Commercial Air Service Minimum Revenue GuaranteeCopyrighted
February 2, 2026
City of Dubuque ACTION ITEMS # 2.
City Council
ITEM TITLE: Commercial Air Service Minimum Revenue Guarantee
SUMMARY: City Attorney and City Manager sharing information regarding
the Minimum Revenue Guarantee with Denver Air.
SUGGUESTED Receive and File
DISPOSITION:
ATTACHMENTS:
1. 1 CB MEMO MRG Memo_1-21-26 + Agmt
2. 2 MVM Memo Commercial Air Service Minimum Revenue Guarantee
3. 3 Airport Commission Chair Correspondence
4. 4 25 12 15 Commercial Air Service Minimum Revenue Guarantee
5. 5 25_12_04 Airport Commission Memo - Denver Air Service Update Autorizing TD
to notify DA
6. 6 25 10 06 Commercial Air Service Minimum Revenue Guarantee
7. 7 25 09 15 Commercial Air Service Minimum Revenue Guarantee
8. 8 24 08 27 Com . Packet
9. 9 23_10_02 Small Community Air Service Development (SCASD) Program
10. 10 original application and updated information SCASD
11. 2025 Goals and Priorities Handout
12. 2024 Goals and Priorities Handout
13. 2023 City Goals & Priorities Handout
14. 2022 Goals and Priorities Handout
15. Updated CB Memo_Uploaded 2.2.26
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THE CITY OF
DUB E
Masterpiece on the Mississippi
CA--&���
CRENNA M. BRUMWELL, ESQ.
CITY ATTORNEY
To:
DATE: JANUARY 21, 2026
RE: OPEN RECORDS REQUEST FOR
MINIMUM REVENUE GUARANTEE WITH DENVER AIR CONNECTION
Background
Dubuque
All•A�eNea 6Iq
1ml'o I
I I
2007-2012.2013
2017*2019
The City of Dubuque Airport Commission and Library Board of Trustees operate with a
level of independence and authority which are quite different than that of other boards
and commissions. This is unique and specific to the Iowa Code.
The Airport Commission "has all of the powers in relation to airports granted to cities and
counties under state law, except the powers to sell the airport." (Iowa Code § 330.21,
included below). The City Council's control related to the Airport is limited to control of
the Airport budget.
Contracts entered by The City of Dubuque by and through its duly authorized Airport
Commission.
330.21 Powers — funds.
1. The commission has all of the powers in relation to airports granted to cities
and counties under state law, except powers to sell the airport. The commission
shall annually certify the amount of tax within the limitations of state law to be levied
for airport purposes, and upon certification the governing body may include all or
a portion of the amount in its budget.
2. All funds derived from taxation or otherwise for airport purposes shall be under
the full and absolute control of the commission for the purposes prescribed by law,
and shall be deposited with the county treasurer or city clerk to the credit of the
airport commission, and shall be disbursed only on the written warrants or orders
of the airport commission, including the payment of all indebtedness arising from
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563) 589-4381 / FAx (563) 583-1040 / EMAIL cbrumwel@cityofdubuque.org
Page 457 of 865
the acquisition and construction of airports and their maintenance, operation, and
extension.
Open Records Request
When an open records request is submitted where some, or all, of the information may
be confidential, staff convene and discuss. In some cases, other parties are included in
the discussion. The discussion revolves around whether there are provisions of Iowa
Code § 22.7 which allow for withholding or redacting portions of documents prior to
disclosure.
In the event of a request for a contract with a vendor or service provider we notify the
entity of the request and begin an interactive process to identify whether that entity asserts
any of the information contained in the contract/agreement is protected under Iowa Code
§ 22.7. The requester is notified that the information is being reviewed under Iowa Code
§ 22.7. If the parties cannot agree on what is and is not confidential under Iowa Code §
22.7, the outside entity is given a deadline after which the City will release the information
with the redactions, if any, the City believes are legally justified. Providing the deadline
gives the outside party an opportunity to seek a court order prohibiting the City from
releasing the information.
It has been asserted the City of Dubuque has refused to provide a copy of the Minimum
Revenue Guarantee with Denver Air Connection. This is inaccurate. The City has
indicated it must follow a process before releasing some or all of the requested document,
and the City has continued to carry out that process.
The Denver Air Connection Minimum Revenue Guarantee includes a provision related to
confidentiality and proprietary information. Upon notification of the request in this
instance, Matt Skinner, on behalf of Denver Air Connection, asserted the Minimum
Revenue Guarantee document was confidential in its entirety. The City disagreed and
informed Mr. Skinner that if it could show the information was proprietary under the trade
secret provisions of Iowa Code § 22.7, the City could redact those confidential portions
of the document prior to public release, but the City could not withhold the document in
its entirety. The process was outlined for Denver Air Connection and information shared
on what happens if there is no agreement.
The parties began interacting to identify if there could be agreement under Iowa Code §
22.7. This involved meetings, emails, and phone calls spanning from October 3, 2025,
through January 19, 2026.
Communications Re: October 3, 2025, Open Records Requests /
Interactive Process on Iowa Code 22.7
October 7, 8, 9, 29, 30, 31
November 3, 4, 5, 13, 20, 21, 24, 25, 26
December 2
January 5, 6, 7, 9, 12, 13, 16, 19
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Ultimately, the City and Denver Air Connection could not agree on which parts of the
agreement qualified as trade secrets under applicable law. Mr. Skinner was informed
that the information would be released on Wednesday, January 21, 2026. This allowed
time for Denver Air Connection to pursue obtaining a court order prohibiting the City from
releasing the information, if it so desired. If no court order is received by the end of
business on January 21, 2026, the information will be released, with the redactions the
City believes are authorized by state law, but without all the redactions requested by
Denver Air Connection.
On January 21, 2026 the City was notified that Denver Air Connection would not be
seeking a court order to stop release of the information. The Minimum Revenue
Agreement will be provided to the requesters with limited redactions under Iowa Code
Section 22.7.
Minimum Revenue Guarantee
A minimum revenue guarantee was entered into with Denver Air Connection in late 2024
to resume air service from Dubuque to Chicago. The City was a recipient of a $1,500,000
federal Small Community Air Service Development (SCASD) grant for which there was a
required local match. Matching funds were provided by several entities in the effort to
resume and maintain air service.
Airport Revenue Guarantee Funding:
SCASD Grant Funding:
1,500,000.00
Local Match:
Airport Guarantee CIP Funded by Urban Development Action Grant
150,000.00
Dubuque Chamber 100,000.00
GDDC 50,000.00
Dubuque County 50,000.00
Travel Dubuque 50,000.00
TOTAL SCASD Program and Grant Local Match:
1,900,000.00
Additional Funding:
Travel Dubuque
500,000.00
*City of Dubuque FY25 General Fund Savings
1,356,521.22
City of Dubuque ARPA Funds
350,000.00
Dubuque Air
50,030.11
Total Funding
4,156,551.33
*FY 2026 Amendment 1, included $2.5 million for airport revenue guarantee
Approved by City Council on October 20, 2025
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Page 459 of 865
The Airport paid the minimum revenue guarantee to Denver Air Connection, submitting
reimbursement requests to the Department of Transportation (DOT), and was reimbursed
by the DOT. Matching partners were invoiced for their contributions.
Financial Authority
As previously mentioned, the Airport Commission retains authority over the funds
allocated to it by the City Council. The City Council's authority is solely related to
allocation of budget funds.
The City budget contains several categorizations under state law related to revenue
sources and activities by program for expenditures. The budget must contain estimates
for each program's expenditure for the next fiscal year.
384.16 City budget.
Annually, a city that has satisfied the requirements of section 384.22, subsection
3, and the applicable portions of chapter 24, shall prepare and adopt a budget, and
shall certify taxes as follows:
1. a. A budget must be prepared for at least the following fiscal year. When required
by rules of the committee, a tentative budget must be prepared for one or two
ensuing years. A proposed budget must show estimates of the following:
(1) Expenditures for each program.
(2) Income from sources other than property taxation.
(3) Amount to be raised by property taxation, and the property tax rate
expressed in dollars per one thousand dollars assessed valuation.
b. A budget must show comparisons between the estimated expenditures in each
program in the following year, the latest estimated expenditures in each program
in the current year, and the actual expenditures in each program from the annual
reports as provided in section 384.22, or as corrected by a subsequent audit report.
Wherever practicable, as provided in rules of the committee, a budget must show
comparisons between the levels of service provided by each program as estimated
for the following year, and actual levels of service provided by each program during
the two preceding years. For each city that has established an urban renewal area,
the budget shall include estimated and actual tax increment financing revenues
and all estimated and actual expenditures of the revenues, proceeds from debt
and all estimated and actual expenditures of the debt proceeds
The Iowa League of Cities has created a summary reference guide related to municipal
budgets which outlines revenue sources and government activities by program. The
guide is included on the next page.
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The airport falls under the Public Works program for state budget purposes.
Revenue Sources
Program
Taxes — includes property taxes,
Public Safety — police, fire, ambulance,
Local Option Sales Taxes,
animal control and other public safety
hotel/motel, sales and Tax Increment
Financing
services
Public Works— roads, bridges,
Licenses and Permits — includes
engineering, airport, snow removal and
building and other permits
other services not included as an
enterprise
Use of Money and Property —
Health & Social Services — welfare
includes interest earning and
assistance, mosquito
building rents and leases
Intergovernmental — funds received
Culture and Recreation — library, arts,
from other governments such as
park and recreation, and other cultural
Road Use Tax and grants
activities
Charges for Services — fees
Community & Economic Development —
generated from users of a service
community beautification, housing,
such as utility fees
planning and zoning and economic
development activities
Special Assessments — includes
General Government — mayor, council,
charges for city assessments such
clerk, attorney, city hall and other
as street and sewer projects
administrative
Miscellaneous Revenues — includes
Debt Service— principal and interest
donations, refunds and internal
payments on bonds, notes and other
service charges
debt obligations
Other Financing Sources — includes
Capital Projects — general government
transfers and proceeds from sale of
or Tax Increment Financing capital
city assets or bond proceeds
projects
Business Type/Proprietary Activities —
water, sewer and other utilities include
all associated debt and capital projects
Source: https://iowaleague.org/resource/budget-process/
Page 461 of 865
While the budget contains a significant portion of specific authorizations/budget line items,
the categorical divisions outlined above must remain flexible to account for fluctuation in
costs and expenditures. The fluctuation results from some planned projects going over
budget and others coming in under budget. Often, at the end of a fiscal year there are
unexpended, unencumbered cash balances on hand. Budget amendments are made
pursuant to Iowa Code § 384.18 to permit the appropriation of those funds.
384.18 Budget amendment.
1. A city budget as finally adopted for the following fiscal year becomes effective
July 1 and constitutes the city appropriation for each program and purpose
specified therein until amended as provided in this section. A city budget for the
current fiscal year may be amended for any of the following purposes:
a. To permit the appropriation and expenditure of unexpended,
unencumbered cash balances on hand at the end of the preceding fiscal
year which had not been anticipated in the budget.
b. To permit the appropriation and expenditure of amounts anticipated to be
available from sources other than property taxation, and which had not been
anticipated in the budget.
c. To permit transfers from the debt service fund, the capital improvements
reserve fund, the emergency fund, or other funds established by state law,
to any other city fund, unless specifically prohibited by state law.
d. To permit transfers between programs within the general fund.
2. A budget amendment must be prepared and adopted in the same manner as
the original budget, as provided in section 384.16, excluding the requirement for
the mailing of individual statements under section 24.2A, and is subject to protest
as provided in section 384.19, except that the committee may by rule provide that
amendments of certain types or up to certain amounts may be made without public
hearing and without being subject to protest. A city budget shall be amended by
May 31 of the current fiscal year to allow time for a protest hearing to be held and
a decision rendered before June 30. The amendment of a budget after May 31,
which is properly appealed but without adequate time for hearing and decision
before June 30 is void.
The City of Dubuque does two (2) budget amendments annually. The budget is amended
for City Council actions since the last budget adoption or the last budget amendment and
includes items for which City Council has expressed support. In addition, the amendment
includes budget carryovers to the new fiscal year.
In this specific instance, the Airport Commission hoped there would be unexpended,
unencumbered funds available at the end of the fiscal year to cover additional revenue
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Page 462 of 865
guarantee payments. Unfortunately, there were not unexpended, unencumbered funds
available within the Airport's budget allotment.
The City Council identified:
Air Service Future Strategy and Action Plan: Major Airline Hub Connections
as a Top Priority in 2024 for staff. The priorities are a City Council directive and
authorization to the City Manager to take action steps toward accomplishing the goal.
Once the SCASD grant, local match, and additional funds from others were depleted, the
City Manager authorized the expenditure of Public Works Program dollars of $92,809.68
to close out the minimum revenue guarantee funds due to Denver Air Connection.
The FY26 budget was amended by the City Council on October 20, 2025, to include
additional airport revenue guarantee support of $2.5 million. All but the $92,809.68
referenced above of the minimum revenue guarantee funds paid from City of Dubuque
general funds were expended in FY26, after the FY26 Budget Amendment was adopted
by the City Council. At no time was the Public Works state program spent beyond the
budget prior to the amendment being approved by the City Council.
The prior section outlines the City Council authorization related to the Minimum Revenue
Guarantee. The next section outlines the City Manager's authority for the $92,809.68
which was paid prior to the budget amendment adopted by the City Council.
Iowa Code § 372.8 outlines the City Manager's authorizations under our adopted form of
government.
372.8 Council-manager form — supervision.
When a city adopts a council -manager -at -large or council -manager -ward form
of government:
1. The city manager is the chief administrative officer of the city.
2. The city manager shall:
a. Supervise enforcement and execution of the city laws.
b. Attend all meetings of the council.
c. Recommend to the council any measures necessary or expedient for the
good government and welfare of the city.
d. Supervise the official conduct of all officers of the city appointed by the
manager, and take active control of the police, fire, and engineering
departments of the city.
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Page 463 of 865
e. Supervise the performance of all contracts for work to be done for the city,
make all purchases of material and supplies, and see that such material and
supplies are received, and are of the quality and character called for by the
contract.
f. Supervise the construction, improvement, repair, maintenance, and
management of all city property, capital improvements, and undertakings of the
city, including the making and preservation of all surveys, maps, plans,
drawings, specifications, and estimates for capital improvements, except
property, improvements, and undertakings managed by a utility board of
trustees.
g. Cooperate with any administrative agency or utility board of trustees.
h. Be responsible for the cleaning, sprinkling, and lighting of streets, alleys, and
public places, and the collection and disposal of waste.
i. Provide for and cause records to be kept of the issuance and revocation of
licenses and permits authorized by city law.
j. Keep the council fully advised of the financial and other conditions of the city,
and of its future needs.
k. Prepare and submit to the council annually the required budgets.
I. Conduct the business affairs of the city and cause accurate records to be kept
by modern and efficient accounting methods.
m. Make to the council not later than the tenth day of each month an itemized
financial report in writing, showing the receipts and disbursements for the
preceding month. Copies of financial reports must be available at the clerk's
office for public distribution.
n. Appoint a treasurer subject to the approval of the council.
o. Perform other duties at the council's direction.
3. The city manager may:
a. Appoint administrative assistants, with the approval of the council.
b. Employ, reclassify, or discharge all employees and fix their compensation,
subject to civil service provisions and chapter 35C, except the city clerk, deputy
city clerk, and city attorneys.
c. Make all appointments not otherwise provided for.
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d. Suspend or discharge summarily any officer, appointee, or employee whom
the manager has power to appoint or employ, subject to civil service provisions
and chapter 35C.
e. Summarily and without notice investigate the affairs and conduct of any
department, agency, officer, or employee under the manager's supervision,
and compel the production of evidence and attendance of witnesses.
f. Administer oaths.
4. The city manager shall not take part in any election for council members, other
than by casting a vote, and shall not appoint a council member to city office or
employment, nor shall a council member accept such appointment.
The City Manager is also authorized by the state code referenced above and Resolution
286-17 adopted by the City Council to enter contracts for services of $500,000 or less
and to make ALL purchases of equipment, materials, and supplies.
Conclusion:
The expenditure of City funds toward the minimum revenue guarantee by the City
Manager and the City Council were all within the bounds of state and local authorizations
related to budgets and expenditures.
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Page 465 of 865
Docusign Envelope IC? :A2CSEEGO-C-306-4BFO-gi76-3OrAGEEC74EF
AIR SE RVICE, 8 AGRE E, ME NT
KEY LMR, AIR — DE NVER AIR CONNE CTION
DUBUQUE RE GIONAL AIRPORT COMMISSION
This Air SoMeos Agreement (this 11AgMLn1LeAV) is onteied. into (m this JKay of 'I
2024, by and between KEY LW AIR, dba DIVER Alit WNNEGrION, a Colorado 1J
),ompany with a
placoof business at 13252B. Control `rower ltd.,Eitglowood, CO 80112 C'DACI) and the City ofDubuque,
by and through Its duly authorized AIRPORT COMMISSION C'DmL)uWq") (collectively, the 11kLrt1LW).
L AkRea,lc;
A. DAC will operate scheduled round-trip air service to mid ftom the Dubuque Regional Airport
(IDBQ1) and with the aircraft indicated as follows;
I. ORD-DBQIDBQ-ORD (the "DHQjJ1gh&1):
* Operates an average of 7 round trip flights per week.
o Operates ym-round, 12 months per year.
* Operates with an RIU145 aircraft with a 50-scal, configuration.
* The initial daily schedule s1mll depart ORD.DBQ at approximately 2.45pm) arriving
DDQ at 3:55pm, and depart DBQ-010) at approximately 4-25pir, arriving OR D at
5:35pm.
B. The DBQ Flights will be operated tinder the direction and control oft AC and Dubuque shall
have no right to make decisions with respect to the operation. of the DBQ Flights, DAC may
change the weeldy schedule or alroraft operating DDQ Flights upon nautual written, agreement
by thoPartles. While atthe ultimate discretion of AC, the parries agreeto mutually coordinate
on any changes or adjustments to the dally schedule.
2. Zm#A9tenW W.
A, The Initial term (the 11fAWAM&1) ofthis Agreement shall core menee on the dato first written
above and shall conflnuounloss terminated earlier as provided lierelri, until April 30, 2025.
Any subsequent renewals totheTermshall rtm:ftomMayI-Ootober3I andNovember I —April
30 of the given years.
D. This Agreement shall automatically renew for additional six-month terms unless written
notification is provided by either party a minimum of sixty (60) days before the expiration of
the existing term (a The Initial Torm and any RenowalT erm(s) kall be
collectively referred to herein as the
3. _QQJ1Qf9WJm.IAA C shall bear all costs of providing thoDBQ Flights dworibed above, including,
but not 11trtited to, the costs of all required aircraft, equipment, facilities, personnel, ground costs
including landing fees and use charges, credit oard commissions, travel agent commissions,
M
Page 466 of 865
Docusign Envolope ID: A2C5EE6B-E3D6.4BF0.9175-30FAEEEC74EF n. .
deicing, and fuel or aircraft ferrying.
4. 1 . lei-1—Pe— m11gngg, ar nth. During the Term, Dubuque will guarantee that DAC will receive
"Minimum Revenues" (as such term is defined below) which shall be calculated as follows:
A. Minimum. Revenues. For the 'DBQ blights, the surn of er flight segment shall be
referred to as the "t?? Ivpls „ The Minimum .Revenues per segment shall be
reviewed and adjusted upon mutual written agreement of the Parties prior to each Renewal
Term per paragraph C below.
B. Initial Term. Dubuque's maximum Iiability for the Initial Term of this Agreement shall be
capped at $2,000,000.
C. Renewal Terms. Minimum Revenues, including segment costs and maximum liabilities, slutll
be reassessed annually based on the preceding term's financial performance and mutually
agreed upon by the parties a minimum of sixty (60) days prior to the start of any Renewal
Term, in the absence of which the Terms outlined here shall continue in force until such
determinations are made.
5 Guam nt I rent 1 eVen eS.
A. To the extent that, during the Term, DAC receives less than the Minimum Revenues from. the
DBQ Flights, Dubuque will pay to. DAC an amount equal to the difference between the
Minimum. Revenues applicable to the DBQ Flights and the amount of Revenues, as defined
below, actually received by DAC from operating the DBQ Flights (the aggregate difference
being the "21taranty Pa Ment„J.
B. For purposes of this Agreement, "Jqy_e1ui shall mean the total segment revenues (including
passenger revenue, bag fees, change fees, other surcharges, cargo revenue, and any other
revenue) from the operation of the DBQ Flights.
C. Guaranty Payments shall be calculated monthly per Denver Air's quarterly 4-4-5 accounting
schedule. DAC records flight data and route performance on a weekly basis. During each
quarter, the monthly invoice will utilize either 4 or 5 weeks of data to capture the 13 weeks
during a quarter, thus a 4-4-5 schedule. DAC will provide Dubuque with a final accounting and
supporting documentation within thirty (30) days following the end of each month, and
following final review and reconciliation between the parties, Dubuque will pay to DAC the
Guaranty Payment within thirty (30) clays of Dubuque's receipt of the final accounting, Should
the Revenues from DBQ Flights show a net positive exceeding the Minimum Revenues, such
overages will be applied as credit against following months. Dubuque's obligation to make
payments in accordance with the provisions of this Agreement shall survive the expiration or
earlier termination of this Agreement.
D. Fue djustment. 'The Minimum Revenues are based on DAC's assumed baseline cost of U
per alloxx of jet fuel inclusive of all charges including taxes and into plane fees (the
"13� se r�1 o t',. If the average price per gallon that DAC actually pays for jet fuel during
any given month increases or decreases by more than ;I Q, per gallon from the .Baseline Fuel.
Cost, the parties will adjust the Minimum Revenues on a cent for cent basis to the extent the
average fuel cost for the month varies, either up or down, from the Baseline Fuel Cost, as
follows:
Page 467 of 865
Docusign Envelope ID: A2COEE6B.E3DO48FO-9176-3OrAEEEC74L--F
If the average price per gallon increases or decreases Jby any month during the Term in excess
of $. 10 per gallon from the Baseline Riol, Cost, the Minimum Revenues shall be increased or
decreased by an amount equal to the difference between the Baseline Fuel Cost mid the average
price per gallon, multiplied by the total number of gallons of jet fuel consumed oil the DBQ
Flights during such month.
6. BOLCM wl DAC and Dubuque acknowledge that DAC may cancel or divert
flights, including D:BQ Flights, due to mechanical problems, weather conditions, or other
circumstances beyond the reasonable control of DAC. If circumstances or conditions result In
canceled or diverted DBQ Flights, DAC shall have the obligation to provide alternate air and/or
ground transportation for passengers who are ticketed. on the D13Q Flights in, compliance with
DAC's standard procedures for such circumstances. Tho costs of any cancelled DBQ Flights shall
not be Included in the calculation of any, Minimmu Revenues.
7. AiLVALga. DAC agrees to establish fares for DBQ Flights that are consistent with DACs current
internal pricing strategies while remaining competitive within the airline industry generally and
with a goal of operational profitability. Without limiting the generality of the foregoing provisions
ofthis paragraph and paragraph I (B), DAC agrees to use good faith efforts to consider (3mrantor's
cominents on Issues related to marketing, pricing and revenue management of DBQ Flights.
8. RMmling., Commencing on the date two (2) weeks after the date schedules are available for sale
and continuing for the Term, DAC agrees to provide as report on a weekly or bi-weekly basis
containing booking management data mid load information and such other Information as Dubuque
shall reasonably request with respect to the D13Q Flights,
9. MadolmOupli2d. Dubuque will work with DAC in good faith to market DBQ Flights In a
mutually beneficial and cost-6ffeotivo mannor. Dubuque will give DAC service promhout
placement in any marketing carnpalga conducted by Dubuque to promote service' to and from
Dubuque. DAC shall market the flights at a minimum in a marit.ior consistent with DAC's ourrent
strategies and commensurate with sinillar routes.
10= Dubuque• to promote air service under
No 7em�nt,ADA'
�ila Ago, co organization DBQ AIR twenty�-
_JvO ( '5) on trip travel vouchers for positive slxac e coaach ass transportation valid for travel on
I
any D C 8 �c(
A _ 'a" as well as twenty five) roundwtrip traavel vouchers at the initial Iaurwh for
prollaotior Wise.
11. Rmlbgm
A, Li addition to the exercise of any rights that It may have at law, in equity or under this
Agreement, either party may terminate this Agreement uponwritten, notice to the other party if
the other party has failed to perform any of its material obligations under this Agreement., and
such failure continues unremedled following receipt of a thirty (30) day Notice to Cure. '1110
effective date of any such termination shall be thirty (30) dayallom Notice to Cure.
B. This Agreement will torininate automatically it" DAC ceases to hold the 'governmental
authorities necessary to operate the DBQ Flights,
C. Either party may terminate this agreement with or without cause orponally upon not less than
ninety (90) days' written notice to the other party. The effective date of termination shall be as
Page 468 of 865
DocusIgn Envelope ID: A206CEOB r--3 )6.48FO-91'/6.3OrAE C:C4CF
stated in such written notice of termination but not earlier than ninety (90) days Bollowing such
written notico.
D. ,Except as otherwise provided in this Agreement, upon termination of this Agreement, neither
party shall have any obligation to the other party except for those obligations that may have
accrued through the cute of such term. ation (including Dubuque's obligation to pay any
Guaranty Payment hereunder) and such obligations which by their nature or by the express
terms of this Agreement survive the expiration or earlier termination of this Agreement.
12. Wax, lentofign
A. A termination pursuant to Section 11 shalt not limit either party's right to pursue or enforce
any of its rights under this Agreement or otherwise.
B. Any termination or expiration of this Agreement shall not affecct Dubuque' 8 obligation to pay
, AC all amounts owed. to DAC as of the effective date of such expiration or termination.
C. The provisions of this Section 12 shall survive the expiration or ca rtier termination of this
Agreement.
13. EgmAdgm, A party shall be excused from its obligations under this Agreement if and to the
extent and during such time, as the party is prevented, Impeded, or hindered, unable to perform, its
obligations or is delayed in doing so due to events or conditions outside of'tlae party'a ;reasonable
control and after the party has taken reasonable sups to avoid or mitigates such event or its
consequences (each a "Force Ma cure Event") including, without Hadtation in any way, as the
result of any acts of Ood, rear, fire, or other casualty, riot, civil unrest, extreme weather conditions,
terrorlsrn, strifes and/or labor disputes, pandemic, opidemie, quarantines, goverment stay-at-home
orders, municipal and other government orders, failure of Internet, or other matter beyond the
control of such party. Upon the occurrence of a Force Majeure Event, the party incurring such;
.Force Majoure Event will promptly give notice to the other party identifying the Force Msjmuo
Event, explaining how it impacts performanco turd the estimated duration, identifying the relief
requested, agreeing to limit damages to the other party and to Immediately resume performance
upon termination of the Force Mgjouro Event, and agreeing to supplement the notice its more
infox nation becomes available, and thereafter the patties shall meet and confer in good faith in
order to iden* a onto of'tho condition affecting Its performance as expeditlously as possible. No
obligation to wire a payment required by this Agreement Is excused, by it Forceti Majouro Event.
The nonperforming party shall not be entitled to any damages or additional payments of anyki�d
for any such delay.
14. AWft.- With tan (10) business days' notice, Dubuque, at its expense, shall have the right to audit
and inspect, at l A 's books and records as they relate to the determination, of Revenue on the
DBQ Flights for the solo purpose 6f ensuring that, in determining the amount of Revenue, DAC ,s
utilizing the same methodology as is applied to all ofDA 's similar ioutes,
15. No party hereto may disclose to a third party any part of this Agreement, zany
info atton pertaining to the speclilc contents of this Agreement or any proprietary information
received floor the other party pursuant to this Agreement unless such inf'ormatt'on shed have already
become publicly known without breach of this provision or unless required to do so pursuant to
applicable law, regulation, governmental order or subpoena, provided that In the case of any such
law, regulation, governmental order or subpoena the parties will consult in. good faith as to how to
proceed with the alarm of tatting all appropriate action to limit the scope of such governmental order
Page 469 of 865
DocusIgn Etivelope ID: A2CBEEOSE3D84BFO.9176.30FAEEEC74EF
or subpoena and/or obtain confidential treatment for arty material required to be disclosed in
response thereto. Neither party shall have the right to use the other parity's narne, logo or other
marks without the express written permission of the other party.
16. IM. L�acll party (the `1nde-1nWib-hw2.qqy") an, to indejunify,
defend and hold harmless the other party and. its officers, directors, employees, agents and affiliates
(the ftont and against, any and all third -party liabilities, damages, losses,
claims, state, liens, demands, actions, causes of actionJudgments, fines, penalties and expenses of
any nature (mcludirig without limitation reasonable attorneys' fees) whatsoever arising out of or
related to any loss, cost, damage or injury (including without linfluttion, death of any person or
darnago to property of any Had) arising out of or In connection with, or related to the negligeat
acts, errors or omissions of the Indemnifying Party in connection with this Agreement, except to
the extent caused by, any Indonnalfied Party's negligence,
17. hi-slirki M. At all times during theTcrut of this Agreement, DAC shall carry and maintain, at its
sole cost and expense, airline liability insurance with aggregate lintits of lit least $10,000,000 USD
for bodily injury (including death of any person) and any damage to (including destruction of)
property. DAC will farnisbDubuque within thirty (30) days of such request, and upon, each annual
renewal, an Insurance ce-raficate which., (I) indicates that the insurer has accepted raid insured DAC"
as provided in this Section 17 of this Agreement; (H) hicludes, the insurer's commitment to give
Dubuque not less than thirty (30) days' advance written notice in the event of cancellation or
adverse material charge in coverage.
18 - Ag t—qq, N either p arty may a s s I gr i thus Agreement or any interest herein without ob taint i i a tine:
parlor written Consent of the other party.
19. AUMunsUke-go. In the event of any litigation between the parties hereto concerning this
Agreement and the onforoortiont hereof, tho prevailing party in such action shall be entitled to
receive from the other party all reasonable costs and expenses, including reasonable attorneys
fees, Incurred by the prevailing party in such action.
20. NA&m All notices and other cominunloations required or permitted under this Agreement shall
be in writing and shall be deemed given (A) upon delivery by hand, (B) one (1) day after delivery
to at commercial courier (example, FedrN) for next business day delivotyproperly addressed and
prepaid, or (C) within three (3) days after Vlacement in the US. mail properly addressed and with
sufftelent postage for certified maul, roturn receipt requested to the addresses set forth fit the first
paragraph of tl* Agreement or such other address as a party may designate, in writing, pursuant
to 11118 notice provision (provided, however, and notwithstanding the foregoing, any Invoices
tendered by DAC may be sent to Dub-tique via electronic communication to.
wM,qbA=&6, mid ptsl , rg.
21. MLs w�&Jw "o, . This Agreement constitutes the entire understanding between the parties with
respect to the subject matter hereof. This Agreement or any provision of this Agreement ,nay not
be amended, modified or waived except by a written agreement signedby bothparties hereto. This
agreement shall be interpreted and construed in accordance with thesubstantivo law of the State of
Iowa & Iowa District Court for Dubuque County. 110 patties, hereto represent that they have the
irathurity to enter into this Agreement, This Agreement may be executed in separate counterparts
(Including by delivery of fhosin-ile or other electronic transmission of signature pages), each of
which, when so executed and delivered, shall be an, original, but all such counterparts shall together
constitute but the same instrument.
Page 470 of 865
Docusign Envelop ID: A206EEOB-E3DB.4BFD-9176-3OrAEEEC74EF
ISFGNXFIJIIE PAGE]
IN WITNESS WHE RE OF, DAC and Dubuclue havu ocich caused this Agreement to be signed and
delivewd by its duly authorized representative, aU as of tho date first written above,
DENVER AtR CONNECTION
p"wi by,
BY* iueicycuti
17
Chief Mccutive Officer
DUBUQUE RE, GIONM, AIRPOIrr COMAUSSION
Ily:
Name:
Its:
R
I
Page 471 of 865
THE C
D!Uj-!B E-E
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: January 29, 2026
Dubuque
All -America City
IIIr
II
2007.2012.2013
2017*2019
The facts in this situation are clear and known. In November, 2023 the city received a
Small Community Air Service Development Program (SCASD) grant to provide a
Minimum Revenue Guarantee (MRG) to attract commercial air service back to Dubuque
Regional Airport. The grant required matching funds, and those funds were provided by
the City of Dubuque, Dubuque Area Chamber of Commerce, Greater Dubuque
Development Corporation, Dubuque County, and Travel Dubuque.
At the August 27, 2024, Airport Commission meeting the Airport Commission authorized
the Airport Director to enter into an Air Service Agreement with Key Lime Air (dba
Denver Air Connection) to provide a MRG for one flight a day to O'Hare. That service
began on November 4, 2024. That agreement automatically renewed in 6-month
increments.
Initially the MRG payments were made with the SCASD grant, then matching funds, and
when that money was depleted, Travel Dubuque provided $500,000, then the City of
Dubuque provided funds for the payments using money from the FY 25 budget savings
which were available due to expenditures coming in under budget and revenues coming
in higher than budgeted. The city budgets conservatively so flexibility is contained within
the budget to ensure the city does not complete a fiscal year with a deficit.
The city had a valid and enforceable contract with Denver Air, a business which was
performing on its end of the contract. The City Manager had the legal authority to make
the contractually -required payments, pursuant to the city's legal obligation to make
those payments.
Now, hindsight being 20/20, I've identified two things I would have done differently: (1) 1
would have brought the Denver Air MRG agreement to City Council when it was signed
by Airport Director Todd Dalsing in late 2024, making sure City Council was fully aware
of the city's obligations under the agreement and the timing required for a notice of
termination; and (2) in March and April of 2025, during the FY26 budget process, I
would have put the city's financial obligations related to the MRG into that budget
recommendation. I am sorry I did not do those two things. I do not have a good
explanation regarding why I did not. I simply did not think of it at the time.
Page 472 of 865
Some people have asked why money left at the end of the fiscal year was not returned
to taxpayers. The fact is, in every case those funds were returned to taxpayers in
multiple ways. The funds were either: held over for the next fiscal year budgeting
process; used as a one-time revenue source to meet one-time operational or capital
needs; or used in the current fiscal year to cover a cost that has been identified by a
resident, staff member, or through the City Council's goal setting process. Any such
funds used in the current fiscal year went through a budget amendment process
through City Council, which included a public hearing on October 20, 2025, for residents
to make comments. By law, the city cannot have a deficit budget, so if there was ever a
year where there was not a budget surplus, there would have been a drawdown of
reserves.
v
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
2
Page 473 of 865
Memorandum
To: City Manager Mike Van Milligan, Mayor Brad Cavanagh, Members of the Dubuque City
Council
CC: Todd Dalsing, Dubuque Regional Airport Director, Bob Woodward, Airport
Commissioner, Ron Vaughn Airport Commissioner, Bob Blocker Airport Commissioner,
Mike Phillips Airport Commissioner
Re: Dubuque Regional Airport Commission's roll with SCASD grant and MRG agreement
For the Dubuque Regional Airport to use its Small Community Air Service Development
Program (SCASD) grant, a local match was required. After identifying Denver Air as a
possible provider of daily, scheduled commercial service, the Airport Director confirmed
financial contributions to meet the required match with local partners including the city
and county. The Airport Commission then instructed the Airport Director to submit the
SCASD grant application.
Following the Department of Transportation approval of the SCASD grant, the Airport
Commission authorized the Airport Director as the DOT contact to administer the
grant. The Airport Commission understood the agreement and operated within the
financial boundaries of federal and local participation.
The Airport Commission received regular updates regarding the MRG obligations. I also
serve as the Commission's representative on the DBQ Air Board which meets weekly to
review enplanements, spending, marketing, and customer service. I identified in early
summer that the SCASD and local match funding would be depleted and additional
funding would be required to continue the agreement with Denver Air. No additional funds
were secured at that time.
The City Manager informed the DBQ Air Board that additional funds were expected to be
available due to residual funds not being spent from the FY25 City budget. The amount of
funding available was not confirmed until the City closed "Period 13" and the City Council
approved use of those funds in its October 6, 2025, meeting. During that time, flights
continued and MRG charges were incurred.
As an Airport Commissioner, I appreciate the careful consideration and ultimate support
by the City Council to continue funding the MRG as enplanements were increasing.
Unfortunately, the service did not have enough time to achieve financial sustainability. My
Page 474 of 865
takeawayfrom this experience is recognizing the need to enhance processes and
governance for the Airport Commission.
As the City Attorney states in her memo of January 21, 2026, The Dubuque Regional Airport
Commission operates with "a level of independence and authority ... that is unique and
specific to the Iowa Code." In particular, "the City Councils' control related to the Airport is
limited to control of the Airport budget." The Airport Director, after consultation with the
Airport Commission, submits the Airport's budget request annually following the
established process used by the city.
Since the Airport Commission has no control over the City budget, I will recommend that
the Commission review its processes for entering and continuing a contract, particularly
regarding secured funding.
Again, I appreciate the support of the Mayor, City Council, and City Manager for local,
sustainable commercial air service. I look forward to continuing our work together to
realize that goal.
Kind regards,
Mariann Kurtz Weber
Chair, Dubuque Regional Airport Commission
Page 475 of 865
City of Dubuque
City Council
ACTION ITEMS # 1.
Copyrighted
December 15, 2025
ITEM TITLE:
Commercial Air Service Minimum Revenue Guarantee
SUMMARY:
City Manager recommending City Council select the January
15, 2025, service termination date with Denver Air at an
estimated cost of $215,515 for the month of January.
SUGGUESTED
Receive and File; Council
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Staff Memo Commercial Air Service Minimum Revenue Guarantee
3. Written Input —Updated 12.15.25
P1RggE947C bfl 869
THE CITY OF
DUB E-E
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: December 11, 2025
Dubuque
All -America City
,I 1►
2007.2012.2013
2017*2019
Knowing that the Greater Dubuque Development Corporation and the Dubuque Area
Chamber of Commerce were not successful in working with the business community to
raise $650,000 in matching funds for the Denver Air Minimum Revenue Guarantee
(MRG), Airport Director Todd Dalsing has been negotiating with Denver Air. They have
arrived at the following three options to be considered:
1. Denver Air terminate service on January 15, 2026: $50,000 + 1/2 January MRG
estimate at $165,515 = $215,515
2. Denver Air terminate service on January 31, 2026: $50,000 + January MRG
estimate $331,030 = $381,030
3. Denver Air terminate service on March 15, 2026 (this is the required - 90 day
notice): January, February, '/2 March MRG estimate $708,666
I respectfully recommend that you select option #1, the January 15, 2025, service
termination date at an estimated cost of $215,515 for the month of January. This allows
people who have purchased tickets beyond that date to book new flights. The non-profit
Dubuque Air has $50,030.11 to help cover this cost.
With the current MRG payments for Denver Air and the total estimate of $510,048 for
November and December the city would have $685,550.34 remaining in the amount of
city funds budgeted for the MRG after making these option #1 payments. It is important
to remember the amount of the MRG payments are at this point an estimate.
The City of Dubuque has every intention of continuing to work with the non-profit
Dubuque Air to seek commercial air service for the Dubuque Regional Airport.
%�AL -
Michael C. Van Milligle�n
MCVM:sv
P1RggE948-bf)fl 869
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
Jenny Larson, Chief Financial Officer
Dubuque Air
PIRggE94Wbf)fl 669
THE CITY OF
DUB TE
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Todd Dalsing, Airport Director
SUBJECT: Commercial Air Service Minimum Revenue Guarantee
DATE: December 8, 2025
Dubuque
AIFWb Oy
2007-2012.2013
2017*2019
INTRODUCTION
The purpose of this memorandum is follow-up to the December 1, 2025, City Council
meeting. At that meeting, staff provided an update on commercial air service and Denver
Air minimum revenue guarantee (MRG) providing daily air service to O'Hare (ORD)
Airport in Chicago.
BACKGROUND
The October 6, 2025, Memorandum to City Council included airport funding sources
related to commercial air service status and economic impact. An update is included in
discussion below.
DISCUSSION
Grant Funding
49 USC §47104(a) allows the Administrator to issue grants for airport planning and
development in the United States. To issue grants and operate the Airport Improvement
Program (AIP) grant program, the FAA normally needs authorization and appropriation:
Appropriation
Entitlements. The term "entitlements" refers to the passenger, cargo service, and
State Apportionments (including nonprimary apportionments when applicable)
available to sponsors and states based on formulas in 49 USC §47114.
Discretionary. The term "discretionary" refers to funds that are available for use on
eligible projects at the FAA's discretion after satisfying required apportionments.
The authorizing legislation establishes formulas and requirements for the use of
discretionary funds.
I
P1RggE940q)6fl 869
Airport Categories
Commercial Service Airports are publicly owned airports that have at least 2,500
passenger boardings (enplanements) each calendar year and receive scheduled
passenger service.
Primary Commercial Service Airports are Commercial Service Airports that have
more than 10,000 enplanements each year.
Funding: Not less than $1,300,000 or more than $22,000,000 for each fiscal
year.
Nonprimary Commercial Service Airports are Commercial Service Airports that
have at least 2,500 and no more than 10,000 enplanements each year.
Funding: Receive funding on a sliding scale that ranges from $150,000 to
$1.3 million, depending on the number of enplaned passengers ($60 for
each of the first 2,500 enplanements and $153.33 for each of the next 7,499
enplanements during the prior calendar year).
General Aviation Airports are public -use airports that do not have scheduled service or
have less than 2,500 annual enplanements.
Funding: Rank low in National Priority Ranking (NPR), limited to high safety issues,
for example runways.
Dubuque Regional Airport
The attachment titled "Current FAA Fiscal Year 2023 — 2031 Funding" provides in-depth
description of current FAA and IDOT funding.
In summary, as a nonprimary commercial service airport with 10,000 enplanements, DBQ
currently receives $1,300,000 in entitlement, along with discretionary and IDOT funds.
The received grant funding and local City match is:
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028'
FY 2029
FY 2030
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,554
$2,903,550
$4,856,550
$4,871,040
$5,668,260
Dubuque Match
$444,848
$972,932
$594,786
$1,003,000
$1,005,839
$430,950
$647,950
$649,560
$738,140
Total
$5,621,426
$9,229,324
$57064,889
$11,572,500
$9,083,394
$37334,500
$57504,500
$5,520,600
$67406,400
If DBQ loses daily scheduled service, any enplanements will come from destination
charters (currently Sun Country). If DBQ captures at least 2,500 enplanements, DBQ will
receive $150,000 in entitlement. The difference of $1,150,000 in entitlement will become
part of the local City match, along with any FAA discretionary and IDOT funds not
received:
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028`
FY 2029
FY 2030
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,554
$150,000
$150,000
$150,000
$150,000
Dubuque Match
$444,848
$972,932
$594,786
$1,003,000
$1,005,840
$3,184,500
$5,354,500
$5,370,600
$6,256,400
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,394
$3,334,500
$5,504,500
$5,520,600
$6,406,400
Sun Country currently averages 1,300 annual enplanements.
Economic Impact
2
P1RggE92ftf)fl 669
DBQ Commercial Passengers: First Year Estimated Economic Impact & ROI
2025 Est Passeneers
7.231
2022 Econ Ontat Per Passenger
$2.201
Inflation 2022-25 2025 Economic Impact
1.13 $17,985,727
2025 b4RG Investment
$3,660.556
2025 Economic Impact
$17,985,727
2025 ROI to One
5
DBQ Commercial Passengers: Forecast Estimated Economic Impact & ROI
Annual 65° o Load Factor
11.700
2022 Econ Ontat Per Passenger Inflation 2022-25 65% Loads Economic Impact
$2.201 1.13 $29,101,508
6�' . Loads DIRG Investment
$1,500,000
2025 Economic Impact ROI to One
$29.101,508 19
Current Enplanement and MRG Funding Data
DENVER AIR ENPLANEMENTS
2024
2025
January
382
February
412
March
531
April
459
May
630
June
595
July
640
August
694
September
767
October
786
November
461
600*
December
476
Yearly Totals
937
5,896
*November 2025: Out of 30 calendar days, there were 28 scheduled flight days due to holiday, and
weather impacting ORD/DBQ operations, resulting in reduced enplanement numbers.
Minimum Revenue Guarantee MRG
Invoice
Est. Funds
Needed
Actual
Payment Details
November 2024
$276,608.03
SCASD
December 2024
$260,321.95
SCASD
January 2025*
$361,762.02
SCASD
February 2025
$326,687.00
SCASD
March 2025
$312,362.41
SCASD
April 2025*
$333,773.15
SCASD
May 2025
$363,468.77
SCASD $28,485.44 + Travel Dubuque $334,983.33
June 2025
$282,811.29
Travel Dubuque ($165,016.67) + Economic Development Revenue
Guarantee $117,794.62
July 2025*
$325,015.06
Economic Development Revenue Guarantee
August 2025
$237,762.97
Economic Development Revenue Guarantee
September 2025
$235,434.77
Economic Development Revenue Guarantee
October 2025*
$288,394.24
Economic Development Revenue Guarantee ($30K less than
estimate
November 2025
$255,024.00
Forecast DAC Invoice
December 2025
$255,024.00
Forecast DAC Invoice
January 2026*
$331,030.00
Forecast DAC Invoice
February 2026
$262,304.00
Forecast DAC Invoice
March, 16 2026
$115,332.00
Forecast DAC Invoice
December 16 - March 16, 90 day notice = % March estimate
$1,218,714 $3,604,401.66
*Five Weeks
3
PIRggE948 VA 869
Fund
Balance
SCASD $1.9M
$0.00
Travel Dubuque $500,000
$0.00
Dubuque Count $100,000
$100,000.00
Economic Development Revenue Guarantee $2.4M
$1,195,598.34
Business Community Fundraising
$ December 10, 2025
$1,295,598.34
At the Tuesday, December 2, 2025, Airport Commission meeting, the Commission
authorized the Airport Director to continue communications with Denver Air regarding
minimum revenue guarantee status and coordinate with the City Council to invoke
contractual actions required per agreement.
Denver Air proposes 3 options to discontinue service:
1. January 15, 2026: $50,000 + '/2 January MRG estimate at $165,515 =
$215,515*
2. January 31, 2026: $50,000 + January MRG estimate $331,030 = $381,030*
3. March 15, 2026 (90 day): January, February, '/2 March MRG estimate
$708,666*
*The MRG estimates are likely to go higher as people learn of the end of service, and are
then more likely to book their travel at surrounding airports.
0
PIRggE9282bfl 669
Current FAA Fiscal Year 2023 - 2031 Funding
TOTAL FUNDING
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028*
FY 2029
FY 2036
FY 2031
Grant Funding
$5,176,578
$8,256,392
$4,470,103
$10,569,500
$8,077,554
$2,903,550
$4,856,550
$4,871,040
$5,668,260
Dubuque Match
$444,848
$972,932
$594,786
$1,003,000
$1,005,8391
$430,950
$647,950
1
$649,560
$738,140
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,394
1 $3,334,500
$5,504,500
$5,520,600
$6,406,400
GRANT FUNDING BREAKDOWN
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028*
FY 2029
FY 2030
FY 2031
AIP Entitlement
$1,000,000
$1,000,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
$1,300,000
AIP Discretionary
$2,746,059
$4,426,392
$2,840,503
$7,353,000
$6,244,994
$1,303,550
$3,256,550
$3,271,040
$4,068,260
AIP BIL ATP
$1,346,112
AIP BIL AIG
$84,407
$2,430,000
$1,516,500
AIP Environmental
$232,560
IDOT AIP
$400,000
$329,600
$400,000
$300,0001
$300,0001
$300,0001
$300,0001
$300,000
Local Match -DBQ
$444,848
$972,932
$594,786
$1,003,000
$1,005,839
$430,950
$647,950
$649,560
$738,140
Total
$5,621,426
$9,229,324
$5,064,889
$11,572,500
$9,083,394
$3,334,500
$5,504,500
$5,520,600
$6,406,400
PROJECT SUMMARY
Funding Source
FY 2023
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028*
FY 2029
FY 2030
FY 2031'
Reconstruct Taxiway A (6 Phases)
AIP
$3,746,059
$5,426,392
$4,031,053
$8,603,000
$7,544,995
$2,028,000
Local Match (DBQ)
$374,000
$602,932
$500,386
$437,000
$804,999
$192,000
Solar Photovoltaic System (2 Phases)
AIP
$1,430,519
$780,300
Local Match (DBQ)
$70,848
$86,700
Reconstruct General Aviation Apron (2 Phases)
AIP
$2,430,000
$1,566,500
IDOT
$400,000
$400,000
Local Match DBQ
$370,000
$566,000
Update Airport Pavement Management System 8,
PCR Calculations
AIP
$109,450
$90,000
Local Match DBQ
$12,000
$10,000
AFFF Transition
AIP
$232,560
Local Match DBQ
$25,840
West Side Development
AIP
$485,550
$575,550
Local Match (DBQ)
$53,950
$63,950
SRE - Rotary Plow with Carrier Vehicle
AIP
$1,035,000
Local Match (DBQ)
$115,000
Taxiway D Extension
AIP
$2,946,000
Local Match (DBQ)
$294,000
Taxiway
AIP
$3,581,040
$4,587,960
Local Match DBQ
$364,560
$476,440
ARFF Truck
AIP
$990,000
Local Match DBQ
$329,600
$110,000
Runway Markings Improvements
IDOT
$82,400
Local Match (DBQ)
T-Hangar Apron Rehabilitation (5 Phases)
IDOT
$300,000
$300,000
$300,000
$300,000
$300,000
Local Match (DBQ)
$175,0001
$175,0001
$175,0001
$175,0001
$175,000
Total
$5,621,4261
$9,229,324
$5,064,889
$11,572,500
$9,083,3941
$3,334,5001
$5,504,5001
$5,520,600
$6,406,400
Approved Funding
Funding Pending En lanements and Application
`FAA Reauthorization Year
Note: The local match (DBQ) is based on various factors. Some AIP projects require 5% match, and others require 10% match. Also, some projects have ineligible costs (such as reconstruction of
Taxiway A and the general aviation apron) which affects the total local match required.
5
P1RggE948a6fl 869
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Sunday, December 14, 2025 10:25 AM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #228728] (Contact City Council) -
Dubuque, IA
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Dubuque, IA
A new service request has been filed.
ID 228728
Date/Time 12/14/2025 10:25 AM
Type Contact City Council
Address Dubuque
Origin Website
Comments You all killed it - air service. With your constant
threats to cancel air service you chased away
potential flyers. People didn't want to make a
reservation in fear that there wouldn't be a plane.
Submitter Giesler, Mary J
2310 High Cloud
Dubuque, IA 52002
563-583-8778
janicegiesler2020@gmail.com
Dubuque, IA
1
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Dubuque Mayor and City Council
City of Dubuque
50W 1311 Street
Dubuque IA 52001
Monday December 1511, 2025
RE: DBQ Air Committed to Local Air Service
Dear Mayor and Council Members,
On behalf of DBQ Air thank you for your steadfast support in our mission to secure daily
commercial air service for Dubuque. Though we recognize the present challenges, it has
only served to strengthen our resolve in this continued fight. Reliable commercial air
service is so much more than a convenience... it is a critical driver of economic growth,
business development, quality of life enhancements and regional competitiveness.
Denver Air Connection has been nothing short of an exceptional partner, and it has been an
honor to work with them. If the contract with DAC must end at this time, we want to assure
you that our relationship will not. In keeping with our mission, we will keep the door and
lines of communication open for future collaboration with DAC and all possible airlines.
We want to make it very clear that DBQ Air is committed to continuing the fight for
sustained commercial air service for our region. If our current air service must end, your
continued advocacy is vital as we shift our focus to new avenues to achieve this goal. We
will pursue every option, deliver every message, and seek every creative solution to secure
equitable access for Dubuque.
With your continued leadership we can make our case and protect the economic future of
our region and create the air service connection to the rest of the world that our residents
need and deserve. Thankyou for all you have done, and all you will continue to do, to help
us in this cause.
Sincerely,
PRggE926,1bbfl 669
Adrienne Breitfelder
Subject: FW: Daily.flights
From: Chavenellestudio <gail@chavenellestudio.com>
Sent: Wednesday, December 3, 2025 8:36 AM
To: Brad Cavanagh <Bcavanagh@citvofdubuque.org>
Subject: Daily.flights
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https://aka.ms/LearnAboutSenderidentification ]
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I just wanted to add our voices to those who feel that daily air flight to and from Dubuque is most important! We
read in today's TH how they probably will be canceled. We feel this is a great error and urge the council to make
such fiscal arrangements that will keep daily flights serving Dubuque.
Thank you for your attention,
Gail and Bill
Gail Chavenelle and Bill Dicken
1155 Kelly Lane
Dubuque Iowa 53003
Chavenelle Studio Metalworks
https://us-west-
2.protection.sophos.com?d=chavenellestudio.com&u=d3d3LmNoYXZIbmVsbGVzdHVkaW8uY29t&i=NWY2MjY3
MTkwYTc2Yj4wZWMONWYONGVm&t=dDZQWU11 NGR4N210RVVoQOUwdVFMbzZ3NjNod3JVVVcOY3lxVWVsUGkx
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Cell 563 599 6372
PIRggE949C U 869
Adrienne Breitfelder
Subject: FW: requesting a responce
From: Adrienne Breitfelder <Abreitfe@cityofdubuque.org>
Sent: Wednesday, December 3, 2025 5:14 PM
To: Adrienne Breitfelder <Abreitfe@cityofdubuque.org>
Subject: FW: requesting a responce
On Dec 2, 2025, at 4:28 PM, yfiink@aol.com wrote:
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Please stop wasting my hard earned tax money on the failed airport deal
On Monday, September 29, 2025 at 08:20:49 PM EDT,yfiinkCcDaol.com
<yfiink(aDaol.com> wrote:
Dear Mr Sprank
I want to know .... How did the auto renew clause for Denver Air get by you,
the city manager, the city attorney, all the city hall bureaucrats' and the other
members of the council?
Sincerely
Joel Pusateri
PlRggE928bfbfl 869
Adrienne Breitfelder
From:
Adrienne Breitfelder
Sent:
Wednesday, December 3, 2025 5:13 PM
To:
Adrienne Breitfelder
Subject:
FW: Airport
From: Brian Klinkner <briank1inkner270@gmail.com>
Date: December 2, 2025 at 10:35:49 AM CST
To: Danny Sprank <Dsprank@cityofdubuque.org>
Subject: Airport
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Hi Dan, I live on Sapphire Circle in Dubuque. I do not feel it is fair to the taxpayers of
Dubuque to fund and economically failing airline just to serve a few select people. I realize
the funding is needed for maintenance on the airport, but that only serves very elite private
plane owners. Thank you for serving us,your constituents. respectfully .Brian Klinkner
F'RggE928V)fl 669
November 19, 2025
Dear Councilman Sprank,
My husband grew up on Windsor Avenue,. We lived on East 30th,. We raised our
children on Edith Street. We were members of Sacred Heart parish for many years.
know the North End. I lived in it.
I understand some citizens not wanting to support air service because they don't use
it. There are many things I don't use that are paid with my taxes.
I am an 80 year old widow. I do't drive anymore; I am unable to use or enjoy many of
the events and places in the city. My taxes pay for many city parks including Comisky
Park, the swimming pools, the ice rink, hiking and biking trails, Multiculturall Center
Dubuque Harbor and Marina, the Jule„ the downtown parking ramps and more.. We
paid school taxes even though we sent our children to the Catholic schools in Dubuque
(no vouchers). I don't have any children or grandchildren in our schools.
I need air service from Dubuque. There is no rail service. There is no efficient bus
service. My family lives in the Chicago area. To me, this is a life event. I have used
Denver Air and I will continue to use it. Our family has always supported the LOCAL
Dubuque Airport.
We can't choose precisely where our tax money will go. We are a community. We
support each other
There are other individuals, ordinary citizens in the city that need air service. And I bet
some of them live in the North End.
Sincerely,
Mary Janice Giesler
2310 High Cloud Dr
Dubuque, IA. 52002
P1RggE94eq)6fl 869
Q ' Telephone: (563) 589-4233
Fax: (563) 589-4108
e-mail: tdalsing@cityofdubuque.org
DUBUQUE REGIONAL AIRPORT
Memorandum
To: Airport Commission
From: Todd Dalsing, Airport Director
Date: December 4, 2025
Subject: Denver Air Service Update
INTRODUCTION
Provide Airport Commission update on minimum revenue guarantee enplanement and financial
status.
BACKGROUND
Calendar year 2019 (pre-covid), 36,592 passengers flew from DBQ to ORD as destination or
connection, on three flights daily ERJ 145.On June 21, 2022, American Airlines announced they
would be suspending service to Dubuque, IA due to the pilot shortage starting September 7,
2022.
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 DBQ starting September 7,
2022, citing the national pilot shortage.
As a result of lost daily scheduled air service, nonprofit, DBQ Air was formed with board
members representing City of Dubuque, Dubuque County, Chamber of Commerce, Travel
Dubuque, Dubuque Racing Association, Greater Dubuque Development Corporation and
Airport Commission.
DBQ Air, working with DBQ Air Service Consultant Matt Skinner from Global Flights, resulted in
an option to restore daily service to Chicago O'Hare (ORD) utilizing an ERJ145 aircraft (50
Seat) on Denver Air Connection (DAC) utilizing the Federal Department of Transportation Small
Community Air Service Development (SCASD) Program Grant (Airport Commission executed
November 2023) and FAA Air Carrier Incentive Program.
Dubuque Reginal Airport Commission working with DBQ Air and Denver air overcame
challenges and continue to provide safe, secure, quality, reliable daily flights with 98%
completion rate and 75% on time to service to ORD. To date more than 14,000 one-way (7,000
round trip) passengers have flown Denver Air.
Over the past year of daily scheduled commercial air service Dubuque Regional Airport
continues its mission to provide quality, viable, competitive airport services and facilities while
promoting sustainable economic development within the region. Airport Commission and staff
continue to work with DBQ Air to lobby federal legislators to modernize commercial air service
Page 490 of 865
programs such as Small Community Air Service Development (SCASD) and Essential Air
Service (EAS) to meet today's evolving small community and industry needs to include
Dubuque in federal subsidy programs that will help restore and retain commercial air service.
BUDGET
1. SCASD/ MRG Air Service Agreement
Airport Commission executed Small Community Air Service Development (SCASD) Program:
duration of Minimum Revenue Guarantee (MRG) funds depended on load factors, ticket
revenues and air carrier expenses.
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
In addition to SCASD/ MRG Airport Commission approved:
2. FY 2025 Airport Budget for Commercial Air Service
Airport Commission approved
Professional Services — Air Service Consultant $ 48,000
Public Information Office Staff (.50 FTE) $ 30,439
SCASD Airport Contribution $ 40,000
Marketing IDOT ASD Program DBQ $12,000/ IDOT $48,000 60,000
(IDOT portion of SCASD $25,000) Total $178,439
3. Air Carrier Incentive Program (per FAA Guidebook)
Airport Commission approved FY2025 Annual agreement to waive rates and charges. Building
rent, landing fees
4. Airport Services Agreement (Ground Handling)
Airport Commission Approved FY 2025 Denver Air Connection agreement with Dubuque Jet
Center, option to extend one year: Discounting ground handling and fuel
DISCUSSION
Dubuque Airport Commission Subcommittee; Mariann Kurtz Weber, Bob Woodward and Todd
Dalsing November 24 meeting, submitted below email assuring Mayor and City Council of the
Commission's understanding of the operational, financial, and contractual circumstances of the
current Denver Air service and demonstrate the Commission's readiness to act swiftly and in
coordination with the City Council to invoke contractual actions related to Denver Air service.
24 November 2025
Page 491 of 865
To: Mayor Brad Cavanagh, City of Dubuque; Mike Van Milligen, City Manager, City of Dubuque,
Members of the City Council, City of Dubuque
Dear Colleagues,
The Dubuque Regional Airport Commission wishes to acknowledge and thank the Mayor, City
Manager, City Council, and DBQ Air for their combined efforts to retain and grow commercial air
service at the Dubuque Regional Airport. This remains the top priority for the Commission.
The Commission fully understands the operational, financial, and contractual circumstances of
the current Denver Air service. The Commission stands ready to act swiftly and in coordination
with the City Council to implement appropriate contractual actions related to the Denver Air
service.
Thank you again for your partnership to support commercial air service, an essential economic
necessity for our community.
Respectfully,
Dubuque Regional Airport Commission
Mike Phillips, Chair
Mariann Kurtz Weber, Vice -chair
Bob Blocker
Ron Vaugn
Bob Woodward
To attain self-sufficiency, DBQ Air Service Consultant estimates Denver Air will need to reach
an average 80% load factor. The last full month, October 2025, the load factor was 53%. On a
50-seat regional aircraft, an additional 13 passengers per flight is needed to reach 80%.
Total Enplanement
DENVER AIR
ENPLANEMENTS
2024
2025
January
382
February
412
March
531
April
459
May
630
June
595
July
640
August
694
September
767
October
786
November
461
December
476
Yearly Totals
937
5,896
Page 492 of 865
MRG including SCASD and partner contributions to date and forecast:
SCASD and Partner Contributions
Invoice
Estimated
Funds Needed
Actual
Payment Details
November 2024
$276,608.03
SCASD
December 2024
$260,321.95
SCASD
January 2025*
$361,762.02
SCASD
February 2025
$326,687.00
SCASD
March 2025
$312,362.41
SCASD
April 2025*
$333,773.15
SCASD
May 2025
$363,468.77
SCASD $28,485.44 + Travel Dubuque $334,983.33
June 2025
$282,811.29
Travel Dubuque ($165,016.67) + Economic Development Revenue Guarantee
$117,794.62
July 2025*
$325,015.06
Economic Development Revenue Guarantee
August 2025
$237,762.97
Economic Development Revenue Guarantee
September 2025
$235,434.77
Economic Development Revenue Guarantee
October 2025*
$288,394.24
Economic Development Revenue Guarantee $30K less than estimate
November 2025
$255,024.00
Forecast DAC Invoice
December 2025
$255,024.00
Forecast DAC Invoice
January 2026*
$331,030.00
Forecast DAC Invoice
February 2026
$262,304.00
Forecast DAC Invoice
March, 16 2026
$115,332.00
Forecast DAC Invoice
December 16 - March 16, 90 day notice ='/z March estimate
1 $1,218,714 1 $3,604,401.66
*Five Weeks
Fund
Balance
SCASD ($1.9M)
$0.00
Travel Dubuque $500,000
$0.00
Dubuque Count ($100,000)
$100,000.00
Economic Development Revenue Guarantee $2.4M
$1,195,598.34
Business Community Fundraising
$ December 10, 2025
$1,583,992.58
Staff continue to meet and update Denver Air and in the event they do receive a 90 day notice
of termination they will make every effort to relocate assets (flight crew, aircraft) to minimize the
need to pay MRG to the full 90 days.
ACTION TO BE TAKEN
Respectfully request Airport Commission, at the recommendation of Air Service Subcommittee,
direct Airport Director to monitor, continue communications with Denver Air regarding minimum
revenue guarantee status and in coordination with City Council invoke contractual actions
required per agreement.
Page 493 of 865
City of Dubuque
City Council
/_[QIIQil,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
Pe@egbl 094bbfl 865
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 29, 2025
INTRODUCTION
Dubuque
DAMM Glq
arx•ii
I 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
Pe@egbl 0@5Dbfl 865
approximately 505 passengers fly out of an airport to a destination from Dubuque
catchment area daily.
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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
Pe@egbl 096DO 865
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 during this time therefore
not participatinq 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
Pe@egbl WbU 865
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
6411:1VI V'h9
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.
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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
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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
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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
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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
runways.
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
Pe@egbl 502V 265
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.
9
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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.
// IAZLV4 k�4 6a-Aen,
Mic aeI C. Van Milligen
10
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MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
11
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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
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Dubuque, IA
A new service request has been filed.
Il61W11y4191: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
Pa@agbl 566DU 265
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
Pa@acjbl 56NA 865
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
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Il61W1110 6A1'1
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
Pa@acjbl 50VA 865
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
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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
Pa@agd 5®t5fi 265
563-599-1023
pzabes@gmail.com
Dubuque, IA
Pa@acjbl 59(b5fi 865
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 #2270001 (Contact City Council) -
Dubuque, IA
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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
Pa@egd 9m'b5fi 865
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
Pa@agd g 1 25fi 665
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
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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.
Pa@agd 9210 865
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
<
<image009.jpg> image005.png>
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Pa@agbl 83; bbfl 865
rVj
President's Office e. presidentsoffice@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 Pa@eW 945o§fi 865
Cottingham &Butler
800 Nlain Street I Dubuque, la 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.
P
Butl
Sin
irman
OB
Pa@acjbl 956DO 865
t:
TTI,
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
PAegbl 96b6fi 865
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
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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
Pa@ao Sft5fi 865
A�
September 11, 2025 Greater
Dubuque
DEVELOPMEW ORP.
Mayor Cavanagh and Members of the City Council Schmid Innovation Center
Dubuque City Hall 900 Jackson Sf., Suite 109
50 W 13th Street Dubuque, IA 52001
www.greaterdubuque.org
Dubuque, IA 52001
Dear Mayor Cavanagh and Members of the City Council,
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 Ph 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,
00 /
Rick Dickinson
President & CEO
YOl can be great here.
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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,
110(A�--
Keith Rahe, President + CEO
Travel Dubuque
Pa@agbl 522AA 865
UNIVERSITY of
DUBLIQUE
15 September 2025
OFFICE OF THE PRESIDENT
UDpresident adbq.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
Pa@aglal 9$4b5fi 865
Commercial Air Service
Minimum Revenue Guarantee
Update
Pa@egd 345DO 865
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.
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As a result of the loss of daily scheduled air service, DBQ Air was formed.
-Brad Cavanagh, Mayor, City of Dubuque V-�-p
-Harley Pothoff, Supervisor, Dubuque County Anow
-Molly Grover, President and CEO, Chamber of Commerce A60TV%x
-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 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.
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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.
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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
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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
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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.
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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
2025 Economic
Inflation 2022-25 Impact
1.13 $18,994,212
98%,
Flight Completion Rate
94%
On -Time Flights
IQ %
DUBUQUE REGIONAL AIRPORT
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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
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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.
DBQ Weekly Bookings
September 2024to Last Week
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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.
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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
SCASD Grant
March 2025
$312,362.41
SCASD Grant
Apri12025
$333,773.15
SCASD Grant
May 2025
$363,468.77
$2848544 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
Guarardee
ADDITIONAL FUNDING NEEDED
July 2025 (5 Weeks)
$325,015,06
T8D
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
December 2025
$229,824_00 EST_
TSD
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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
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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.
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Current DBQ Project Example: Taxiway Alpha
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® PHASE T - FEDERAL FISCAL YEAR 2023
-
(ANTICIPATED CONSTRICTION YEAR 2024)
PHASE 2 - FEDERAL FISCAL YEAR 2024
(ANTICIPATED CONSTRUCTION YEAR 2025)
-PHASE 3 - FEDERAL FISCAL YEAR 2025
[ANTICIPATE# CONSTRUCTION YEAR 2026)
PHASE 4 - FEDERAL FISCAL YEAR 2025
(ANTICIPATED CONSTRUCTION YEAR 2027)
PHASE 5 - FEDERAL FISCAL YEAR 2027
(ANTICIPATED CONSTRUCTION YEAR 2028)
PHASE 5 - FEDERAL FISCAL YEAR 2028
(ANTICIPATED CONSTRUCTION YEAR 2029)
It-
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Phased over 5 years, 2024-
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Phase 1 3ree! = Complete
Phase 2 'lug = In Progress
Phase 3 Purple = Received
Go letter from FAA to bid
next year.
Phase 4 and 5 = TBD
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.
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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
rl
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.
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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:
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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
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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
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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: UD is
growing the program from 350 enrolled students to 500+. Currently US is
constructing a new hangar, flight center, apron and parking.
461
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• 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:
Pe@egbl 58q)bfl 865
• 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.
Dubuque/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
September2024 to Last Week
350
300
25C
20C
150
100
50
0
9/18/2024 10/18/2024 ill18/2024 M1812024 1/18/2025 2/18/2025 3/18/2025 4/18/2025 5/18/2025 61IW2025 T1812025 W18/2025
7
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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
PaWL=160 VA 665
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
9
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MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
10
Pe@egbl 6.210 865
Exam: Andrew Butler <ABUTLER(acottinghamhutleccom>
Sera: Thursday, October 2, 2025 7:OO AM
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 hear them say the trip was flawless. The packing, the thoroughness and timing of security, the enjoyment of talkingwhh friends in the waiting a rea 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 wonderfu L 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 a nd excitement and encourage all in our cum mun!ty 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 deserre it!. Now is not the
time to give up.
Successful commercial airtravelto and from Dubuque is essentalto the continued success ofour 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 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 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, 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 Alr so the public support is no longer needed.
Andrew J. Butler cacu czar ARM GSFs
Executive Chairman, Cottingham & Butler, Inc.
President, SISCO
O 553 5975041 M 56337a0631 F 5635 5527
aburler@rmumNwmhaNermm
Pe@egd 63,bbfl 865
Dubuque,
A new service request has been filed_
ID
227384
DatelTime
1016/ 025 1:1
Type
Contact City Ccur.J
Address
8188 HIGHLAND PARK D:�. DJ,-Mue
Origin
Website
Comments
We need to stop funding air se.r,.; ce ','re already
knov, that there are not enough . L.stcmers to
sc.::po0 air service. I don't think the ccunciI is listing
to tie larger g,oup against supporiig air service
rJtl- -a .'.!ollars. his ,5.ould be another sitr:atioi like
5 F aas. Poll of DuIDLlque dccks and ccn),—en ei`
store arr! tie I'ir C)i ice arena The,.- each cost the
tax;.' -avers 17.ridreds of tiousands of cicl a,s each
e�-:!.r arc iev're not e,ren close to be seIf-
s up;scIirv'! ,',II tlsese pro,ec_s are outside the
pr:-,41e,r.' CT t'Ie 0 t,,, Govern meat. The claims made
U--::scme cfthe co.inc.il members stating tie city, v;ill
not gra.. V,. our hicker education instituJons will
suffer are unfounded!
Submitter ',Volff, Keith
210 Cedar Cross Road
Dubuque, IA 5 003
563-582-1691
kydO IMMubuq uesig n _co m
Pe@egbl 655DU 865
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 ($36 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.
Page 556 of 865
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:
�P S
Tricia L. Maiers, City Clerk
Page 557 of 865
City of Dubuque
City Council
ACTION ITEMS # 2.
Copyrighted
September 15, 2025
ITEM TITLE:
Commercial Air Service Minimum Revenue Guarantee
SUMMARY:
City Manager providing an update on efforts related to
commercial air service and to request City Council approval
to commit additional funds for the minimum revenue
guarantee needed to maintain the existing daily commercial
air service at the Dubuque Regional Airport.
SUGGUESTED
Receive and File; Council Direction
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Travel Dubuque
3. GDDC
4. Dubuque Area Chamber of Commerce
5. Public Input_Uploaded 9.15.25
6. Presentation - Uploaded 9.15.25
7. Loras College - Uploaded 9.15.25
8. University of Dubuque - Uploaded 9.15.25
PagegV WbU 805
THE CITY OF
DUB E-E
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
,I 1►
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.
PagegV 55q)6fl 805
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
PagegV 5ftbfl 805
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
PagagV 58 VA 865
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
PagegV 262M 805
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: UD is
growing the program from 350 enrolled students to 500+. Currently US is
constructing a new hangar, flight center, apron and parking.
PagegV HaM 805
• 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:
0
PagegV 3&bbfl 805
• 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.
Dubuque/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
,50
400
350
300
250
200
150
100
50
0
9/18/2024 10/18/2024 11/18/2024 12/18/2024 1/18/2025 2/18/2025 3/18/2025 4/18/2025 5/18/2025 6/18/2025 7/1:
7
PagegV 365of6fl 805
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
$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 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
PagegV BMW 805
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.
11�,A� k�4
Mic ael C. Van Milligen
0
PagegV 36-NA 805
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
10
PagegV Oftbfl 805
T RAVEL
W.Ul"
WHEREIMSTARTED
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,
Keith Rahe, President + CEO
Travel Dubuque
Pa@egLl BOVA 865
September 11, 2025
Mayor Cavanagh and Members of the City Council
Dubuque City Hall
50 W 131h Street
Dubuque, IA 52001
Dear Mayor Cavanagh and Members of the City Council,
Greater
Dubuque
DEVELOPMENT CORP.
Schmid Innovation Center
900 Jackson St., 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
YOU can be great here.
PagegV Sg(bbfl 805
DUBUQUE AREA
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,
- �Offezwe
Molly Grover, President & CEO
Dubuque Area Chamber of Commerce
Pa@egU SO VA NS
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Sunday, September 14, 2025 4:07 PM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #226843] (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 226843
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
Pa@ecjM 302)6fl 805
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
Pa@egitl 3710 US
u
Commercial Air Service
and
Minimum Revenue Guarantee
Update
s
PagegU 324b6fl 805
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.
PagegU 33�6fl 805
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As a result of the loss of daily scheduled air service, DBQ Air was formed.
-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
rV
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.
PapegU 34 A 805
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.
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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
PagegU 30VA 805
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:
Higher Education Approximate 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
PagegU 37q)6fl 805
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.
PagegU 38(b6fl 805
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.
2025 Est Passengers
7,637
1,
DBQ/DAC Commercial Passengers: 2025 Estimated Economic Impact
2022 Econ Output Per Passenger
$2,201
r .
C O N i % I O M
Inflation 2022-25
1.13
2025 Economic
Impact
$18,994,212
98%
Flight Completion Rate
9 %
0
On -Time Flights
Q%
DUBUQUE REGIONAL AIRPORT
F
PagegU 38 b6fl 805
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
PagegU 582AA 805
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.
DBQ Weekly Bookings
September 2024 to Last Week
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.
PagegU 58a)6fl 805
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
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 F unding
June 2025
$282,811.29
s16501561 Travel Dubuque Funding and
$111,19562 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
December 2025
$229,824.00 EST.
TBD
PagegU 584 bfl 805
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.
De-.-,,dverAn•
A Key Lime Air Company
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LORAS COLLEGE
v
September 15, 2025
Mayor Brad M. Cavanaugh
Dubuque City Council Members
50 W. 131h 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,
e��4 "'114
Michael H. Doyle, J.D. (' 91)
President
UNIVERSITY of
DUBuQuE
15 September 2025
OFFICE OF THE PRESIDENT
UDpres1dent@rdbq.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 co(lege-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 StreetJournal 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
Pa@egbl HIM BE55
Telephone: (563) 589-4233
Fax: (563) 589-4108
e-mail: tdalsing@cityofdubuque.org
DUBUQUE REGIONAL AIRPORT
Memorandum
To: Airport Commission
From: Todd Dalsing, Airport Director
Date: August 26, 2024
Subject: Air Service Agreement
INTRODUCTION
The Dubuque Regional Airport mission is to provide quality, viable, competitive airport
services and facilities while promoting sustainable economic development within the
region.
Airport Commission and Staff continue to work with partners to provide options toward
improved commercial air service:
a. Restore daily air carrier service to major hub(s) with connecting flights.
b. Increase ULCC routes and hubs to leisure destination(s).
c. Support DBQ Air to restore, retain and enhance air service.
BACKGROUND
Dubuque Regional Airport is a small, non -hub commercial airport. DBQ currently offers
destination charters with Sun Country Airlines to Biloxi and Laughlin and private
charters (examples: honor flight, MLB, VIP) operating out of Captain Robert L. Martin
Terminal.
Calendar year 2019 (pre-covid), 36,592 passengers flew from DBQ to ORD as
destination or connection, on three flights daily ERJ 145.On June 21, 2022, American
Airlines announced they would be suspending service to Dubuque, IA due to the pilot
shortage starting September 7, 2022.
As a result of lost daily scheduled air service, Commercial Air Service Taskforce (CAST)
was formed and eventually evolved into 501(c)6 not for profit DBQ Air with board
members representing City of Dubuque, Dubuque County, Chamber of Commerce,
Travel Dubuque, Dubuque Racing Association, Greater Dubuque Development
Corporation and Airport Commission.
DBQ Air, working with DBQ Air Service Consultant Matt Skinner from Global Flights,
meets weekly to restore and retain daily scheduled service. Over the past several
months, ongoing meetings with regional carriers have resulted in an option to restore
Page 590 of 865
daily service starting with a mid -day turn to Chicago O'Hare (ORD) utilizing an ERJ145
aircraft (50 Seat) on Denver Air Connection (DAC). https://denverairconnection.com/
Minimum revenue guarantees will be offered utilizing the Federal Department of
Transportation Small Community Air Service Development Program (SCASDP) Grant
(Airport Commission executed November 2023) and FAA Air Carrier Incentive Program.
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 is to restore nonstop daily
scheduled service to a hub and improve regional connections to the nation and world for
business and leisure travelers.
DBQ Air Carrier Incentive Program 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. This program and timeline must be limited to two
years (Per FAA Air Carrier Incentive Program Guidebook).
RECOMMENDATION
Approve resolutions.
BUDGET
1. FY 2025 Airport Budget for commercial air service
Professional Services — Air Service Consultant $ 48,000
Public Information Office Staff (.50 FTE) $ 30,439
SCASD Airport (See below) $ 40,000
IDOT ASD Program DBQ $12,000/ IDOT $48,000 60,000
(IDOT portion of SCASD $25,000 comes from this) Total $178,439
DBQ administrative staff time is not included in this budget.
2. Air Service Agreement
Small Community Air Service Development (SCASD) Program: duration of Minimum
Revenue Guarantee (MRG) funds available depends on load factors, ticket revenues
and air carrier expenses.
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
Page 591 of 865
IA DOT of Aviation $ 25,000
$1,965,000
In -Kind Contributions $ 70,195
Airport Incentive Program $ 27,086
Total
$2,062,281
3. Air Carrier Incentive Program (per FAA Guidebook)
FY2025 Annual agreement with a one-year option to extend waived rates and charges
(assuming 1 flight a day):
Building Rent $31.66 (per flight)
Landing Fees $42.549 (per flight)
Total Fees Waived
$ 11,556
15 530
$ 27,086 per year
Ground Handling Equipment Included
(tugs, bag carts, GPU, belt loader, loading bridge, deice vehicle, lavatory cart, potable water, fuel truck,
etc.)
4. Airport Services Agreement (Ground Handling)
FY 2025 Denver Air Connection agreement with Dubuque Jet Center, option to extend
one year:
Ground Handling $736 per flight $268,640
Ground handling includes above and below wing services, included in Air Carrier
Incentive Program and FAA and TSA regulation requirements (ARFF/ GSC).
5. Passenger Facility Charge (PFC) Annual
ERJ 145, 50 seat X 365 = 18,250 seats
18,250 X 80% LF = 14,600 seats
14,600 X $4.30 PFC = $62,780 annual PFC estimated
ACTION TO BE TAKEN
Respectfully request Airport Commission approve:
Resolution A900-1-2024 Authorizing the Airport Director to execute Air Service
Agreement with Key Lime Air, dba Denver Air Connection.
Resolution A1000-1-2024 Authorizing the Airport Director to execute Air Carrier Incentive
Program, approve waiving of rates and charges for one year with option to extend
additional year.
Page 592 of 865
Resolution A1100-1-2024 Authorizing the Airport Director to execute Airport Services
Agreement with Key Lime Air, dba Denver Air Connection.
Resolution A1200-1-2024 Authorizing the Airport Director to utilize SCASD Program
funds for new air service agreements.
4
Page 593 of 865
RESOLUTION NO A1200-1-2024
RESOLUTION AUTHORIZING THE AIRPORT DIRECTOR TO UTILIZIE THE SMALL
COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM (SCASD) FUNDS FOR
KEY LIME AIR, DBA DENVER AIR CONNECTION (DAC) PROVIDING NEW AIR
SERVICE TO THE DUBUQUE REGIONAL AIRPORT
WHEREAS, Key Lime Air, dba Denver Air Connection (DAC) agrees to provide
scheduled daily round-trip air service to and from DBQ on an agreed upon schedule at
the location mentioned in the Agreement; and
WHEREAS, Small Community Air Service Development Program Funds will be
utilized to provide a minimum revenue guarantee to DAC providing daily air service to
and from DBQ; and
WHEREAS, SCASD funds are available to be used for up to three years to
provide a minimum revenue guarantee depending on ticket revenues and other air
carrier expenses.
NOW, THEREFORE, BE IT RESOLVED BY THE DUBUQUE AIRPORT
COMMISSION OF THE CITY OF DUBUQUE, IOWA:
Section 1. That the Airport Director is authorized to utilize Small Community Air
Service Development Program funds for providing a minimum revenue guarantee to
Key Lime Air, dba Denver Air Connection (DAC) for providing new air service to the
Dubuque Regional Airport.
Section 2. The Dubuque Regional Airport Commission Chair is hereby authorized
and directed to sign this Resolution.
Passed, approved, and adopted this 27th day of August 2024.
Attest:
To d E. Dals' ,I,
Airport Dired6r
Wicel J. P it s,
Airport Commission Chair
Page 594 of 865