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Sound off on airport's future

by Tom Lotshaw
| May 5, 2012 9:00 PM

Supporters and detractors of Kalispell City Airport are asked to come make their best arguments Monday evening about what should happen to the 83-year-old general aviation airport.

City Council members are holding the public hearing as they prepare to vote on the airport’s future May 21.

A six-year, $16 million project to expand the airport to meet B-II design standards is the recommendation from Stelling Engineers, which a month ago released its final master plan update and airport layout plan.

“This decision comes down to a fiscal issue, a safety issue, a noise issue and what we can do to make this the best [outcome] we can,” council member Phil Guiffrida III said.

Council members said their minds remain open for choosing the best road forward, but are starting to lean toward one of two camps: Those who want the airport expanded with federal funds, as recommended by Stelling, and those who want it kept mostly as is.

Four of the nine council members — Mayor Tammi Fisher, Guiffrida, Tim Kluesner and Bob Hafferman — said they are leaning toward that as-is approach.

“People don’t want it shut down, but they don’t see the reason for an expansion. That’s pretty much what I’m hearing,” Fisher said.

FINANCIAL ramifications will be a big driver of any decision.

Supporters of the recommended B-II expansion argue that federal Airport Improvement Program money could pay for 90 percent of the project and provide $150,000 a year for airport maintenance.

That program also could reimburse Kalispell for the roughly $3 million it has spent for land and airport improvements toward a nearly identical B-II upgrade first targeted in 1999.

But that federal share has been reduced from the 95 percent offered in the past.

And before getting any funding, Kalispell would have to first acquire or get under contract 114 acres of land from 17 owners plus negotiate to remove two KGEZ radio towers that extend into what should be protected airspace.

Those two challenges halted earlier efforts to expand the airport, leaving Kalispell where it is today.

“Is it the right thing for the city to go ahead and approve a plan to spend money we need to get reimbursed for? We can already see where portions have been reduced,” council member Tim Kluesner said.

He suspects federal funding will fail to materialize as needed to build the B-II expansion, or if it does, fail to remain available after the city significantly expands its airport infrastructure.

“That’s a big leap of faith for me,” Kluesner said. “I’m not comfortable with that yet.”

THE FOUR council members are leaning toward smaller airport upgrades within its existing footprint, paid for with money from the Airport Tax Increment Finance District.

That fund holds $1.8 million and generates about $600,000 a year, but the district expires in 2020.

“Repave the runways and taxiways, put up some safety lighting, put in a heliport, do some of those things that need to be done to increase safety,” Fisher said.

“We have the funds to do those upgrades without binding ourselves to the federal government for 20 years,” she added, referring to 39 grant assurances that come with federal funding.

Kalispell City Airport is run as an enterprise fund. It has stayed in the black and raised enough money from its leases, fees and fuel taxes to pay for operation and Manager Fred Leistiko.

But it has only been able to set aside a few thousand dollars a year for capital improvements.

Jim Atkinson, who has wrestled with airport issues for five terms on City Council, said he supports the recommended B-II expansion.

The project would improve safety and noise at the airport, allow it to grow as economic asset and supply a way for Kalispell to pay for the work that needs to be done, he said.

“I think overall it’s a very positive thing for us to do ... We need the federal funding to do the work and if we don’t do the work, the airport will die. I think that’s plan B.”

SOME people continue to press for the airport to be moved or closed.

Bert Lenon has run a series of advertisements in a local shopper telling people to push for the airport to be shut down and redeveloped.

“I’m trying to get people thinking about what a terrible use of space that is, using it for airplanes,” he said.

But those options face steep roadblocks and are nonstarters for now, council members said.

Kalispell signed a dozen or so airport leases about five years ago. The 20-year leases, all with two automatic five-year extensions, likely would have to be bought out before the airport could be closed or moved. Stelling estimates that cost at about $4.8 million today.

“Love it or hate it, the city is obligated to the people who hold those leases,” Fisher said.

Fisher said she questions the way those leases were entered into by then-City Manager Jim Patrick, but admits not much can be done now.

“We’re tied into those and the airport needs to be adequate to meet the terms of the leases ... As far as redeveloping the airport, in about 25 years they can do whatever they want. It might be a whole other landscape out there,” she said.

Charles Harball, city attorney and interim city manager, said he thinks some City Council members want to try to put a minimal amount of money into the airport to keep it alive for another 20 to 25 years and avoid having to buy out the leases.

“We probably could use the TIF to maintain it for a little while, but what do you do after that?” Harball asked.

Improving and maintaining airports around the country is essentially what the Federal Aviation Administration and Airport Improvement Program are for, funded with taxes and fees on airline tickets, aviation fuel and aircraft parts, Harball said.

“There are no simple options on this,” Harball said. “Council will have to pick an option they think is in the best interest of the citizens of Kalispell.”

Monday’s meeting starts at 7 p.m. in Kalispell City Hall, 201 First Ave. E. It is open to the public.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.