By BRADEN LAMMERS
The Clark County Board of Aviation Commissioners presented its argument for becoming an airport authority to the Clark County Commissioners Thursday night — even though the decision rests solely in the hands of the county’s fiscal body, the Clark County Council.
Several members of the county council were in attendance and heard the aviation board’s arguments, but did not offer any comment on the air board becoming an airport authority as the proposal will likely be presented to the council at its March meeting.
Some funding is currently provided by the county in the form of a 3.75 percent match for federal money through the Federal Aviation Administration in order to extend the airports runway. Plans are underway to extend the runway at the Clark County airport 7,000 feet, which would also require the relocation of Bean Road.
The FAA is funding about $11 million of the project and the state of Indiana is matching another 1.25 percent.
The aviation board is seeking to become an airport authority, in large part, so it could issue its own bonds and levy a tax.
“The benefit for the airport to be an airport authority is it does provide a constant, consistent, dependable stream of funds in order to operate the airport,” said Maria Muia, former aeronautics manager at the Indiana Department of Transportation.
The maximum tax an airport authority would be able to impose is 3.3 cents on $100 in assessed valuation.
However, the members of the air board said they would not need the full amount allowable.
“One cent generates $410,000,” said Ron Barnes, air board president. “If we combine just one cent with the things we’re already doing that addresses most of what we need.”
Even if the authority were approved some checks would still be in place.
The authority would have to develop a specific, detailed budget, which the county council would need to approve, Barnes said.
Since the airport has received federal funding, it would have to remain operational. In the event it was shut down, the county could face the consequences.
“Because it’s one federal government then they most likely take action to prevent any federal grant,” Muia said.
It would include all transportation funding, but a scenario that goes that far is unlikely.
“We’re not going to close the airport down,” said Clark County Councilman David Abbott after the meeting. “It’s out of the question.”
But also out of the question for some county officials is allowing another entity to add a tax to the county.
“I’m not keen on creating a new taxing unit on the county,” said Council President Jack Coffman.
Other county officials also seem to be far from wanting to close the airport.
“I have a hard time believing that is a viable alternative,” said Greg Fifer, attorney for the commissioners in a response to shutting down the airport. “I just can’t see us as a community doing that.”
As it stands now the airport can continue to operate on its revenues.
“We can hang on the way we are ... but hanging on became more difficult when Hap’s sold to Honacker,” Barnes said.
In order to grow and improve the airport the air board is requesting it become an airport authority so it can hire a professional marketing firm and professional management — which it needs to be able to levy a tax in order to fund those operations, according to Jack Vissing, attorney for the air board.
The air board lists the airport’s current overall economic impact to the county at more than $33 million.
The future vision for the Clark County airport is that is would be the third part of a regional airport system along with Louisville International Airport and Bowman Field Airport.
“I would characterize the relationship, more in terms of the functional nature of the airports as a three-legged stool,” said Skip Miller, executive director of the Louisville Regional Airport Authority. “You’ve developed a reliever airport to Louisville International and you’ve developed an airport that can strongly support corporate aviation. It has the capabilities today in its current configuration to support the needs of most of the corporate jet fleet. You will get dividends back ten-fold over if you develop a vision on how to use those facilities to the best benefit of the overall community,” Miller said.
If the scenario were that the airport was bringing in more money than it was levying taxes against county residents, the board got the support of at least one commissioner.
“If I had to vote on it, I’d vote yes in a minute,” said Commissioner Les Young.
Money is, of course, at the center of the debate.
“It has everything to do with dollars and cents coming into the community and how that community can prosper as a result of taking that facility and transitioning it from just a couple of runways ... and transitioning it to a business operation that works with and supports the economic vitality of the community,” Miller said.
Despite the desire to grow and become an economic engine for the community, it was suggested that the airport look inward to generate revenues before seeking to become an airport authority.
Commissioner Mike Moore said the belief is that the leasing rate at Clark County airport is below what a comparable airport would charge, calling them “sweetheart leases.”
“We could actually operate cheaper at Bowman Field,” insisted Jim Robinson of J.R. Aviation, a helicopter operator at Clark County airport, who said he also
owns a facility at Spirit of St. Louis Airport, in St. Louis, Mo.
“I pay almost dollar-for-dollar on a monthly basis, the same as I pay here in Clark County,” Robinson said.
Despite Robinson’s insistence, Moore said the board should try and renegotiate some of its existing contracts.
“I just believe the tenants that are out there who are benefiting from it are the ones that should be looked at to help cover those expenses,” he said. “There are some really below average lease rates out there when you compare them to airports our size.”
According to Vissing, some of the current lease agreements were approved by the county council in 1993 and cannot be amended.
With a loose plan in place, little truly defined and a vote awaiting the County Council a decision is still very uncertain.
“I think we’re still at the point some of those general details need to be filled in to move this farther along down the path,” Fifer said.
MORE
• Look for another story in Saturday’s edition of The Evening News regarding other business from Thursday’s Clark County Commissioners meeting.
