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HomeMy WebLinkAboutKittitas County AirportStrategic Business Plan - FINAL - 072621 (002)July 26, 2021 Kittitas County Bowers Field 205 W. 5th Avenue, Suite 105 Ellensburg, Washington 98926-9345 AIRPORT STRATEGIC BUSINESS PLAN Kittitas County Kittitas County Airport (ELN) Facilitated By: TABLE OF CONTENTS Airport Strategic Business Plan, 07/01/2021 i Table of Contents I. INTRODUCTION ....................................................................................................... 1  II. MISSION, VISION, AND VALUE STATEMENTS ...................................................... 1  A. Mission Statement ................................................................................................. 1  B. Vision Statement ................................................................................................... 1  C. Value Statement .................................................................................................... 1  III. GOALS AND OBJECTIVES ....................................................................................... 2  IV. ACTION PLANS ......................................................................................................... 7  APPENDIX I: AIRPORT STRATEGIC BUSINESS PLAN OVERVIEW .......................... 8  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT ............................................. 13  APPENDIX III: SWOT ANALYSIS ................................................................................. 66  MISSION, VISION, AND VALUE STATEMENTS Airport Strategic Business Plan, 07/26/2021 1 I. INTRODUCTION This Airport Strategic Business Plan (ASBP) uses a logical, disciplined, and collaborative structure to set out the mission, vision, goals, objectives, and actions plans that will drive the day-to-day management, and operation of Kittitas County Airport (Airport). In essence, this ASBP transforms the Airport’s mission and vision into specific goals, objectives, and actions. II. MISSION, VISION, AND VALUE STATEMENTS Following are the Airport’s mission, vision, and value statements developed during the strategic planning process and approved by the County. A. Mission Statement The mission of the Kittitas County Airport (Bowers Field) is to operate and develop the Airport and Industrial Park in a safe and efficient manner to encourage the availability of high-quality aviation and non-aviation products, services, and facilities; support professional aviation education programs; enhance the economic benefit for the County; and support local and regional emergency preparedness. B. Vision Statement The vision of the Kittitas County Airport (Bowers Field) is to be the leading Central Washington regional general aviation airport that is a vital and self-sufficient center of air transportation and economic activity. C. Value Statement In addition to the Airport’s mission and vision, the following core values serve as a compass for our actions. Safety Airport management will encourage and maintain a safe environment through proper training, thoughtful actions, and adherence to safety regulations at all times. People Striving to meet the unique needs of our customers, community, and visitors, we commit to their satisfaction and well-being by treating them with respect, dignity, and fairness. Accountability Taking responsibility for individual and team actions, decisions and results by establishing clear plans and goals and measuring our progress against them. Integrity Practicing highest standards of ethical behavior and maintaining credibility by ensuring our actions match our words. Performance Excellence Setting standards of high-quality performance through education and achieving excellence by implementing best practices. GOALS AND OBJECTIVES Airport Strategic Business Plan, 07/26/2021 2 III. GOALS AND OBJECTIVES The Airport’s goals and objectives were developed to preserve, build on, and leverage the Airport’s strengths; address and remedy the Airport’s weaknesses; seize and capitalize on the Airport’s opportunities; and manage or, if possible, eliminate the Airport’s threats. Based on the Airport’s mission and vision and the Strength, Weakness, Opportunities and Threats (SWOT) analysis, team members provided recommendations for goals to be reached in order to realize the Airport’s mission and vision. The SWOT analysis results are found in Appendix III SWOT ANALYSIS. The final goals and objectives are based on the SMART model1. MISSION The Mission of Kittitas County Airport – Bowers Field is to operate and develop the  Airport and Industrial Park in a safe and efficient manner to encourage the  availability of high‐quality aviation and non‐aviation products, services, and facilities;  support professional aviation education programs; enhance the economic benefit  for the County; and support local and regional emergency preparedness.  VISION The Vision for the Kittitas County Airport – Bowers Field is to be the leading Central  Washington regional general aviation airport that is a vital and self‐sufficient center  of air transportation and economic activity.  GOAL 1    Increase the capital investment in revenue generating assets at the Airport by forty  percent (40%) by the end of 2024  GOAL 2    Secure the development and/or operation of new aeronautical and aerospace  products, services, and facilities by 2024  GOAL 3    Increase the economic impact of the Airport on the community by twenty percent  (20%) by the end of 2024  GOAL 4    Improve and enhance the safety, security, and efficiency of the Airport’s airside  infrastructure by the end of 2023  1 A detailed explanation of the SMART model can be found in Appendix I Airport Strategic Business Plan Overview GOALS AND OBJECTIVES Airport Strategic Business Plan, 07/26/2021 3 MISSION The Mission of Kittitas County Airport – Bowers Field is to operate and develop the  Airport and Industrial Park in a safe and efficient manner to encourage the availability  of high‐quality aviation and non‐aviation products, services, and facilities; support  professional aviation education programs; enhance the economic benefit for the  County; and support local and regional emergency preparedness.  VISION The Vision for the Kittitas County Airport – Bowers Field is to be the leading Central  Washington regional general aviation airport that is a vital and self‐sufficient center of  air transportation and economic activity.  GOAL 1    Increase the capital investment in revenue generating assets at the Airport by forty  percent (40%) by the end of 2024  OBJECTIVE  1‐1  [From Objective 1‐2]  Finalize leasing, rents, and fees policies by the end of 2021 for implementation in 2022   OBJECTIVE  1‐2  [From Objective 1‐3]   Propose capital investment in the Airport and/or industrial park by 2022 through  different funding mechanisms (e.g., loans, bonds, etc.)   OBJECTIVE  1‐3  Identify and apply for two (2) and secure one (1) non‐aviation federal and/or state  grants annually  OBJECTIVE  1‐4  [From Objective 1‐4]   Develop a comprehensive Airport (including the industrial park) marketing and public  relations program by the end of 2021 for implementation in 2022  OBJECTIVE  1‐5  Increase the total number of aeronautical and non‐aeronautical land/improvement  leases by twenty‐five percent (25%) by 2024  OBJECTIVE  1‐6  Design and develop (and provide infrastructure to) land parcels that can support the  development of aircraft storage facilities by the end of 2021  OBJECTIVE  1‐7  Increase total based aircraft at the Airport by fifteen (15) aircraft by the end of 2024  GOALS AND OBJECTIVES Airport Strategic Business Plan, 07/26/2021 4 MISSION The Mission of Kittitas County Airport – Bowers Field is to operate and develop the  Airport and Industrial Park in a safe and efficient manner to encourage the availability  of high‐quality aviation and non‐aviation products, services, and facilities; support  professional aviation education programs; enhance the economic benefit for the  County; and support local and regional emergency preparedness.  VISION The Vision for the Kittitas County Airport – Bowers Field is to be the leading Central  Washington regional general aviation airport that is a vital and self‐sufficient center of  air transportation and economic activity.  GOAL 2    Secure the development and/or operation of new aeronautical and aerospace  products, services, and facilities by 2024  OBJECTIVE  2‐1  Finalize minimum standards for engaging in commercial aeronautical activities by the  end of 2021 for implementation in 2022  OBJECTIVE  2‐2  Finalize leasing, rents, and fees policies by the end of 2021 for implementation in 2022  OBJECTIVE  2‐3  Propose capital investment in the Airport and/or industrial park by 2022 through  different funding mechanisms (e.g., loans, bonds, etc.)  OBJECTIVE  2‐4  Develop a comprehensive Airport (including the industrial park) marketing and public  relations program by the end of 2021 for implementation in 2022  OBJECTIVE  2‐5  Solicit interest and proposals for improving/enhancing existing and/or developing  new specialized aeronautical products and services (e.g., flight training, aircraft rental,  aircraft maintenance, etc.) and associated facilities at the Airport by the end of 2023  for initiation in 2024  OBJECTIVE  2‐6  Solicit interest and proposals for developing aerospace products and services and  associated facilities at the Airport by the end of 2024 for initiation in 2025  GOALS AND OBJECTIVES Airport Strategic Business Plan, 07/26/2021 5 MISSION The Mission of Kittitas County Airport – Bowers Field is to operate and develop the  Airport and Industrial Park in a safe and efficient manner to encourage the  availability of high‐quality aviation and non‐aviation products, services, and  facilities; support professional aviation education programs; enhance the economic  benefit for the County; and support local and regional emergency preparedness.  VISION The Vision for the Kittitas County Airport – Bowers Field is to be the leading Central  Washington regional general aviation airport that is a vital and self‐sufficient center  of air transportation and economic activity.  GOAL 3    Increase the economic impact of the Airport on the community by twenty percent  (20%) by the end of 2024  OBJECTIVE  3‐1  [From Objective 1‐4]   Develop a comprehensive Airport (including the industrial park) marketing and  public relations program by the end of 2021 for implementation in 2022  OBJECTIVE  3‐2  Establish and host an annual aviation/community event by 2021  OBJECTIVE  3‐3  Develop a marketing initiative to increase the use of the Airport and community by  aviation clubs, associations, and organizations (e.g., Experimental Aircraft Association,  aircraft owner clubs, etc.) by the end of 2022 for implementation in 2023  OBJECTIVE  3‐4  Increase the number of jobs based at the Airport by adding at least one (1) new  non‐aeronautical commercial tenant with a substantial employment base by the  end of 2024  OBJECTIVE  3‐5  [From Objective 1‐5]   Solicit interest and proposals for improving/enhancing existing and/or developing  new specialized aeronautical products and services (e.g., flight training, aircraft  rental, aircraft maintenance, etc.) and associated facilities at the Airport by the  end of 2023 for initiation in 2024  OBJECTIVE  3‐6  [From Objective 1‐6]   Solicit interest and proposals for developing aerospace products and services and  associated facilities at the Airport by the end of 2024 for initiation in 2025  GOALS AND OBJECTIVES Airport Strategic Business Plan, 07/26/2021 6 MISSION The Mission of Kittitas County Airport – Bowers Field is to operate and develop the  Airport and Industrial Park in a safe and efficient manner to encourage the availability  of high‐quality aviation and non‐aviation products, services, and facilities; support  professional aviation education programs; enhance the economic benefit for the  County; and support local and regional emergency preparedness.  VISION The Vision for the Kittitas County Airport – Bowers Field is to be the leading Central  Washington regional general aviation airport that is a vital and self‐sufficient center of  air transportation and economic activity.  GOAL 4    Improve and enhance the safety, security, and efficiency of the Airport’s airside  infrastructure by the end of 2023  OBJECTIVE  4‐1  Develop a comprehensive aeronautical land‐use and development plan by the end of  CY 2021 for implementation in 2022  OBJECTIVE  4‐2  Improve airside operations (e.g., mowing, snow removal, FOD management, etc.)  through the procurement of additional equipment and manpower and  implementation of best management practices by 2022  OBJECTIVE  4‐3  Finalize rules and regulations by the end of 2021 for implementation in 2022  OBJECTIVE  4‐4  Develop a professional development program for airport administration and staff to  include industry certifications such as AAE (Accredited Airport Executive), CM  (Certified Member), and ACE (Airport Certified Employee) by the end of 2022 for  implementation in 2023  ACTION PLANS Airport Strategic Business Plan, 07/26/2021 7 IV. ACTION PLANS The Airport is currently in the process of drafting action plans worksheets developed and provided by AMCG. These worksheets will assist the Airport in the development of Action Plans associated with the goals and objectives developed during the strategic planning process. The action plan worksheets focus on the following:  “who” (is going to perform the specific actions/tasks),  “what” (specific actions/tasks need to be performed),  “when” (the specific actions/tasks need to be completed),  “where” (the specific actions/tasks are going to be performed),  “why” (the specific actions/tasks need to be performed), and  “how” (the objective is going to be accomplished – approach, resources, and budget). APPENDIX I: ASBP OVERVIEW Airport Strategic Business Plan, 07/26/2021 8 A. Reasons for an Airport Strategic Business Plan According to the Transportation Research Board’s Airport Cooperative Research Program Report 77: Guidebook for Developing General Aviation Airport Business Plans (Report 77), there are several compelling reasons for a general aviation airport to have an airport strategic business plan, as follows:  generate more revenue;  reduce or eliminate expenses;  secure more capital funding;  rely less (or not at all) on subsidies;  create more jobs Another compelling reason discussed in Report 77 for a general aviation airport to have an airport strategic business plan is that the Federal Aviation Administration, through the Airport Sponsor Assurances (specifically Assurance #24) requires that any federally obligated airport be as financially self-sustaining as possible given the circumstances that exist at the airport. One of the best ways a federally obligated general aviation airport can comply with Assurance #24 is to develop and implement an airport strategic business plan that, at its core, demonstrates the ways airport management and policymakers are striving toward achieving the goal of becoming (or continuing to be) financially self-sustaining. Report 77 also discusses that there is an expectation that a federally obligated airport will be operated and managed as a public enterprise; having an airport strategic business plan demonstrates good stewardship by establishing goals, developing objectives, and formulating action plans, consistent with realizing the airport’s mission and vision statements. APPENDIX I: ASBP OVERVIEW Airport Strategic Business Plan, 07/26/2021 9 B. Value of the Airport Strategic Business Plan This ASBP is an important planning tool, a critical management tool, and a vital communications tool. As a planning tool, the ASBP;  articulates the mission, vision, values, and goals of the Airport;  sets forth the objectives for achieving goals;  identifies the action plans for accomplishing objectives;  establishes the parameters for checking progress; and  provides the basis for making adjustments – as needed – to achieve the goals and realize the Airport’s mission and vision. As a management tool, the ASBP:  helps the Airport’s policymakers, management/staff, and stakeholders maintain focus on achieving goals and realizing the Airport’s mission and vision;  establishes an actionable game plan for building on the Airport’s strengths, address weaknesses, capitalize on opportunities, and manage threats;  provides a framework for making informed, prudent, and defensible decisions concerning the governance, management, and operation of the Airport; and  helps inform budget priorities and amounts. As a communications tool, the ASBP:  provides the information needed to assist the Airport’s policymakers and management/staff communicate the role and value of the Airport;  justifies investment in the Airport and Airport programs (or build support);  provides the information needed to assist policymakers and management/staff to make informed, prudent, and defensible decisions concerning the governance, management, and operation of the Airport;  explains the Airport’s financial performance and foster transparency; and  demonstrates the value of the Airport’s programs and services. APPENDIX I: ASBP OVERVIEW Airport Strategic Business Plan, 07/26/2021 10 C. Elements of the Airport’s Strategic Plan Mission Statement The mission statement conveys the reason for the Airport’s existence and identifies the Airport’s core competencies. The direction provided in the mission statement helps guide the Airport’s policymakers and management/staff decision making, dictate conduct, and shape performance on a day-to-day basis. Vision Statement The vision statement articulates the Airport’s aspirations and is a picture of success. Values Statement The values statement outlines the collective beliefs held throughout the Airport. Values are enduring and will not be compromised or abandoned. Market Assessment The purpose of a market assessment is to provide airport management, policymakers, stakeholders, and the planning team an intimate understanding of the airport, the community, the industry, and the market from both a macro and micro perspective Strength, Weakness, Opportunities and Threat (SWOT) Analysis The purpose of a SWOT analysis is to identify and categorize actual and perceived strengths, weaknesses, opportunities, and threats associated with the Airport and the organization. In performing the SWOT analysis, strengths and weaknesses are internal to the airport while opportunities and threats are external. The results of the SWOT analysis serve to document the planning team’s understanding of the Airport and the organization Goals A goal is a statement of a desired result, outcome, or level of attainment that needs to be reached to realize the mission and vision of the Airport. A goal should be positive and easily understood by the Airport’s policymakers, management/staff, and stakeholders. Objectives An objective is a significant step toward achieving a goal (i.e., it is a means to an end). Action Plans As the fundamental building blocks of the Airport’s Strategic Business Plan, the action plans answer the key questions of who is going to do what, when, where, why, and how to accomplish the objectives. APPENDIX I: ASBP OVERVIEW Airport Strategic Business Plan, 07/26/2021 11 D. Airport’s Strategic Business Planning Process As one of the first steps in the Airport’s strategic business planning process, the Airport formed a planning team (Team) to gain valuable input and guidance during the process. Team members were specifically selected based on each individual’s diverse background, experience, expertise, and interests, but with a vested interest in the success of the Airport. The team members are as follows . The Airport and the Team was assisted by Aviation Management Consulting Group, with direct facilitation by Jeff Kohlman (Managing Principal), David Benner (Managing Consultant) and Katie Gainer (Aviation Analyst).  Anderson Hay o Mark Anderson, CEO / President  Bowers Field Airport o Nancy Lilliquist. Airport Advisory Committee / City of Ellensburg o Ken Grannan, Airport Director o Keith Riexinger, Airport Advisory Committee o Ron Mitchell, Airport Advisory Committee / Midstate Aviation  Central Washington University o Linda Schactler, Chief of Staff at Office of the President  Century West Engineering o Samantha Peterson, Aviation Planner  Crytyl Enterprises o Tyler Glahn, President  Department of Natural Resources o Matthew McGee, Facilities Services Coordinator  Kittitas County o Amy McGuffin, Chamber of Commerce o Cory Wright, County Commissioner o Mark Cook, Public Works Director  Suncadia o Chris Collins, Investor  WSDOT o Rob Hodgman, Senior Aviation Planner The first major step in the strategic planning process was the development, review, and discussion of the Preliminary Assessment (Assessment) The Assessment examined the Airport, the County and the surrounding community, the local and regional market, and the national general aviation industry. The Assessment is provided as Appendix II –Preliminary Airport Assessment. APPENDIX I: ASBP OVERVIEW Airport Strategic Business Plan, 07/26/2021 12 Based on the results of the SWOT analysis the Team developed the Airport’s mission, vision, and values statements. After developing the Mission, Vision, and SWOT Analysis the Team provided recommendations for goals to be reached to realize the Airport’s mission and vision. The goal recommendations were based on the SMART model.  Specific – simple, straightforward, compelling (without specificity, a goal can never truly be reached).  Measurable – tangible, able to be tracked (an effective goal requires a statement of the tangible evidence that the goal has been reached).  Attainable – possible yet challenging enough to be motivating. If a goal requires the Airport to reach beyond its true self, the goal will become burdensome and ultimately detrimental to the process. However, the goal should be challenging enough to cause the Airport to “rise up” to achieve it.  Relevant – important to Airport stakeholders.  Time Bound – includes a beginning and ending point. Identifying start and end dates provides the “race-track” needed to keep the Airport on course with a clear finish line to pursue. Finally, there are typically four different types of goals.  Strength/Opportunity (SO) Goals – goals that leverage strengths by taking advantage of opportunities  Weakness/Opportunity (WO) Goals – goals that address weaknesses by taking advantage of opportunities  Strength/Threat (ST) Goals – goals that leverage strengths to manage/avoid threats  Weakness/Threat (WT) Goals – goals that address weaknesses to manage/avoid threats APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT INTRODUCTION Airport Strategic Business Plan, 07/26/2021 13 I. INTRODUCTION A. PURPOSE OF AIRPORT STRATEGIC BUSINESS PLAN An Airport Strategic Business Plan (ASBP) for the Bowers Field Airport (ELN or Airport) will serve as a planning tool and will use a logical and disciplined structure to set out the mission, vision, values, goals, objectives, and action plans that drive day- to-day management of the Airport. The ASBP will transform the mission and vision for the Airport into specific goals, objectives, and actions plans for each functional area of the Airport. An airport who has an ASBP is more likely to have a greater economic impact on the community they serve and a stronger (more stable) platform for growth and development. B. PROCESS OF AIRPORT STRATEGIC BUSINESS PLANNING  PHASE 1: The first phase in the ASBP process is preparation. This will educate Airport management and staff, allow for buy-in from policymakers, and determine the best approach in the formation of a ASBP planning team.  PHASE 2: The second phase in the ASBP process is development. This phase includes conducting an airport/market assessment and a SWOT analysis. Within this stage, the mission, vision, and values statement are developed. Within this stage goals and objectives are established. After this, an action plan and budget are formulated. The final step in phase two is to obtain approval of the plan.  PHASE 3: The third and final phase in the ASBP process is implementation. Within this phase the ASBP is implemented. Throughout this phase adjustments will be made based on reports and input from Airport management and staff; policymakers; and stakeholders. Based on these reports and input the ASBP is updated and reimplemented. C. AIRPORT STRATEGIC BUSINESS PLANNING PRINCIPLES AMCG offers the following guiding principles for the development of the ASBP:  The ASBP should give priority to safety and security, followed by financial feasibility, operational efficiency, environmental stewardship, and social responsibility.  The ASBP should be beneficial to tenants, users, and/or stakeholders of the Airport.  The ASBP should preserve flexibility to permit future changes to the ASBP as industry and local conditions warrant.  The ASBP should emphasize cost-effective solutions and consider the total cost of implementation when evaluating alternatives. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT INTRODUCTION Airport Strategic Business Plan, 07/26/2021 14 D. PURPOSE OF PRELIMINARY AIRPORT AND MARKET ASSESSMENT Having a thorough understanding of the Airport, Kittitas County (County), the City of Ellensburg (City), the surrounding community, and the market that the Airport operates within is an important first step in the strategic airport business planning process. This Preliminary Airport and Market Assessment (Assessment) will examine these areas from both a macro (industry) and micro (market) perspective; evaluate the competition; explore market and customer segments; and identify demand and capacity for the Airport’s infrastructure and aviation products, services, and facilities, as follows:  Section II – Airport Overview: This section identifies the Airport’s key assets, amenities, and attributes; discusses the Airport’s ownership, governance, and management structure and powers; presents key Airport management and staff; discusses the funding mechanisms of the Airport; presents community and industry association participation of the Airport; identifies the Airport’s primary planning, management, and compliance documents; identifies unique characteristics of the Airport; examines some key Airport statistics and trends; and identifies the Airport’s primary aeronautical and non-aeronautical tenants and the associated products, services, and facilities.  Section III – Market Overview: This section provides an overview of the market on a national, state, and local level and examines key market statistics and trends including the number of FAA registered aircraft and licensed pilots in the United States, the state of Washington, and the surrounding counties. This section also identifies airports in the market area that are competing for based and transient customers and the associated assets, amenities, attributes, and activity levels of these airports (e.g., aircraft operations, based aircraft, and fuel volumes, etc.)  Section IV – Community Overview: This section identifies the community’s key assets, amenities, and attributes; identifies unique characteristics of the community; identifies the major public and private employers in the community; and examines key community statistics and trends. Some of the key demographic, economic, and socio- economic statistics and trends that are examined include population, household income, employment, unemployment, and labor force.  Appendix: The Appendix provides background on the industry from an historical perspective, identifies unique characteristics, and provides explanations on industry terminology. In addition, this section analyzes key industry statistics and trends including new aircraft shipments, active aircraft, hours flown, active pilots, and fuel consumption. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 15 II. AIRPORT OVERVIEW A. AIRPORT PROFILE Table 1: Bowers Field Airport Profile  ITEM INFORMATION  Airport Name Bowers Field  FAA Airport Identifier ELN  City and State Ellensburg, Washington  Distance/Direction from CBD 2 miles Northwest of the central business district   Airport Sponsor Kittitas County  Type of Airport Sponsor County  Airport Governing Body Kittitas County Board of County Commissioners  Type of Airport Governing Body ☒Elected  ☐Appointed  Airport Advisory Body Yes  Airport Operator Kittitas County  Type of Airport Operator County  Airport Management ☒Full‐Time  ☐Part‐Time  ☐None    Number of Employees 2 (full‐time) and 1 (part‐time)  Part of an Airport System2 No  Type of NPIAS Airport3 ☐Primary  ☐Large Hub  ☐Medium Hub  ☐Small Hub  ☐Non‐Hub   ☐Non‐Primary Commercial Service    ☐General Aviation Reliever  ☒General Aviation  Airport Reference Code (ARC)4 AAC: ☐A  ☒B  ☐C  ☐D  ☐E  ADG: ☐I  ☒II  ☐III  ☐IV  ☐V  RVR: ☐VIS  ☐5000  ☐4000  ☐2400  ☐1800  ☐1200 ☒N/A  Market Segments Served5 Industry  ☐Air Carrier ☐Military ☒General Aviation  General Aviation  ☒Personal  ☒Business  ☐Commercial  ☐Government  Air Traffic Control Tower ☐FAA  ☐Contract  ☒None    Airport Economic Impact6 The estimated regional impact from airport businesses and visitors  includes an additional 214 jobs. The labor income has an impact of  $11,898,00 and the value added that airport business bring to the  community is $20,277,000 resulting in a total airport economic  impact of $39,554,000.   2 An airport system includes multiple airports owned and/or operated by a single airport sponsor/operator. 3 Background on the National Plan of Integrated Airport Systems (NPIAS) can be found in Appendix A. 4 Additional information on Airport Reference Codes can be found in Appendix C 5 Additional information on Industry and General Aviation Market Segments can be found in Appendix D. 6 2020 WSDOT Economic Impact Study APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 16 B. AIRPORT OWNERSHIP, GOVERNANCE, AND MANAGEMENT Airport Ownership Structure and Powers Does the airport sponsor (airport owner) have statutory powers? ☒ Yes ☐ No Is the airport sponsor obligated by the Airport Sponsor Assurances? ☒ Yes ☐ No Does the airport sponsor have operational control of the Airport? ☒ Yes ☐ No Does the airport sponsor delegate powers to a separate governing body? ☐ Yes ☒ No Is the Airport operated as an enterprise fund of the airport sponsor? ☒ Yes ☐ No Does the airport sponsor own the land on which the Airport is situated? ☒ Yes ☐ No Does the airport sponsor control land use on and adjacent to the Airport? ☒ Yes ☐ No Can the airport sponsor use the power of condemnation or eminent domain? ☒ Yes ☐ No Can the airport sponsor issue bonds and enter into debt instruments? ☒ Yes ☐ No Can the airport sponsor access capital markets for Airport development? ☒ Yes ☐ No Does the airport sponsor have freedom of information obligations? ☒ Yes ☐ No Airport Governance Structure and Powers Does the governing body have statutory powers? ☒ Yes ☐ No Does the governing body have statutory immunities? ☐ Yes ☒ No Does the governing body have operational control of the Airport? ☒ Yes ☐ No Does the governing body have by-laws outlining procedures of government? ☒ Yes ☐ No Does the governing body have the ability to enter into agreements? ☒ Yes ☐ No Does the governing body have purchasing authority? ☒ Yes ☐ No Does the governing body have requirements for public meeting notification? ☒ Yes ☐ No Does the governing body have freedom of information obligations? ☒ Yes ☐ No Airport Management Structure and Powers Are airport management’s roles and responsibilities clearly delineated? ☒ Yes ☐ No Are there outside airport advisors? ☒ Yes ☐ No Are there airport volunteers (e.g., Airport Advisory Body)? ☒ Yes ☐ No Does airport management have community support? ☒ Yes ☐ No APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 17 C. AIRPORT MANAGEMENT AND STAFF Ken Grannan, Airport Director Ken has over three years of experience in management. Ken provides support services for daily operations of the Airport and related facilities. Prior to working at the Airport, Ken held the position of Executive Director for Hospice Friends (Ellensburg, Washington). Ken holds an Associate of Business Administration in Aviation Administration and Atmospheric Science from the University of North Dakota. Figure 1 represents the organization structure of the airport management and staff at Bowers Field Figure 1: Organizational Structure  Kittitas County Airport Director  Ken Grannan  Airport Administration Assistant  David Welz Operations Technician  Alan Lindemoen Board of County  Commissioners  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 18 D. FUNDING MECHANISMS Obtaining sufficient capital funds to maintain and improve the Airport is a central challenge for airports. This section identifies aeronautical and non-aeronautical sources of capital funds. Generally, only the aeronautical oriented grant programs will fund airfield maintenance projects. However, several capital funding sources are available to subsidize new improvements. It is also important to note that there are individuals and firms that specialize in identifying and applying for aeronautical and non-aeronautical federal, state, and local grants on behalf of airport sponsors. This can be effective for airport sponsors that either do not have sufficient staff or institutional knowledge to effectively pursue these grant opportunities The County is able to accept grants, loans, or contributions from the United States, the State of Washington, any agency, or instrumentality of either of them, or the County in which such authority is established and to expend the proceeds thereof for any corporate purposes. As is outlined by the County’s financial statements, overall, the Airport’s financial outlook remains strong, primarily due to its strong general aviation community and the relationship with Central Washington University. Under Airport Assurance #24, the FAA requires that any federally obligated airport be as financially self-sustaining as possible given the circumstances that exist at the airport. An Airport Strategic Business Plan is one of the best ways to demonstrate that an airport is striving towards achieving the goal of becoming (or continuing to be) financially self- sustaining (sustainable). The following is a brief overview of the County’s funding sources for the Airport: KITTITAS COUNTY  Airport Fund: The Airport Fund provides the financial resources needed to manage, develop, and maintain the Bowers Field Airport’s Aeronautical & Industrial Areas. The Airport Fund receives revenues from lessees including Central Washington University, Midstate Aviation and Carrera Hangars. FEDERAL AVIATION ADMINISTRATION For most public airports, the Airports Improvement Program (AIP), administered by the FAA, is the principal source of capital funds for airport development projects. Airports must be listed in the NPIAS to be eligible to receive AIP grants. Airports with no based aircraft or that are located within 20 minutes driving time of a larger airport typically do not qualify for being in NPIAS. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 19 Most capital projects at general aviation airports are eligible for AIP funding. Common projects are as follows:  Maintenance of existing or construction of new runways, taxiways, taxi lanes, electrical systems, and drainage systems.  Construction of security or wildlife exclusion fencing.  Construction of navigation or landing aids such as: rotating beacons, Automated Weather Observing Systems (AWOS), Precision Approach Path Indicators (PAPI), and runway edge lights.  Preparation of airport master plans and airport layout plan updates; and  Preparation of federal environmental documents associated with grant-eligible projects. Airports must submit a five-year airport capital improvement program (ACIP) to the FAA annually. This submittal is used to define both the projects and the funding being sought, along with the requested grant amounts. Annual discussions between the airport and FAA staff are used to align airport requests with FAA priorities. AIP grant funds are distributed in two ways, as described below. In Washington, FAA grants require a 10% match. This is commonly met by a combination of local funds and a grant from the Washington AIP Matching Grant program (discussed below).  Non-Primary Entitlement Funds: General aviation airports in NPIAS are annually allocated $150,000 in FAA grant funds. These funds can be aggregated for four years before they expire. It is possible to transfer these funds between airports operated by the same agency or to transfer them to another agency that operates a NPIAS airport.  Discretionary Funds: For projects that require funds beyond those available from the entitlement program, airports can compete for discretionary funds. The Airport will be competing with grant requests from airports administered by the FAA’s Seattle Airports District Office. For large grant requests, there is normally a three-year lead time to get the grant programmed.  FAA Facilities and Equipment Fund (F&E): F&E allows for airport sponsors to obtain the funds to purchase navigation aids for air safety-related technical equipment.  Airport Improvement Program (AIP): AIP provides grants to airport sponsors for the planning and development of public-use airports that are included in the NPIAS. For regional airports, the grant covers a range of 90 to 95 percent of eligible costs, based on statutory requirements. AIP Grant Funds awarded in 2019 for aviation infrastructure improvements in the state of Washington was $78,979,696. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 20 AERONAUTICAL FUNDING SOURCES FOR THE STATE OF WASHINGTON  Department of Transportation Aviation Division (WSDOT Aviation): The WSDOT Aviation provides an additional source of funding for airport projects in the form of its Airport Aid Grants program. This Aviation Division has established grant criteria for airport sponsors who request aid for projects related to pavement, safety, maintenance, security, or planning.  State Capital Improvement Program (SCIP): The FAA’s Seattle Airport District Office (ADO) worked with other state aviation agencies in Washington, Oregon, and Idaho to develop a coordinated “state” capital investment program (SCIP). The SCIP helps to prioritize funding. Airport sponsors are asked to provide annual updates for short term projects to maintain a current system of defined project needs. These short-term priorities are then identified in the master CIP and will then be imported into the SCIP and are subject to additional prioritization for funding in competitive statewide evaluations.7  Acquisition and Development Grant: Funds for the Acquisition and Development Grant program derive from State aviation funds not allocated for the Annual Credit Grant or AIP Matching Grant programs. State law indicates that these funds may be used for acquisition and development of airports and ALUCPs. In practice, most of the funds are used for maintenance of airfield pavement or similar basic projects. Grants are limited to $500,000 annually, with a 10% airport sponsor match required. For a project to be eligible, it must be included in the State’s Capital Improvement Plan program.  Loan Program: The Community Aviation Revitalization Board (CARB) Loan program is program that utilizes fund revenue-producing capital projects that assist public-use, general aviation airports to become more self-sustainable. The program provides loans up to $750,000 at 2% interest to airports with less than 75,000 annual commercial enplanements, as reported to the FAA. Loans can have a maximum 20- year loan period and recipients can opt to have up to a three-year loan repayment grace period. Loan recipients must commit to providing public access to the airport for a period equivalent to one and one-half times the term of the loan. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 21 OTHER FEDERAL FUNDING SOURCES Several federal agencies administer grant programs. The ones most likely to be relevant to Bowers Field are described below.  Federal Transit Administration (FTA): The FTA administers a large number of grant programs (see https://www.transit.dot.gov/grants) related to various types of transit systems. Some programs are directly administered by FTA and some are administered by states. A few of these programs directly target rural areas and small cities. The potential value of these grants is to connect airports to adjacent communities. Grants could be used to develop stops at airports or expand bus service to airports. These are competitive grants.  Public Works and Economic Adjustment Assistance Programs: The Economic Development Administration administers the Public Works and Economic Adjustment Assistance Programs. These competitive grants can be used for capital investments as well as economic planning and revolving loan programs. Grants can be awarded for amounts from $100,000 to $3 million. The principal limitation is that construction grants must show how jobs will be directly created by the grant-funded project. The potential value for the airports is in providing facilities for a prospective tenant that have documentable jobs once constructed.  U.S. Department of Commerce Economic Development Administration – The U.S. Department of Commerce Economic Development Administration provides grants that will promote American business and trade.  U.S. Department of Agriculture Rural Development: The U.S. Department of Agriculture’s Rural Development office administers several programs of potential relevance to airports across the U.S. The programs most likely to be of value are:  Community Facilities Direct Loan and Grant Program: This program has the potential to fund public-use facilities. Since a wide variety of projects could qualify for this grant, there may be other ways that this source could be used.  Rural Energy for American Program: This program might fund the development of a solar farm at any airports which have sufficient land.  Business and Cooperatives Program: This program could be used to support development of a business, aviation-related or nonaviation, on airports with available land.  Rural Utilities Service: This program could possibly be used to fund improvements to the wastewater treatment at Bowers Field Airport. The challenge would be demonstrating job creation. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 22 PRIVATE CAPITAL FUNDING SOURCES  Company Donations: While less common, private donations may also be a source of funding. Donations can be used as matching funds to help secure a grant or as capital for projects, vehicles, equipment, tools, and materials that may not be eligible under federal and state grant programs. Wealthy families with ties to Bowers Field are also a potential source of donations. For example, a local businesswoman offered to donate $10,000 to the Norwalk-Huron County Airport in Norwalk, Ohio, to be used as matching funds to help secure an AIP grant. In North Carolina, businesses benefiting from the presence of the Raleigh Executive Jetport at Sanford-Lee County donated money to furnish and decorate rooms in a new general aviation terminal building. A plaque in each room acknowledges the donation and recognizes each contributor. In all cases, the challenge will be to define an airport-related project that is meaningful to the company or family. These sources, unlikely to be a sole source for major capital improvements, could, however, support smaller projects.  Public-Private Partnerships (P3s): P3s take many forms. A common example involves a private operator bidding for control of certain assets of a public enterprise. The bidder calculates a net present value for the assets to be acquired and enters a long-term lease with the public enterprise (e.g., the airport sponsor). The lease term must be sufficiently long to allow the bidder to amortize the upfront payment in full and enjoy a reasonable rate of return. Due to the reliability of the cash flow and the more favorable rates of return, P3s have become popular with pension and insurance funds. Sponsor grants a private entity the right to design, build, maintain, operate, or finance buildings or infrastructure. Many options exist regarding division of responsibilities for construction, financing, management, and payment to the sponsor who maintains ownership of the particular asset. INDUSTRIAL PARK FUNDING SOURCES In addition to private capital and private funding sources the following funding sources are specific to Industrial Parks in Washington.  Asset America – Assets America provides commercial construction loans and other industrial real estate loans for industrial parks, industrial buildings, industrial showrooms, data centers, R&D buildings, cold-storage buildings, laboratories, warehouses, distribution centers, plants, and other industrial properties.  Washington State’s Community Economic Revitalization Board (CERB) – funding is a state capital source that provides funding to local governments and federally- recognized tribes for public infrastructure which supports private business growth and expansion. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 23 Table 2 provides a summary of each of the funding sources listed above and their applicability to the Airport or the Industrial Park. Table 2: Funding Sources   Funding Source  Airport  Industrial Park   Kittitas County Airport Fund Yes Yes Non-Primary Entitlement Funds Yes Discretionary Funds Yes F & E Funds Yes AIP Yes WSDOT Aviation Yes SCIP Yes Acquisition and Development Grant Yes CARB Yes FTA Yes Public Works and Economic Adjustment Assistance Programs Yes Yes U.S. Department of Commerce Economic Development Administration Yes Community Facilities Direct Loan and Grant Program Yes Yes Rural Energy for American Program Yes Business and Cooperatives Program Yes Yes Rural Utilities Service Yes Company Donations Yes Yes Public Private Partnership Yes Yes Asset America Yes CERB Yes APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 24 AERONAUTICAL REVENUE SOURCES  Aeronautical Land and Improvement Rents: In addition to the primary function of operating and managing the airfield infrastructure of the airport (e.g., runways, taxiways, and associated aprons), most airport sponsors can be, and should be, considered a real estate management company. The single greatest asset that an airport sponsor must generate revenues is the land surrounding the airfield. The highest and best use of this land is aeronautical activities. Therefore, the single greatest revenue funding sources for an airport are typically the leasing of airport land and/or improvements for aeronautical use. In Figure 2, examples of aeronautical land and improvement uses are identified. Figure 2: Airport Land and Improvements  Following are descriptions of the available models for airport sponsors to generate revenue funding sources from the “leasing” of airport land.  Traditional Lessor Model: Real estate development at airports typically follow the traditional model whereby the airport sponsor enters a land lease for a set term and for a market land rent. Although this approach offers the airport a steady and predictable income stream, any opportunity to share in the more lucrative sublessee rent is left exclusively for the developer. When an airport sponsor is taking no risk in a development project, the traditional lessor/lessee model approach is appropriate.  Equity Participation Model: In situations where private enterprise may not be in a position to make an investment or the opportunity does not return a sufficient return on investment for the private enterprise, the airport sponsor could swap a portion of the land rent in exchange for a share of future revenue streams. In addition, when entrepreneurial airport sponsors are willing to assume some development risk, they can have the opportunity to enhance cash flow from development projects by contributing the land in return for retaining an equity stake in the developed property. Contributing an asset (such as land) in exchange for equity is referred to as equity participation. FAA Improvements  and Facilities •Control tower •Approach equipment •Navigation  equipment FBO Improvements  and Facilities •General aviation  terminal building •Offices •Shops •Storage  •Aircraft hangars •Ramp •Vehicle parking areas •Fuel storage SASO Improvements  and Facilities •Aircraft maintenance  and repair •Avionics and  instruments •Aircraft rental •Flight training •Aircraft charter •Aircraft management •Specialized services Aircraft Storage  Improvements and  Facilities •Ramp (including  tiedown spaces) •Shadeports •T‐hangars •Executive/box  hangars •Community hangars •Corporate hangars •Maintenance hangars APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 25  Direct Ownership Model: Depending on the airport sponsor’s circumstances, the direct ownership model is a valid option for consideration. However, direct ownership increases the airport sponsor’s risk. Focusing on the development of land for commercial real estate provides a good illustration of the factors that must be taken with the direct ownership option. Direct ownership involves the airport sponsor assuming the role of developer and, therefore, the obligations and risks inherent in that role. The airport sponsor owns the entire project and receives all the profits. Should the project fail to meet projections, the airport sponsor assumes the losses of the failed project, as opposed to being a traditional lessor. Given that most airports are not tax paying enterprises, such losses do not provide a tax incentive to them, as they might to a tax paying private party. The second significant risk is the financing. Should the project fail to generate sufficient cash flow to amortize debt, the airport sponsor is responsible for all shortfalls. The reward for assumption of all these risks is the receipt of 100% of the profits of successful developments. Accordingly, solid financial forecasts are crucial to any analysis of the viability of a project to determine whether such profits are likely to be sufficient to make the risk worthwhile. NON-AERONAUTICAL REVENUE FUNDING SOURCES  Non-Aeronautical Land and Improvement Rents: While most airport land has certain restrictions related to non-aeronautical use, the FAA recognizes that in order for certain airports to fulfill their obligation of making the airport as self-sustaining as possible under the circumstances existing that it is sometimes necessary for the FAA to release the airport sponsor of these restrictions when certain lands and improvements are not needed in the near term for aeronautical use. Therefore, another excellent revenue funding source for airports can be the (1) leasing of airport land for the development of lessee owned improvements for non-aeronautical use and (2) leasing of land and improvements and facilities owned by the airport sponsor for non-aeronautical use by lessees. It is important to remember that, generally, the FAA must approve any non-aeronautical use of airport land and improvements designated for aeronautical use purposes. In Figure 3, some examples of non-aeronautical land and improvement uses are identified APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 26 Figure 3: Non‐Aeronautical Land and Improvement Uses    NON-AERONAUTICAL FEES Based on AMCG’s industry experience and supported by the information contained in the firm’s proprietary industry database (which is utilized to track, monitor, and analyze general aviation non-aeronautical fee data and trends), AMCG has identified current industry practices related to general aviation non-aeronautical fees. A summary of these findings which, in AMCG’s opinion, are representative of current industry practices for establishing general aviation non-aeronautical fees follows:  Access Fees: Historically, access fees have not been charged by airport sponsors to general aviation users. However, more airports are implementing security measures and beginning to charge access fees. Typically, access fees are charged in accordance with an established schedule on a monthly or annual basis. Depending on the approach and infrastructure, the access fee may be charged for individual access (for an airport badge, gate card, keys, or other instrument) or for vehicle access (vehicle permit or another instrument). Access fees are typically collected directly by the airport sponsor upon issuance of the badge, gate card, keys, permit, and/or another instrument. Additionally, access fees are typically collected on an annual basis.  Non-Aeronautical Activity Fees: Historically, non-aeronautical activity fees have not been charged by airport sponsors. However, consistent with FAA requirements, more airports are implementing a non-aeronautical activity fee program to charge for the non- aeronautical use of airport property. Typically, non-aeronautical activity fees (e.g., special events fees, commercial filming fees, use fees, etc.) are charged on a case-by- case basis depending on the length of time, impact to airport operations, necessity of additional staffing, and number of people accessing the airport. Non-aeronautical activity fees are typically collected directly by the airport sponsor upon issuance of a permit for the non-aeronautical use of airport property. Recreational •Campground •Entertainment center •Golf course •Hunting and fishing •Hiking and biking •Skate park •Race (go‐cart) track •Gaming Commercial •Convenience store •Hotel or motel •Rental car facility •Restaurant •Shopping center •Car dealership •Gasoline station •Car wash Office and Storage •Educational  institution •Industrial park •Office building •Storage units •Technology park •Warehouse •Vehicle Parking •RV and boat storage Other •Billboards •Agriculture/forestry •Cellular towers •Oil, gas, or mineral  exploration,  production, or  extraction •Public safety or  emergency services APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 27 E. COMMUNITY ASSOCIATION PARTICIPATION Airport management participates in the following Community Association:  Kittitas County Chamber of Commerce: The Kittitas County Chamber is the largest business support and development organization in Kittitas County, and one of the largest in Central Washington. The Chamber of Commerce has over 500 members in a variety of business sectors. F. INDUSTRY ASSOCIATION PARTICIPATION Airport management participates in a wide range of industry associations and trade organizations related to the operation, management, and support of aviation and airports in the State of Washington and throughout the United States including:  American Association of Airport Executives (AAAE): AAAE is the world's largest professional organization for airport executives, representing thousands of airport management personnel at public-use commercial and general aviation airports. AAAE's members represent some 850 airports and hundreds of companies and organizations that support airports.  Northwest Chapter of American Association of Airport Executives (NWAAAE): The Northwest Chapter is one of six regional chapters of AAAE and is primarily comprised of airport managers, directors, and airport professionals from the states of Alaska, Washington, Oregon, Idaho, Montana, Wyoming, Colorado, Utah; the Canadian provinces of British Columbia, Alberta, Saskatchewan, Yukon and Northwest Territory, and the countries of Asia.  National Business Aviation Association (NBAA): NBAA is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive, and successful. The NBAA represents more than 10,000 companies.  Washington Airport Management Association (WAMA): WAMA is a non-profit organization whose mission is to strengthen airports and airport management in Washington State by fostering professionalism among airport operators.  Washington State Community Airport Association: WASCAA mission is to promote and encourage general aviation airport management, as well as cooperate with and assist state agencies in developing programs related to aviation activities and management of facilities for Washington State's community airports. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 28 G. PLANNING, MANAGEMENT, AND COMPLIANCE DOCUMENTS (PMCD) Table 3: Bowers Field PMCDs  PMCD DESCRIPTIONS CURRENT DOCUMENTS  Airport Strategic Business Plan (ASBP) Articulates the mission, vision, and goals for the Airport; sets forth the objectives for achieving goals; identifies the action plans for accomplishing objectives; establishes the parameters for checking progress; and provides the basis for adjusting. ELN currently does not have an ASBP. This project is for the purpose of developing an ASBP and will be completed in 2021. Airport Master Plan (AMP) Assesses the current capacity of the Airport’s infrastructure, evaluates current and projected demand, identifies existing and anticipated deficiencies, and outlines the short, medium, and long-term development goals for the Airport. Typically, an airport master plan has a time horizon of 20 years. ELN’s AMP was updated in 2017. An Airport Layout Plan (ALP) update was completed in 2018. Leasing/Rents and Fees Policy (LRFC) Sets forth the parameters for leasing Airport land and improvements and outlines the process for establishing and adjusting rents and fees at the Airport. ELN currently is in the process of developing a LRFC and it will be completed in 2021. Minimum Standards (MS) Establishes the minimum requirements that need to be met by an entity as a condition for conducting commercial general aviation aeronautical activities at the Airport. ELN is in the process of updating the MS and it will be completed in 2021 Rules and Regulations (RR) Sets forth the rules and regulations for the safe, orderly, and efficient operation and use of the Airport. ELN currently is in the process of developing the RR and it will be completed in 2021. Development Standards (DS) Sets forth the parameters governing the design, development, and/or modification of Airport improvements. ELN currently is in the process of developing the DS and it will be completed in 2021. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 29 H. AIRPORT LAND, INFRASTRUCTURE, AND IMPROVEMENTS Table 4: Airport Land, Infrastructure, and Improvements  AIRPORT LAND DETAILS  Airside Acres 246  Landside Acres 1055  Developable Acres   Aeronautical  296  Developed Acres   Non‐Aeronautical 1,005  Total Acres 1,301.03     AIRPORT INFRASTRUCTURE DETAILS  Runway 11/29   Length/Width 4,301’ x 150’  Weight Bearing Capacity SW: 35K, DW: 57K, DWT: 100K  Taxiways (WBC and Width) WBC Unknown / 75.9’ Avg. Width  Precision Approaches None   Non‐Precision Approaches 11 and 29: RNAV/GPS  Other Navigation Aids 11: N/A 29: 4L‐PAPI  Lighting Medium Intensity Runway Lights; Threshold  Lighting   Transient Apron    Size  589,392 sq. ft.     Other   Airside Roadways  Extends around entire Airport Operations Area  (AOA)  Security  Perimeter fencing with controlled vehicle access  Fencing 8’ chain link along south side and 8‐10’’ field  fencing along entire AOA. The agriculture leased  area includes a 4’ standard field fencing on the  north side of the runway‐taxiway system  Landside Roadways Paved and properly marked  Vehicle Parking  Gravel / paved and properly marked   Airport Marking  Paved and properly marked  Airport Lighting  Rotating Beacon ; Lighted Wind Cones  Airport Signage  Non‐illuminated, location, directional, and  destination signs; Distance remaining signs   Utilities  Water service, sewer line, electrical service, and  natural gas  Airport Improvements  Details   Administration Building /  Facility   The ELN administration and operations offices  are currently located in the Kittitas County  Public Health Building   APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 30 Figure 4 represents an aerial image of the Airport land and infrastructure Figure 4: Airport Land and Infrastructure  Annual Service Volume Annual Service Volume (ASV) is used by the FAA as an indicator of relative operating capacity for a given airport, considering differences in various conditions (i.e., airfield layout, aircraft operations/mix, weather conditions and other factors). ASV assumes an acceptable level of aircraft delay as determined by FAA protocols. During the 2018 Master Plan, an analysis was conducted to determine airfield capacity. The analysis considered runway configuration, runway use, exit taxiways, weather conditions, aircraft mix, percent arrivals, touch-and-go activity, and peak period operations. According to the FAA, it is estimated that the annual service volume for airports with a single runway with no air carrier traffic is approximately 230,000 operations; hourly capacity is estimated to be 98 operations during visual flight rules conditions and 59 operations during instrument flight rules conditions. The current aircraft operations for the Airport is estimated to be 47,950 annual operations with a 20.85% demand/capacity ratio. In addition, the annual operational demand has a long-term estimate of 73,577 operations with 32% demand/capacity ratio. Automated Surface Observing System (ASOS) The Airport has a state-of-the-art ASOS east of Taxiway F. The primary function of the ASOS is to provide pilots with automated minute-by-minute weather observations, generate aviation weather reports and broadcast special weather observations. The information is available via radio broadcast and telephone dial-in features. This critical information is essential for safe and efficient aircraft operations at ELN. The ASOS program is a joint effort of the National Weather Service, FAA, and the Department of Defense. The ASOS system serves as the nation's primary surface weather observing network. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 31 I. VEHICLES AND EQUIPMENT Table 5: Vehicles and Equipment  TYPE NUMBER OF UNITS AVERAGE AGE  Operations Vehicle  1 2018  Trailer 1 2000  Dump Truck with 12’ Plow 1 2020  J. OPERATIONAL DATA General Aviation Based Aircraft Figure 5 illustrates the number of based aircraft at the Airport from 2015 to 2017, as reported by the FAA. Figure 5: General Aviation Based Aircraft  As shown in Table 6, 42 aircraft were based at the Airport as of 2017. From 2015 to 2017, the number of total aircraft based at the Airport decreased a total of 8.7%, or a compounded annual decrease of 4.45%. Table 6: General Aviation Based Aircraft  Year Single-engine Multi-engine Jet Helicopter Other Total % Change 2015 41 4 0 0 1 46 N/A 2016 40 4 0 0 1 45 -2.2% 2017 37 3 2 0 0 42 -6.7% General Aviation Based Aircraft APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 32 General Aviation Aircraft Operations As reported by the Master Plan, the 2016 total General Aviation Aircraft Operations were forecasted to be approximately 47,950 total operations. This consisted of 26,373 local operations and 21,577 itinerant operations. As reported by the FAA, the 2017 total General Aviation Aircraft Operations were approximately 58,500. This consisted of approximately 33,300 local operations and 25,200 itinerant operations. General Aviation Fuel Volumes Figure 6 depicts the general aviation aircraft fuel volumes at the Airport from 2015 to 2019, as reported by Airport Management. Figure 6: General Aviation Fuel Volumes  As shown in Table 7, total general aviation fuel volumes increased from 101,662 gallons in 2015 to 154,266 gallons in 2019 which represents a total increase of 51.74% or a compounded annual increase of 10.99%. Additionally, approximately 41.89% of general aviation fuel volume is Jet Fuel. Table 7: General Aviation Fuel Volumes  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 33 K. COMMERCIAL AIRPORT TENANTS Midstate Aviation Midstate Aviation is located southeast of Runway 11/29 and is the Fixed Based Operator (FBO) for ELN and has been providing services for over 50 year. The FBO provides Avgas, Jet Fuel and maintains Part 91 and a Part 135 aircraft to include annuals, 100-hour routine maintenance, pre-purchase inspections and airframe repairs. Additionally, Midstate is a Part 145 repair station for pitot/static and transponder checks that is required by CFR 91. The maintenance staff includes an in-house Airframe & Powerplant Mechanic (A&P), certified Inspection Authority (IA) and Piper fleet operator status. Central Washington University (CWU) Central Washington University is located on the east side of the Airport. Central Washington University flight training was established in 1975 and is the only fully accredited public university aviation program in the Pacific Northwest. CWU currently has 16 training aircraft. The program offers students the ability to obtain a B.S. Professional Pilot – Flight Officer, a B.S. Professional Pilot – Commercial Pilot or a B.S.in Aviation Management. Carrera T- Hangars Carrera T-Hangars provides superior accommodations for light aircraft in hangars that have concrete floors with a vapor barrier, multi panel rolling steel doors, ample electrical power, and compressed air. Each of the Carrera T-Hangars are customizable. The Carrera T-Hangars building contains 20 purpose-built T-Hangars and one larger end unit. Figure 7 represents the Commercial Airport Tenants. Figure 7: Commercial Airport Tenants  L. INDUSTRIAL PARK ANTS Central Washington University Carrera T-Hangars Midstate Aviation County Fuel Tanks APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 34 Precision AG Repair Precision AG Repair was established in 1991 and provides lawn mower and farm equipment sales and repair services for residents throughout Kittitas County and the surrounding region. Blackbird Wraps and Vinyl Blackbird Wraps and Vinyl is located in the Centerfuse Building. They offer full color change vehicle vinyl’s wraps and full print wraps and decals for automobiles, boats, and trailers in addition to paint protection film and window tints. Central Washington Property Restoration Central Washington Property Restoration is located in the Centerfuse Building and provides complete property repair solutions including handyman services, total renovations, general carpentry, painting, and drywall services in addition to flooring installation 1201 Bagels 1201 Bagels is located in the Centerfuse Building and is the bagel bakery and coffee roaster for the 1201 Bagels storefront location in Ellensburg. KITTCOM KITTCOM is a civilian staffed 9-1-1 center that serves 17 public safety agencies in Kittitas County. They provide customers with professional, courteous, and reliable emergency communications. Friends in Service to Humanity (FISH) Community Food Bank FISH Food Bank has been serving Kittitas County since 1971. They are a nonprofit organization who acts as a resource for food and help to anyone in need of assistance. Airport Safe Storage Airport Safe Storge is a self-storage facility that provides customers with a high quality safe, convenient, and secure option in Ellensburg, WA. Airport Safe Storage has 24-hour video surveillance, and fully automated, electronically activated gates that will ensure the customers items are safe and secure. CWU Aviation Training Center The CWU Aviation Training Center has classrooms and $1.5 million worth of flight training equipment that complement the CWU Professional Pilot Program. Emery Construction LLC – Emery LLC is a maintenance facility. Ellensburg Pallet - Ellensburg Pallet is a pallet manufacturer for Kittitas County. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 35 Figure 8 represents the location of each Industrial Park Tenant. Figure 8 Industrial Park Tenants Park Airport Tenants  Figure 9 represents the vacant land at the industrial park. Figure 9: Industrial Park Vacant Land   It is significant to note that the Industrial Park brings economic and job growth to the community. Currently, the Airport has approximately 60 acres of land available at the Industrial Park. KITTCOM Precision AG Repair FISH Community Food Bank Airport Safe Storage Black Bird Wraps and Vinyl Central Washington Property Restoration 1201 Bagels CWU Training Center Emery Construction Ellensburg Pallet APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 36 M. GENERAL AVIATION PRODUCTS, SERVICES, AND FACILITES Table 8: General Aviation Products, Services, and Facilities AIRCRAFT STORAGE FACILITIES Midstate Aviation CWU County Apron(s) Yes Yes Yes Tiedown(s) Yes Yes Yes Shade Hangar(s) T‐Hangar(s) Yes (Carrera) Executive Hangar(s) Yes Corporate Hangar(s) Community Hangar(s) Yes Office (rentable) Yes Shop (rentable) TECHNICAL SERVICES Midstate Aviation  CWU      Piston MRO Yes     Turboprop MRO Yes     Turbojet MRO Yes     Instrument MRO Yes     Accessories MRO Yes     Paint and Interior       AIRCRAFT FUELING PRODUCTS AND  SERVICES Midstate Aviation  CWU     General Aviation (full‐service)     General Aviation (self‐serve) Yes     Military     Fuel Storage Capacity 2 – 12,000     Refueling Vehicle Capacity 1 – 2,000       AIRCRAFT GROUND HANDLING  SERVICES Midstate Aviation  CWU    Marshalling     Towing     Disabled Aircraft Recovery Yes     AC or DC Ground Power     Lavatory     Potable Water     Pre‐Heat     Deicing     Oxygen/Nitrogen     Compressed Air     Cleaning/Detailing     APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT AIRPORT OVERVIEW Airport Strategic Business Plan, 07/26/2021 37 PASSENGER AND CREW PRODUCTS  AND SERVICES Midstate Aviation  CWU County  Baggage Handling     Courtesy Transportation     Pilot Supplies Yes Yes   Catering Arrangements     Ground Trans. Arrangements     Lodging Arrangements     Wireless Internet Yes Yes Yes  Concierge     Passenger Lounge(s)   Yes  Crew Lounge(s)   Yes  Crew Showers     Conference Room(s)  Yes   Flight Planning Center   Yes  Office/Workspace  Yes Yes  Food Service Area     Covered Vehicle Parking     Uncovered Vehicle Parking Yes        FLIGHT SERVICES Midstate Aviation  CWU      Aircraft Rental     Single‐Engine Piston     Multi‐Engine Piston     Flight Training     Ground School  Yes   Primary  Yes   Advanced  Yes   Aircraft Management      Piston     Turboprop     Turbojet     Aircraft Charter     Piston     Turboprop     Turbojet     APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT MARKET OVERVIEW Airport Strategic Business Plan, 07/26/2021 38 III. MARKET OVERVIEW A. AIRPORTS Table 9: Airport Classification United States Washington Market Area Competitive NPIAS Airports  Primary Commercial Service  389 10 1 1  Non‐Primary Commercial Service 122 1 0 0  General Aviation Reliever 250 5 0 0  General Aviation 2530 48 3 2  TOTAL 3290 10 4 3  ASSET Study Airports   National 92 1 0 0  Regional 481 13 0 0  Local 1213 19 2 1  Basic 889 16 1 0  Unclassified 228 5 2 2  TOTAL 2,908 54 4 3  Airports with  College Flight Training Program  160 6 17 1  B. GENERAL AVIATION SERVICE PROVIDERS Table 10: General Aviation Service Providers  United States Washington Market Area  Competitive  Fixed Base Operations (FBOs)8  Airports with 0 FBOs 558 18 0 2  Airports with 1 FBO 2,691 32 2 1  Airports with 2 or more FBOs 280 12 2 0  Airports with Airport Owned FBOs 1,340 17 0 0  Airports with Avgas only FBOs 786 14 1 0  7 Big Bend Community College 8 At airports with a minimum of a 3,000-foot paved runway APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT MARKET OVERVIEW Airport Strategic Business Plan, 07/26/2021 39 C. GENERAL AVIATION ACTIVITY Table 11: Number of Registered Aircraft  Table 12: Number of Licensed Pilots  United  States 320,860,014 290,087 0.9 State of Washington 7,614,893 10,040 1.3 0.80% Kittitas County 47,935 135          2.82 16% Chelan County 77,200 203          2.63 25% Grant  County 97,733 255          2.61 31% Yakima County 250,873 231          0.92 28% Total Region 473,741 824 1.7 8.21% Market   Share Location Population Registered  Aircraft Average  per 1,000  Persons United  States 320,860,014 664,565 2.1 State of Washington 7,614,893 34,224 4.5 5.10% Kittitas County 47,935 561 11.7 43% Chelan County 77,200 397 5.1 30% Grant  County 97,733 348 3.6 27% Yakima County 250,873 832 3.3 64% Total Region 473,741                    1,306 2.76 4% Location Population Licensed Pilots Average  per 1,000  Persons Market    Share APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT MARKET OVERVIEW Airport Strategic Business Plan, 07/26/2021 40 D. COMPETITIVE AIRPORT PROFILES9 Table 13: Competitive Airport Profiles 9 There are approximately twenty (20) airports within 50 miles of ELN. The airports represented in the table are the most competitive based on size, comparable facilities, and aircraft operations. 10 Listed as Nautical Miles 11 Listed as Nautical Miles 12 Background on the National Plan of Integrated Airport Systems (NPIAS) can be found in Appendix A. 13 Background on the General Aviation Airports: A National Asset (Asset Study) can be found in Appendix B. 19 Additional information on Airport Reference Codes can be found in Appendix C. 20 Additional information on Industry and General Aviation Market Segments can be found in Appendix D.  Subject Airport Airport 1 Airport 2 Airport 3 Airport 4 Airport Name Bowers Field Cle Elum Municipal Pangborn Memorial Cashmere‐Dryden Airport Yakima Air Terminal FAA Airport Identifier ELN S93 EAT 8S2 YKM City and State Ellensburg, WA Cle Elum, WA Wenatchee, WA Cashmere, WA Yakima, WA Distance/ Direction from CBD10 2 Miles North  1 Mile East  4 Miles East 2 Miles Southwest  3 Miles South Distance/Direction from Subject Airport11 N/A 17.3 Miles Northwest 25.6 Miles East 29 Miles North 27.9 Miles South Airport Sponsor  Kittitas County City of Cle Elum Port of Chelan & Douglas County Chelan County City of Yakima Type of Airport Sponsor County  City Port Authority County City  Airport Governing Body Board of County Commissioners  Airport Advisory Board Joint Airport Governing Board Airport Advisory Board N/A  Type of Airport Governing Body Elected  Appointed  Elected Appointed  Appointed Type of Airport Operator Airport Staff  N/A Airport Department Airport Staff Airport Department Airport Advisory Body Yes No Yes Yes Yes Number of Employees 2 City Managed  Airport Manager + Supporting Staff 1 10 Part of an Airport System Yes Yes Yes Yes Yes Type of NPIAS Airport12 General Aviation General Aviation Primary Commercial Service  General Aviation  Primary Commercial Service  Type of Asset Study Airport13 Regional Unclassified Primary non‐hub Basic Primary non‐hub Part 139 Airport Classification No No Yes No Yes  Airport Reference Code (ARC)14 B ‐II B‐I C‐III A‐I C‐III Market Segments Served15 General Aviation General Aviation  Primary Commercial Service  General Aviation Primary Commercial Service  Airport Size (acres) 1,301.03 160 665 24 825 Number of Runways 1 1 5 1 1 Longest Runway 4,300 x 150’  2,379’ x 60’ 7,000’ x 150’  1,800’ x 50’ 7,604’/150’ Weight Bearing Capacity SW: 35 DW: 57 DTW: 100 Unknown SW:75 DW:100 DTW: 250  SW 8.0 SW: 95 DW: 160 DTW: 220 Precision Approaches  None None ILS None ILS Non‐Precision Approaches RNAV (GPS) / VOR None RNAV (GPS) / VOR None RNAV (GPS) / RNP Air Traffic Control Tower No No Yes No Yes Airport Rescue and Fire Fighting No No Yes No Yes  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT MARKET OVERVIEW Airport Strategic Business Plan, 07/26/2021 41 16 Background on Fixed Base Operators (FBOs) and Specialized Aviation Service Operators (SASOs) can be found in Appendix F. Airport Profiles Subject Airport Airport 1 Airport 2 Airport 3 Airport 4 Airport Name Bowers Field Cle Elum Municipal Pangborn Memorial Cashmere – Dryden Airport Yakima Air Terminal FAA Airport Identifier ELN S93 EAT 8S2 YKM Aircraft Operations      Air Carrier 0 0 2,072 0 2,026 Air Taxi 1,845 0 2,424 75 4,034 General Aviation Local 33,300 2,000 28,380 1,750 13,826 General Aviation Itinerant 25,200 3,500 11,000 1,250 17,765 Military 100 0   500 0 1,817 TOTAL 60,445 5,500 44,376 3,075 39,468 Based Aircraft      Single‐Engine  2 82 40 102 Multi‐Engine  0 7 0 13 Jet  0 2 0 6 Helicopter  0 5 0 3 Other  0 12 3 1 TOTAL 60  2 108 43 125 Fuel Volumes (2018)      Jet Fuel (General Aviation) 41,177 N/A ~100,000 N/A ‐ Jet Fuel (Air Carrier) N/A N/A ‐ N/A ‐ Jet Fuel (Military) N/A N/A             ‐ N/A ‐ Avgas 113,089 N/A ~40,000 N/A ‐ Mogas N/A N/A            ‐ N/A ‐ Other N/A N/A             ‐ N/A 29,209 TOTAL 154,266 N/A ~140,000 N/A 384,800 PRODUCTS, SERVICES, AND FACILITIES       Number of FBOs16 1 0 1 0 1 Number of SASOs 1 0 1 0 2 Aircraft Fueling Products and Services      Jet Fuel Price $3.56 SS N/A $3.92 FS N/A $4.27  FS $4.00 SS Avgas Price $5.21 SS N/A $4.75 SS N/A $4.00  SS $5.11 FS Mogas Price N/A N/A N/A N/A N/A Aircraft Ground Handling Services Yes N/A Yes N/A Yes Passenger and Crew Services N/A N/A Yes N/A Yes Passenger and Crew Facilities N/A N/A Yes N/A Yes Technical Services      Airframe MRO Yes N/A Yes Yes Yes Powerplant MRO Yes No Yes Yes Yes Propeller MRO Yes No No Yes No Radio and Instrument MRO No No Yes No No Paint No No Yes No No Interior No No Yes No No  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT MARKET OVERVIEW Airport Strategic Business Plan, 07/26/2021 42 17 Bowers Field has privately owned T-Hangars and Executive Hangars 18 Cle Elum Municipal has privately T-Hangars 19 Yakima Air Terminal has privately owned T-Hangars Airport Profiles Subject Airport Airport 1 Airport 2 Airport 3 Airport 4 Airport Name Bowers Field17 Cle Elum Municipal18  Pangborn Memorial  Cashmere‐Dryden Airport Yakima Air Terminal19 FAA Airport Identifier ELN S93 EAT 8S2 YKM Flight Services       Aircraft Rental No No Yes No Yes Flight Training Yes No Yes No Yes Aircraft Management No Yes No No No Aircraft Charter No No Yes No No Aircraft Sales No No No No No Type of Facilities      General Aviation Terminal No No Yes Yes Yes Community Hangars Yes No Yes No Yes Corporate Hangars No No Yes No Yes Executive Hangars No Yes Yes No No T‐Hangars Yes Yes Yes Yes Yes Government No No No No No Military No No No No No Non‐Aeronautical Yes No No No Yes  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT COMMUNITY OVERVIEW Airport Strategic Business Plan, 07/26/2021 43 E. COMMUNITY OVERVIEW Table 14: Kittitas County Community Overview  ITEM INFORMATION  Subject Community Kittitas County   County Demographics   Population 47,935  Median Age 33.3  Median Household Income $55,193  Per Capita Income $27,948  Unemployment 12.3%  Housing Units 24,784 (57.5% are owner occupied)  Housing Median Value ($) $275,000  Educational Characteristics   High School (or higher) 92.1%  Bachelor’s degree (or higher) 34.8%  Educational Institutions   Community College No   State College / University Yes ‐ Central Washington University   Private College / University No   Transportation Infrastructure   Highway SR 821, I‐82 , US 97, I‐90  Railroad BNSF Railway  Other N/A  Tourism   Major Tourist Attractions in Kittitas  County  Alpine Lakes Wilderness, Kittitas County Historical  Museum, Wild Horse Renewable Energy Center  Number of Visitors 587,562  Number of Lodging Rooms 1,170  Average Occupancy Rate Unknown  Weather / Climate   Weather / Climate Mean annual temperature: 60.2°F; Mean max temp 84°F;  Average annual precipitation: 9.2“ rainfall; 21” snowfall  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT COMMUNITY OVERVIEW Airport Strategic Business Plan, 07/26/2021 44 Table 15: Ellensburg Community Overview ITEM INFORMATION  Subject Community Ellensburg, Washington  City Demographics   Population 21,111  Median Age 23.9  Median Household Income $36,016  Per Capita Income $19,770  Unemployment 9.4%  Housing Units 8,494 (31.6% owner occupied)  Housing Median Value ($) $224,700  Educational Characteristics   High School (or higher) 92.2%  Bachelor’s degree (or higher) 40.6%  Educational Institutions   Community College No   State College / University Yes ‐ Central Washington University   Private College / University No   Transportation Infrastructure   Highway SR 821, I‐82, US 97, I‐90  Railroad BNSF Railway  Other N/A  Tourism   Major Tourist Attractions Historic Downtown, Kittitas County Historical Museum,  Wild Horse Renewable Center  Number of Visitors 385,377  Number of Lodging Rooms 741  Average Occupancy Rate Unknown  Weather / Climate   Weather / Climate Mean annual temperature: 60.2°F; Mean max temp 84°F;  Average annual precipitation: 9.2” rainfall; 21” snowfall  APPENDIX II: PRELIMINARY AIRPORT ASSESS COMMUNITY OVE rt Strategic Business Plan, 07/26/2021 6: Major Private Employers Private Employers Company 1 Company 2 Company 3 Company 4 Compan Company Name Anderson Hay and  Grain  Elmview  Armstrong’s All  Seasons   Washington State  Employees Credit  Union  Twin City Foo Year Established in Community 1960 1965 1994 1957 1943  Products and/or Services Agricultural Service Health Care Facility Health Spas Financial Service  Food Process Plant  Total Employees (Worldwide) Unknown 200 Unknown 501‐1,000 600  Total Employees (Community) 240 200 Unknown Unknown Unknown  Distance to Subject Airport 4.5 Miles North  0.5 Miles West 3.4 Miles North 2.1 Miles North 3.5 Miles No Connection to Airport Unknown  Unknown Unknown Unknown Unknown  7: Major Public Employers   Public Employers Company 1 Company 2 Company 3 Company 4 Compan Entity Name Central Washington  University  Kittitas Valley  Community  Hospital  Ellensburg School  District  Kittitas County Loomis   Year Established in Community 1891 1964 Unknown 1883 Unknown  Products and/or Services Educational  Institution  Health Care Facility  Educational  Institution  Government  Cash Distribu Network  Total Employees (Worldwide) Unknown Unknown Unknown 363 9,000  Total Employees (Community) 1,438 470 380 363 Unknown  Distance to Subject Airport 1.7 Miles South  3.8 Miles South  4 Miles South  9 Miles South  3.3 Miles We Connection to Airport University offers  flight training at  ELN  Unknown Unknown Airport Sponsor Unknown  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 46 APPENDIX A. NATIONAL PLANS INTEGRATED AIRPORT SYSTEMS (NPIAS) The Federal Aviation Administration (FAA) prepares and submits the National Plan of Integrated Airport Systems (NPIAS) report to Congress every two years in order to maintain a plan for developing “a safe, efficient, and integrated system of public use airports adequate to anticipate and meet the needs of civil aeronautics, to meet the national defense requirements of the Secretary of Defense, and to meet identified needs of the United States Postal Service.” The following guiding principles and attributes are followed by the FAA and other Federal agencies in developing the national airport system and the associated public-use airports in order to meet the demand for air transportation.  Airports should be safe and efficient, located where people will use them, and developed and maintained to appropriate standards.  Airports should be affordable to both users and the Government, relying primarily on producing self-sustaining revenue and placing minimal burden on the general revenues of the local, State, and Federal governments.  Airports should be flexible and expandable and able to meet increased demand and accommodate new aircraft types.  Airports should be permanent with assurance that they will remain open for aeronautical use over the long term.  Airports should be compatible with surrounding communities, maintaining a balance between the needs of aviation, the environment, and the requirements of residents.  Airports should be developed in concert with improvements to the air traffic control system and technological advancement.  The national airport system should support a variety of critical national objectives, such as defense, emergency readiness, law enforcement, and postal delivery.  The national airport system should be extensive, providing as many people as possible with convenient access to air transportation, typically by having most of the population within 20 miles of a NPIAS airport. Of the 5,080 public-use airports, the NPIAS classifies 3,310 NPIAS airports by their service levels and the roles they play in the national airport system. The service level of an airport reflects the type of public service the airport provides to the local community/region and the nation. It is important to note that the term “airport” includes landing areas developed for conventional fixed-wing aircraft, helicopters, seaplanes, and balloons (e.g., airports, heliports, seaplane bases, ultralight ports, glider ports, and balloon ports). APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 47 The NPIAS airport service level categories are as follows:  Primary Service/Commercial Service Airports (396 airports as of 2020) have scheduled air carrier service for at least 10,000 enplaned passengers per year.  Non-Primary/Commercial Service Airports (123 airports as of 2020) have scheduled air carrier service for 2,500 to 9,999 enplaned passengers per year.  Non-Primary/General Aviation Airports (2,535 airports as of 2020) have no scheduled air carrier service or scheduled air carrier service for less than 2,500 enplaned passengers per year.  Non-Primary/Reliever Airports (250 airports as of 2020) relieve congestion at designated Primary Service Airports by redirecting general aviation aircraft operations from the Primary Service Airports. While 75% of major airline flights operate out of less than 65 major metropolitan airports and 99.83% of total commercial service passenger enplanements occur at 380 airports (out of 506 US airports certified for scheduled airline service) – these airports are also used by General Aviation. In contrast, there are 19,627 public and private use landing facilities in the US that are used by General Aviation of which about 5,080 airports are available for public use. Of the 5,080 public-use airports20, the FAA’s most recent NPIAS identifies 3,310 existing airports (and 6 additional proposed airports) that are important to national air transportation and therefore eligible to receive grants under the FAA Airport Improvement Program (AIP). Figure10: NPIAS Overview   20 The word “airport” includes landing areas developed for conventional fixed-wing aircraft, helicopters, and seaplanes. CS = Commercial Service GA = General Aviation 3,310 NPIAS Airports 3,304 Existing 3,244 Public Owned    60 Private Owned 396 Primary  Commercial Service 2,535 General Aviation 250 GA Relievers 123 Nonprimary CS 6 Proposed 1 Primary  5 Nonprimary 3 General Aviation  2 Commercial Service APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 48 Perhaps the most important roles of a General Aviation airport are to provide access to the community and generate economic benefit (directly and indirectly). When combined with good labor availability and relatively affordable land a General Aviation airport can dramatically increase the business development and investment attractiveness of the local community, the region, and the state. The studies aligned all NPIAS general aviation airports into four categories based on their existing activity levels, diverse functions, and economic contributions to their communities and the Nation, as follows:  National Airports (92 airports as of 2020) are located in metropolitan areas near major business centers, serves national and global markets, have very high levels of activity with many jets and multi-engine propeller aircraft, and averages about 249 total based aircraft (including 30 jets)  Regional Airports (482 airports as of 2020) are located in metropolitan areas near major business centers, serves regional and national markets, have high levels of activity with some jets and multi-engine propeller aircraft, and averages about 92 total based aircraft (including 3 jets)  Local Airports (1,213 airports as of 2020) typically are located near larger population centers (but not necessarily in metropolitan areas), serves local and regional markets, have moderate levels of activity with some multi-engine propeller aircraft, and averages about 34 total based propeller-driven aircraft and no jets  Basic Airports (893 airports as of 2020) are typically any located in rural areas, often serve critical aeronautical functions within local and regional markets, have moderate to low levels of activity, and averages about 10 total based propeller- driven aircraft and no jets NPIAS general aviation airports that do not fall in the above four categories remain as Unclassified Airports (228 airports as of 2020). These airports tend to have limited activity and have either no based aircraft or no more than 8 based aircraft. In 2012 (and 2014), the FAA studied the role that General Aviation airports play in the national air transportation system – General Aviation Airports: A National Asset. Communities across the US depend on General Aviation airports to facilitate air transportation, which builds and sustains local economies. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 49 General Aviation airports support a full range of aviation related activities including: Aviation Specific Activities  Personal Flights  Business Flights  Corporate Flights  Ground and Flight Instruction  Aircraft Leasing and Rental  Aircraft Charter and Management  Airframe Manufacturing/Maintenance  Powerplant Manufacturing/Maintenance  Avionics Manufacturing/Maintenance  Accessory Manufacturing/Maintenance  Aircraft Painting and Interiors  Aircraft Storage  Sightseeing Flights  Special Aviation Events (e.g., airshows) Commercial, Industrial, and Economic Activities  Agricultural Support  Aerial Surveying and Observation  Oil and Mineral Exploration/Survey  Utility/Pipeline Control and Inspection  Low-Orbit Space Launch and Landing  Aerospace Engineering/Research  Air Cargo  Intermodal Connections (rail/ship) Emergency Preparedness and Response  Aeromedical  Law Enforcement  Emergency Response  National Security and Border Security  Aerial Firefighting Support  Emergency Diversionary Airport  Disaster Relief  Search and Rescue APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 50 B. WASHINGTON AIRPORT SYSTEM WASHINGTON AVIATION SYSTEM PLAN (WASP) The Washington State Department of Transportation (WSDOT) prepares the WASP as the basis for implementing the State Aeronautics Act; identifying the Division’s role in the State’s multimodal, interregional, transportation system; and continuous aviation system planning. The WASP also provides an opportunity to educate users of the WASP on the following key points related to airport system planning:  Airports are not a single trip attractor or generator by one mode of travel. Airport access is a complex issue that needs to be acknowledged in larger multi-modal transportation system access studies. These studies need to include inter-and intra- model connectivity to airports.  Airports do more for their communities than house aircraft. They are business hubs that connect communities in ways traditional surface transportation cannot.  Defining what constitutes compatible land uses around airports and incorporating them into land use and transportation system planning and modeling efforts is important.  Redefining airports as potential employment centers and air cargo as a specialized form of goods movement is necessary to dispel the misconception that airports are simply a place for commercial passenger arrivals and departures.  It is important to include airports and land uses in the vicinity of airports when proposed development and road improvement projects are reviewed and evaluated regarding their impacts on health, safety, and the environment. The WASP classifies Washington airports in separate primary and subcategories based on the communities served by the airport, access the airport provides, population size or geographic location of region the airport serves, types of flying activities that occur, types and quantities of aircraft accommodated, and services provided. The WASP primary categories are as follows:  Major Airports (10 airports as of 2017) provide commercial service and have 16.8 million enplanements per year.  Regional Airports (20 airports as of 2017) provide communities with corporate and business travel or commuter passenger service and have 990,000 enplanements per year  Community Airports (35 airports as of 2017) provides larger scale general aviation activities for business and personal transportation, recreation, and pilot training.  Local Airports (37 airports as of 2017) provide general aviation activities such as personal transportation, recreation, pilot training and agricultural uses.  General Use Airports (34 airports as of 2017) provides general aviation activities primarily for personal transportation and backcountry activities APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 51 C. AIRPORT REFERENCE CODE (ARC) NPIAS airports are expected to adhere to current federal aviation standards for airport design. Furthermore, any grant by the FAA to a NPIAS airport for new or improved airside infrastructure must adhere to current standards, except as approved by the FAA. The ARC is an airport designation that signifies an airport’s highest Runway Design Code. The ARC is used for planning and design only and does not limit the aircraft that may be able to operate safely on an airport. The first component of the ARC, depicted by a letter, is the Aircraft Approach Category (AAC) and relates to an aircraft’s approach speed. Table 18 represents the various Aircraft Approach categories. Table 18: Aircraft Approach Categories (AAC) AAC Approach Speed A Approach speed less than 91 knots B Approach speed 91 knots or more but less than 121 knots C Approach speed 121 knots or more but less than 141 knots D Approach speed 141 knots or more but less than 166 knots E Approach speed 166 knots or more The second component of the ARC, depicted by a Roman numeral, is the Aircraft Design Group (ADG) and relates to either the aircraft wingspan or tail height (physical characteristics); whichever is most restrictive, of the largest aircraft expected to operate on the airport’s runway and taxiways adjacent to the runway. Table 19 represents the various Aircraft Design Group categories. Table 19: Aircraft Design Group (ADG) ADG Tail Height (feet) Wingspan (feet) I < 20’ < 49’ II 20’ to <30’ 49’ to <79’ III 30’ to <45’ 79’ to <118’ IV 45’ to <60’ 118’ to <171’ V 60’ to <66’ 171’ to <214’ VI 66’ to <80’ 214’ to <262’ The third component of the ARC relates to the visibility minimums expressed by Runway Visual Range (RVR) values in feet. Table 20 represents the various Aircraft Design Group categories. Table 20: Runway Visual Range (RBR)  RVR Instrument Flight Visibility Category (statute mile) VIS Visual approach use only 5000 Not lower than 1 mile 4000 Lower than 1 mile, but not lower than ¾ mile 2400 Lower than ¾ mile, but not lower than ½ mile 1600 Lower than ½ mile, but not lower than ¼ mile 1200 Lower than ¼ mile APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 52 The design aircraft sets the airport’s design criteria. As approach speed increases, runway length must be longer, and taxiways must likewise be longer. As wingspan increases, taxiways must have greater separation. Similarly, the loaded weight of the design aircraft determines the criterion for runway strength (weight bearing capacity D. MARKET SEGMENTS Industry Market Segments The aviation industry can be segmented into three primary areas:  Air Carrier – includes scheduled passenger and cargo airlines  Military – includes all branches of the military  General Aviation – includes all aviation with the exception of the Air Carrier and Military segments of the aviation industry. General Aviation Market Segments The products, services, and facilities that are offered in the General Aviation marketplace have been predicated primarily on the demand created by four distinctly separate operating classifications within the marketplace – personal, business, and corporate, commercial, and government. These segments are defined and briefly examined, as follows:  Personal: In many respects, aircraft owners and operators who have committed time and financial resources to this segment of the industry have done so because of a sheer love of aviation. The “romance factor”, which has enthralled both young and old alike, is an important element in understanding the relationship between people and flying machines. The aircraft utilized for personal (and recreational) flying are typically based at public- use and private-use General Aviation airports. For the most part, the aircraft used for personal flying are single-engine and light multi-engine piston-powered aircraft, although some larger aircraft, including turbine-powered aircraft, are also used for this purpose. This segment of the market is typically price oriented, seeking the best price for the commercial aeronautical products, services, and/or facilities. According to 2018 FAA data, approximately 68% of active General Aviation aircraft are utilized for personal use, yet approximately 30% of General Aviation hours flown are personal use hours.  Business and Corporate: The business and corporate segment of the market is viewed as an integral part to the long-term growth and development of the General Aviation industry. The business segment is made up of aircraft owners flying their own aircraft and the corporate segments includes aircraft owners that hire professional flight crews to fly the aircraft for business purposes. As of 2018, this segment was comprised of more than 26,000 active aircraft (approximately 13% of active General Aviation aircraft), including over 12,000 turboprop and turbojet aircraft, in the US. In 2018, business flights are estimated to make up over 17% of the 26 million hours flown by active General Aviation aircraft. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 53 One of General Aviation’s most important roles in the economy of the US is enhancing the profitability and competitive strength of US companies and industries. Companies that take advantage of General Aviation routinely outperform businesses relying solely on the airlines for travel. Studies have shown that, on average, Standard & Poor’s 500 firms that use General Aviation to transport management teams, employees, business partners, and customers increased revenues by a factor of 3.34 more than those that do not utilize General Aviation (NexaAdvisors). This analysis revealed a correlation between firms utilizing General Aviation aircraft and revenues. It did not conclude that the use of General Aviation aircraft increased financial performance. While approximately 3% of General Aviation aircraft are registered to Standard & Poor’s 500 firms, the majority of business aircraft are operated by smaller companies. In the Business Aviation Factbook, National Business Aviation Association indicates that 59% of companies operating business aircraft employ fewer than 500 employees and 70% have fewer than 1,000 employees.  Commercial: The commercial aviation segment is a significant economic engine as it represents companies that use General Aviation aircraft for commercial purposes including flight instruction, air taxi (non-scheduled, on-demand), medical transportation (air ambulance), sightseeing, aerial observation (e.g., pipeline/power- line patrol/inspection), aerial application (e.g., agriculture, photography, firefighting, etc.), cargo, and much more. This segment is comprised of more than 42,000 active aircraft. It is estimated that general aviation aircraft used for commercial purposes make up approximately 53% of the 26 million hours flown by General Aviation aircraft each year. The commercial segment of the market is typically value oriented, seeking the best combination of service and price.  Government: The government aviation segment is the smallest segment of General Aviation. There are only approximately 2,000 government aircraft (excluding military aircraft) that are operated by federal, state, county, and municipal government agencies. Government use of General Aviation aircraft include transportation of government personnel, non-government personnel, prisoners, and cargo; supporting law enforcement, emergency preparedness, disaster relief, wildlife, and forest management, fighting forest fires, border patrol, surveillance, and counterterrorism; and a host of other applications. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 54 E. AIRPORT SPONSOR ASSURANCES The rights and responsibilities of airport sponsors of federally obligated airports are based on Federal law and are codified at 49 U.S.C. Section 47107. In exchange for Federal airport development assistance (including the transfer of Federal property for airport purposes), airport sponsors make binding commitments to assure that the public’s interest in civil aviation will be served. An airport sponsor’s responsibilities are commonly referred to as the Airport Sponsor Assurances (Assurances). While the language of certain Assurances may be identical to or closely track the language of the statute, the Assurances are more expansive and reflect the FAA’s interpretation and application of the statute. The Assurances have the following general features:  Currently, there are 39 Assurances, several of which have multiple sub-parts.  A number of Assurances require satisfaction of other statutory provisions and/or FAA regulations, policies, and guidance. For example, Assurance 1 requires compliance with 26 distinct laws, including 49 U.S.C., Subtitle VII (Aviation Programs). Assurance 34 requires that any AIP project conform to current FAA policies, standards, and specifications, including current FAA Advisory Circulars.  The Assurances generally apply for 20 years. However, some of the Assurances apply in perpetuity as a result of separate statutory requirements. These include the prohibition on granting an exclusive right and the requirement to use airport revenue only for airport purposes. Additionally, the Assurances associated with the use and disposal or real property apply in perpetuity when the airport sponsor has received AIP funds in connection with the acquisition of property.  The penalties for violating the Assurances are severe. The FAA may withhold approval of a grant and may withhold payment under an existing grant agreement. The FAA also may seek injunctive relief in U.S. District Court. The following will serve as a guide to current FAA policy interpretation of the Assurances which are commonly at issue for airport sponsors at federally obligated airports. Airport Sponsor Rights and Powers: Assurance 5 (Preserving Rights and Powers) requires that the airport sponsor of a federally obligated airport: “...will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms conditions, and assurances in the grant agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor.” Put simply, an airport sponsor is prohibited from taking any action which could preclude it from complying with the Assurances. For example, an airport sponsor may not enter into a management agreement which would result in exclusive use or discrimination at the airport. Airport sponsors are strongly encouraged to use strong subordination clauses to ensure the ability to comply with Assurance 5 is not impacted. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 55 In addition to obligating the airport sponsor to preserve its rights and powers to carry out all grant agreement requirements, this assurance also places certain limitations on the airport sponsor’s use of airport land. Most real estate transactions require prior FAA approval, and airport sponsors are prohibited from encumbering airport property. Use on Reasonable and Not Unjustly Discriminatory Terms: Assurance 22 (Economic Nondiscrimination) requires that the airport sponsor of a federally obligated airport: “...will make its airport available as an airport for public use on reasonable terms, and without unjust discrimination, to all types, kinds, and classes of aeronautical uses.” Assurance 22(a) “...may establish such equal and not unjustly discriminatory conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport.” Assurance 22(h) “...may...limit any given type, kind, or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or...to serve the civil aviation needs of the public.” Assurance 22(i) The Assurance does permit the airport sponsor to exercise control of the airport to preclude unsafe and efficient use of navigable airspace which would be detrimental to the civil aviation needs of the public. However, any airport sponsor restrictions on aeronautical activities based on safety and efficiency must be adequately justified and supported, and they must be approved in advance by the FAA. In all cases, the FAA is the final arbiter regarding aviation safety and will make the determination regarding the reasonableness of any proposed measure to restrict, limit, or deny aeronautical access to the airport. The FAA considers it inappropriate to provide federal assistance for improvements to airports where the benefits of such improvements will not be fully realized due to inherent restrictions on aeronautical activities. Airport sponsors are required to operate federally obligated airports for the use and benefit of aeronautical users and to make those airports available to all types, kinds, and classes of aeronautical activities on fair and reasonable terms, and without unjust discrimination. However, airport sponsors may adopt reasonable leasing/rents and fees policies, commercial minimum standards, and airport rules and regulations. Airport sponsors have an obligation to treat in a uniform manner those users making the same or similar use of the airport. However, an airport sponsor may treat similarly situated airport users differently, including rental rates, lease terms, etc., as long as those differences are not unjust. Restrictions on Self-servicing of Aircraft Grant Assurance: Assurance 22(f) provides that an airport sponsor: “…will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, but not limited to, maintenance, repair, and fueling) that it may choose to perform.” APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 56 The FAA considers the right to self-service as prohibiting the establishment of any unreasonable restriction on aircraft owners or operators regarding the servicing of their own aircraft and equipment. When airport users and airport sponsors disagree about whether or not a restriction is reasonable and a formal complaint is filed, the FAA becomes the final arbiter in the matter. Aircraft owners must be permitted to fuel, wash, repair, and otherwise take care of their own aircraft with their own personnel, equipment, and supplies. The airport sponsor, however, is obligated to operate the airport in a safe and efficient manner. The establishment of fair and reasonable rules, applied in a not unjustly discriminatory manner, governing the introduction of equipment, personnel, or practices which would be unsafe, unsightly, detrimental to the public welfare, or which would affect the efficient use of airport facilities by others, is not unreasonable. The Prohibition Against Exclusive Rights Grant Assurance: Assurance 23 (Exclusive Rights) provides that the sponsor of a federally obligated airport: “...will permit no exclusive right for the use of the airport by any persons providing, or intending to provide, aeronautical services to the public...” The fact that an aeronautical activity is provided by only one entity does not necessarily establish an exclusive rights violation. An exclusive rights violation is the denial by an airport sponsor to afford other qualified parties an opportunity to be an on-airport aeronautical service provider. Although federally obligated airports may impose qualifications and minimum standards upon those who engage in aeronautical activities, the FAA has taken the position that the application of any unreasonable requirement or standard that is applied in an unjustly discriminatory manner may constitute a constructive grant of an exclusive right. When airport users and airport sponsors disagree about whether or not a requirement is reasonable and a formal complaint is filed, the FAA becomes the final arbiter in the matter. Assurance 23 provides for two limited exceptions. An airport sponsor may choose to offer some or all aeronautical services itself and exclude other entities from competing with these services. This is referred to as the airport sponsor’s proprietary exclusive right. If an airport sponsor chooses to exercise its proprietary exclusive right to offer aeronautical services, it must do so with its own resources and its own employees; airport sponsors may not contract out their proprietary exclusive right. The second exception applies when the airport sponsor faces unreasonably costly, burdensome, or impractical challenges in accommodating more than one FBO (or SASO) to provide a service and adding a second FBO would result in a reduction in space leased to and actively used by the existing FBO. Airport Rates and Charges: Assurance 24 (Fee and Rental Structure) provides that the sponsor of a federally obligated airport: “…maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at that particular airport, taking into account such factors as the volume of traffic and economy of collection.” APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 57 The airport sponsor’s obligation to make an airport available for public use does not preclude the airport sponsor from recovering the cost of providing the facility. The airport sponsor is expected to recover its costs through the establishment of fair and reasonable rents, fees, or other user charges that will make the airport as self-sustaining as possible under the circumstances existing at the particular airport. The FAA’s Policy Regarding Airport Rates and Charges (61 Fed. Reg. 31994; June 21, 1996 as amended) provides comprehensive guidance on the legal requirement that airport rents, fees, and charges be fair, reasonable, and not unjustly discriminatory. Federal law does not prescribe a single approach to rate-setting; airport sponsors may utilize a preferred methodology as long as that methodology is applied consistently to similarly situated aeronautical users and conforms to other requirements outlined in the Policy. Ordinarily, the FAA will not investigate the reasonableness of a general aviation airport’s rents, fees, or charges absent evidence of a progressive accumulation of surplus aeronautical revenues. The Use of Airport Revenue: Assurance 25 (Airport Revenues) provides that: “All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport…” Assurance 25(a) Airport revenue (aeronautical and nonaeronautical rents, fees, and charges) must be used for the operational and capital costs of the airport, the local airport system, or other airport sponsor facilities that are directly and substantially related to the air transportation of passengers or property. Certain airports are exempted from this requirement because the law grandfathers’ certain arrangements that existed prior to September 3, 1982. The FAA’s Policy and Procedures Concerning the Use of Airport Revenue (64 Fed. Reg. 7696; February 16, 1999) provides several examples of unlawful revenue diversion, as follows:  Paying in excess of the value of goods or services the airport sponsor receives;  Improper cost allocations;  Charging less than fair market value rent to nonaeronautical users, including the airport sponsor itself;  Directly subsidizing air carriers;  Using airport revenue for general economic development activities;  Paying for marketing and promotions not related to the airport;  Loaning money to other entities at less than prevailing rates; and  Using airport revenue to participate in some types of community events. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 58 F. FBO AND SASO BACKGROUND Fixed Base Operators (FBOs) From a practical standpoint, the term “FBO” is defined within the context of the marketplace. Accordingly, Aviation Management Consulting Group utilizes the following definition for an FBO, “An FBO is an airport-based aircraft service organization which operates under a lease, use, or operating agreement with an airport owner or operator for the specific purpose of providing aircraft fueling and engaging in a minimum of one of six of the remaining primary product, service, and facilities areas”. It is important to note that the products, services, and facilities provided by FBOs are not limited to the General Aviation segment of the market (products and services are provided to air carriers and the government as well). FBOs who provide aircraft fueling and engage in multiple primary products, services, and facilities areas are commonly known as “full service” FBOs. FBOs who provide aircraft fueling, aircraft ground handling services, and passenger/crew services and facilities only are known as “limited” FBOs. It is estimated that there are approximately 3,400 FBOs in operation in the United States at airports having a paved runway of 3,000 feet or more. Specialized Aviation Service Operators (SASOs) While FBOs are more rigidly defined, a specialized aircraft service operator (SASO) typically provides products and/or services in only one of the following primary product, service, or facilities categories: aircraft storage, technical services, flight services, or aircraft sales. Accordingly, SASOs provide products and services within a very narrow segment of the General Aviation marketplace. In addition, SASOs do not necessarily operate under a lease with an airport and in many cases, SASOs are subtenants of an FBO or may even be located off-airport. Most importantly, SASOs do not provide aircraft fueling products and services. At this time, it is estimated that there are approximately 3,400 FBOs and in excess of 20,000 SASOs in operation in the United States at airports having a paved runway of 3,000 feet or more. There are several SASO services that are governed by the FAA through regulations and require FAA certification, as follows:  Aircraft Charter Operators (Part 135): In the US, there are approximately 1,339 certificated aircraft charter operators providing passenger transportation services (1,100), air ambulance transportation services (81), and air cargo transportation services (158) operating over 11,000 aircraft.  Pilot Schools (Part 141): In the US, there are approximately 680 certificated pilot schools providing flight training services. However, it is important to note that there are thousands more pilot schools and flight instructors providing flight training under Part 61 (versus Part 141). Regardless of how flight training is provided, the FAA regulates the minimum requirements for pilot training and certification. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 59  Aircraft Repair Stations (Part 145): In the US, there are approximately 4,040 aircraft repair stations that are rated to provide airframe, powerplant, instrument, radio, propeller, or accessory repair and maintenance. It is important to note that some of these repair stations may be dedicated to the Air Carrier segment of the industry. It is also important to note that there are over 300,000 Airframe and/or Powerplant Mechanics that either individually or through a technical service company (not certified as an aircraft repair station) that also provides technical services.  Fractional Companies (Part 91, Subpart K): There are two major fractional aircraft companies (NetJets and Flight Options), down from approximately six major companies. In addition, there are several smaller fractional aircraft companies that operate either specific airframes or in specific regions of the country. Combined, these companies operate approximately 800 aircraft that have approximately 4,000 aircraft owners. G. GENERAL AVIATION INDUSTRY TRENDS General Aviation New Aircraft Deliveries General Aviation new aircraft deliveries by US manufacturers reached a high of 17,811 in 1978 and then experienced a significant decline until bottoming out in 1994 at an industry low of 929 units. The significant decline during this period can be attributed to a number of factors including:  Increased aircraft acquisition costs (relating primarily to the rising costs associated with product liability insurance)  Increased operating costs (insurance, maintenance, fuel, etc.)  Implementation of the “luxury” tax in 1986 and repeal of the Investment Tax Credit  Increased air carrier service capabilities including regional and commuter carriers Following this decline, General Aviation aircraft deliveries increased from 929 annual shipments in 1994 to 1,771 annual shipments in 2019 which represents an increase of 90.6% or a compounded annual increase of 7.4% over the period. Figure 11 represents new aircraft deliveries through 2019. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 60 Figure 11: General Aviation Aircraft Deliveries  This significant increase was attributed to several factors, as follows:  The passage of the General Aviation Revitalization Act (GARA) in 1994 that limited the liability of aircraft and aircraft parts manufacturers to 18 years  The proliferation of fractional aircraft ownership programs  A strong economy during the late 1990s to the mid-2000s (including low interest rates)  Entrance by new aircraft manufacturing companies  Introduction of new technologies (e.g., composite materials and glass cockpits). Subsequently, annual General Aviation new aircraft deliveries decreased sharply from 3,279 in 2007 to 1,334 in 2010 due to the economic recession. Over the last 5 years, annual deliveries increased 11.2% to 1,771 or a compounded annual increase of 1.2%. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 61 General Aviation Active Aircraft As with new General Aviation aircraft deliveries, the number of active General Aviation aircraft hit a low in 1994 of 172,936. Since that time, the number of active aircraft increased to a high of 231,607 in 2007. This increase was attributed to the growth of experimental and turbine aircraft, the resurgence of new aircraft manufacturing (i.e., the growth of new aircraft deliveries and the number of companies developing Supplemental Type Certificate programs to modify and keep the aging aircraft fleet active). However, since the peak in 2007, active aircraft has dropped year after year. Over the last 5 years, active aircraft increased 3.2% to 215,329 or a compounded annual increase of 0.3%. Figure 10 represents general aviation active aircraft through 2018. Figure 10: General Aviation Active Aircraft  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 62 Active Pilots The number of active pilots in the United States decreased throughout the 1980s and 1990s. Since peaking at 827,071 in 1980, the number of active pilots has declined 19.6% to 664,565 active pilots in 2019. During this overall decrease, the number of active pilots increased slightly in the late 1990s and early 2000s which can be attributed to pilot development programs. Over the last 5 years, active pilots increased 12.6% to 664,565 or a compounded annual decrease of 3.0%. Out of the 664,565 active pilots in 2019, 113,445 or approximately 17% hold a Certified Flight Instructor certificate and 314,168 or 47% hold instrument ratings. Figure 11 represents active pilots through 2019. Figure 11: Active Pilots  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 63 General Aviation Hours Flown The total number of General Aviation hours flown in the United States reached a low in 1994 of 26,472,000 hours, which represents a decrease of 40.6% and a compounded annual decrease of 3.7% over the period from the high of 44,589,000 hours achieved in 1980 (which corresponds with the first-year data was available). While this downward trend reversed for a period of time (General Aviation hours flown increased 30.1% or a compounded annual increase of 3.3% from 1994 to a peak of 34,450,000 hours in 2007). Over the last 5 years, General Aviation hours flown increased 9.5% to 25,629,000 hours or a compounded annual decrease of 1.1%. Figure 12 represents the number of general aviation hours flown through 2018. Figure 12: General Aviation Hours Flown  While the number of hours flown by piston-powered aircraft have fluctuated (declining for the most part) since the 1994, the number of turboprop and turbojet aircraft hours flown have been cyclical (increasing for the most part) over this same 20-year period. These fluctuations can be attributed, in large part, to changes in the economy. At first glance, the increase in the number of active general aviation aircraft since 1994 and the decline in general aviation hours flown since 1999 appear to be contradictory. However, these divergent trends are supported by the decline in the average number of hours flown per aircraft which has decreased from a high of 139.3 hours per aircraft in 1994 to 119 hours per aircraft in 2018. APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 64 General Aviation Fuel Consumption Total general aviation fuel consumption increased steadily from 1993 (702.8 million gallons) through 2008 (1,953.8 million gallons), which represented a total increase of 178% or a compounded annual increase of 13.6%. This trend can be attributed to an increase in aircraft manufacturing, expansion of fractional aircraft ownership, and a robust economy (particularly in the late 1990s). While general aviation fuel consumption declined slightly from 2000 through 2003 (due to the effect from the attacks of 9/11 and the economic recession that followed), general aviation fuel volumes rebounded to well past 2000 levels reaching 1,821.4 million gallons in 2018. Aviation gasoline volumes experienced reasonable growth in the late 1990s only to be hit hard by the attacks of 9/11 and the subsequent recession. With the continued high oil costs this cost sensitive segment of the market continues to lose ground. FBO revenues and profits are typically driven by the turbine-powered segment of the market. As such, the recovery of jet volumes has been warmly received throughout the aviation service industry. Figure 13 represents fuel consumption through 2018. Figure 13: General Aviation Fuel Consumption  APPENDIX II: PRELIMINARY AIRPORT ASSESSMENT APPENDIX Airport Strategic Business Plan, 07/26/2021 65 General Aviation Industry Forecasts The following are based on forecasts developed by the FAA and respected industry forecasters.  Total Active General Aviation Aircraft – Decrease 0.01% annually through 2039  Turbine Active General Aviation Aircraft – Increase 2.0% annually through 2039  Total Hours Flown in General Aviation Aircraft – Increase 0.8% annually through 2039  Total Turbine Hours Flown in General Aviation Aircraft – Increase 2.4% annually through 2039  Active General Aviation Pilots – Decrease 0.2% annually through 2039  New Business Jet Deliveries – Increase 4.0% annually through 2024 APPENDIX III: SWOT ANALYSIS Airport Strategic Business Plan, 07/26/2021 66 A. SWOT Analysis Survey As part of the development of the Airport Strategic Business Plan (ASBP) for the Bowers Field Airport (ELN), an ELN SWOT Analysis Survey was sent out to the ELN Strategic Plan Steering Committee Members (Steering Committee) on Friday, November 20, 2020. There was a total of 11 survey responses received from the following stakeholder groups:  Two (2) – Airport Sponsor (County) Elected Official, Management, or Staff  Two (2) – Airport Management or Staff  Two (2) – Airport Tenant or User  Three (3) – Community Organization Representative  Two (3) – Other B. SWOT Analysis Purpose The purpose of the SWOT Analysis is to identify the "actual" and "perceived" Airport (including the business park) strengths and weaknesses (from an "internal" perspective) and opportunities and threats (from an "external" perspective). The results of the SWOT Analysis serve to compile the Steering Committee's perception of the Airport and set the stage for developing the Airport's mission, vision, and goals. C. Strengths, Weaknesses, Opportunities, and Threats  Strengths – internal items (to the County and Airport) accomplished particularly well or unique assets of the Airport, especially in comparison to competitive and comparable airports. Strengths need to be preserved, built on, and leveraged.  Weaknesses – internal items (to the County and Airport) that: (1) are not accomplished particularly well; (2) hinder or prevent desired performance; or (3) are acutely lacking or need to be improved. Weaknesses need to be addressed and remedied.  Opportunities – external items (to the County and Airport) that could help realize the mission and vision for the Airport. Opportunities are typically identified by studying changes or trends in the industry, the marketplace, and the community (or at the Airport). Opportunities need to be seized or capitalized on.  Threats – external items (to the County and Airport) that could threaten the realization of the Airport's mission and vision. Threats are typically identified by studying changes or trends within the industry, the community, and the market (or at the Airport). Threats need to be managed or, if possible, eliminate APPENDIX III: SWOT ANALYSIS Airport Strategic Business Plan, 07/26/2021 67 STRENGTHS AND WEAKNESS (INTERNAL) A. Airport Sponsor Organization (Kittitas County, Washington) The two greatest strengths in the Airport Sponsor Organization:  Bonding Authority  Administration The greatest weakness in the Airport Sponsor Organization:  Airport Advisory Body  Governing Body B. Airport Organization The two greatest strengths in the Airport Organization:  Airport Management  Airport Staff The two greatest weaknesses in Airport Organization:  Marketing Program  Community Participation / Industry Participation C. Airport Planning, Management and Compliance Documents The greatest strength in Airport Primary Management and Compliance Documents:  Airport Master Plan The greatest weaknesses Airport Primary Management and Compliance Documents:  Non-Aeronautical Fees  Non-Aeronautical Rents D. Airport Operations No strength identified The two greatest weaknesses in Airport Operations:  Snow Removal  Security E. Airport Airside Land and Infrastructure The two greatest strengths in Airport Airside Land and Infrastructure:  Total Land  Developable Land The two greatest weaknesses in Airport Airside Land and Infrastructure:  Landscaping  Approaches, Nav Aids, & Lighting APPENDIX III: SWOT ANALYSIS Airport Strategic Business Plan, 07/26/2021 68 F. Airport Landside Land and Infrastructure The two greatest strengths in Airport Landside Land and Infrastructure:  Total Land  Developable Land The two greatest weakness in Airport Landside Land and Infrastructure:  Landscaping  Vehicle Parking G. Aviation Products, Services, and Facilities The two greatest strengths in Aviation Products, Services, and Facilities:  Aircraft Maintenance  Flight Training The two greatest weakness in Aviation Products, Services, and Facilities:  Aircraft Rental  Passenger and Crew Products, Services and Facilities H. Airport Facilities No strength identified The two greatest weakness in Airport Facilities:  Airport Maintenance Offices and Shops  Airport Operations Offices and Shops I. Industrial Park Environment The two greatest strengths in the Industrial Park Environment:  Total Land  Developable Land The two greatest weakness in the Industrial Park Environment:  Marketing Program  Name APPENDIX III: SWOT ANALYSIS Airport Strategic Business Plan, 07/26/2021 69 Opportunities and Threat (External) A. Airport Environment The two greatest opportunity in the Airport Environment:  Proximity to Industrial Park  Based Aircraft The two greatest threats in the Airport Environment:  Competitive Airports  Proximity to Residential Areas B. Community Environment The two greatest opportunities in the Community Environment:  Educational Institutions  Economic Development The greatest threats in the Community Environment:  Ground Transportation Services  Community C. Local, State and Federal Environment The greatest opportunities in the Local, State and Federal Environment:  Funding Mechanisms  Special Events The greatest threats in the Local, State and Federal Environment:  Local Funding Mechanisms  State Funding Mechanisms