2008-05-12
The County of Kalamazoo, Michigan is providing an opportunity for public comment until June 12, 2008 (30 days after published) related to a proposed new Passenger Facility Charge (PFC) Application No. 08-06-C-00-AZO for the Kalamazoo/Battle Creek International Airport. This written notice is provided in accordance with requirements contained in Federal Aviation Regulations (CFR) Part 158.24 Passenger Facility Charge.
The County of Kalamazoo, Michigan plans to continue the maximum PFC allowable of $4.50 per enplaned passenger. We anticipate collection to begin on September 1, 2008 with a total revenue impact of $14,821,076. The PFC expiration date for this collection is estimated to be September 1, 2025.
In accordance with Part 158.11 and 158.23(a) (3), the County of Kalamazoo, Michigan will continue to exempt non-scheduled air taxi operators ("ATCO") filling FAA form 1800-31 from collecting a PFC. During the last DOT reporting period, each member of this class of carriers reported less than 1/1000 of 1 percent of total enplanements.
Project Description: The terminal building project allows for the design and construction as indicated and approved on the Airport Layout Plan (ALP). The Airport determined that the best development option is a new terminal on a location just north of the current terminal. The terminal project provides an approximately 72,000 square-foot terminal, which is 16,000 square feet larger than the existing building. This initial design provides for six airline gates with room for easy expansion versus five gates today. The concept is expandable on the north and south sides, if future demand warrants, adding gates, ticket counters, a holdroom, baggage claim, and other facilities, if necessary. An all-new terminal permits development of a facility that is much more conducive to efficient airport operations versus the current terminal by recognizing the needs of all users such as: airlines, air cargo, TSA, local police, concessions, and other services such as rental car, taxis, and hotel shuttles. Accommodations are also made for airport administration and users such as display advertising, tourist promotion, travel agents, and related tenants. In addition, an all-new terminal will address issues of full compliance with the requirements of the Americans with Disabilities Act (ADA). It will further incorporate the latest requirements and practices with regard to fire detection and propagation, energy efficiency, and building security. It will provide a maximum amount of customer conveniences and amenities, as well as being more pleasant and attractive.
Project Justification: The original four-story passenger terminal was built in 1958. There have been subsequent piecemeal expansions constructed around the original structure; these expansions were in 1960, 1978 and 1987. Despite these interim expansions and upgrade of certain systems, even the newest building addition is over 20 years old. The terminal building is constrained by its uncoordinated layout, variety of mechanical systems, and a dated and inefficient design. Most critically, the building lacks capacity to handle existing passenger, tenant, security, and safety demands with, for example, the single lane passenger screening operation being squeezed in a long corridor. Other issues include a leaky roof caused by multiple building additions, an overloaded/outdated electrical system, and obsolete mechanical systems for which critical parts are no longer available. Finally, the baggage claim area has a belt system and total size that accommodates only one 50-seat aircraft at a time.
In 2006, the Airport completed a Terminal Area Study. The scope of the study was to analyze the feasibility of expanding, renovating, and/or modifying the existing terminal complex relative to meeting current and future aviation needs. This study considered current FAA regulations, Airport operational needs, projected costs, construction duration/phasing considerations, and other factors. The study was completed in May 2007 and noted significant deficiencies in the existing structure and limitations with all the potential remodeling concepts. The remodeling concepts each required temporary facilities and inconvenience during construction that would drive passengers away, as well as accepting many compromises based upon the existing terminal design. At that time, the Airport decided the best option was a new terminal to replace the outmoded one because the new facility cost was calculated to be less than any of the remodeling options. This was partly because the new terminal is being designed to reuse the current entrance road, parking lot, utility infrastructure, aircraft ramp, and certain other Airport and tenant facilities. In this manner, the Airport could have a new terminal building without incurring the cost of related access and other facilities.
Proposed PFC level: $4.50
Project Cost: The PFC project cost consists of the debt service on a County of Kalamazoo bond issue sold to provide a portion of the local funds for the replacement terminal. This includes principal of $9,500,000 and interest of $5,321,076 for a total of $14,821,076.
Proposed Funding Plan: The Airport's 2008 Capital Improvement Plan (CIP) presents a preliminary terminal capital cost of $34.0 million before initiation of design based on conceptual building construction guidelines. The CIP identifies $23.8 million of Federal funds, $750,000 of State funds, and $9.4 million of local funds. The Federal funds include both Entitlement and Discretionary amounts, while the State funds are available to match Federal contributions. The local funds include Airport retained earnings to provide for the FAA ineligible parts of the terminal, as well as the local match for FAA contributions. The conceptual terminal design indicates at least 85 percent of the terminal is eligible for Federal funding or approximately $28.9 million out of the $34.0 million total terminal cost.
The Airport is currently working to design the terminal and, if possible, reduce the capital cost. The Airport is also seeking sources for increased local contribution.
The $9.5 million County borrowing was designed to provide for initiation of design and construction, as well as provide working capital until Federal and State funds are received. The PFC will fund the FAA eligible portion of cost, while the Airport's retained earnings will fund the ineligible portion.
Comments or a request for more detailed project descriptions should be sent to:
Mr. Clifton E. Moshoginis
Airport Director
Kalamazoo/Battle Creek International Airport
5235 Portage Road
Kalamazoo, MI 49002
