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Small Community Air Service Development (SCASD) Program Copyrighted October 2, 2023 City of Dubuque Action Items # 01. City Council Meeting ITEM TITLE: Small CommunityAir Service Development (SCASD) Program SUM MARY: Congressional representatives have notified Airport Director Todd Dalsing that the Dubuque Regional Airport and its partners will receive a $1.5 million grant through the federal government's Small Community Air Service Development (SCASD) Program. SUGGESTED Suggested Disposition: Receive and File DISPOSITION: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo Press Release Supporting Documentation Dubuque THE CITY QF � All-Meriea Ciry DLT B E ; . � . � �� � � MaSt� Z�C� aYd t�Q Mt55ZSSZ Z zoa�•zoiz•�ai3 YP pp za��*zai� TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Small Community Air Service Development (SCASD) Program DATE: September 28, 2023 Congressional representatives have notified Airport Director Todd Dalsing that the Dubuque Regional Airport and its partners will receive a $1.5 million grant through the federal government's Small Community Air Service Development (SCASD) Program. Todd is sharing information about the SCASD Program. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Todd Dalsing, Airport Director Q '/ Telephone: (563)589-4237 � Fax: (563)589-4108 e-mail: kspisak@cityofdubuque.org DUSUQUE REGIONAI. ATRPOR'I' Memorandum To: Mike Van Milligen, City Manager From: Todd Dalsing, Airport Director Date: September 28, 2023 Subject: Small Community Air Service Development (SCASD) Program INTRODUCTION This will provide a Department of Transportation's Small Community Air Service Development (SCASD) Program Update. This grant program is designed to help small communities address air service issues. SCASDP can involve revenue guarantees, financial assistance for marketing programs, start-up costs and studies. BACKGROUND In 2019, the Dubuque Regional Airport provided three daily flights of scheduled commercial service to Chicago O'Hare on American Airlines regional jets. Sun Country Airlines also provided occasional destination leisure charters on 737 aircraft to Laughlin, Nevada and Biloxi, Mississippi. In July 2019, DBQ applied for a SCASDP grant to provide nonstop westbound service to Denver International Airport. We received notification in February 2020 from the Department of Transportation that our grant had been approved. Strong Public-Private Partnerships were crucial in obtaining the grant award. A consortium led by the Dubuque Area Chamber of Commerce and the Dubuque Regional Airport, with partners from Greater Dubuque Development Corporation, Travel Dubuque, Dubuque County Board of Supervisors, City of Dubuque, and the lowa Department of Transportation worked together for a total grant application of $1,310,195 ($775,000 federal). The strategic plan for the grant was to provide nonstop service to Denver International Airport (DEN) and improve connections to the West and Northwest regions where current access was severely limited. This grant was available to provide funds to an airline for a three-year period once new service began. Early in 2020, Dubuque Regional Airport and Dubuque Chamber were in negotiations with United Airlines/SkyWest Airlines to add service to DEN using funds from the 2020 SCASDP grant. In March 2020, when COVID hit, all air carriers reduced service and these negotiations ended. During this time, Airports nationwide struggled to maintain operations. The Rally for Air Service Organization recently released air service data showing comparisons of October 2019 to October 2023. Overall, there have been 324 airports (76% of airports in the country) that have seen a reduction or total loss in air service. DBQ's daily flights were reduced to two flights daily in April 2020 then one flight daily in May of 2020. In October 2020, American Airlines suspended daily scheduled service from DBQ. This service returned in January 2021 with one flight daily until August 2021 when it was increased to two daily flights. These flights continued until September 7, 2022, when American Airlines closed their DBQ station and discontinued service. On March 22, 2023, Avelo Airlines began 737-800 scheduled service out of DBQ to Orlando, Florida utilizing a minimum revenue guarantee provided by funds from the City of Dubuque and Dubuque County, and marketing funds from the Dubuque Chamber and Dubuque Airport Commission. Soon, after the success of these flights, Avelo announced additional 737-700 service to Las Vegas (LAS) and began service on September 13tn Due to strong competition of airports nationwide, Dubuque Regional Airport, Dubuque Chamber and their partners reapplied for additional federal funds when a new SCASD notice of funding opportunities was announced by the DOT in April 2023. On September 27, 2023, DBQ and their community partners received notification from our Federal Representatives that DBQ received the SCASDP grant award with the increased total federal amount of $1.5 million. The SCASD grant program is designed to help small communities address air service issues. When positioning to return and retain daily scheduled air service, the increased SCASDP federal share will position DBQ to be more competitive with other national commercial airports. The strategic plan for the new grant is to provide nonstop daily scheduled service to a hub and improve regional connections to the nation and world for business and leisure travelers. RECOMMENDATION The Dubuque Airport Commission and Staff will continue working with Commercial Service Air Service Team (CAST), Chamber Lead Air Service Task Force, Federal and State Representatives, and local private/public partnerships to restore and retain scheduled commercial air service. BUDGET IMPACT 2023 SCASDP grant replaces the 2020 grant DBQ previously received and increases the Federal funds by $725,000 to $1,500,000. 2020 SCASD Grant Breakdown: Federal DOT $775,000 City of Dubuque $150,000 Dubuque Chamber $100,000 Dubuque County $ 50,000 GDDC $ 50,000 Travel Dubuque $ 50,000 DBQ Airport $ 41,000 (Waiving rates and charges) DBQ Airport $ 40,000 (Marketing) Marketing In Kind $ 29,195 IDOT Aviation $ 25,000 (Marketing) Total Federal + Public/Private Partnerships = $1,310,195 2023 SCASDP Grant Breakdown: Federal DOT $725,000 (Add to 2020 grant funds) (Local match remains the same) Total Federal + Public/Private Partnerships = $2,035,195 ACTION TO BE TAKEN Update City Council on SCASDP Grant Award. - ��� �� ;�r� „ � +�lrll�l!���,��r � �T ,_, :�. } � � y ,.-s. � " � � yT ;a�,y _ k � �+�r` I 3 3 � � - � . , -'�Y�IN� ,.—. .... _ . _ ,.. n=: ����j�;� ,�,���,� �7'1�E'.4'1[Y£.7Y � '' - --- - - -,% I�UB �:,�� ��� s � f. x��,�;�i��s��� ��Il l V L��� ,"�s'€e��le�r��re`t z'��1� k1�[':'vti,•°i5,ig�far iiii�s � Dubuque Expected to Recei�e $1.5 Million Grant to Help Restore Commercial Air Service SEPT. 27, 2023 The City of Dubuque has been notified by its Congressional representatives that the Qubuque Regional Airport and its partners will receive a $1.5 million grant through tne federal go�ernment's Small Community Ai�-Service De�elopment Program. This will be added to approximately $535,00 in publiclprivate partnership funding aimed at helping irnprove and enhance lacal air service at the Dubuque Regional Airport. The Small Community Air Service Development Program is designed to help small communi#ies address air service issues. Grant funding can be used on efforts inclucfing i revenue guarantees, financial assistance for marketing programs, studies, and start-up costs. The grant funding is especially vital as airports nationwide have experienced a robust loss in air service over the past four years. Approximately three-quarters of 4he airports across the United States have seen a reduction or total loss of service in that time. Within the state of lowa, airports have seen a 26% reduction in service. Civic and business leaders in Dubuque have been aggressively seeking new service opportunities since losing daily flights to Chicago last fall. In December, the Dubuque Regional Airport announced that low-cost carrier Avelo Airlines would begin offering twice-weekly flights to Orlando. Avelo has since added flights to Las Vegas from Dubuque. The Dubuque Commercial Air Service Team (CAST), which includes City and County , o�cials as well as business and community leaders, continues to pursue a daily carrier to offer connections from Dubuque to larger markets. CAST will continue to work with the Dubuque Regional Airport Commission to restore, sustain, and enhance commercial air service in Dubuque. "As we continue our tireless work to return daily commercial air service to the Dubuque Regional Airport, we are truly thankful to the Department of Transportation, the Biden Administration, and our Congressional delegation for their partnership and assistance,' says Dubuque Mayor Brad Cavanagh. "This grant is a major step forward in our quest to reconnect Dubuque to the rest of the United States by air as soon as possible." "Without our partners' support, this grant wouldn't have happened," added Mike Philips, Chair of the Dubuque Regional Airport Commission. "These federal funds will position Dubuque to be more competitive with other national airports when positioning to reinstate and retain daily scheduled air service." "We are thriiled to receive this grant award," noted Molly Grover, President and CEO of the Dubuque Area Chamber of Commerce. "Restoring and enhancing air service has been and continues to be amongst the Chamber's top priorities. Our members have been emphatically clear in the need for additional air service for the growth and success of the business community. In today's economy iYs simply a business imperative." "Dubuque will be well-served by this Small Community Air Service Development Grant,' said US Senator Charles Grassley in a statement. "These funds will help the community restore daily commercial air service that is vital for continued economic growth. Since American Airlines pulled its air service from Dubuque, I have been hard at work to help the community regain daily scheduled commercial air service. Dubuque's situation is exactly what these funds were intended to help address, and I know that Dubuque will utilize this award to the greatest extent." "Ever since daily commercial air service was pulled from Dubuque last September, I have worked diligently with local stakeholders and leaders to restore daily commercial air service and protect Dubuque's economic vitality, including by successfully advocating for this Small Community Air Service Development Program grant," added US Representative Ashley Hinson. "This grant will help Dubuque restore daily carrier service, reinvigorating the local economy at the heart of America's supply chain along the z Mississippi River. I will keep fighting with everything I've got for Dubuque and for the continued growth and prosperity of lowa." ### MEDIA CONTACTS Todd Dalsing, Dubuque Regional Airport Director TDafsinq{c�citYofdubugue.or�c , (563) 5$9-4233 Molly Grover, Du�uque Area Chamber of Commerce Presid�nt & CEO MGroverCc�dubuquechamber.cam, (563} 589-4233 '�Share on Facebook �Shar� on 7witter �Share via �mai! Copyright O 2023 City of Dubuque.All Rights Reserved. Powered by 50 W. 13th Stre�t, aubUq�e, iA 52�0� �'• CIVlC5END 3