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Commercial Air Service Minimum Revenue GuaranteeCity of Dubuque City Council /_TQIIQ►III=1JiRIE'SI Copyrighted October 6, 2025 ITEM TITLE: Commercial Air Service Minimum Revenue Guarantee SUMMARY: City Manager recommending City Council dedicate $2.4 million to a Minimum Revenue Guarantee for Denver Air Commercial Air Service for the current fiscal year (FY26) through June 30, 2026, and an additional $100,000 to the marketing of that service because the more people that fly the less time a minimum revenue guarantee will be required. SUGGUESTED Receive and File; Council Direction DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Public Input 3. Clarke University 4. Cottingham & Butler 5. Crescent Community Health Center 6. Dubuque Area Chamber of Commerce 7. GDDC 8. Loras College 9. Travel Dubuque 10. University of Dubuque 11. Presentation from 9.15.25 City Council Meeting 12. Council PP MRG MVM 100625 13. 25.09.15 MVM Memo Commercial Air Service Minimum Revenue Guarantee 14. Email Public Input - 10.6.25 15. Email Public Input - Air Service - 10.6.25 Page 1103 of 1264 THE C DUjIBQTE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Commercial Air Service Minimum Revenue Guarantee DATE: September 29, 2025 INTRODUCTION Dubuque AIHAWca Ciq ni I 2007-2012.2013 2017*2019 The purpose of this memorandum is follow up to September 15 City Council Meeting where staff provided an update on commercial air service and the Denver Air minimum revenue guarantee to provide daily air service to O'Hare Airport in Chicago. Minimum Revenue Guarantees help support local economies by supporting local business and leisure travelers and attracting tourism and visitors. In commercial air service, a minimum revenue guarantee (MRG) is an agreement whereby a municipality or airport operator guarantees an airline a certain amount of revenue for a new, established, or expanded air route. If the airline's actual revenue from that service falls short of the guaranteed amount during a defined period, the local entity pays the airline the difference, reducing the airline's financial risk and encouraging new service or competition. MRGs ensure that an air carrier receives a predetermined amount of revenue, regardless of actual ticket sales. This support is provided to encourage the carrier to start or maintain service, with the duration of MRG funds depending on factors like load factors, ticket revenues, and carrier expenses. By fostering new or expanded air service, MRGs help support local economies by supporting local business and leisure travelers and attracting tourism and visitors, who then spend money at local hotels, restaurants, and attractions. BACKGROUND In calendar year 2019 (pre-COVID), FAA enplanements reported 36,521 passengers flew from Dubuque to O'Hare as their destination or connection, on three flights daily. During that same year, the US DOT Origination & Destination (O&D) report showed an average of 99 passengers flew from Dubuque to O'Hare daily. For Denver Air to be financially independent requiring no minimum revenue guarantee they need to have 40% (40) of those 99 customers fly out of Dubuque daily. According to 2022 Mead and Hunt Study using Global Distribution System and Airline data there are 176,498 passengers in Dubuque Catchment area (Approximately 30-40 minutes from Dubuque). Passenger demand each way (PDEW) data indicate Page 1104 of 1264 approximately 505 passengers fly out of an airport to a destination from Dubuque catchment area daily. PrtlYM � ;vr•r r lan:x We-rrv'��wr "Lr 'tea PI. M.w tr:rs... ul+lr nxin `[rn' xr:e ,� �: - lUl�il' I ... �. '-.�r'P� FrM.Me YJalnic r -, "•.� - �'''aM1 J Lae.11 ., urrvd'°5o� P.ly,,.rwr OCYn . �ta'rxkm nr�rrrrr` .'' �a r'w to •vQm a ..i...'4=P f.... .�:. _ �MIYi�%.:s Y"�nr.,r� ° 'rdl /tlalsorv�• 14xm' ''"�: -. %cr.. 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CJ: �. `}.ni4lr..a� Ntl. t rvti ,}'rFClllli rns ab,Per .xr r•a•. '�nm.�xr a �� J. � na � r aaYle . >ewn �'� e�'b � o.d .�,. wra"alrr.: ".w'r,-.,''_ .Jsnla•n ' PIA r �Fmle �O�f4'i'" .," }ylprJr Ld ram rwee. -y Steil xx wrrnll ti war ybrc ..,. .... ... F4rllely^ taigaElwuoG� PeYtr... ar•rn�•�..Ek PiM' ° EHdnCi±S[ bs�'1 he .n.lw • w x xph. lwrJf Lrlar Xak• a I iP: IrpY' - utlosr uc4an .. r 'a ■ As a result of the loss of daily scheduled air service the non-profit DBQ Air was formed with board members combined from private and public organizations: • Brad Cavanagh, Mayor, City of Dubuque • Harley Pothoff, Supervisor, Dubuque County • Molly Grover, President and CEO, Chamber of Commerce • Keith Rahe, President and CEO, Travel Dubuque • Anthony Williams, President and CEO, Q Casino • Jason White, Vice President of Business Services, Greater Dubuque Development Corporation • Mary Ann Kurtz Weber, Vice Chair, Airport Commission • Todd Dalsing, Airport Director, Dubuque Airport Denver Air began service on November 4, 2024, featuring interline agreements with United and American for hundreds of convenient connections beyond O'Hare Airport. Overcoming Challenges Dubuque has overcome several challenges prior to and since the restoration of commercial air service in November 2024. • No Commercial Air Service at DBQ for 2 Years: It has been a challenge to introduce a new service to the market and break travel habits formed during the two-year absence of local, commercial air service. 2 Page 1105 of 1264 Launching New Service in November: Nationally, November through February are low passenger travel months. Afternoon Flight Time: Although the afternoon flight time was the only option available to restore service at DBQ, businesses expressed concerns that the afternoon flight was not ideal for business travel. Many noted this schedule would require them to incur an additional night of travel. (The afternoon flight and November start were the only option at time of negotiations). This challenge eventually led to DBQ Air working with Denver Air and O'Hare Airport to adjust the flight schedule to an AM departure and PM arrival which started May 16, 2025. Construction at O'Hare: After the announcement of the new service, O'Hare Airport advised Denver Air of construction in Terminal L, which impacted jet bridge and gate service for all Denver Air Dubuque passengers. Denver Air's only option was remote aircraft parking and utilizing a bus to transport passengers to and from the terminal from November to early May. Mayor Cavanagh and Denver Air petitioned O'Hare Airport's gate director and ultimately restored gate operations and jet bridge service at Gate G2. The first departure from this new gate was May 15, 2025. Mainline Air Carriers (American, United, Delta, Southwest): A City official met with American Airlines and was told adding regional markets like Dubuque is not in their plans. They will continue to rely on regional carriers to supply passengers to mainline airports. Matt Skinner, Dubuque Air Service Consultant, also regularly meets with all mainline carriers who have conveyed the same message. Competing Regional Airports: Cedar Rapids (CID), Madison (MSN), and Moline (MLI) are all competing for passengers and marketing their service in the Dubuque Regional Airport catchment area. No Other Federal or State Funding Options Available: DBQ Air and Dubuque and Dubuque County elected officials continue to advocated with federal and state legislators for options to be added to existing programs such as Essential Air Service, altering SCASD language, or starting a new program that would assist airports similar to DBQ. The FAA Modernization and Reform Act of 2012 included reform measures that a community must have a minimum number of enplanements to remain eligible for the subsidy. It also provided the wording, "to remain EAS-eligible, communities must have participated in the EAS program at some time between September 30, 2010, and September 30, 2011." Air Service at DBQ was self supportinq durinq this time therefore not participating or eligible As of October 1, 2012, no new communities can enter the program should they lose their unsubsidized service, except in Alaska and Hawaii. Airports that were formerly eligible but did not receive subsidized service during the specified year, are no longer eligible for subsidized service and may not reenter the program. This prohibits Dubuque from receiving EAS funding under current federal regulations. 3 Page 1106 of 1264 Iowa Commercial airports received the following EAS funding in 2024: • Waterloo ALO $7.4 Million • Sioux City SUX $5.3 Million • Fort Dodge FOD $6.4 Million • Mason City MSW $6.5 Million • Burlington BRL $3.5 Million December 2023, prior to pursuing daily scheduled air service a survey was part of a broader study effort to provide a detailed understanding of the want and need for commercial air service at the Dubuque Regional Airport (DBQ), among a variety of stakeholders and regional users. The results of the study are intended to provide information for purposes of air planning, air service and airport development, overall economic planning and development, transit forecasting and development, and partnerships and participation in a variety of multi -community and regional efforts. Employer & Resident Surveys Employers Survey: 228 Responses and 28 interviews Strong support. Most employers (73%) support efforts to attract Dubuque commercial air service, recognizing it might require financial guarantees. Financial support. Most employers (69%) also support the use of City and/or County funds to attract air service, while with voluntary private funding efforts, 51 % support with 29% neutral. Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Dallas, Denver, and Minneapolis. Willingness to Use. Employers estimate that they would be willing to spend an average of $142 more for a round-trip flight from DBQ as compared to a similar flight from Chicago -O'Hare. Economic Impacts of air service expansion: Two-thirds (68%) expect a positive impact on their business. Almost all (95%) expect a positive impact on the greater Dubuque area economy. Residents Survey: More than 8,000 responses Strong Support. The vast majority (91 %) of respondents strongly (78%) or somewhat (13%) support efforts to attract Dubuque air service. Willingness to use. The vast majority (86%) of respondents would definitely (68%) or probably (18%) consider using Dubuque Regional Airport if air service were expanded to a major hub airport. Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Denver, Dallas, Minneapolis, and Atlanta. Impacts of Dubuaue air service expansion. 84% expect a positive impact on their household. Almost all (97%) expect a positive impact on the greater Dubuque area economy. 0 Page 1107 of 1264 Dubuque Regional Airport Traveler Survey Results from a survey targeted toward travelers flying through Dubuque from July through September 2025 clearly indicate that people who use the service have a positive experience. As of September 25, 2025, over 110 people have completed the survey. Here are some key results: • 88% rate their experience at the airport as excellent and 8% rate is as good • 93% are very likely to recommend the airport to friends, family, or colleagues • 96% are very likely or somewhat likely to use the airport in the future • 58% of respondents were leisure travelers, 29% were business travelers and 13% were a combination of business and leisure Population Growth The Tri-State region's economy and population are growing, commercial air service at the Dubuque Regional Airport is critical to continued growth. According to the US Census Bureau's Vintage 2024 population estimates, for the first time in history, the population of Dubuque County is approaching 100,000. The city of Dubuque, home to nearly 60% of Dubuque County's total population and the location where most residents within 50 miles work, shop, and recreate, is a major driver and beneficiary of this milestone. Daily commercial air service at Dubuque Regional Airport provides a conduit to national and international students attending higher education in the tristate area: • Loras College — Student population: Approximately 1,600 • Clarke University — Student population: Around 1,200 • University of Dubuque — Student population: 2,190 • Emmaus Bible College — Student population: 206 • Wartburg Theological Seminary — Student population: 193 • Divine Word College — Student population: 61 • University of Wisconsin —Platteville — Student population: 6,696 Economic Development Since July 1, 2022, Greater Dubuque Development Corporation reports there has been over $953 million in new construction in Dubuque County. One of the indicators that shows Dubuque is growing and thriving is building permit fees. Last fiscal year permit fees were $1,357,425, which is an increase of $567,937 (72%) from the prior fiscal year. The continuation of Dubuque commercial air service is important to major projects already in the works, such as: • John and Alice Butler College of Osteopathic Medicine • Field of Dreams • Expansion of the University of Dubuque Aviation Pilot Program • New and Expanded Amenities and Attractions Air service is imperative to keep this momentum moving forward. It is an infrastructure which facilitates business, tourism, and helps attract and retain residents (including students). It is an expected service, no different than high-speed internet, 5 Page 1108 of 1264 available land for growth, utilities, ground transportation (bus), recreation space, etc. It is a connection to the outside world just like 4-lane highways and history has shown us what happens when Dubuque is cut off from critical transportation infrastructure. When the interstate system bypassed our city in the 1950s, the economic fallout culminated in the downturn of the 1980s. Funding Update Air service is critically important to a local economy by enabling business travel and connectivity, facilitating global market access, boosting tourism, creating jobs directly and indirectly through various sectors, and supporting the relocation of businesses and professionals by providing vital links to the national and global transportation network Using numbers based on the 2022 Iowa Airport Economic Impact Study, the 2025 Denver Air Commercial air service is estimated to generate nearly $19 million in economic benefit for Dubuque/Dubuque County. DBQ/DAC Commercial Passengers: 2025 Estimated Economic Impact 2025 Est 2022 Econ Output Per Passengers Passenger 7,637 $2,201 Inflation 2022-25 1.13 2025 Economic Impact $18,994,212 The objective from the start of service is to reach a load factor and ticket price that sustains air service long-term without a minimum revenue guarantee. The morning departure and evening arrival schedule has been well received by business and leisure travelers. Enplanements continue to grow and are trending positively, with Dubuque currently averaging nearly 50% load factors, with a goal of 80% load factor. DBQ Weekly Bookings September 2024 to Last Week 450 400 350 300 250 200 150 100 50 0 o�� o�� \ o do \ titi \tip'\To�� 4 ti ti \ti'b\�o�� 3 0 �M 0 Page 1109 of 1264 To attain self-sufficiency, DBQ Air Service Consultant estimates Denver Air will need to reach an average 80% load factor. To reach the additional 30% will require an additional 15 passengers per flight on the existing 50-seat aircraft, which we believe is achievable when considering Dubuque Regional Airport's history of approximately 99 passengers per day pre-Covid. The following provides a comprehensive financial account for the US Department of Transportation Small Community Airservices Development Program (SCASDP): SCASD Program used for Minimum Revenue Guarantee (MRG) SCASD Funding DOT $1,500,000 City of Dubuque $ 150,000 Dubuque Chamber $ 100,000 GDDC $ 50,000 Dubuque County $ 50,000 Travel Dubuque $ 50,000 Airport $ 40,000 IA DOT of Aviation $ 25,000 $1,965,000 In -Kind Contributions $ 70,195 Airport Incentive Program $ 27,086 Total $2,062,281 MRG Payments to Denver Air Connection: Cash Media vendors match Fees waived Invoice Total Funding Source ADDITIONAL FUNDING NEEDED July 2025 (5 Weeks) $325,015.06 City of Dubuque August 2025 $246,763.00 EST. City of Dubuque September 2025 $255,024.00 EST. City of Dubuque October 2025 (5 Weeks) $318,780.00 EST. City of Dubuque November 2025 $255,024.00 EST. City of Dubuque December 2025 $255,024.00 EST. City of Dubuque Total estimated funding needed to retain service through December 2025: $ 1,655,630. Invoice Total Funding Source January 2026 (5 Weeks) $ 331,030.00 EST. TBD February 2026 $ 262,304.00 EST. TBD March 2026 $ 230,664.00 EST. TBD April 2026 (5 Weeks) $ 284,480.00 EST. TBD May 2026 $ 194,264.00 EST. TBD June 2026 $ 206,024.00 EST. TBD Total estimated funding needed to retain service January 2026 through June 2026: $ 1, 508, 766. 7 Page 1110 of 1264 Additional Funding Sources and Incentives Utilized to Date: • Travel Dubuque Board contributed $500,000 to support the MRG in August 2025 • Chamber $50,000 in marketing over two years + $15,000 in kind. • Dubuque Initiatives committed up to $200,000 for a $100 Airfare Rebate Program for travelers who purchase round-trip airfare tickets between Aug. 11 and October 31, 2025. • The Dubuque Airport Commission waives annual rates and charges to Denver Air Connection according to FAA Air Carrier Incentive Program. Dubuque Regional Airport also provides discounted ground handling and fuel fees, consultant and marketing costs. • The Hilton/Q Casino provides a discount hotel rate for Denver Air Connection crew. • The Dubuque Racing Association awarded a $100,000 Mission Grant toward marketing. • The Dubuque Racing Association also awarded a 2-year $40,000 Core Grant toward MRG. Denver Air Connections Incentive Programs: • Mile High Elite Rewards: With Denver Air Connections' Mile High Elite rewards program, one point per flight purchased. Just six points earns a one-way reward ticket to any Denver Air Connection destination (except Telluride). Denver Air Connection's Corporate Discount Program allows businesses and organizations that travel frequently the opportunity to receive a discount on Denver Air Connection flights. Eligible businesses can receive up to 20% off all Denver Air fares for their first year in the program. Direct Benefits to Dubuque Regional Airport 1. FAA Airport Improvement Program (AIP) • Commercial Airports which have greater than 10,000 Enplanements - receive $1,300,000/year entitlement • Commercial Airports which have less than 10,000 Enplanements — receive funding based on an escalating scale based on enplanements. • Commercial airports with no scheduled commercial air service - General Aviation Airports receive little if any AIP funding. 2. Type of service (aircraft design group) at airports also impact the funding and ranking of FAA AIP eligible projects, for example an airport that has scheduled commercial air service qualifies for higher design standards on taxiways and ru nways. 3. Passenger Facility Charge DBQ Airport received $4.39 passenger facility charge (PFC) for each passenger enplaned. DBQ has a FAA approved PFC Plan dedicated to Airport Improvement Program Projects to pay annual debt service on local 10% match. Estimating ERJ 145, 50 seat aircraft, 80% load factor: 40x7x52= 14,560 pax X $4.39 PFC = $63,918 annual Page 1111 of 1264 4. Direct Job Retention at Dubuque Regional Airport Terminal Employees Ground Handling TSA Avis Bag Service 2FT, 10PT =12 5FT, 5PT =10 1 FT, 1 PT = 2 1FT = 1 Total = 25 Add restaurant employees with sustained service. Does not include secondary service such as off airfield ground transportation, delivery, admin, ATCT, maintenance, ops, etc. DISCUSSION Without Commercial Air Service the Dubuque Regional Airport will lose millions of dollars a year in federal funding to maintain the airport facilities and runways. A current example of FAA AIP Program is Dubuque Regional Airport taxiway alpha construction project. Phased over 5 years, 2024-2028, estimated $40 million project using FAA AIP entitlement and discretionary funding. The project is eligible for 90% federal ($36 Million), 10% local ($4 Million). With no commercial air service Dubuque Regional Airport could lose guaranteed entitlement and eligible discretionary funding. I believe the results of the surveys of the business community and the general public clearly show support for commercial air service at the Dubuque Reginal Airport. I also believe that past performance of enplanements at the airport and the number of people that fly out of the catchment area clearly shows that the goal of an average of 40 people a day flying out of the Dubuque Regional Airport is achievable. As the city closed out the Fiscal Year 2025 budget year there is $4.7 million available from the General Fund. In addition to this Minimum Revenue Guarantee, you will see there other expenditure recommendations on the October 6, 2025, City Council agenda based on resident and City Council input during the FY2026 budget process in April 2025. These funds can only be used for one-time expenditures. The estimated cost to pay the Minimum Revenue Guarantee to Denver Air for the 6- month period from July 1, 2025, through December 31, 2025, is $1.65 million. The estimated cost to pay the Minimum Revenue Guarantee to Denver Air for the 6- month period from January 1, 2026, through June 30, 2026, is $1.51 million. The total for the 12 months of Fiscal Year 2026, July 1, 2025, through June 30, 2026, is $3,164,396. I would suggest that the city put out a challenge to the business community to provide $750,000 of the Minimum Guarantee for Denver Air leaving the City of Dubuque responsible for $2.4 million of the $3.16 million. The business community would have until December 10, 2025, to raise $750,000 with the city providing a dollar -for -dollar match for each dollar raised up to $750,000. er Page 1112 of 1264 If the fundraising effort is successful, there would be sufficient funds to provide the Minimum Revenue Guarantee to Denver Air through June 30, 2026. If the fundraising effort came up short, that would decrease the number of months the Minium Revenue Guarantee could be provided. At the December 15, 2025, City Council Meeting, the City Council could review the amount of money raised from the business community, review current numbers on Denver Air enplanements and the actual demands on the MRG fund through that date to help determine how many more months it is anticipated that the MRG can be paid. That review will be especially important because of the 90-day notice requirement if the city is going to stop paying the MRG to Denver Air. Not only will the business community be asked to contribute funds, but they would be asked to help with approaching the federal government to provide financial assistance to support commercial air service at Dubuque Regional Airport like they do for smaller airports across Iowa and across the United States. ACTION TO BE TAKEN I respectfully recommend that the Mayor and City Council dedicate $2.4 million to a Minimum Revenue Guarantee for Denver Air Commercial Air Service for the current fiscal year (FY26) through June 30, 2026, and an additional $100,000 to the marketing of that service because the more people that fly the less time a minimum revenue guarantee will be required. I further respectfully recommend that the Mayor and City Council put out a challenge to the business community to provide $750,000 of the Minimum Revenue Guarantee for Denver Air. The business community would have until December 10, 2025, to raise $750,000 with the city providing a dollar -for -dollar match for each dollar raised up to $750,000. 1 have contacted both the Greater Dubuque Development Corporation and the Dubuque Area Chamber of Commerce, and they say they accept this challenge. Not only will the business community be asked to contribute funds, but they would be asked to help with approaching the federal government to provide financial assistance to support commercial air service at Dubuque Regional Airport like they do for smaller airports across Iowa and across the United States. The Mayor and City Council could discuss during the April 2026 Fiscal Year 2027 (July 2026 — June 2027) budget process if there will be a budget allocation for a future Minimum Revenue Guarantee payment beyond June 30, 2026, if one is needed. // 1AZVW4 k;�4 6aiAen, Mic ael C. Van Milligen 10 Page 1113 of 1264 MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Todd Dalsing, Airport Director 11 Page 1114 of 1264 Adrienne Breitfelder From: City of Dubuque <noreply-dubuque@qscend.com> Sent: Sunday, September 14, 2025 4:07 PM To: Adrienne Breitfelder Subject: A new Service Request has been created [Request ID #2268431 (Contact City Council) - Dubuque, IA Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender information and password over email! Report Dubuque, IA A new service request has been filed. 1111W11y4191:L93 Date/Time 9/14/2025 4:07 PM Type Contact City Council Address 2347 BEACON HILL DR, Dubuque Origin Website Comments Dear All, Firstly, thank you for your service to the City of Dubuque I encourage you to NOT further subsidize the current air service and consider other methods to make our city a viable departure/arrival airport. It has been obvious that this subsidizing is only a band -aid approach and the continuing competition of regional air service (CR, QC, & Madison) will continue to be a rival of Dubuque's and not a plan that's in the interests of the citizenry as a whole. I realize that most other cities in Iowa (Waterloo, Mason City)receive federal subsidies and Dubuque does not. To me the only alternative would be to contact Washington DC and/or the State of Iowa and pressure our elected leaders (Trump, Ernst, Grassley, Hinson, Reynolds) to get the Federal subsidies like other comparable cities have Geographically we admittedly are in a tough Page 1115 of 1264 position and I understand that , but to keep using hard earned local tax dollars to keep this thing going doesn't make sense. If there's a surplus in the city budget it would benefit the community as a whole to invest in other improvements to our city. Thanks for hearing me out. Jim Prochaska Submitter Prochaska, Jim 2478 Beacon Hill Dr Dubuque, IA 52003 563-599-2665 jfprochaska@gmail.com Dubuque, IA Page 1116 of 1264 Adrienne Breitfelder From: City of Dubuque <noreply-dubuque@qscend.com> Sent: Wednesday, September 17, 2025 8:21 AM To: Adrienne Breitfelder Subject: A new Service Request has been created [Request ID #2269091 (Contact City Council) - Dubuque, IA Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender information and password over email! Report Dubuque, IA A new service request has been filed. Il11W1110 •I11h!] Date/Time 9/17/2025 8:21 AM Type Contact City Council Address 3095 LINDALE ST, Dubuque Origin Website Comments I FULLY support subsidizing the airport to retain flight services. It isn't only for businesses! The other options (other airports) to fly are not convenient or available for me. Perhaps putting a time limit to do so would appease some of the people? Thank you for all of the work you have put into this! Elaine Kray / Ward 2 / 563-556-8155 Submitter Kray, Elaine 3095 Lindale St. Dubuque, IA 52001 563-556-8155 ejkray@aol.com 1 Page 1117 of 1264 Adrienne Breitfelder From: City of Dubuque <noreply-dubuque@qscend.com> Sent: Thursday, September 18, 2025 10:04 PM To: Adrienne Breitfelder Subject: A new Service Request has been created [Request ID #2269671 (Contact City Council) - Dubuque, IA Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender information and password over email! Report Dubuque, IA A new service request has been filed. ID 226967 Date/Time 9/18/2025 10:04 PM Type Contact City Council Address 3074 KANE CT, Dubuque Origin Website Comments I, strongly, do not support using tax dollars to fund the lack of support for Denver Air. We've gone through 2 major airlines and, after a hiatus, 2 government grants to attempt to have Air service. What does it take for you to realize that Dubuque cannot sustain Air service?? After American left and we didn't have Air service, those choosing to fly, found other avenues. May i say -family friendly and more options. It's obvious that even tourists can't fill the plane. You built it and they didn't come -by air. Mr Van Milligan is asking for $1.6 million to start and then how much more?? Funding for the few isn't good city management. Please vote noH Stop wasting tax dollars. I am using my address , for location, because this form doesn't accept the airport. Submitter Zaber, Mary P 3074 Kane Ct. Dubuque, IA 52001 Page 1118 of 1264 563-599-1023 pzabes@gmail.com Dubuque,lA Page 1119 of 1264 Adrienne Breitfelder From: City of Dubuque <noreply-dubuque@qscend.com> Sent: Saturday, September 20, 2025 9:54 AM To: Adrienne Breitfelder Subject: A new Service Request has been created [Request ID #227000] (Contact City Council) - Dubuque, IA Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender information and password over email! Report Dubuque, IA A new service request has been filed. ID 227000 Date/Time 9/20/2025 9:54 AM Type Contact City Council Address 560 SUNSET RDG, Dubuque Origin Website Comments Esteemed Dubuque city council my name is Matt Mohr I'm a Southwest Airlines pilot. I graduated from the University of Dubuque in 1999. 1 have been in the industry since working for various businesses from mom and pop businesses to major airlines. I would like to weigh in on the airport funding issues. The DAC model is good for certain situations unfortunately the DBQ to ORD is not one of them. The DAC model can not be sustainable given the current structure of market. With the proliferation of business aircraft siphoning off some of the most profitable customers coupled with the high operational costs per seat of the EMB-145. DAC is one fuel spike away from cutting the route. The only model that would stand a chance at survival would be the use of the PC-12 aircraft in the 19 seat configuration. The airlines Boutique Air, Tradewinds, and Plane Sense use this model to great success in targeted markets. Coupled with opportunity to link the University of Page 1120 of 1264 Dubuque flight school to funnel pilots to the respective airlines. This would be one of the few businesses that would survive short of a major airline like United or American subsidizing the route again which I think we both know will probably not happen. As it stands now what are we getting for the over one million dollar subsidy already being paid to airport. Adding another 1.6 million seems ludicrous. We need to increase revenue via building a new set of private aircraft hangars, increase rent for the corporate customers and reducing staff. In addition spinning off the FBO to a private entity. Dubuque air service should not be city employees. Spending over 2.6 million to subsidize air service is not sustainable. That money buys a lot of bike lanes and dedicated trails or other amenities that more citizens can use. Esteemed council do the right thing, please consider taking a different path for all our citizens. Submitter Mohr, Matt Dubuque, IA mdmohrair@me.com Dubuque, IA Page 1121 of 1264 Stephanie Valentine From: Matthew Mohr <mdmohrair@me.com> Sent: Tuesday, September 30, 2025 11:07 AM To: Todd Dalsing Subject: Re: DBQ Air Service Reply Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender information and password over email! Report Hey Todd thanks for reaching with your very thoughtful and complete answers to the questions raised. I appreciate your time and effort responding to just an ordinary citizen thank you for that. I hope the air service can supported and expanded in the near future. You do a great job providing a safe environment for aviation to exist in Dubuque. I appreciate your efforts. Matt On Sep 26, 2025, at 12:31, Todd Dalsing <tdalsing@cityofdubuque.org> wrote: Matt, Thank you for sharing your comment regarding daily scheduled commercial air service at Dubuque Regional Airport. DBQ Air always appreciates creative thinking and are looking at every possible option for commercial air service into DBQ. DBQ Air explored turboprop service at the outset. It was determined this was not the appropriate or desired air service type or level for the Dubuque Business and Residential Communities and reinforced per the business model and other considerations below. 1. While the business model is difficult on 50 seat jets, the business model on small turbo props ends up being net worse. 1. These suggested aircraft have 9 seats, usually flying 8, not 19. 2. The costs, from specific examples working both with Boutique and another regional operator, run 40-50% of the DAC 50-seat jets, while only offering 16% of the seats/capacity. 3. Following, the turboprops operate with higher costs vs the capacityyou are able to fill, and it is hard to drive fares on a turboprop. 4. With this model, there is no ability to fully cover the costs or reach sustainability. Page 1122 of 1264 5. The end results, with a comparable service, have been paying approximately the same amount for 1/6 the passengers. 2. As quick notes on the suggested airlines: 1. Boutique is nearly out of business, with three destinations left from more than 50 they had flown historically. 2. Plane Sense is a charter/fractional ownership model, that does not have scheduled service or interline connectivity to a major carrier. 3. Tradewinds does operate a couple scheduled routes in the Northeast and more in the islands, and we looked at them along with Cape Air and Southern in the early conversations but pursued connected jet service per the above. 3. As DBQ's costs and total subsidy stand, they are in fact lower than several other comparable markets, and in line with the norm post-covid. The initial investment period was covered by a Federal SCASD grant to note. MRGs have become much the norm for added service post-COVID. 4. We agree that this is not sustainable interminably and have discussed from the start that the current estimated time needed to develop sustained service is 2-3 years. This reflects the need to build the market, which is currently occurring with progression of the DAC flights. 5. Also not to miss the larger picture in the scope of the MRG costs, air service delivers directly back in multiples of economic impact on any money spent. This as an economic lever that will in turn help to develop and fund amenities and improve quality of life for residents. Regards, <image004.png> Todd Dalsing Airport Director, Dubuque Regional Airport 0: 563.589.4233 1 C:563.580.4669 10800 Airport Road I Dubuque, IA 52003-9555 <image005.png> <image009.jpg> <image003.gif> <image006.png> <image007.png> <image008.png> 4 Page 1123 of 1264 r-40i President's Office e. presidentsof€ice@clarke.edu t. (563)588-6385 1550 Clarke Drive Dubuque, Iowa 52001-3198 www.clarke.edu Clarke September 23, 2025 City of Dubuque Mayor and City Council Members 50 W. 13th Street Dubuque, IA 52001 Dear Mayor and City Council Members, On behalf of Clarke University, I am writing to convey our staunch support for continued Air Service at the Dubuque Regional Airport. Clarke University brings students from over forty states and twenty-five countries. It is critical that Dubuque have Air Service to accommodate travel to and from campus for the start and end of the academic year as well as winter and spring breaks. Reliable Air Service is important for employees attending conferences and professional development opportunities, in addition to personal and family vacations. In short, having Air Service is a selling point in attracting students and employees to Clarke University and Dubuque. Clarke University supports the City Manager's recommendation to utilize additional funds from the City of Dubuque FY25 budget to help offset the minimum revenue guarantee. Specifically, we ask for your support of the Denver Air Connection minimum revenue guarantee (MRG). This initiative -taking approach represents an investment in maintaining a strong Air Service option for Dubuque. Thank you for your consideration. Sincerely, Fletcher Lamkin President Clarke University E S T A B L I S H E D Paje �1244of 1264 Cottingham &Butler 800 Nlain Street I Dubuque, IA 52001 1.800.793.5235 1 www.CottinghamButler.com Dear Mayor, Council and City Manager, In talking with many flyers taking advantage of the Denver Air Connection flight to Chicago, we hear them say the trip was flawless. The parking, the thoroughness and timing of security, the enjoyment of talking with friends in the waiting area all exceeded their expectations. Sure, we've heard the complaints, delayed flights, luggage challenges, company expense software doesn't coordinate the way it should.... we know this, any time an issue or problem has been raised with Denver Air, it's been addressed when the issue was theirs, and satisfactorily explained when it wasn't. The customer service has been wonderful. And none of the issues justify not working together to build a strong and successful commercial air connection to Chicago. Our community is at a crossroads. Either we support all the great work that's been done to date to bring successful commercial air travel back to Dubuque to fuel the amazing future ahead of our county and region or we don't. We side with growth and excitement and encourage all in our community to support funding the gap between the current passenger loads and the 80% capacity needed for continued flights. Not only does our community need this, we deserve it! Now is not the time to give up. Successful commercial air travel to and from Dubuque is essential to the continued success of our community. So many incredible things are occurring now —The Field of Dreams, The Dubuque Museum of Art project, Schmidt Island, The University of Dubuque medical school, Wanderwood Gardens, new residential developments. The excitement is palpable, and our community is thinking about all the things that are possible! Viable commercial air service will further leverage our success as a community. Denver Air has been an exceptional partner. By working together with the private sector, our community, county and region can ensure that all the hard work done to date will be the strongest foundation for an even better future. Our ask is this, be an active and positive part of the solution. Commercial air service in Dubuque is only sustainable if people take advantage of the flights. Denver Air has been an incredible partner. GDDC, Dubuque Initiatives, The Dubuque Chamber of Commerce, Travel Dubuque, Dubuque Main Street and many of employers in Dubuque have been amazing partners to attract Denver Air. Long-term, the obligation is on us as travelers to fly Denver Air so the public support is no longer needed. Sin rely, ndrew J. Butl Executive Sin irman ©B Page 1125 of 1264 Crescent Community HEALTH CENTER Date: 9/25/2025 To: Dubuque Mayor & City Council OR TH Editorial Board RE: Supporting the Long -Term Success of Daily Commercial Air Service at the Dubuque Regional Airport OR Re: A Call to Action for Daily Commercial Air Service at DBQ On behalf of Crescent Community Health Center, I am writing to express our strong support for the City's investment in retaining and expanding daily commercial air service at the Dubuque Regional Airport (DBQ). We believe that consistent, reliable air travel is not a luxury but a necessity for our region's economic health and future growth. It is our position that we must apply all resources necessary to secure and protect this vital transportation infrastructure. While current service offerings via Denver Air Connection to O'Hare have been a positive step in meeting our business and community access needs, ensuring long-term viability requires our committed and urgent action now. A thriving airport with daily flights is critical to our current and future success. More importantly, it is a key asset to our community's long-term growth and viability in numerous ways including talent attraction and retention, driving business growth, encouraging economic development, and supporting local prosperity. Crescent is committed to prioritizing DBQ for our business travel whenever possible. We encourage our fellow business leaders, residents, and leisure travelers to do the same. By consistently filling seats on DBQ flights, we can collectively secure a strong, connected future for our region. In this moment, we understand the financial challenges that exist in continuation of service versus the risk of losing it outright. The cost of losing this economic asset is a far greater threat to our future that the investment we make to keep it. 1690 Elm Street Suite 300 • Dubuque, Iowa 52001 • Phone: 563-690--2850 • Fax: 563-557-8488 Page 1126 of 1264 We support and thank you for your consideration in continued financial support for access to daily commercial air service from the Dubuque Regional Airport. Sincerely, Chad Wolbers Chief Executive Officer Crescent Community Health Center CWolbers@crescentchc.org (563) 690-2860 Page 1127 of 1264 nuBucZ� CHAMBER, Dubuque Mayor and City Council City of Dubuque 50 W 13t" Street Dubuque, Iowa 52001 Friday September 121", 2025 RE: Chamber Supports City Commitment for Denver Air MRG Dear Mayor and Members of the City Council, On behalf of the Dubuque Area Chamber of Commerce, I urge you to take decisive action to protect one of the most critical pillars of our community's economic future: daily commercial air service. Specifically, we ask for your support of the Denver Air Connection minimum revenue guarantee (MRG). Securing and sustaining new air service is a multi -year endeavor. While the U.S. DOT Small Community Air Service Program Grant restored air service in the past year, those funds are now exhausted. Every major community partner has stepped forward, but without the City's commitment, the future of commercial air service in Dubuque is at risk. Unlike other Iowa cities, Dubuque must stand alone in this effort. There are no backup options, no other airlines waiting in line. Air service is not a luxury —it is a necessity. It connects our residents and businesses to the global marketplace, influences where families choose to live and determines where companies invest and grow. The presence —or absence —of air service directly shapes our region's competitiveness, population growth, and quality of life. History has shown us what happens when Dubuque is cut off from critical transportation infrastructure. When the interstate system bypassed our city in the 1950s, the economic fallout culminated in the downturn of the 1980s. We cannot afford to repeat that mistake. This is about more than flights; it is about safeguarding Dubuque's future. We ask you to protect our economy, our residents' quality of life, and the amenities essential to attract talent and investment by supporting the Denver Air Connection MRG. Respectfully, Molly Grover, President & CEO Dubuque Area Chamber of Commerce Page 1128 of 1264 September 11, 2025 Mayor Cavanagh and Members of the City Council Dubuque City Hall 50 W 13th Street Dubuque, IA 52001 Dear Mayor Cavanagh and Members of the City Council, Greater Dubuque DEVELOPMENT CORP. Schmid Innovation Center 900 Jackson Si., Suite 109 Dubuque, IA 52001 www.greaterdubuque.org The future competitiveness of Dubuque is on the line. Without commercial air service our community cannot hope to reach its full potential. Every other regional airport of our size in Iowa receives support from Federal Essential Air Service (EAS). Nearly $29 million in total. Dubuque alone has been denied that support, putting us at a crippling disadvantage through no fault of our own. While peers in Burlington, Fort Dodge, Mason City, Sioux City and Waterloo move forward with federal help we stand alone, dependent on one another to ensure commercial air service. Dubuque is left to compete with one arm tied behind our back. The only path forward is to provide a revenue guarantee to Denver Air. Without this unfortunate reality Dubuque risks being permanently disconnected from the national economy. Businesses will choose to expand elsewhere, visitors and conventions will bypass us, talented professionals will look to communities with the connectivity they and their families require. Please know that the non-profit sector is also doing its part. Greater Dubuque Development, in partnership with Dubuque Initiatives (DI) has launched a voucher program funded by DI to directly increase enplanements. Between August 1 lth and September 30th every ticket purchased for a round trip to or from Dubuque is eligible for a $100 voucher. To date more than $20,000 in vouchers have been distributed and the requests are growing by the hour. The mission is clear; boost ridership, reduce the need for revenue guarantees and demonstrate that this service can succeed. But without a revenue guarantee from The City those efforts will not be enough. This is not a matter of convenience it is a matter of economic survival and future prosperity. A revenue guarantee is not a subsidy; it is an investment. It buys us the time we need until federal financial support is secured and routes from Dubuque become profitable. Without it we will never reach our full potential. I urge your favorable consideration of this matter. In your service, Rick Dickinson President & CEO YOl can be great here. Page 1129 of 1264 0ET oa z �Y LORAS COLLEGE a September 15, 2025 Mayor Brad M. Cavanaugh Dubuque City Council Members 50 W. 13th Street Dubuque, IA 52001 Dear Mayor Cavanaugh and Members of the City Council: OFFICE OF THE PRESIDENT 1450 Alta Vista Street Dubuque, IA 52001 563.588.7103 On behalf of Loras College and our students, faculty, staff, parents, and alumni, I am writing to convey our strong support for continued air service at the Dubuque Regional Airport via the minimum revenue guarantee to Denver Air Connection. For a regional institution like Loras with students, parents, faculty, alumni, and partners from across the country and around the world, daily commercial air service provides daily connectivity that supports: • Student recruitment & retention • Faculty & staff recruitment & retention • Retention of talent in the Dubuque community upon degree completion • Alumni & donor engagement • Strategic partnerships with other regional and national institutions • Academic and athletic travel • Enhanced institutional visibility and accessibility Loras College is proud to be a committed partner in strengthening the Dubuque community. We appreciate the City's leadership on this critical issue and encourage your continued support. While we understand the financial considerations involved, we believe that your support is a smart investment in Dubuque's continued success. Maintaining air service is not just about convenience, it is about positioning Dubuque as a connected city that is prepared to meet the needs of its residents, businesses, and institutions like Loras. Sincerely, ��z -�4 Michael H. Doyle, J.D. (' 91) President TRAVEL W.(4" WHERE IM STARTED September 11, 2025 City of Dubuque City Council Members 50 W. 13" Street Dubuque, IA 52001 Dear City Council Members, On behalf of Travel Dubuque, I am writing to convey our strong support for Air Service at the Dubuque Regional Airport. Travel Dubuque is dedicated to leading tourism destination promotion and development to enhance and expand the Dubuque Area experience. With over 2 million visitors and 314 million in economic impact annually, the tourism industry is an integral component in the development and continued prosperity of the Dubuque region. We recognize how vital reliable air service is to our community, not only for visitors, but also for businesses, residents, and the overall economic health of our area. We also want to express our support for the City Manager's recommendation to utilize additional funds from the FY25 budget to help offset the minimum revenue guarantee. This proactive approach represents an investment in maintaining a strong air service option for Dubuque and reinforces the City's commitment to ensuring our community remains a vibrant, connected destination for both residents and visitors. Sincerely, ,IV* ((4—� Keith Rahe, President + CEO Travel Dubuque Page 1131 of 1264 UNIVERSITY of DUBLIQUE 15 September 2025 OFFICE OF THE PRESIDENT UDpresidentCadbq.edu Mayor Brad Cavanagh and Dubuque City Council City Hall 50 West 13th Street Dubuque, Iowa 52001 Dear Mayor Cavanagh and Members of the City Council, Local air service currently provides our community easy access to the rest of the country — plain and simple. The effort to retain local air service with Denver Air is a vital and necessary step to continue our success as a community of choice for residents, for local businesses, for regional industries, and for literally thousands of undergraduate and graduate students who come here each year to earn a degree and learn about all that Dubuque has to offer them. By supporting our current partnership with Denver Air, we strengthen Dubuque's competitiveness as a place to learn, work, and live, while opening doors for residents, businesses, industries, and visitors alike. The city's current relationship with Denver Air is, as I understand it, a step in the right direction toward establishing a stronger, more sustainable foundation for commercial air travel here in Dubuque. This partnership creates the opportunity for attracting additional travel options, potentially drawing more service providers, and ultimately offering a wider variety of travel times at affordable, competitive prices. Now is not the time to lose ground in this strategic effort to establish local air service for our community. For higher education, air service is especially critical. Dubuque's colleges and universities bring thousands of students to the city each year. Many of our students —and the faculty, staff, and coaches who guide them —come from across the United States. Without air access, the ability to recruit and retain this talent is significantly limited. Our ability to offer convenient and accessible air service for our students and their families is essential for colleges and universities in Dubuque to thrive. The reality of the "demographic cliff" often discussed in higher education circles (i.e., the national decline in the number of college -aged students) means our local universities must reach farther to bring students to Dubuque. Air service helps us do just that. Without local air service, it becomes more difficult to recruit and retain students for our academic programs and our athletic teams. Dubuque must remain directly connected to the rest of the country by air. The importance of connectivity extends beyond the education industry. Dubuque was recently named by The Wall Street Journal as one of the best places to visit in the United States. Visitors, tourists, trade shows, conventions, and businesses need confidence that Dubuque is accessible. For employers, reliable air service is essential to recruit and retain talent and to connect with clients, suppliers, and investors across the country. Local industries, from manufacturing and agriculture to healthcare and technology, depend on strong transportation links to remain competitive in a national and global marketplace. Supporting air service is not a subsidy; it is an investment in the long-term growth and vitality of our region. Denver Air provides us with a path forward. Now is the time to support this initiative and ensure Dubuque remains a vibrant, connected city where rural meets urban, local meets global, and opportunity meets innovation. Sincerely, Dr. Travis L. Frampton, Ph.D. President University of Dubuque Page 1133 of 1264 Commercial Air Service Minimum Revenue Guarantee Update u Page 1134 of 1264 INTRODUCTION During annual goal -setting in 2022, 2023, and 2024, commercial air service was identified as a top priority for the community. To achieve this priority a minimum revenue guarantee (MRG) is needed. A MRG is an agreement whereby a municipality guarantees an airline a certain amount of revenue for new or expanded air service. MRGs ensure that an air carrier receives a predetermined amount of revenue, regardless of actual ticket sales. This support is provided to encourage the carrier to start or maintain service, with the duration of MRG funds depending on factors like load factors, ticket revenues, and carrier expenses. By fostering new or expanded air service, MRGs help support local economies by supporting local business, leisure travelers and attracting tourism and visitors, who then spend money at local hotels, restaurants, and attractions. BACKGROUND Prior to the COVID pandemic, DBQ offered three flights a day to Chicago (ORD) on American Airlines. In calendar year 2019 (pre-COVID), FAA enplanement reported 36,521 passengers flew from DBQ to ORD as their destination or connection, on three flights daily. During that same year, the US DOT Origination & Destination (O&D) report showed an average of 99 passengers flew from DBQ to ORD daily After the pandemic hit, American Airlines began flight reductions in late calendar year 2020. In response to the pandemic's impact on travel, air carriers received federal relief funding in an attempt to retain service to national markets. After federal relief funding ran out, American Airlines announced they were suspending service to DBQ starting September 7, 2022, citing national pilot shortage. Page 1135 of 1264 i°uAr)�Y !+ 0 1HEcayOF f DU$U-VRAVEL JK � $UQ"01 DLTB E Greater MQgterpieceOn'In Mis5issippi Dubuque �7 CHAMBER qmuqm As a result of the loss of daily scheduled air service, DBQ Air was formed. -Brad Cavanagh, Mayor, City of Dubuque V-). •Harley Pothoff, Supervisor, Dubuque County Anam -Molly Grover, President and CEO, Chamber of Commerce AWOF&O%X -Keith Rahe, President and CEO, Travel Dubuque -Anthony Williams, President and CEO, Q Casino AF -Jason White, Vice President of Business Services, Greater Dubuque Development Corporation -Mary Ann Kurtz Weber, Vice Chair, Airport Commission -Todd Dalsing, Airport Director, Dubuque Airport DBQ Air applied for a "refreshed" Small Community Air Service Development (SCASD) grant, increasing federal participation from $775,000 to $1,500,000. The SCASD program is designed to help small communities address air service issues. SCASD can involve revenue guarantees, financial assistance for marketing programs, start-up costs, and studies. The strategic plan includes the restoration of nonstop daily scheduled service to a hub to improve regional connections. DBQ Air, working with DBQ Air Service Consultant Matt Skinner, began meeting weekly to restore daily scheduled service. Several months of efforts and meetings with mainline and regional carriers resulted in an option to restore daily service starting with afternoon flights to ORD on Denver Air Connection utilizing an ERJ145 regional jet (50 Seat). Utilizing SCASD and FAAAir Carrier Incentive Program, Denver Air began service on November 4, 2024, featuring interline agreements with United and American to hundreds of connections beyond ORD. Initial agreement ended April 30, 2025 with 6-month extensions (May 1 - Oct 31 & Nov 1- April 30) and a 60-day clause to pause service. Page 1136 of 1264 OVERCOMING CHALLENGES Dubuque has overcome several challenges prior to and since the return of commercial air service in November 2024. •No Commercial Air Service at DBQ for 2 Years: It has been a challenge to introduce a new service to the market and break travel habits formed during the two-year absence of commercial air service. •Launching New Service in November: Nationally, November through February are lower passenger travel months. •Afternoon Flight Time: Although the afternoon flight time was the only option available to restore service at DBQ, This challenge eventually led to DBQ Air working with Denver Air and ORD to adjust the flight schedule to an AM departure and PM arrival which started May 16, 2025. •Construction at O'Hare: After the announcement of the new service, ORD advised Denver Air of construction in Terminal L, which impacted jet bridge and gate service. Denver Air's only option was remote aircraft parking and utilizing a bus to transport passengers to and from the terminal. Mayor Cavanagh and Denver Air petitioned ORD's gate director and ultimately restored operations and jet bridge service at Gate G21. •No Other Federal or State Funding Options Available: DBQ Air, City of Dubuque, Dubuque County and partners continue to advocate with federal and state legislators for options to be added to existing programs such as Essential Air Service, altering SCASD language, or starting a new program that would assist airports similar to DBQ. •Mainline Air Carriers (American, United, Delta, Southwest): Mayor met with American and was told adding regional markets like Dubuque is not in their plans. They will continue to rely on regional carriers to supply passengers to mainline airports. Matt Skinner, Dubuque Air Service Consultant, regularly meets with all mainline carriers who convey the same message. •Competing Regional Airports: Cedar Rapids (CID), Madison (MSN), and Moline (MLI) are all competing for passengers and marketing their service in the Dubuque Regional Airport catchment area. Page 1137 of 1264 SURVEYS December 2023, prior to pursuing daily scheduled air service a survey was part of a study to provide a detailed understanding of the want and need for commercial air service among a variety of stakeholders and regional users Employers: 228 Responses and 28 of those in person interviews Strong support. Most employers (73%) support efforts to attract DBQ air service, recognizing it might require financial guarantees. Financial support. Most employers (69%) also support the use of City and/or County funds to attract air service with voluntary private funding efforts, 51 % support with 29% neutral. Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Dallas, Denver, and Minneapolis. Willingness to Use. Employers estimate that they would be willing to spend an average of $142 more for a round-trip flight from DBQ as compared to a similar flight from Chicago -O'Hare. Economic Impacts of air service expansion: Two-thirds (68%) expect a positive impact on their business. Almost all (95%) expect a positive impact on the greater Dubuque area economy. Residents: More than 8,000 responses Strong Support. The vast majority (91 %) of respondents strongly (78%) or somewhat (13%) support efforts to attract DBQ air service. Willingness to use. The vast majority (86%) of respondents would definitely (68%) or probably (18%) consider using DBQ if air service were expanded to a major hub airport. Desired service. Chicago O'Hare is the leading choice for new hub airport service, followed by Denver, Dallas, Minneapolis, and Atlanta. Impacts of DBQ air service expansion. 84% expect a positive impact on their household. Almost all (97%) expect a positive impact on the greater Dubuque area economy. Traveler Survey July 2025 a survey targeted travelers flying through DBQ clearly indicate that people who use the service have a positive experience. As of September 4, over 80 passengers have completed the survey. •85% rate their experience at the airport at excellent and 10% rate is as good •90% are very likely to recommend the airport to friends, family, or colleagues •95% are very likely or somewhat likely to use the airport in the future •60% of respondents were leisure travelers, 30% were business travelers and 10% were a combination of business and leisure Page 1138 of 1264 POPULATION GROWTH According to the 2024 US Census Bureau's population estimates Dubuque County is approaching 100,000. Only seven counties in the state of Iowa showed a population increase of more than 900 people from 2020-2024. Local commercial air service is needed in growing communities. Daily commercial air service also provides a conduit to national and international students attending higher education in the tristate area: Hiaher Education ADDroximate Student Population •Loras College 1,600 •Clarke University 1,200 •University of Dubuque 2,190 •Emmaus Bible College 206 •Wartburg Theological Seminary 193 •Divine Word College 61 •University Wisconsin Platteville 6,696 Page 1139 of 1264 ECONOMIC DEVELOPMENT Since July 1, 2022, Greater Dubuque Development Corporation reports there has been over $805 million in new construction in Dubuque County with businesses creating approximately 1,000 jobs. The continuation of local commercial air service is important to major projects already in the works, such as: •John and Alice Butler College of Medicine: University of Dubuque officials plan to open the college in downtown Dubuque in August 2028 and grow enrollment to about 180 students per class by 2030, eventually reaching 200 students per class for a total enrollment of 400. Air service will be critical to recruiting and retaining students, faculty, and staff from around the country and around the world. •Field of Dreams: The over $80 million Field of Dreams project and all the visitors it is already bringing and will bring to the area. This year, over 600 teams from 28 states have played or will play games in Dubuque County, with events such as skills camps taking place at the field of Dreams movie site. In the near future, FOD officials hope to welcome more than 1,000 teams per year thanks to the new fields. •Expansion of the University of Dubuque Aviation Pilot Program: UD is growing the program from 350 enrolled students to 500+. Currently US is constructing a new hangar, flight center, apron and parking. •New and Expanded Amenities and Attractions: A new Dubuque Museum of Art; development of Wanderwood Children's Gardens; the over $100 million Chaplain Schmitt Island Development Plan, and numerous commercial, hotel, and housing projects under construction. Air service is imperative to keep this momentum moving forward and is an expected service in a growing community, no different than high-speed internet, available land for growth, utilities, ground transportation and recreational space. Page 1140 of 1264 FUNDING UPDATE Air service is critically important to a local economy by enabling business travel and connectivity, facilitating global market access, boosting tourism, creating jobs directly and indirectly through various sectors, and supporting the relocation of businesses and professionals by providing vital links to the transportation network. Using numbers based on the 2022 Iowa Airport Economic Impact Study, 2025 commercial air service is estimated to generate nearly $19 million in economic benefit for Dubuque/Dubuque County. DBQ/DAC Commercial Passengers: 2025 Estimated Economic Impact 2025 Est Passengers 2022 Econ Output Per Passenger 7,637 $2,201 a - �L loft Inflation 2022-25 1.13 2025 Economic Impact $18,994,212 98% Flight Completion Rate 94% On -Time Flights DUBUQUE REGIONAL AIRPORT Page 1141 of 1264 Outside of the DOT Small Community Air Service Development (SCASD) Program, there are very few incentives or funding mechanisms available for DBQ to attract and retain air service. Essential Air Service (EAS) Program Managed by the U.S. DOT, the EAS program currently subsidizes air carriers to serve approximately 60 communities in Alaska and 115 communities in the lower 48 contiguous states. Requirements for receiving EAS funding for communities were set in the Airline Deregulation Act of 1978. The FAA Modernization and Reform Act of 2012 provided the wording, "to remain EAS-eligible, communities must have participated in the EAS program at some time between September 30, 2010, and September 30, 2011." Unlike other like -sized Iowa communities DBQ was not participating in the EAS because air service at the time was self supporting and did not need to be subsidized, therefore DBQ is currently not eligible for EAS under current DOT guidelines. Following Iowa commercial airports were participating in the specified time frame and currently receiving EAS funding (CY 2024): •Waterloo ALO $7.4 Million •Sioux City SUX $5.3 Million •Fort Dodge FOD $6.4 Million •Mason City MSW $6.5 Million •Burlington BRL $3.5 Million Page 1142 of 1264 The objective from the start of any service is to reach a load factor and ticket price that sustains air service long-term without an MRG. The morning departure and evening arrival schedule has been well received by business and leisure travelers. Enplanements continue to grow and are trending positively with DBQ currently averaging 50% load factors. 4W 440 ssa 3o 250 Boa 15a ... 140 �o 6 a?1&2024 VNI&M24 Ow- DBQ Weekly Bookings Septernber 2024 to Last Wook Lif MD24 12119T2m iPIM(123 211HfM5 It- In order to achieve self-sufficiency, DBQ Air Service Consultant estimates that Denver Air must attain an average load factor of 80%. To achieve the remaining 30%, an increase of 15 passengers per flight on the current 50-seat aircraft will be necessary. Given DBQ's historical average of around 100 passengers daily prior to the Covid pandemic, this target is attainable. Page 1143 of 1264 Following provides financial account for the DOT Small Community Air Service Development Program (SCASDP) Minimum Revenue Guarantee (MRG) to date and estimated expenses for maintaining air service. SCASD Program used for Minimum Revenue Guarantee (MRG) SCASD Funding Breakdown: DOT City of Dubuque Dubuque Chamber GDDC Dubuque County Travel Dubuque Airport IA DOT of Aviation $1,500,000 $ 150,000 $ 100,000 $ 50,000 $ 50,000 $ 50,000 $ 40,000 $ 25,000 $1,965,000 Cash In -Kind Contributions $ 70,195 Media vendors match Airport Incentive Program $ 27,086 Airport fees waived Total $ 2,062,281 Funding Payments Invoice Total Funding Source November 2024 $276,608.03 SCASD Grant December2024 $260,321,95 SCASD Grant January 2025 $361,762.02 SCASD Grant February 2025 $326.687.00 5CA5❑ Grant Maroh 2025 $312,362.41 SCASD Grant April 2025 $333,773.15 SCASD Grant May 2025 $363,468, 77 $28485 44 scaso Grant Balance and $334,983.33 Travel Dubuque Funding June 2025 $282,811.29 $165,015.87 Travel Dubuque Funding and $117.795.62 Economic Development Revenue Guarantee ADDITIONAL FUNDING NEEDED July 2025 (5 Weeks) $325,015,06 TBD August 2025 $249,704,00 EST_ TBD September 2025 $243,824.00 EST, TBD October 2025 (5 Weeks) $323,155.00 EST_ TBD November 2025 $270,424.00 EST TBD TBD December 2025 $229,824.00 EST. Page 1144 of 1264 Additional Funding Sources and Incentives Utilized to Date: •Travel Dubuque Board contributed $500,000 to support the MRG in August 2025 •Chamber $50,000 in marketing over two years + $15,000 in kind. •Telegraph Herald matched Chamber $15,000 in kind •Dubuque Initiatives committed up to $200,000 for a $100 Airfare Rebate Program for travelers who purchase round-trip airfare tickets between August 11 and September 30, 2025. •The Dubuque Airport Commission waived annual rates and charges to DAC according to FAAAir Carrier Incentive Program. DBQ also provides discounted ground handling, fuel fees, consultant and marketing costs. •The Hilton/ Q Casino provides a discounted hotel rate for DAC crew. •The Dubuque Racing Association awarded a $100,000 Mission Grant toward marketing. •The Dubuque Racing Association also awarded a 2-year $40,000 Core Grant toward MRG. Denver Air Connections Incentive Programs: •Mile High Elite Rewards: One point per flight purchased. Six points earns a one-way reward ticket to any Denver Air Connection destination. •Denver Air Connection's Corporate Discount Program allows businesses and organizations that travel frequently the opportunity to receive a discount on Denver Air. Eligible businesses can receive up to 20% off all Denver Air fares for their first year in the program. A Key Lime Air Company Page 1145 of 1264 i. 4 Li Commercial Air Service and Minimum Revenue Guarantee Update October 6, 2025 Page 1147 of 1264 IAIRPORT CATCHMENT AREA n airport catchment area, or service area, is a geographic area surrounding an airport where it can reasonably exert to draw passenger traffic and is representative of the local market_ The catchment area contains the population of travelers who should use DBQ considering the .drive time from the catchment area to competing airports, This population of travelers is 0 B 0's focus market for air service improvements and represents the majority of travelers using the local airport. Exhilbit 3.1 identifies -the DBQ catchment area. EXHIBIT 31 DBQ CATCHMENT AREA K-P-4r " tle�en .�.. Ilw.•r ! i•r[ n..r1 I M W o uniQ Fr G4rnw k Mom, FL91n A e1• -14 A� Itr.wwrry rQJK A.Pws p wrhd. Mt.Ixhf,etr � 1� T +�� Ryon Llnph COW- Flarrt oeft isnkrap y r rP r N Krrl on rireNl� 4�-b.er Rapitls �LaFi.1- 4" Crow Rbpidi L i%Lvn '4 a my uw4 Ay'" ZprL4 U-M- Lit b7AWi6 �.51., ;Ldwr.brlt AegFit er�r�ngtiw MArr.{�:•� L Iy •"--�'k:ul �r anon 7ht1"Nax i w� GPI. iir� LIM N.14hf L ko- Thwqw^ T—lo- q- LvwfL'.• r- -- - . '� crr.� iur F Wai 5onr rr,c,wwo Qmg— —, dM1 Nq- EtittrrFr�I F. Lana Gea,ff%il..e Lihr iw--rwrxr lA� � w.,r1 � 4�r1 aernti VA" rvrrt4" IV,. L NIANk Uklofflb* 4-FW P44 IiXomw»i► d;..m Lori RW k)JIM - According to 2022 Mead and Hunt Study using Global Distribution System and Airline data there are 176,498 passengers in Dubuque Catchment area (Approximately 30-40 minutes from Dubuque). Passenger demand each way (PDEW) data indicate approximately 505 passengers fly out of an airport to a destination from Dubuque catchment area daily. Page 1148 of 1264 Direct Benefits to Dubuque Regional Airport 1. Federal Aviation Administration (FAA) Airport Improvement Program (AIP) eligibility: • Commercial Airports that have greater than 10,000 enplanements - receive $1,300,000/year entitlement + discretionary funding. • Commercial Airports which have less than 10,000 enplanements — receive funding based on an escalating scale based on enplanements + discretionary funding. • For example, 1/2 of 10,000 or 5,000 enplanements = $650,000 entitlement. • DBQ is on track to reach 7,000 + enplanements for calendar year 2025. • Commercial airports with no scheduled commercial air service, also known as General Aviation Airports, receive little if any AIP or discretionary funding. Page 1149 of 1264 Current DBQ Project Example: Taxiway Alpha ,T: 9. r r� w IRSF ! , RELOCATE TAXIWAY A PROGRAM ElPHASE 1 - FEDERAL FISCAL YEAR 2023 (ANTICIPATED CONSTRUCTION YEAR 2024) PHASE 2 - FEDERAL FISCAL YEAR 2024 (ANTICIPATED CONSTRUCTION YEAR 2U25) U PHASE 3 - FEDERAL FISCAL YEAR 2025 (ANTICIPATED CONSTRUCTION YEAR 2026) PHASE 4 - FEDERAL FISCAL YEAR 2026 (ANTICIPATED CONSTRUCTION YEAR 2027) PHASE 5 - FEDERAL FISCAL YEAR 2027 (ANTICIPATED CONSTRUCTION YEAR 2020) PHASE S - FEDERAL FISCAL YEAR 2028 (ANTICIPATED CONSTRUCTION YEAR 2029) �orw�.xm�� o�x.orc ,u. aau�•ro _anoxia. tm wa xeaA: _ � rtr o'a.. ]rv^ RELOCATE TAXIWAY A PROGRAM Foth aeara, PROORIU6 PHASING Sl1MMARY aucusrso�s PHASE EXH. 1 Phased over 5 years, 2024- 2028, estimated $40 million project using FAA AI P entitlement and discretionary funding. The project is eligible is 90% federal ($36 Million), 10% local ($4 Million) Phase 1 3ree, = Complete Phase 2 31u = In Progress Phase 3 Purple = Received Go letter from FAA to bid next year. Phase 4 and 5 = TBD Page 1150 of 1264 Direct Benefits to Dubuque Regional Airport - Continued 2. Passenger Facility Charge DBQ Airport received $4.39 passenger facility charge (PFC) for each passenger enplaned. DBQ FAA approved PFC Plan is dedicated to Airport Improvement Program projects to pay toward annual debt service on local 10% match. Estimating ERJ 145, 50 seat aircraft, 80% load factor: 40x7x52= 14,560 pax X $4.39 PFC = $63,918 annual 3. Direct Job Retention at Dubuque Regional Airport Terminal Employees Ground Handling 2 FT, 10 PT = 12 TSA 5 FT, 5 PT = 10 Avis 1 FT, 1 PT = 2 Bag Service 1 FT = 1 Total = 25 Add restaurant employees with sustained service. Does not include secondary service. Page 1151 of 1264 i. 4 Li THE CITY DUOF B TEE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Commercial Air Service Minimum Revenue Guarantee DATE: September 11, 2025 INTRODUCTION Dubuque All -America City IN 2007.2012.2013 2017*2019 During annual goal -setting sessions in 2022, 2023, and 2024, you identified commercial air service as a top priority for the community. The purpose of this memorandum is to provide an update on efforts related to that priority and to request your approval to commit additional funds for the minimum revenue guarantee needed to maintain the existing daily commercial air service at the Dubuque Regional Airport. In commercial air service, a minimum revenue guarantee (MRG) is an agreement whereby a municipality or airport operator guarantees an airline a certain amount of revenue for a new, established, or expanded air route. If the airline's actual revenue from that service falls short of the guaranteed amount during a defined period, the local entity pays the airline the difference, reducing the airline's financial risk and encouraging new service or competition. MRGs ensure that an air carrier receives a predetermined amount of revenue, regardless of actual ticket sales. This support is provided to encourage the carrier to start or maintain service, with the duration of MRG funds depending on factors like load factors, ticket revenues, and carrier expenses. By fostering new or expanded air service, MRGs help support local economies by supporting local business and leisure travelers and attracting tourism and visitors, who then spend money at local hotels, restaurants, and attractions. BACKGROUND Prior to the COVID pandemic, Dubuque offered daily commercial air service with three flights a day to Chicago (O'Hare) on American Airlines, destination charters on Sun Country Airlines to Biloxi and Laughlin, and private charters (examples: Honor Flight, MLB, VIP) operating out of the Captain Robert L. Martin Terminal. In calendar year 2019 (pre-COVID), FAA enplanements reported 36,521 passengers flew from Dubuque to O'Hare as their destination or connection, on three flights daily. During that same year, the US DOT Origination & Destination (O&D) report showed an average of 99 passengers flew from Dubuque to O'Hare daily and a total of 73,184 outbound and inbound total passengers. Page 1153 of 1264 After the pandemic hit, American Airlines began flight reductions in late calendar year 2020. In response to the pandemic's impact on travel, air carriers received federal relief funding in an attempt to retain service to national markets. After federal relief funding ran out, American Airlines announced in June 2022 they were suspending service to Dubuque starting September 7, 2022, citing the national pilot shortage. As a result of the loss of daily scheduled air service, a Commercial Air Service Team (CAST) was formed and eventually evolved into a 501(c)6 not for profit, DBQ Air, with board members combined from private public organizations: • Brad Cavanagh, Mayor, City of Dubuque • Harley Pothoff, Supervisor, Dubuque County • Molly Grover, President and CEO, Chamber of Commerce • Keith Rahe, President and CEO, Travel Dubuque • Anthony Williams, President and CEO, Q Casino • Jason White, Vice President of Business Services, Greater Dubuque Development Corporation • Mary Ann Kurtz Weber, Vice Chair, Airport Commission • Todd Dalsing, Airport Director, Dubuque Airport DBQ Air applied for a "refreshed" Small Community Air Service Development (SCASD) grant, increasing federal participation from $775,000 to $1,500,000. The DOT approved the grant, and the Airport Commission executed the grant on November 7, 2023. The SCASD program is designed to help small communities address air service issues. SCASD can involve revenue guarantees, financial assistance for marketing programs, start-up costs, and studies. The strategic plan includes the restoration of nonstop daily scheduled service to a hub and to improve regional connections to the nation and world for business and leisure travelers. DBQ Air, working with DBQ Air Service Consultant Matt Skinner from Global Flights, began meeting weekly to restore daily scheduled service and explore additional service. Several months of efforts and meetings with mainline and regional carriers resulted in an option to restore daily service starting with afternoon flights to O'Hare on Denver Air Connection utilizing an ERJ145 aircraft (50 Seat). Utilizing the SCASD grant and FAA Air Carrier Incentive Program (which includes fee reduction, fee waiver, or use of airport revenue for acceptable promotional costs, where the purpose is to encourage an air carrier to start or increase service), Denver Air began service on November 4, 2024, featuring interline agreements with United and American for hundreds of convenient connections beyond O'Hare. Overcoming Challenges Dubuque has overcome several challenges prior to and since the restoration of commercial air service in November 2024. • No Commercial Air Service at Dubuque for 2 Years: It has been a challenge to introduce a new service to the market and break travel habits formed during the two-year absence of local, commercial air service. • Launching New Service in November: 2 Page 1154 of 1264 Nationally, November through February are low passenger travel months. Afternoon Flight Time: Although the afternoon flight time was the only option available to restore service at Dubuque, businesses expressed concerns that the afternoon flight was not ideal for business travel. Many noted this schedule would require them to incur an additional night of travel. (The afternoon flight and November start were the only option at time of negotiations). This challenge eventually led to Dubuque Air working with Denver Air and O'Hare to adjust the flight schedule to an AM departure and PM arrival which started May 16, 2025. Construction at O'Hare: After the announcement of the new service, O'Hare advised Denver Air of construction in Terminal L, which impacted jet bridge and gate service for all Dubuque passengers. Denver Air's only option was remote aircraft parking and utilizing a bus to transport passengers to and from the terminal from November to early May. Mayor Cavanagh and Denver Air petitioned O'Hare's gate director and ultimately restored gate operations and jet bridge service at Gate G2. The first departure from O'Hare's gate was May 15, 2025. No Other Federal or State Funding Options Available: Dubuque Air and Dubuque and Dubuque County elected officials have unsuccessfully advocated with federal and state legislators for options to be added to existing programs such as Essential Air Service, altering SCASD language, or starting a new program that would assist airports similar to Dubuque. Mainline Air Carriers (American, United, Delta, Southwest): A City official met with American and was told adding regional markets like Dubuque is not in their plans. They will continue to rely on regional carriers to supply passengers to mainline airports. Matt Skinner, Dubuque Air Service Consultant, also regularly meets with all mainline carriers who have conveyed the same message. Competing Regional Airports: Cedar Rapids (CID), Madison (MSN), and Moline (MLI) are all competing for passengers and marketing their service in the Dubuque Regional Airport catchment area. SURVEYS December 2023, prior to pursuing daily scheduled air service a survey was part of a broader study effort to provide a detailed understanding of the want and need for commercial air service at the Dubuque Regional Airport, among a variety of stakeholders and regional users. The results of the study are intended to provide information for purposes of air planning, air service and airport development, overall economic planning and development, transit forecasting and development, and partnerships and participation in a variety of multi -community and regional efforts. Employer & Resident Surveys Employers: 228 Responses and 28 interviews Strong support. Most employers (73%) support efforts to attract Dubuque air service, recognizing it might require financial guarantees. 3 Page 1155 of 1264 Financial support. Most employers (69%) also support the use of City and/or County funds to attract air service, while with voluntary private funding efforts, 51 % support with 29% neutral. Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Dallas, Denver, and Minneapolis. Willingness to Use. Employers estimate that they would be willing to spend an average of $142 more for a round-trip flight from Dubuque as compared to a similar flight from Chicago -O'Hare. Economic Impacts of air service expansion: Two-thirds (68%) expect a positive impact on their business. Almost all (95%) expect a positive impact on the greater Dubuque area economy. Residents: More than 8,000 responses Strong Support. The vast majority (91 %) of respondents strongly (78%) or somewhat (13%) support efforts to attract Dubuque air service. Willingness to use. The vast majority (86%) of respondents would definitely (68%) or probably (18%) consider using Dubuque if air service were expanded to a major hub airport. Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Denver, Dallas, Minneapolis, and Atlanta. Impacts of Dubuque air service expansion. 84% expect a positive impact on their household. Almost all (97%) expect a positive impact on the greater Dubuque area economy. July 2025 results from a survey targeted toward travelers flying through Dubuque clearly indicate that people who use the service have a positive experience. As of September 4, over 80 people have completed the survey. Here are some key results: • 85% rate their experience at the airport at excellent and 10% rate is as good • 90% are very likely to recommend the airport to friends, family, or colleagues • 95% are very likely or somewhat likely to use the airport in the future • 60% of respondents were leisure travelers, 30% were business travelers and 10% were a combination of business and leisure Population Growth The Tri-State region's economy and population are growing, commercial air service at the Dubuque Regional Airport is critical to continued growth. According to the US Census Bureau's Vintage 2024 population estimates, for the first time in history, the population of Dubuque County is approaching 100,000. The city of Dubuque, home to nearly 60% of Dubuque County's total population and the location where most residents within 50 miles work, shop, and recreate, is a major driver and beneficiary of this milestone. Only 30 of the 99 counties in the state of Iowa grew in population from 2010-2020, and only eight of those grew by more than 5,000 people. Of those eight counties that grew by more than 5,000 people, only Dubuque County (city of Dubuque) and Scott County (city of Davenport) were outside the Polk County (city of 0 Page 1156 of 1264 Des Moines)/Story County (city of Ames) and Johnson County (city of Iowa City)/Linn County (city of Cedar Rapids) corridors. According to the US Census Bureau's Vintage 2024 population estimates, only seven counties in the state of Iowa showed a population increase of more than 900 people from 2020-2024, and only Dubuque County (+934) was outside the Polk County/Story County and Johnson County/Linn County corridors. Dubuque County's continued economic and population growth is a welcome contrast to most of the rest of Iowa -- and to the 1980s when the Dubuque County lost nearly 10% of its population and unemployment soared, hitting 23% in 1983. Local commercial air service is expected and needed in growing communities. Daily commercial air service provides a conduit to national and international students attending higher education in the tristate area: • Loras College — Student population: Approximately 1,600 • Clarke University — Student population: Around 1,200 • University of Dubuque — Student population: 2,190 • Emmaus Bible College — Student population: 206 • Wartburg Theological Seminary — Student population: 193 • Divine Word College — Student population: 61 • University of Wisconsin —Platteville — Student population: 6,696 Economic Development Since July 1, 2022, Greater Dubuque Development Corporation reports there has been over $805 million in new construction in Dubuque County with businesses creating approximately 1,000 jobs. One of the indicators that shows Dubuque is growing and thriving is building permit fees. Last fiscal year permit fees were $1,357,425, which is an increase of $567,937 (72%) from the prior fiscal year. The continuation of local commercial air service is important to major projects already in the works, such as: • John and Alice Butler College of Osteopathic Medicine: University of Dubuque officials plan to open the college in downtown Dubuque in August 2028 and grow enrollment to about 180 students per class by 2030, eventually reaching 200 students per class for a total enrollment of 400. Air service will be critical to recruiting and retaining students, faculty, and staff from around the country and around the world. • Field of Dreams: The over $80 million Field of Dreams project and all the visitors it is already bringing and will bring to the area. This year, over 600 teams from 28 states have played or will play games in Dubuque County, with events such as skills camps taking place at the field of Dreams movie site. In the near future, FOD officials hope to welcome more than 1,000 teams per year thanks to the new fields. • Expansion of the University of Dubuque Aviation Pilot Program: LID is growing the program from 350 enrolled students to 500+. Currently US is constructing a new hangar, flight center, apron and parking. 4i Page 1157 of 1264 • New and Expanded Amenities and Attractions: A new Dubuque Museum of Art; development of Wanderwood Children's Gardens; a planned new Dubuque Community Y; the over $100 million Chaplain Schmitt Island Development Plan, and numerous commercial, hotel, and housing projects under construction; investments in city infrastructure and streets. Air service is imperative to keep this momentum moving forward. It is an infrastructure which facilitates business, tourism, and helps attract and retain residents (including students). It is an expected service, no different than high-speed internet, available land for growth, utilities, ground transportation (bus), recreation space, etc. Funding Air Service There are very few incentives or funding mechanisms available for Dubuque to attract and retain air service. Essential Air Service (EAS) Program Unlike other like -sized Iowa communities Dubuque could not participate in the EAS program in 2012 because air service at the time was self supporting and did not need to be subsidized, therefore Dubuque is currently not eligible for EAS under DOT regulations. Managed by the U.S. Department of Transportation, the EAS program currently subsidizes commuter and certificated air carriers to serve approximately 60 communities in Alaska and 115 communities in the lower 48 contiguous states that otherwise would not receive any scheduled air service. Requirements for receiving EAS funding for communities were set in the Airline Deregulation Act of 1978 and include: Communities were more than 70 highway miles from large or medium hub airport, communities that require a per -passenger subsidy rate of $200 unless community is farther than 210 highway miles from large or medium hub airport. The Airline Deregulation Act of 1978 also guaranteed that communities served by air carriers before deregulation (1978) would continue to receive a certain level of scheduled air service. If an air carrier could not continue that service without incurring financial loss, the DOT could use EAS funding to award the carrier willing to provide service. The FAA Modernization and Reform Act of 2012 included reform measures that a community must have a minimum number of enplanements to remain eligible for the subsidy. It also provided the wording, "to remain EAS-eligible, communities must have participated in the EAS program at some time between September 30, 2010, and September 30, 2011." Air Service at Dubuque was self supporting during this time therefore not participating or eligible As of October 1, 2012, no new communities can enter the program should they lose their unsubsidized service, except in Alaska and Hawaii. This prohibits Dubuque from receiving EAS funding under current federal regulations. Iowa Commercial airports received the following EAS funding in 2024: Page 1158 of 1264 • Waterloo ALO $7.4 Million • Sioux City SUX $5.3 Million • Fort Dodge FOD $6.4 Million • Mason City MSW $6.5 Million • Burlington BRL $3.5 Million Funding Update Air service is critically important to a local economy by enabling business travel and connectivity, facilitating global market access, boosting tourism, creating jobs directly and indirectly through various sectors, and supporting the relocation of businesses and professionals by providing vital links to the national and global transportation network Using numbers based on the 2022 Iowa Airport Economic Impact Study, the 2025 commercial air service is estimated to generate nearly $19 million in economic benefit for Dubuque/Dubuque County. Dubu ue/DAC Commercial Passengers: 2025 Estimated Economic Impact 2025 2025 Est 2022 Econ Output Per Economic Passengers Passenger Inflation 2022-25 Impact 7,637 $2,201 1.13 $18,994,212 The objective from the start of service is to reach a load factor and ticket price that sustains air service long-term without an MRG. The morning departure and evening arrival schedule has been well received by business and leisure travelers. Enplanements continue to grow and are trending positively, with Dubuque currently averaging nearly 50% load factors. DBQ Weekly Bookings September 2024 to Last Week 450 400 350 300 250 200 150 100 50 - - 0 9/1&2024 10/18/2024 11/18/2024 12/18/2024 VM2025 2/18/2025 3/18/2025 4/18/2025 51AI8I2025 6/182025 V18/2025 8/18/2025 7 Page 1159 of 1264 To attain self-sufficiency, Dubuque Air Service Consultant estimates Denver Air will need to reach an average 80% load factor. To reach the additional 30% will require an additional 15 passengers per flight on the existing 50-seat aircraft, which we believe is achievable when considering Dubuque's history of approximately 100 passengers per day pre-Covid. The following provides a comprehensive financial account for the DOT Small Community Airservices Development Program (SCASDP) and forecast Minimum Revenue Guarantee (MRG) to retain daily scheduled commercial air service on Denver Air Connection at Dubuque Regional Airport. This forecast outlines the estimated expenses, revenues, and financial needs for maintaining air service between Dubuque and Chicago O'Hare offering a picture of the financial landscape and the necessary funding to retain air service. SCASD Program used for Minimum Revenue Guarantee (MRG) SCASD Funding: DOT City of Dubuque Dubuque Chamber GDDC Dubuque County Travel Dubuque Airport IA DOT of Aviation $1,500,000 $ 150,000 $ 100,000 $ 50,000 $ 50,000 $ 50,000 $ 40,000 25,000 $1,965,000 Cash In -Kind Contributions $ 70,195 Media vendors match Airport Incentive Program $ 27,086 Fees waived Total $2,062,281 MRG Payments to Denver Air Connection: Invoice Total Funding Source November 2024 $276,608.03 SCASD Grant December 2024 $260,321.95 SCASD Grant January 2025 $361,762.02 SCASD Grant February 2025 $326,687.00 SCASD Grant March 2025 $312,362.41 SCASD Grant April 2025 $333,773.15 SCASD Grant May 2025 $363,468.77 $28,485.44 SCASD Grant Balance and $334,983.33 Travel Dubuque Funding June 2025 $282,811.29 $165,015.67 Travel Dubuque Funding and $117,795.62 Economic Development Revenue Guarantee ADDITIONAL FUNDING NEEDED July 2025 (5 Weeks) $325,015.06 TBD August 2025 $249,704.00 EST. TBD September 2025 $243,824.00 EST. TBD Page 1160 of 1264 October 2025 (5 Weeks) $323,155.00 EST. TBD November 2025 $270,424.00 EST. TBD December 2025 $229,824.00 EST. TBD Total estimated funding needed to retain service through December 2025: $ 1,641,946. Additional Funding Sources and Incentives Utilized to Date: • Travel Dubuque Board contributed $500,000 to support the MRG in August 2025 • Chamber $50,000 in marketing over two years + $15,000 in kind. • Dubuque Initiatives committed up to $200,000 for a $100 Airfare Rebate Program for travelers who purchase round-trip airfare tickets between Aug. 11 and Sept. 30, 2025. • The Dubuque Airport Commission waives annual rates and charges to DAC according to FAA Air Carrier Incentive Program. Dubuque also provides discounted ground handling and fuel fees, consultant and marketing costs. • The Hilton/Q Casino provides a discount hotel rate for DAC crew. • The Dubuque Racing Association awarded a $100,000 Mission Grant toward marketing. • The Dubuque Racing Association also awarded a 2-year $40,000 Core Grant toward MRG. Denver Air Connections Incentive Programs: • Mile High Elite Rewards: With Denver Air Connections' Mile High Elite rewards program, one point per flight purchased. Just six points earns a one-way reward ticket to any Denver Air Connection destination (except Telluride). • Denver Air Connection's Corporate Discount Program allows businesses and organizations that travel frequently the opportunity to receive a discount on Denver Air Connection flights. Eligible businesses can receive up to 20% off all Denver Air fares for their first year in the program! ACTION TO BE TAKEN The City of Dubuque each year adopts a balanced budget. Because of changes that occur during the budget year each year the city finishes with unexpended funds remaining. The City of Dubuque is currently working to close out the Fiscal Year 2025 $263 million city budget ($88 million general fund), that ended June 30, 2025, and there will be available several million dollars (final amount to be determined as the budget is officially closed out over the next few weeks), some of which can be used to fund a minimum revenue guarantee (estimated at $1,641,946) through at least December 2025 providing time to provide more information to help determine if commercial air service from Denver Air at Dubuque Regional Airport is feasible long term. Mic ael C. Van Milligen Z Page 1161 of 1264 MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Todd Dalsing, Airport Director 10 Page 1162 of 1264 From: Andrew Bider <ARUTLER(acotsnghamhutleccom> Sent: Thursday, October 2, 2025 7:00AIV Subject: FW: Commercial Air Service in Dubuque is Essential Caution! This message was sent from outside your organization. Never give your login information and password over email! Allow sender I Block sender In talking with many flyers taking advantage of the Denver Air Connection flight to Chicago, we he r them say the trip was flawless. The parking, the thoroughness and timing of security, the enjoyment of talking with f riends in the we it!ng area all exceeded their expectations. Sure, we've heard the complaints, delayed flights, luggage challenges, company expense software doesn't coordinate the way it should.... we know this, anytime an issue or problem has been raised with Denver Air, it's been addressed when the issue was theirs, and satisfactorily explained when it wasn't. The customer service has been won dart u L And none of the issues justify not working together to build a strong and sic cessfuL commercial air connection to Chicago. Our community[sat a crossroads. Either we support all the great work that's been done to date to bring successful commercial air travel back to Dubuque to fuel the amazing future ahead of our county and region or we don't. We side with growth and excitement and encourage a LL in our community to support funding the gap between the current passenger Loads a nd the 90% capa6ty needed for continued flights. Not only does our community need this, we deserve it! Now is not the time to give up. Successful commercial airtravelto and from Dubuque is essentialto the continued success of our community. So many incredible things are occurring now— The Feld of Dreams, The Dubuque Museum ofArt project,Schmidt Island, The University of Dubuque medical school, Wanderwood Gardens, new residential developments. The excitement is palpable, and our community isthinking about aLLthe things that are possible! Viable commercial air service will further leverage our success as a community. Denver Air has been an exceptional Its rtner. By working together with the private sector, our community, county and region can ensure that aLLthe hard work done to date will be the strongest fou hostler, for an even better future. Our ask isthis, bean active and positive part of the solution. Commercial air service in Dubuque is only sustainable if people take advantage of the flights. Denver Air has been an incredible partner. GDDC, Dubuque Initiatives, The Dubuque Chamber of Commerce, Travel Dubuque, Dubuque Main Street and ma ny of employers in Dubuque have been amazing partners to attract Denver Air. Long-term, the obligation is on us astravelers to fly Denver Air so the public support is no longer needed. And rewJ. Butler crcu,CERS,ARM, aT3 Executive Chairman, Cottingham & Butler, Inc. President, SISCO O 505975M1 M 56 NO 0631 F 5635 5527 rbutrer@ro ,F —hutlerrnm Page 1163 of 1264 Dubuque, A new service request has been filed_ ID 227384 DatelTime 1016/2025 1:13 PM Type Contact City Council Address 3188 HIGHLAND PARK DR, Dubuque Origin Website Comments We need to stop funding air service_ We already know that there are not enough customers to supportair service. I don`kthinkthe council is listing to the larger group against supporting air service with tax dollars_ This would be another situation like 5 Flags, Part of Dubuque docks and convenient stare and the I'm On ice arena_ They each cost the taxpayers hundreds of thousands of dollars each year and they're not even close to be self- supporting! All these projects are outside the purview of the City Government. The claims made by some of the council members stating the city %ill not grow or our higher edLICatlon Institutions will suffer are unfounded! ubmitter Wolff, Keith 210 Cedar Cross Road Dubuque, IA 52006 563-582-1691 kwolff dubuquesign_com Page 1164 of 1264 RESOLUTION NO. 111-25 A RESOLUTION OF SUPPORT FOR CONTINUED COMMERCIAL AIR SERVICE AT THE DUBUQUE REGIONAL AIRPORT WHEREAS, the Dubuque Regional Airport stands as a crucial transportation asset for the tri-state area, serving residents, businesses, educational institutions, and visitors across northeast Iowa.,, southwest Wisconsin, and northwest Illinois; and, WHEREAS, having scheduled commercial air service is a key requirement for federal Airport Improvement Program (AIP) funding through the Federal Aviation Administration (FAA), utilizing entitlement and discretionary grants; and, WHEREAS, Dubuque Regional Airport is currently undertaking a multi -phase Taxiway Alpha reconstruction project estimated at $40 million over five years (2024-2028), with 90% of funding ($3 6 million) expected from FAA AIP sources and 10% ($4 million) from local matching funds; and, WHEREAS, the potential loss of commercial air service is not just a concern, but a looming threat that would not only jeopardize Dubuque's eligibility for guaranteed federal entitlement and discretionary funding but also put airport operations, safety, and regional economic growth at risk; and, WHEREAS, the City of Dubuque is actively working on federal and local strategies to maintain commercial air service; and, WHEREAS, the City of Dyersville recognizes the importance of commercial air service in Dubuque to our community's quality of life, business environment, tourism, and access to national markets; and, WHEREAS, without regular commercial flights at the Dubuque Regional Airport, Dyersville would find it difficult to host international and national special events because guests would need to drive from airports over an hour away; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DYERSVILLE, IOWA: Section 1. The Dyersville City Council fully supports the City of Dubuque's ongoing efforts to retain and expand commercial air service at the Dubuque Regional Airport. Section 2. The Dyersville City Council authorizes the Mayor and City Administrator to work with the City of Dubuque and other regional partners to promote and aid these efforts. Section 3. The Dyersville City Council urges other local jurisdictions, Dubuque and Delaware Counties, and the State of Iowa to partner with the City of Dubuque to seek viable solutions for maintaining commercial air service at the Dubuque Regional Airport. This collaborative effort could not only ensure the airport's future but also pave the way for enhanced regional connectivity and economic growth. Passed and approved this 6th day of October 2025. ATTEST: Tricia L. Maiers, City Clerk