Airport arguments: Some claims made at forum don't seem to be accurate

No matter how Kalispell votes on a proposed city airport upgrade in November, residents and their representatives will be left dealing with airport issues for years to come.

Supporting the upgrade the Kalispell City Council chose to pursue starts the city on a long, complicated project that depends on successful land acquisition and careful phasing of federal reimbursements and city expenditures.

If everything goes as planned, federal Airport Improvement Program money could pay for 90 percent of the estimated cost. Competitive aviation grants from the state of Montana could kick in another 5 percent.

Reimbursement for almost $3 million Kalispell has already spent could help cover the city’s remaining share, pay for some upgrade costs ineligible for federal funding and leave the city with a little more money than it would have to spend.

Two key words in all of that: If and could.

The project is anticipated to take at least six years to complete. One unsuccessful land acquisition could botch the entire project. Every federal grant award Kalispell accepts, including up to $150,000 a year for maintenance going forward, means the city must commit to keeping the airport open 20 more years.

If voters reject the upgrade, lease obligations still require Kalispell to keep its airport open and adequately maintained for years to come. The city entered a number of 20-year leases with the option of two, five-year extensions in 2005.

With no help from the federal Airport Improvement Program, maintaining or improving the airport would have to be done with local tax money or money raised from an airport that barely breaks even financially now. That will remain the case unless the city finds some way to spend millions of dollars to buy its way out of those leases, a cost estimated at about $4.8 million today.

Millions of dollars are at stake. So is the future of one of Kalispell’s largest and oldest public assets.

Both sides of the increasingly heated and controversial campaign issue — people for the upgrade and other people against it — claim to have all of the facts and the most compelling arguments on their side.

If the recent Chamber of Commerce forum about the city airport is any sign, undecided voters might have to wade through a little misinformation and innuendo in their search for facts.

Here’s a quick rundown of some of the more controversial claims asserted at the forum by Chad Graham, an uncontested candidate for the Kalispell City Council who spearheaded the initiative to put the airport upgrade on the ballot for voters to either support or reject.

 CLAIM: Kalispell has to drop the light towers at Legends Stadium.

Chad Graham identified that as one needed part of the airport project. But it’s not true, according to a question and answer document Kalispell released last year. It states, “The field lights do not penetrate protected airspace so no action is required.”

 CLAIM: The airport upgrade’s estimated cost includes only 5 percent for contingency.

Graham argued cost overruns would plague the project because of that unusually small cushion for contingency. Not true, according to Jeff Walla, of Stelling Engineers.

Stelling Engineers completed the master plan update and the proposed airport layout plan.

Twenty percent contingency — $2.4 million — boosts the upgrade’s total estimated development cost to $16.1 million. That total includes another $1.5 million for engineering, bidding and construction administration costs.

 CLAIM: The airport upgrade’s cost divided by the estimated 7,500 landings the airport sees each year means Kalispell and the Federal Aviation Administration would be paying $2,400 per landing for the project.

Graham’s claim assumes an $18 million project cost. The calculation holds up if the upgraded airport lasts for one year.

But all of the proposed improvements are designed to last for at least 20 years, Walla said. Dividing the assumed $18 million cost by 7,500 landings for 20 years makes that cost-per-landing tally a less outrageous sounding $120.

“It’s kind of a funny play with numbers,” Walla said about Graham’s claim.

 CLAIM: The airport upgrade would remove private property from the tax rolls and cause $750,000 in lost revenue for the county and schools over 10 years.

Graham made the claim arguing that city, county and school tax rates would have to increase because of the reduced tax base.

An examination of property records kept by the state of Montana and tax records kept by the Flathead County Treasurer’s Office shows all of the properties potentially affected by initial land acquisitions for the airport upgrade together paid $76,000 in taxes in 2012.

That’s a total in line with Graham’s claim. But not all of the land needs to be bought.

Almost half of that $76,000 in taxes was paid by several properties that extend from the airport’s eastern boundary to U.S. Highway 93.

The airport layout plan directs Kalispell to acquire only part of those properties and none of their highway frontage. That means some of the properties — the most valuable parts of them — could remain on the tax rolls.

If the city is able to buy only the needed parts of those properties and the amount of taxes those properties continue to pay declines in proportion to the amount of land the city buys, the property that needs to be acquired for the airport would have paid about $42,000 in taxes in 2012.

Graham’s claim also seems to assume that none of the land at Kalispell City Airport produces property tax revenues. That would be incorrect. Thirteen hangars on the airport paid $14,100 in property taxes in 2012. And the proposed upgrade includes space for at least eight new hangars.

 CLAIM: Kalispell City Airport is too close to Glacier Park International Airport to get money from the federal Airport Improvement Program. And the city’s recent legal settlement with Montana Diamond Aire creates a through-the-fence operation that also makes it ineligible for funding.

Graham seems to have made both claims based on his interpretation of federal regulations. Others opposed to the airport upgrade have echoed the claims, including some members of the Kalispell City Council.

Kalispell City Airport’s proximity to Glacier Park International was one factor considered when it was listed on the National Plan of Integrated Airport Systems seven years ago. Other factors included its activity levels and the extent to which it does not meet modern safety and design standards.

That listing makes it eligible for the Airport Improvement Program that could cover up to 90 percent of eligible upgrade costs, reimburse the city for almost $3 million already spent and provide up to $150,000 a year for maintenance.

The Federal Aviation Administration paid for most of the recent airport master plan update’s cost. It also helped develop the proposed airport layout plan and a capital improvement plan to implement the proposed upgrades.

If Kalispell City Airport was ineligible, there would be no upgrade for voters to consider this November.

Kalispell’s recent settlement with Montana Diamond Aire has essentially changed nothing, City Manager Doug Russell said.

“Montana Diamond Aire has always essentially been a quote through-the-fence operation. We’re under the understanding that nothing that is there would eliminate the ability to seek federal funding,” Russell said. “Should for some reason FAA want different policy parameters set, then you would start working toward those. But we haven’t heard or seen anything that would eliminate us from seeking federal funding.”

Proposed upgrade plans don’t require Kalispell to acquire Montana Diamond Aire. But the property is listed on the airport layout plan for ultimate acquisition, making it an eligible purchase through the Airport Improvement Program.

DESPITE THE apparent exaggerations in some of the claims of opponents of airport expansion, there are real and substantial hurdles the city must clear for any federal funding to ever materialize.

The project must first make it through an environmental assessment with a finding of no significant impact. The city then must be able to acquire all of the land needed for the airport upgrade and the rights to remove the KGEZ radio towers for the project to proceed.

The Federal Aviation Administration has indicated it plans to remove Kalispell from the National Plan of Integrated Airport Systems if Kalispell rejects the proposed airport upgrade. Money that has been allocated for Kalispell City Airport then could go to other aviation projects ready and willing to move forward in other communities.

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