for airport improvements.
Does your state have an Aviation Department? What services do they
provide? They should be administering the Federal funds they receive as
part of the federal AIR-21 legislation.
Each state has its own program, many provide runway and taxiway overlay
project grants to general aviation airports. Feds pay 90%, state pays
5%, local government pays 5%. If you are paying a fuel tax to the state,
an excise tax on aircraft parts, aircraft registration, you should be
getting something back in the form of services listed above.

[Jason Kennemer]

Why would they close the airport? Looking at AirNav, it's the only viable
non-private airport in Iowa City. Unless they were to build another
airport, they would be commiting economic suicide to close a major route of
commerce. It shouldn't be a matter of making the airport itself profitable,
but rather a matter of how much commerce the airport provides to the city.
How do people commute, how do goods and services flow into and out of the
city? What kinds of business can they hope to retain and attract in the
future, etc. etc.

Not sure how far Cedar Rapids is from Iowa City though...

I'd be glad to give you business on my way up to Minnesota/Wisconsin from
Texas one of these days though!

Jason Kennemer

"Jay Honeck" > wrote in message
news:NRGTa.130627$N7.18387@sccrnsc03...
> Many of you know that our local newspaper has been on the war-path to
close
> our local airport. Oh, they don't say it *that* way -- they couch it in
> terms of "profitability" and "taxpayer's subsidies" -- but that's what
they
> really mean. No one -- from the Mayor on down to the citizenry --
seriously
> believes that the airport (a GA airport all the way) could be made
> "profitable".
>
> But what if we could close the gap a bit? Our inn has come a long ways in
> the first 11 months we've been open, and we're generating a pretty steady
> stream of fly-in visitors from all over the country -- which has helped --
> but what if we could make Iowa City a "one-stop shopping center" for you
> airplane owners?
>
> What if you could come here and visit a first-class avionics shop, along
the
> lines of a "Pacific Coast Avionics"? And what if you could get your
> interior reupholstered here, too? And how about a paint shop, while
we're
> dreaming?
>
> Currently Iowa has successful versions of all these services, but they are
> scattered all over the map. We've got a paint shop in little Maquoketa,
and
> an aircraft upholstery shop in Clinton, and an avionics place in Waterloo.

> Getting anything done is a royal pain in the butt. Wouldn't it be
cool --
> and beneficial to ALL -- if we could consolidate them all here in Iowa
City?
>
> A pilot (such as yourself) could come visit for a few days, enjoy a Big
Ten
> basketball/football/wrestling/baseball (whatever!) game, take in a play or
> performance, enjoy the college town ambiance, stay at our aviation themed
> inn -- all while having your new leather interior installed! Or while
> having that GNS-430 put in the panel.
>
> I personally think this would be great for ALL the businesses (sort of the
> same theory as putting all the car dealers on the same stretch of road in
a
> city), and would generate a self-sustaining perpetual motion machine of
> aviation business in Iowa City -- thus saving the airport, and (of course)
> enhancing our business.
>
> But how? How the heck do you attract business like this to your airport?
> Any ideas?
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"
>
>

[Dennis O'Connor]

"Jay Masino" > wrote in > >
> In fact, it would seem that mid-size municipally owned airports almost
> never operate without subsidies and grants.

Nor do the streets, nor do the ditches, nor does the municipal boat launch,
nor does the park, nor does the mosquito commission, nor do the traffic
lights, nor does the water department... In fact there is not a single
governmental service that does not require the tax payers to support it, and
usually the commissioners are beating the drum for more money to put into
these services... Only when it involves the public airport does it suddenly
become an unnecessary service...

I have publically confronted some of our county commissioners (politely) who
object to the airport and as soon as I point out the illogic in their
position I get:
"Well, ummm errr, you don't understand. The parks are a line item in the
budget and the airport is an additional expense that we have to take money
from some other service to cover."
"So, make the airport a line item in the budget!"
"Oh, we couldn't do that."

[Ron Natalie]

"Jay Masino" > wrote in message ...

>
> From what I understand, there are some municipal airports that allow it,
> but they charge a fee to the Through the Fence operator. Some do it as a
> monthly fee, some do it every time the operator taxies onto the airport
> (using a card key and electric gate setup).

I know when they were getting ready to develop land uphill from the airport
at VKX, those with property immedately ajoining the field (oddly zoned for
a large "accessory structure" on the rear property line) were going to be
assesed a fee to allow you to taxi from your property out onto the field.

[AJ]

I've generally found that when a public utility such as an airport is
criticized as unprofitable, the public officials usually have another
use in mind for that land. I hate to be pessimistic, but most times
its a foregone conclusion that the airport is a goner.

[David Megginson]

(AJ) writes:

> I've generally found that when a public utility such as an airport
> is criticized as unprofitable, the public officials usually have
> another use in mind for that land. I hate to be pessimistic, but
> most times its a foregone conclusion that the airport is a goner.

That's why I suggested getting a coalition of business owners together
to take control of the airport now, before any ideas like that are
fully-formed -- offer the city $100 for a 99-year least and promise to
handle future operating costs (but not the existing debt, of course).
If it makes life easier, call it an "airport industrial park".


All the best,


David

--
David Megginson, , http://www.megginson.com/

[James Blakely]

Unfortunately, most businesses will go where the rent is cheap.


"Jay Honeck" > wrote in message
news:NRGTa.130627$N7.18387@sccrnsc03...
> Many of you know that our local newspaper has been on the war-path to
close
> our local airport. Oh, they don't say it *that* way -- they couch it in
> terms of "profitability" and "taxpayer's subsidies" -- but that's what
they
> really mean. No one -- from the Mayor on down to the citizenry --
seriously
> believes that the airport (a GA airport all the way) could be made
> "profitable".
>
> But what if we could close the gap a bit? Our inn has come a long ways in
> the first 11 months we've been open, and we're generating a pretty steady
> stream of fly-in visitors from all over the country -- which has helped --
> but what if we could make Iowa City a "one-stop shopping center" for you
> airplane owners?
>
> What if you could come here and visit a first-class avionics shop, along
the
> lines of a "Pacific Coast Avionics"? And what if you could get your
> interior reupholstered here, too? And how about a paint shop, while
we're
> dreaming?
>
> Currently Iowa has successful versions of all these services, but they are
> scattered all over the map. We've got a paint shop in little Maquoketa,
and
> an aircraft upholstery shop in Clinton, and an avionics place in Waterloo.
> Getting anything done is a royal pain in the butt. Wouldn't it be
cool --
> and beneficial to ALL -- if we could consolidate them all here in Iowa
City?
>
> A pilot (such as yourself) could come visit for a few days, enjoy a Big
Ten
> basketball/football/wrestling/baseball (whatever!) game, take in a play or
> performance, enjoy the college town ambiance, stay at our aviation themed
> inn -- all while having your new leather interior installed! Or while
> having that GNS-430 put in the panel.
>
> I personally think this would be great for ALL the businesses (sort of the
> same theory as putting all the car dealers on the same stretch of road in
a
> city), and would generate a self-sustaining perpetual motion machine of
> aviation business in Iowa City -- thus saving the airport, and (of course)
> enhancing our business.
>
> But how? How the heck do you attract business like this to your airport?
> Any ideas?
> --
> Jay Honeck
> Iowa City, IA
> Pathfinder N56993
> www.AlexisParkInn.com
> "Your Aviation Destination"
>
>

[Jim Weir]

Another tack worth thinking about is carving the airport out of the city into a
special use district...sort of a "city within a city". Once this happens, the
city council has absolutely no say about how the airport is run, but the
district also has to be self-funding with a nominal tax base set by the election
that forms the district.

Jim



David Megginson >
shared these priceless pearls of wisdom:

->That's why I suggested getting a coalition of business owners together
->to take control of the airport now, before any ideas like that are
->fully-formed
Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com

[Gene Seibel]

Unfortunately, many small governments have gotten _Washingtonitis_.
The only thing that they are looking for is money in their pockets and
in their control. To them, money in the pockets of the citizens is not
a good thing.
--
Gene Seibel
Hangar 131 - http://pad39a.com/gene/plane.html


> Biggest attraction/repulsion will be the taxation of a local business on
> the airport.
> Is there an economic advantage/disadvantage to being an airport based
> business?
> How does your city tax airport based businesses?
> Is there a gross receipts tax placed on any business operating on the
> airport?
> What are rents like?
> Is there a difference in how much rent a business is charged across the
> street from the airport?
> Is there difference in how much a business is taxed if they are located
> across the street from the airport?
> Are rents calculated on square footage of ramp space? Hangar space?
> Office space? Combinations?
> How much are additional state/local (county/city) taxes?
> What are potential businesses looking for to locate at your facility?
> What are the advantages of operating at IOW?
> If I fly my airplane in for services, how do I get home if I leave it
> there?
> What is the labor market like? Union/non-union? Skilled/un-skilled?
> How trainable are the graduates of the local secondary schools?
> Access to materials?
> If the local controlling body doesn't make the facility attractive to
> business, it won't be.
> These are some of the questions I have heard brought up at various
> meetings I have attended.

[john smith]

Jim Weir wrote:
>
> Another tack worth thinking about is carving the airport out of the city into a
> special use district...sort of a "city within a city". Once this happens, the
> city council has absolutely no say about how the airport is run, but the
> district also has to be self-funding with a nominal tax base set by the election
> that forms the district.

Governance by an Airport Authority via members appointed by ?

[journeyman]

On Thu, 24 Jul 2003 15:31:26 -0400, Ron Natalie > wrote:
>
>\> Through the Fence Operations
>
>Last time we had a through the fence operation the pilot had to buy a new prop :-)

What happened? Forget to open the gate first?

Fortunately, my no sipping on soft drinks while reading usenet rule is
still in effect, or you'd owe me a new keyboard.


Morris

[Jay Honeck]

> There's a position vacant on your Airport Advisory Board. You should, for
a
> number of reasons, try to get yourself appointed by the City Commission.
> It's not a tremendous commitment of time, and it will certainly help you
to
> protect the airport, or at least give you some advance warning of
problems.

Actually, I was under the impression that it was just filled. (By Randy
Hartwig, who should be an EXCELLENT addition to the board...)

Also, owning an airport-related business may be a conflict of interest,
according to a couple of gray heads on the field. (I'm not so sure about
that, but I'm no lawyer.)
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"