Dubuque Regional Airport_Small Community Air Services DevelopmentMasterpiece on the Mississippi
Dubuque
IlLateg
an- Amedcacity
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Dubuque Regional Airport - Small Community Air Service Development
Grant (DOT - SCASDP) - Local Match
DATE: November 3, 2011
Airport Manager Robert Grierson is recommending the City provide the previously
budgeted $150,000 grant match for the $500,000 Small Community Air Service
Development Grant from the U.S. Department of Transportation.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Robert A. Grierson, Airport Manager
Masterpiece on the Mississippi
To: Michael C. Van Milligen, City Manager
From: Robert A. Grierson, Airport Manager
Date: October 21, 2011
Subject: Dubuque Regional Airport - Small Community Air Service
Development Grant (DOT - SCASDP) — Local Match
INTRODUCTION
Dubuque
'TIP
2007
Each year since 2003, the US Department of Transportation (USDOT) provides
financial assistance to selected small communities to assist them enhance their air
service. The USDOT provides this assistance in the form of financial grants that are
dispersed on a reimbursable basis.
DISCUSSION
Each year available, the Dubuque Regional Airport has applied for this grant. We were
successful in 2005 and received Small Community Air Service Development Grant in
2006 for $610,000. The grant was utilized to expand air service through Chicago
O'Hare airport with American Eagle Airlines.
We received notice on September 27, 2011 from Senator Tom Harkin's office, that the
Dubuque Regional Airport was successful in obtaining the Small Community Air Service
Development Grant again for $500,000. The grant was written to assist the community
in obtaining expanded service to the western region of the U.S.
In order to accept this grant, the Airport needs to have financial proof of community
support. The City Council on September 7, 2010 voted unanimously on leveraging
$150,000 (Economic Development CIP #2651796) for the Small Community Grant for
2010's grant proposal. The Airport did not receive the grant in 2010 and the Economic
Development CIP #2651796 carried forward and now the Dubuque Airport would like to
utilize those funds for the 2011 grant acceptance.
The breakdown of the funding for the grant is as follows:
USDOT - SCASDP grant $500,000
City of Dubuque $150,000
Dubuque Area Chamber of Commerce $50,000
Airport Marketing Fund $35,000
Airport In Kind (waive landing fees) $5,000
Grant total: $740,000
These funds will be used as a revenue guarantee to begin service within the next two
years. Service on American to Dallas is the priority, but if DBQ Airport fails to obtain
Dallas service, alternate carriers will be approached for westbound service or to
increase overall capacity to alternate hubs that would create additional westbound
opportunities. If the DBQ Airport does not add service within 2 years, the grant funds
will return to the Department of Transportation, the City of Dubuque and the Dubuque
Chamber.
The grant acceptance must be completed by October 30, 2011.
RECOMMENDATION
I am requesting your approval of the reallocation of funds from Economic Development
CIP# 2651796 to meet the required local match.
BUDGET IMPACT
$150,000 from Economic Development CIP #2651796 to be used by Airport for
Revenue Guarantee
ACTION TO BE TAKEN
City support letter needs to be signed as proof of matching local funds available
cc: Airport Commission
2
Masterpiece on the Mississippi
October 21, 2011
Dubuque
emisticaClly
liii,
2007
Aloha Ley
Associate Director, W86 -310
U.S. Department of Transportation
Small Community Air Service Development Program
1200 New Jersey Avenue S.E.
Washington, D.C. 20590
Dear Ms. Ley,
City Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001 -4805
Office (563) 589 -4110
Fax (563) 589 -4149
TTY (563) 690 -6678
ctymgr@cityofdubuque.org
www.cityofdubuque.org
On behalf of the City of Dubuque and our citizens in the Dubuque and tri -state area, we would
like to echo the vital business and economic impact air service plays in Dubuque. We could not
be more pleased with the relationship our community has with American Airlines and the
opportunities the Small Community Air Service grant brings to not only strengthen but improve
air service here in the Dubuque Area with the westbound connectivity option.
This letter is confirmation of the City of Dubuque's financial local match of $150,000 for the
Dubuque Regional Airport Small Community Air Service Development grant acceptance. We
understand and will assist the Dubuque Regional Airport in negotiations with the airline as well
as marketing the new service.
The City of Dubuque supports the plan of improving air service which will greatly benefit
everyone in the tri -state region. Westbound connectivity is a top priority to the Dubuque
community with six of the top ten business destinations located in the western region of the US.
This grant will help in recruitment of an additional hub service through Dallas with American
Airlines and will especially help us connect to the western region of the United States.
We continue to enjoy our partnership with the Dubuque Regional Airport and American Airlines
and will support and be involved with them throughout this process.
Sincerely,
Michael Van Milligen
Manager, City of Dubuque
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