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June 11, 2011

Clark County airport authority — it’s now or never

Air board may seek support from Jeffersonville if proposal is denied

In what may be its final attempt to become an airport authority, the Clark County Board of Aviation Commissioners has reviewed a presentation it will take to the county council supporting why the designation should be granted.

The county’s air board has been pursuing plans to become an airport authority for several years and is planning to make the presentation again at Monday’s council meeting. It is not the first time the air board has sought the designation through the county council as it previously made the plea in December 2009 and also gave a similar presentation to the Clark County Commissioners earlier in that year.

This time the air board is hoping for a different outcome.

“We have done a lot of homework on analyzing this,” said Air Board President Ron Barnes. “It’s been a methodical, well thought out, detailed analysis of the transition from a board of aviation commissioners to an airport authority. Clearly, the preponderance of data supports this should be an airport authority.”

In addition to a detailed analysis that will be offered, the air board hosted two public meetings for council members where the airport offered its very detailed plan.



THE REASONS

Clark County’s air board has been seeking the designation to become an airport authority because it would have greater control over operations, be able to levy taxes and could borrow and bond without county government approval. If the approval is granted, air board members have said the airport could become self-funding, which would help in its plans for expansion.

The airport is in the process of completing an expansion of its runway to 7,000 feet that is behind paid for through an $11 million Federal Aviation Administration grant. The state of Indiana and the county have been asked to provide matching funds at 1.25 percent and at 3.75 percent, respectively.

Beyond the runway expansion, the expectation among the air board is that the airport would be able to generate more business and more revenue, which has already been cited at $30 million in annual economic activity. Despite the benefits the air board believes the designation would provide, there is a realization about being granted the allowance to become an airport authority.

“The honest answer is I don’t think they’re going to approve it,” Barnes said.



THE ISSUES

The sticking point for members of the county council and the commissioners in the past is that an airport authority would be able to levy its own taxes. The authority’s members would be appointed.

“There is no political will to allow a nonelected board to have taxing authority,” said Air Board Member Alan Conner.

However, air board members tried to quell fears of adding another tax onto the county’s residents.

“We won’t raise taxes,” Conner said.

Although the airport authority would be able to levy a new tax, it would still fall within the county’s tax cap and not add to the overall rate county residents pay.

Air board members tried to dispel the fear over a new tax even further by offering that the tax rate would be $6.28 per $100,000 of assessed value annually.

“It’s not like we’re asking for a fortune out here — it’s just enough to keep the airport moving,” Barnes said. “The economic benefit that this airport brings to this county is huge.”

Without some kind of financial designation, Conner said the airport is not being as productive as it could be.

“You’re not leveraging that economic potential because of the ineffective operations due to the form of governance that you have,” he said. “That’s what the analysis says.”

But the air board does have a backup plan.

“If they vote no then the next step for us would be to seek a transfer to another sponsor, and that sponsor in my opinion would be the city of Jeffersonville,” Barnes said.

“I think we’re well within our authority to request a change of sponsorship,” Conner added. “We’re charged to guard this asset. We’re failing our mission because this county government won’t do what they’re supposed to do.”



In other business

• The air board is continuing to finalize plans for expansion by Honaker Aviation, which is planning to construct a new hangar that could house up to nine airplanes, take up four tracts of property — a total of 1.17 acres — and would be more than 26,000 square feet.

• In addition, the board is pursuing new appraisal amounts related to land acquisition for the proposed runway expansion, as well as seeking a lease value on the building owned by Whirl-Away Helicopters Inc. for possible sale.

• Clark County’s air board offered to split the cost of upgrades to a Sellersburg Volunteer Fire Department truck that sprays an extinguishing foam. The truck needs to be upgraded every two years and the total cost is $2,000.

The air board offered to pay $1,000 of the cost.

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