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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 Service People Integrity Responsibility Innovation Teamwork