PROPOSAL UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM OF

LOGAN/CA CHE COUNTY AIRPORT

Sponsor:

LoganlCache Airport Authority Cache County, Utah Logan City, Utah DUNS # 070037209

Contact:

Mr. Lynn Lemon County Executive Cache County 179 North Main Street Logan, Utah 84321 Phone (435)716-7171 Fax (435)716-7172 Email l [email protected]

Docket Number:

OST-2004-17343-)

Date:

May 14,2004

'D

9

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2004-17343 SUMMARY INFORMATION Applicant Information: Applicant

Logan/Cache Airport Authority DUNS Number: 070037209

Community Name

Logan/Cache County, Utah (not a consortium)

Name

Dr. Brent Miller Chairman, Airport Development Task Force Ms. Bobbie Coray PresidentKEO Cache Chamber of Commerce

Address Phone Fax Email

160 North Main Logan, Utah 84321 (435) 797-1180 (435) 753-5825 [email protected]

County

Cache

Designated Legal Sponsor: Name Title 0rganization Address Phone Fax Email

Mr. Lynn Lemon Cache County Executive Cache County/Logan/Cache Airport Authority 179 North Main Logan, Utah 84321 (435) 716-7171 (435) 716-7172 [email protected]

Other Government Sponsor: Name Title Organization Address Phone Fax Email

Mr. Douglas Thompson Mayor Logan City, Utah 255 North Main Logan, UT 84321 (435) 716-9002 (435) 716-9003 [email protected]

PUBLIC/PRIVATE PARTNERSHIP:

Public

Private

1. Logan City

1. The Cache Initiative Airport Task Force (which represents over 80 major business and industries in the region and which has financially contributed to airport planning)

2. Cache County

2. The Cache Chamber of Commerce representing 600 businesses in the area.

3. Logan /Cache Airport Authority 4. Utah State Universitv

PROJECT INFORMATION PROJECT PROPOSAL:

X -

-

X

-

Marketing Personnel TravelBank Subsidy Revenue Guarantee Start UpCost Offset Study

PROJECT

- Upgrade Aircraft

- Increase Frequency

X

Service Restoration Regional Service Launch New Carrier - First Competitive Service - Secure Additional Carrier

New Route Low Fares Surface Transportation - Other

GOAL:PROJECT IS INTENDED TO ADDRESS PROBLEMS INVOLVING:

__

High Fares

X

Unique Airport Circumstance

X

Insufficient Air Service

X

Access to National Transportation System

SYNOPSIS OF PROPOSAL:

Cache County is the home of Utah State University and major technology based businesses and manufacturing industries. The catchment area for the Logan/ Cache Airport includes 175,000 people in six counties in a three state region. The University has over 20,000 students and 5,000 faculty and staff. The population and the

economy have shown tremendous growth over the past ten years and this is expected to continue. In order to support the research programs at the University and support the growth of the local businesses, the community needs scheduled passenger air service. The community has spent the past five years upgrading its airport to meet the needs of commercial air service with a new 9,100 foot runway and a new ILS system. The community is now actively recruiting new nonstop air service to Denver International Airport. The target airlines for this new air service have indicated that they are interested in providing air service at LoganlCache Airport if the community can develop an incentive program to reduce the risk of the new air service. The incentive program will need to include local marketing and advertising, a pre-purchase ticket program, and a cost off-set program. The requested grant along with local funding will allow Logan/Cache Airport to get new air service to meet the needs of the community. PROJECT COST:

Federal Amount Requested Total Local Cash Financial Contribution: Airport Funds: Non-Airport Funds: State Contribution: Airport In-kind contribution (reduced airport fees) Other In-kind contribution (travel bank)

Total Cost of Project AIR SERVICE DEVELOPMENT ZONE

$530,000 0 75,000 0

75,000

100,000 $780,000

Yes

The community has completed a Strategic Business Plan for the full development of the airport which includes passenger and cargo air service and a business park on the airport property. We are interested in the designation. AIRPORT/NFORMATlON (where service would be provided) Airport Names: Airport City: Airport State: Airport Code:

Denver International Airport Denver Colorado DEN

LOGAN/CACHE AIRPORT CLASSIFICATION - Non-hub

Landing Aids:

X

Full ILS (underway) X

X

Localizer

Outer Marker

X Published Instrument Approach

EXISTING SERVICE:

None. The Logan/Cache Airport is in the process of becoming a fully certified Part 139 airport and will be able to accommodate scheduled passenger air service in early 2005. Air Carrier Servinq Airport: None Current Flight Information (as of April I , 2004): None Enplanements: 1999 - none 2000 - none 2001 - none 2002 - none 2003 - none Air Fares to top three O&D markets: None PROXIMITY OF OTHER AIRPORTS

Non-hub (with jet service) Small hub Medium hub Large hub Low fare service

None None None Salt Lake City International Airport None

THELOGANKACHE AIRPORTCATCHMENT AREA

TABLE OF CONTENTS

Subiect

Page

Summary of Proposal General Background Airport Development Task Force Economic Impacts and Benefits Air Service Background Factors That Have Affected Air Service Logan/Cache Airport Infrastructure Community Profile Comparison to Other Airports Airport Market Potential Proposed Services and Fares Passenger Forecast Strategic Plan Marketing and Media Selection Funding Necessary Community Contribution Community Support Airport Financial Information Assurances Monitoring of Funding Ongoing Programs Conclusion Appendices

2 5 6 6 7 7 8 9 11 12 13 13 14 15 17 18 18 19 191 19 20 21 22

Proposal of Logadcache Airport

Page 1

LOGANKACHE AIRPORT PROPOSAL UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM SUMMARY OF PROPOSAL

LoganICache Airport is an ideal candidate for this program. The local community has been working for the past fourteen years to update its airport to handle scheduled passenger air service and air cargo service. The community has developed an Airport Master Plan, a Strategic Business Plan, an Air Service Marketing Plan, and has started to recruit air service. The community, through FAA grant programs, has constructed a new 9,100 foot runway and will be adding an ILS system later this year. Over $11million from the FAA and $800,000 of city/county funds have been spent to prepare the airport to handle new commercial air service. Three airlines indicate that they have a strong interest in providing passenger air service between Logan/Cache Airport and Denver International Airport if the community can develop an incentive program that will reduce the risk of new service by the airline. The award of a grant from this program will allow the Logan/Cache Airport the opportunity to complete its quest for new air service. The new air service will help extend the economic growth that the community has been experiencing, provide lower cost of travel to major markets to the east, and connect the community to the national air transport system. STATEMENT OF THE PROBLEM

The Logadcache Airport is the most convenient airport for over 175,000 residents in six counties in three states. Logan is the County Seat of Cache County and the home of Utah State University, a Carnegie Comprehensive Research University with an on campus enrollment of 20,000 students, and 5,000 faculty and staff. UTAH STATE UNIVERSITY has an annual research budget of $180 million. Utah State University provides significant research and product to NASA, the U.S. Department of Defense and other federal agencies, as well as businesses nationally and internationally. Travelers to and from the University and industries in the region come from national and international markets. Logan/Cache Airport understands that it is “perceived” that the air travelers in the Airport’s region can easily drive to Salt Lake City International Airport. This is not the case! The driving time is affected by heavy traffic congestion and weather. Residents in the Cache Valley must traverse the Wasatch mountain range to get to the interstate highway. Driving time can range from two to three hours. With parking at a premium and the security procedures in place, an air traveler must leave for Salt Lake City International Airport at least three to four hours before flight departure. This is time consuming and costly for the air traveler. Proposal of Logan/Cache Airport

Page 2

Air service at LoganICache Airport will stimulate business growth in the region and allow for the University to increase travel at a lower cost. The air travel demand is already present and the new air service should be viable for the airline. Without air passenger and cargo service at LoganICache Airport, it will be extremely difficult for the region which includes Utah, Idaho and Wyoming to compete with other communities for domestic and international business. INTENT OF THE

GRANT

In this proposal, the LoganICache parties are requesting a grant of $530,000 for a period of one year to attract and support nonstop service to Denver International Airport. The community has had discussion with five airlines regarding this service and will select one of the airlines to be the primary airline and be the recipient of the incentive program grant money. This new air service to Denver International will allow for the LoganICache traveler to tie into the national air transport system and have convenient connections to all of the major markets to the east of Utah. This new air service will result in saving consumers millions of dollars, reduce highway congestion, and help reduce air pollution. KEYPOINTS 0

0

The LoganICache market is the largest market in Rocky Mountain region (Utah, Colorado, Idaho, and Wyoming) with a commercial airport that does not have passenger air service. This grant will allow the community to finish its air service development program and recruit new air service to Denver. Proceeds from the proposed grant will be used to implement two programs:

(1) a comprehensive marketing program for the Airport to promote the new air service to Denver; and (2) funds to offset the initial operating cost for new air service during the first year of operation and reduce the risk to the carrier for implementing the new air service. The money is not intended to be a complete subsidy and any grant funds not used will be returned to the Department of Transportation. PROJECT OBJECTIVES AND RESULTS

The objective of this proposal is to win a grant to support new air service for a market that has been working many years to have its own commercial airport. The community is proposing that the grant will help implement the following:

Proposal of LoganlCache Airport

Page 3

e

Establishment of three daily roundtrip flights between LoganICache Airport and Denver International Airport with either fifty seat regional jets or thirty seat turbo prop aircraft.

e

Flights timed to allow travelers the opportunity to make convenient connections to and from flights east of Logan with through fares competitive to SLC fares.

e

A comprehensive marketing and advertising program to promote the new air service in the Logan/Cache Airport market area.

e

The funds requested will be focused on achieving permanent improvements in air service for the region and can be used as a model for other unserved airports in the United States.

SELECTION OF

LOGANKACHE AIRPORT

This application meets the priorities established by the Secretary of Transportation (order 2004-17343-1):

e

The community has spent over $1 1 million for upgrading the infrastructure of the airport, feasibility studies, developing a recruiting program, and will now use the grant for the initiation of new air service.

e

The Airport sponsor, the Cache County, Logan City, the Airport Development Task Force, and the Chamber of Commerce have formed a public-private partnership to support the proposed air service initiative.

e

The proposed air service will benefit all segments of the community and provide a stimulus to local businesses, Utah State University, and leisure related activities in the airport market area.

0

e

The new air service provides a needed alternative to driving over two to three hours especially in inclement weather over a mountain pass to Salt Lake City International Airport. This will reduce highway congestion, increase improvement to the region’s air quality, reduce lost time for the traveler, and improve safety. Even though the small Community Air Service Program is limited to 4 airports per state, no airport in Utah has received a grant either in 2002 or 2003.

Proposal of Logan/Cache Airport

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PROPOSAL GENERAL BACKGROUND The Logan-Cache Airport serves an area in northern Utah, southern Idaho, and western Wyoming of over 175,000 residents. Logan is the county seat of Cache County and the home of Utah State University, a Carnegie Comprehensive Research University with an enrollment of 20,000 students and 5,000 faculty and staff. Utah State University has an annual research budget of $180 million. The University provides significant research and product to NASA, the U.S. Department of Defense and other federal agencies as well as business nationally and internationally. Travelers from national and international markets come to and from the University and local industries. Currently, all air travel to and from the Logan/Cache region must utilize Salt Lake City International Airport. This is not convenient and is costly. During the winter, travel to and from Salt Lake City International Airport can be risky and unsafe due to hazardous mountain roads and traffic congestion near Hill Air Force Base and Salt Lake City. For the past 14 years, Cache County has been upgrading its general aviation airport to meet the standards required for commercial jet air service. The last hurdle was met in 2004 when funds were congressionally appropriated for an ILS system. With the installation of that service, Cache County has qualified for commercial air service. Millions of dollars and many hours of both volunteer and staff time, have been spent to make this possible. The Logan/Cache Airport has had air service by various small airlines to Salt Lake City and a few other cities in the mountain west in the past. The last attempt at air service was in 1987 by an air taxi. Since then, there has been significant growth in the regional population, economy and the University leading to favorable conditions for renewed air service. A public-private partnership, the Chamber Initiative Airport Development Task Force, over the past 5 years has aggressively pursued plans, programs and projects to improve the airport and develop much needed air services. An Airport Master Plan was completed and approved by the FAA. This led to the construction of a new runway and improved taxi-ways. In the last year FAA has approved and appropriated funding for an ILS which should be in place by 2005. A Strategic Business Plan was developed setting forth a program to attract new passenger and cargo service as well as the development of an airport business park. An Air Service Market Plan was developed and implemented. According to the Business Plan and the Air Service Market Plan, the greatest demand is for nonstop air Proposal of Logadcache Airport

Page 5

service going east to Denver, Colorado. In the future, air service to airports to the west such as Los Angeles and Phoenix are also feasible. The region also has a growing and vibrant economy and attractive tourist destinations. In addition to the university, the regional economy includes many technology based industries, manufacturing plants, and a variety of winter and summer tourist attractions. Meetings with several air carriers have generated interest on the part of United Express, Rocky Mountain Air, Mesa Air, Frontier, and Great Lakes airlines in providing nonstop service between Logadcache Airport and Denver International. It will be necessary for the community to offer an incentive package that will help reduce the risk of starting new air service. The incentive package will need to include funds for a marketing and advertising campaign, the development of a pre-purchase ticket program, and funds to help off set the initial operating cost. The Logadcache Airport Task Force has estimated that the total cost for this incentive package to be $780,000 with a federal grant of $530,000. THECACHE INITIATIVE AND AIRPORTDEVELOPMENT TASKFORCE

The Cache Initiative and Airport Development Task Force is a public private partnership to develop air service. It is part of the Cache Valley Initiative and is a privately funded five-year program of the Cache Chamber of Commerce, which focuses on: (1) Highway access management; (2) Telecommunications access; and (3) Airport development. The Airport Development Task Force of the Cache Valley Initiative is a four-year old task force with a membership of over 50 active and key participants, including 15 public sector officials, the Airport Authority, and 15 persons from the private business sector and also includes the Mayor of Logan City and the Cache County Executive. The Task Force was formed by the Cache Chamber of Commerce and works cooperatively with all of the county and municipality officials. ECONOMIC IMPACTS AND BENEFITS Cache County is in jeopardy of losing existing major businesses and industry due to lack of commercial passenger and cargo service at the airport. New development has also been hampered by the lack of air service. The LoganKache Airport is under-served for both passenger and cargo air service based on population, income levels and diversity of business and industries in the area. 0

Cache Valley is the home of a major Carnegie Comprehensive Research University (Utah State University) with a growing research and technology campus. (The Utah State University Innovation Campus). Utah State University generates over $180 million in research dollars every year. There are over 20,000 students and 5,000 faculty and staff at Utah State University.

Proposal of Logadcache Airport

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The key employers are (Utah State University, Bridgerland Applied Technology College), high-tech industries (Tyco, DuPont, HyClone, Johnson & Johnson, Space Dynamics Laboratory, Moore-Wallace, Campbell Scientific); manufacturing (Icon Health and Fitness, Pepperidge Farms, Schrieber’s, Gossner’s Cheese Con Agra Packing) tourism, agriculture, retail and financial services. 0

0

0

Utah State University has many projects with many federal sponsors such as the Department of Defense and NASA. These federal partners need to access Logan in a timely manner. Utah State University also has a pilot training degree program with over 200 students enrolled. With the continuing development of the American West Heritage Center, Cache Valley is becoming a major Utah tourist destination and needs to attract airline service to facilitate tourism. The City of Logan is strategically situated on US 89/91, a major scenic tourist route which runs from the scenic national parks of southwest Utah through Salt Lake City and northeast to Jackson Hole and Yellowstone Park. The route draws large numbers of visitors from around the world There are millions of pounds of cargo from companies such as Hyclone, DSM, Icon, MiTech, Moore-Wallace and others that now must be carried by truck to the Salt Lake International Airport.

THELOGANKACHE AIR SERVICE BACKGROUND AND AIRPORTHISTORY

Over the past twenty years, there have been a few attempts to provide commercial air service to Salt Lake City International Airport from Logan/Cache Airport. Some of these were scheduled flights provided by a commercial airline and some were unscheduled air taxi operations. The last carrier provided service to Salt Lake City, Wyoming and Idaho. They ceased operations more than 17 years ago (1987). FACTORS THATHAVEAFFECTED AIR SERVICE

The two major extenuating factors that affected air traffic in the past were weather and service frequency. Without an ILS, winter weather in the region became a factor in assuring consistent service. Weather related cancellations discouraged passengers who needed to make flight connections in SLC, and potential passengers opted to take their chances driving in the winter road conditions. Now, the issue of reliable winter service has been addressed through funding of an ILS which will be installed later this year. Service frequency and passenger demand closely linked. Over the past decade and a half, the regions population and economy have grown substantially, and corresponding to that is a significant growth in air service demand. Our data on air service needs, shows clearly the demand for air service at a level that will lead to an attractive schedule of flight frequency for Logan/Cache Airport. Proposal of Logadcache Airport

Page 7

THELOGANKACHE AIRPORTINFRASTRUCTURE The community through the efforts of its public-private Airport Development Task Force has invested substantial efforts to improve the physical capability of the Logadcache Airport for regular commercial air service. These efforts include infrastructure improvements, a runway extension to 9,083 feet making it the second longest in the state, and the acquisition and installation of a new ILS is now in progress. The existing terminal facility with minor modification can accommodate the start up of new air services, and once air service becomes established an all new terminal facility is planned. Public parking for up to 200 vehicles will be provided free of charge. In addition, a major economic development zone surrounding the airport is being planned. The Logadcache Airport is a general aviation airport that meets the non-commercial air needs of the community. The airport has made major modifications to meet certification requirements for FAA commercial airport certification and continues to make modifications as necessary to certify. There were approximately 112,362 operations (touch downs and take offs) at the Logan/Cache Airport in 2002, and 110,000 in 2003. Long stretches of adverse weather and no ILS caused a decrease in operations. The main runway at the Airport was recently increased to 9,083 feet in length and 102 feet in width. The Airport is capable of accommodating class D and smaller aircraft. The secondary runway is 5015 feet long and 100 feet wide. The airport presently has a 60,000 plus pounds dual gear runway strength rating, and can handle operations up to 100,000 plus pounds. At this time the Logadcache Airport can accommodate jet charter flights with 8-737,MD-80, and 8-727 aircraft. An ILS has been need verified through regional FAA analysis. Congressionally directed funding for the ILS has been granted for FY 2004. It is estimated that it will be installed by 2005. Currently, the approaches use both VOR and APS. There are two fixed based operators at the airport, with jet fuel sales in 2003 of 238,898 gallons and average aviation gas sales of 129,572 gallons. There are 51 standard hangars and 10 T hangars. There are currently 106 single engine piston planes, 7 twin piston engine planes, 8 turbine/jets, 2 helicopters, 6 ultralights and 8 gliders housed at the airport. More than 58 out of town businesses used the airport in the last year. There are 24 corporate aircraft based at the LoganlCache Airport. Utah Jet Center and Western Aviation at the Airport offer certified charter jet service. Utah State University Flight School has 2 hangars and one classroom building. Utah State University has 26 piston driven aircraft, which support a flight training bachelor’s degree program.

Proposal of Logadcache Airport

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Community Profile The catchment area is experiencing positive economic growth, and businesses in the area are seeking air service. The LoganKache Airport catchment area includes Cache County, Rich County, and Box Elder County in Utah, Bear Lake County and Franklin County in Idaho, and Lincoln County in Wyoming. These counties account for 175,200 people and 54,900 households. Over a ten year period, the population had gone from 139,300 to 175,200, an increase of 25.8%. LOGANlCACHE AIRPORT MARKET AREA

The income for the market area during the past ten years has increased 63% from $1.43 billion to $2.34 billion. The average household income has gone from $34,400 to $42,700. Retail sales for the area have increased 163% since 1992. STRONG ECONOMIC GROWTH IN MARKET AREA

Year

1992 2002

%Growth

Population Households

139,300 175,200 25.8%

41,800 54,900 31.3%

Income (mil)

Retail Sales (mil)

$1,438 $2,344 63.0%

$626 $1646 162.9%

1

The Logan Cache Airport market area benefits from having a strong business base. During the past five years, the area has experienced strong growth in jobs in an almost 10% increase of employed workers. Unemployment is consistently lower than the national average.

Proposal of Logadcache Airport

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GOOD GROWTH IN JOBS

The LoganKache Airport area is also a tourist destination and gateway to national parks. The local area has numerous parks and locations for outdoor activities and the highway from the Salt Lake City metro area to the Grand Teton National Park and Yellowstone through Logan, Utah.

GOOD GROWTH IN TOURISM Indicator Spending by Travelers (Millions$) Travel & Tourism related Employment Regional Visitation Counts SR-91 UT/ID Traffic Ct. Bear Lake

1997 $70.9

1998 74.5

1999 75.7

2000 76.8

2001 72.8

2002 73

1,302

1,379

1,419

1,449

2,161

2,185

2,106,050 194,201

2,244,750 277,616

2,272,855 277,541

2,261,175 289,349

2,273,950 311,374

2,345,125 310,175

Utah State University is the largest employer in the market area with over 5,000 employees. The University is ranked in the top 4% for research excellence and on of the top ten for space research. The various University research projects require a large amount of air travel. The travel budget for the University in 2003 was in excess of $8 million. The athletic department has a large travel budget and host approximately 60 teams from other schools in men’s and women’s events in Logan. There are over sixty technology based businesses and over forty manufacturers in the Cache Valley. Area unemployment rate is 2.7%. Major consumer businesses located in the area include Sam’s Club, Home Depot, Staples, Kinkos, Walmart, and JC Penneys. Major employers include the following:

Proposal of LoganICache Airport

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MAJOR EMPLOYERS IN THE MARKET AREA

Organization

Employees

Utah State University Icon Health and Fitness E.A. Miller (Con Agra) Convergys Schreiber Foods Moore Business Pepperidge Farms Hyclone Labs Logan Regional Hospital Cache Specialty Hospital Tyco Space Dynamic Labs Gossner Food Inc. Reynolds Consumer Products Herff Jones Inc. Campbell Scientific Weathershield Manufacturing Spillman Technologies Information Alliance Weslo MIKEN (Johnson&Johnson)

Industry

5,300 3,500 1,200 1,000 800 650 500 500 500 350 375 300 300 300 350 300 300 250 250 200 200

Education Manufacturing Meat Products Telecommunications Food Products Business Forms Food Products Bio Genetic Products Medical Medical Electronic Circuits Aerospace Food Production Plastic Products Yearbook Publishing Scientific Instruments Manufacturing Software Market Research Medical Instruments Medical Instruments

COMPARISON TO OTHER AIRPORTS

The Logan/ Cache Airport market area compares favorably with other airport markets that have nonstop jet service to Denver. In the Great Plains and Rocky Mountain region, there are at least nine other communities that are around the same size as the Logadcache Airport market area that have jet service to Denver. These airports are linked to the National Air Transportation system by service by United Express. Based on a population based of 175,000 people, the Logan/Cache Airport market should be able to support three regional jet flights per day to Denver. COMPARABLE MARKETS ARE SUPPORTING JET SERVICE TO DENVER

Metro Market

Population

LoganKache Billings Bismarck Bozeman Fargo Grand Junction

175,200 130,800 95,500 87,100 178,300 122,900

Proposal of Logadcache Airport

Jet Fliqhts 0 2 2 3 2 3

Aircraft Type 8-737 CRJ CRJ CRJ CRJ Page 11

Lincoln

258,500 98,600 90,100 181,300

Missoula Rapid City Sioux Falls

CRJ CRJ CRJ CRJ

DISTANCES TO OTHER AIRPORTS The only airport with scheduled air service is the Salt Lake International Airport located some 90 to 150 miles from the population that would be served by LoganlCache Airport. Travel to the SLC is on congested roads and freeways, made worse at commuter rush hours in the Ogden, Hill Air Force Base and Salt Lake City areas. Passengers traveling to SLCIA often encounter congestion, accidents and traffic delays resulting in missed flights. Allowing for these events has greatly increased travel time and costs to access air service at SLCIA. These problems are further exacerbated in the winter months when travel through mountain passes is often on snowy and icy roads which may require chains. Considering these travel costs, time and risk, the total actual cost of air service to passengers from the region is significantly higher than the projected fares for local air service.

I Community

I Distance

I Travel Time

I Combined Time/ Door I to Gate

Logan, Utah Preston, Idaho Kemmerer. Wvomina

90 miles 115 Miles 115 Miles

2 Hours 2.5 Hours 2.75 Hours

4 Hours 4.5 Hours 4.75 Hours

AIRPORTMARKET POTENTIAL An Air Travel Survey to determine the passenger air travel and cargo needs of the major employers in the area was conducted in June and July of 2001. The study determined what future destinations were important and what fares would be paid for service at LoganKache Airport. The 20 local employers that participated in the survey accounted for about 56,200 origin and destination passengers during the preceding twelve months and over 5 million pounds of cargo that year. This was a sample of 20 businesses, not the total business population. Travel to markets east of Logan accounted for over 60% of the destinations listed. Denver was listed as the most important destination, and connecting hub for flights to the eastern and southern US, and Europe. Travel markets to the west included Los Angeles, Las Vegas, Phoenix, and Portland. All respondents to the survey indicated that reduced travel cost, including convenience and time, was the key factor for Logan/Cache Airport development. The passenger potential for Logan/Cache Airport has been projected based on share of the total Salt Lake City market, share of the total U.S.market, and based on the survey Proposal of LoganICache Airport

Page 12

of major employers in the LoganICache market area. The average of these three forecast was 338,000 originating passengers or 676,000 origin and destination passengers. Based on passenger flow via hub airports, Denver is projected to be the largest market for LoganICache Airport. FORECAST OF PASSENGER FLOW VIA HUB MARKETS

Hub Market

Onboard Passenqers

Denver Las Vegas Los Angeles Phoenix San Francisco Other

150,000 50,000 100,000 50,000 100,000 226,000

PROPOSED SERVICES AND FARES

Based on the forecast in the Logan-Denver market of 150,000 passengers, the market can support six daily round trip fifty seat regional jet flights. The airlines have indicated that they would probably start service with two daily round trip flights timed to meet the connecting banks in Denver. As traffic levels achieve high load factors, then additional flights will be added. Since a large share of the passengers on this new route will be local passengers, special attention will need to made to make sure that the local fares are low enough to generate the passengers as forecasted. The proposed fares will need to be competitive or lower than the existing fares in the Salt Lake City-Denver markets. The following.are sample fares for the new air service. SAMPLE FARES FOR DENVER SERVICE

Fare Type Unrestricted Coach Economy Coach Restricted Coach 7 Day Advance Purchase 14 Day Advance Purchase

Code

Y K V L7NR LE14NR

One Way Fare $399 254 164 124 109

PASSENGERFORECAST

The implementation of new air service between Logan Cache and Denver will have a positive impact on air travelers to and from the region. The implementation of marketing and promotional activities will attract air travelers to the more efficient and less costly flights to Denver with a large selection of connections. It is estimated that since the Proposal of LoganlCache Airport

Page 13

Denver service will be the only air service at Logan/Cache Airport, there will be less passengers in the market initially. When flights are added to other markets, then the demand will increase and get closer to the potential passengers. It is estimated that the Logan-Denver market will initially be at approximately one third of the potential or 50,000 annual passengers. The average fare utilized in the forecast is the average fare for Frontier Airlines in the SLC-DEN market, which is the lowest average fare. PASSENGERANDREVENUEFORECAST

Market

Passenaers

Logan-Denver

50,000

Avq. Fare $135

Revenue $6,750,000

Both the prospective airlines and the airport agree that there will be a ramp-up period of passengers and revenue until the airline reaches its full market share. In this instance, it is assumed that the ramp-up period will take approximately six months to a year. Based on experience at other markets in the region that have introduced new service after a period of dormancy, it is estimated that the airline will achieve 40% of its full revenue and market share in the first six months and increase ten percentage points until it reaches 100%. Based on this ramp up revenue and based on the projected monthly expense, the table below tabulates the amount of subsidy that will be required to off-set the initial operating losses. SUBSIDY REQUIRED TO SUPPORT NEW AIR SERVICE

Month

Passengers

Revenue

Hours

Expense

155 150 155

$213,100 145,000 99,500 25,000 $482,600

March April May June

1,600 2,000 2,400 2,800

$174,400 230,000 288,000 350,000

150

$387,500 375,000 387,500 375,000

Total

8,800

$1,042,400

610

$1,525,000

Loss

It is estimated that the airline will break even in the fifth month and produce a profit on the route thereafter. In the event that the airline reaches profitability sooner, then the LoganKache parties will no longer bill the DOT for the cost offset money. STRATEGIC PLAN FOR AIRPORTMARKETING

There are three phases of the strategic plan to develop air service at Logadcache Airport: (1) Research and Analysis of passenger demand and identification of potential air carriers; (2) Marketing program and presentations to recruit new air service; and (3) an incentive program to start new air service and support the air service. Proposal of LoganlCache Airport

Page 14

Logan/Cache Airport has completed the research and analysis phase with the development of a Strategic Business Plan and Air Service Market Study for the Airport. This study estimated the potential passengers, listed the key markets, and identified the target airlines to best provide the air service. Much of the data from that study has been used in this proposal. The Airport Development Task Force of the Cache Chamber of Commerce has begun marketing the airport to air carriers. Presentation packages were sent to seven airlines in January of this year. Next, representatives of LoganlCache Airport attended the Network 2004 in Sarasota, Florida in March and met with eight airlines. They will attend Jump Start in Portland, Oregon at the end of June and make presentations to other target airlines. The primary target airlines for service to Denver are United, United Express, Rocky Mountain, Mesa, Great Lakes and Frontier. We think that being a smaller airport is an advantage especially due to the long travel time to Salt Lake City International Airport and the long lines to pass through security. If the LoganlCache Airport is awarded a grant from this Small Community Air Service Development Program, the Airport and the community will then launch a full marketing and sales program to start new air service and support the air service. The advertising, promotions, public relations, and a pre-purchase ticket program are all part of a marketing program to support new air service. The target market for the Logan-Denver service is the university and business traveler. A regional marketing and advertising effort will promote flying out of Cache Valley. The Airport Development Task Force will begin a regional media advertising campaign to FLY CACHE! There is good media coverage of the area and our target market at the University can be reached through the administration at the University and their travel consultants and the major business and industrial community decision makers are members of the Cache Chamber of Commerce. The regional marketing effort will promote flying into and out of Cache Valley because of its cost and efficiency advantages. The blitz will include reduced fares for pre-purchase of blocks of tickets for companies with significant travel needs.

MARKETING AND MEDIASELECTION The business and university market in the LoganlCache Airport market areas can best be reached by using local television, local radio, local newspaper, outdoor, direct mail, trade publications, and the internet. The leisure market can best be reached by using television, local radio, local newspapers, and joint promotion programs with other resellers in the area. Upon review of the local medium for the region, the following is recommended.

Proposal of LoganEache Airport

Page 15

I Newspapers The Herald Journal

1 Radio I KVNU

Logan, Utah

KBLQ

I

The Statesman Utah State University The Box Elder News Journal

I Television 1 I ComCast cable

I

KUTAH STATE UNIVERSITY KSOS

Brigham City, Utah The Leader Tremonton, Utah Bear Lake News Montpelier, Idaho Kemmerer Gazette Kemmerer, Wyoming The Airport Development Task Force will also coordinate a direct mail program to its members and to other businesses in the area as well as Utah State University. The local utilities in the area will also promote FLY CACHE! in monthly billings It is estimated that the radio, newspaper, and television media buy will cost approximately $65,000. An additional $5,000 will be needed for production of the advertising. The direct mail program will be managed by the Chamber of Commerce and it is estimated that it will cost approximately $5,000. Promotions will be developed with the radio stations and with the University sports events. Public Relations will include press releases and inaugural events. It is estimated that the Promotions and Public Relations will cost approximately $15,000, Outside service includes the cost of developing a pre-purchase ticket program or a travel bank and the cost of a marketing expert to manage the program. The community has indicated that it can buy $100,000 of tickets in advance in a pre-purchase program or a travel bank. The Airport will also offer a reduction in fees and rents during the start up period. The airline that provides the service to Denver will receive free terminal rents and aircraft parking for the first six months of operation. This is estimated at $12,000. Landing fees will also be waived for the first six months and this is estimated to be $28,000. Passenger facility charges will also be waived for the first six months at an estimate 10,000 passengers at $3.50 per passenger or $35,000 for the period.

Proposal of Logan/Cache Airport

Page 16

FUNDING NECESSARY FOR PROGRAM IMPLEMENTATION In order to attract new air service between Logan and Denver, the airlines requested Logan/Cache Airport to establish an incentive package that would be supportive of new air service and reduce the risk of this new air service. The total incentive package developed herein includes: subsidy to off-set initial operating losses for the airline; funds for marketing and advertising in the local market; establishment of a pre-purchase ticket program; and reduced airport fees for the first six months of operation. The cost for this incentive package is estimated to be $780,000 and is listed below. TOTAL INCENTIVE PACKAGE FOR NEW AIR SERVICE

Category Cost offset for Airline

Estimated Cost

$485,000

Advertising and Direct Mail

75,000

Promotions and Public Relations

15,000

Outside Services

30,000

Travel Bank Reduced Airport Fees Total

100,000

75,000 $780,000

COMMUNITY CONTRIBUTION TO FUNDING

The Airport Development Task Force has already spent approximately $70,000 for the Strategic Business Plan and the Marketing Action Plan and another $20,000 for the recruiting program. The City and County have provided matching funding of $110,000 for grants for airport upgrades. To date the community has spent approximately $200,000 for commercial air service. The Airport Development Task Force, Cache County, and Logan City propose to provide $150,000 of the total incentive package to support the new air service. There will also be an additional $100,000 in pre-purchased tickets. This equates to 32% of the total program cost. The community will cover half of the advertising and public relations and promotions expenses. The community will cover all of the outside services expenses, and the reduced airport fees. The community will need a grant of $530,000. This grant will cover the cost offset to the airline and half of the advertising and public relations. If the airline reaches profitability

Proposal of LoganlCache Airport

Page 17

sooner that projected, then the community will reduce its billing to the Department of Transportation. COMMUNITY SUPPORT

Resolutions passed by the Cache County Commission, and Logan City Council supporting this application are submitted to the U.S. Department of Transportation for a grant under the Small Community Air Service Development Program. Included with the resolutions are letters of support from Mayor Thompson from the City of Logan, The Cache Chamber of Commerce, Governor Olene Walker, Senator Orrin Hatch and Utah State University. Major employers also endorse the service and have provided letters of support for the new air service and this application. Since the Logan/Cache Airport submitted a proposal last year, some of the support letters carry over from that proposal. The resolutions and letters are attached as appendices for review. AIRPORTFINANCIAL INFORMATION

On a generally accepted accounting principals basis (GAAP), the Logan/Cache Airport reported net income before capital contributions and transfers of $28,366 for 2002 and $70,041 for 2003. The complete financial report is contained in the appendix. The proposed new air service will generate new revenue for the Airport. The revenue will come from terminal rents, landing fees, into-plane fuel charges, and passenger facility charges. On an annualized basis, it is estimated that the new air service will generate $169,000 revenue for the Airport. This new revenue will allow the airport to improve its financial position and fund certain passenger related improvements. Listed below is an estimate of the new revenue. FORECAST OF NEW AIRPORT REVENUE

Passengers Enplaned Annual Flights Landing Fees Terminal Rents Fuel Flow Fee Passenger Facility Charge Total New Revenue

24,000 1,460 $56,000 24,000 19,000 70,000 $169,000

LOGANKACHE AIRPORT FINANCIAL STATEMENT (Years ending June 30)

Proposal of LoganICache Airport

Page 18

See Appendix ASSURANCES

The Logan/Cache Airport and its sponsoring members hereby provide the U.S. Department of Transportation with the following assurances: It will comply with all of the applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of the Federal funds for this project. It has legal authority to apply for the grant, and to finance and carry out the proposed project; that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant’s governing body authorizing the filing of the application, including all understanding and assurances contained herein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required.

It has access to the funds available for that portion of the project costs, which are not to be paid by the United States government. It has sufficient funds to assure operating and maintenance of items funded under the grant agreement, which it will own or control. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. It shall make available for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. It will furnish such periodic reports as required pertaining to the project and activities. MONITORING OF FUNDING AND MILESTONES

The funds will be received and monitored by Cache County according to the specification of DOT. The Cache County Auditor will provide detailed accounting of the funds received by the DOT. At the end of each fiscal year, Cache County has an independent audit, which can be provided to the Department of Transportation. Proposal of Logan/Cache Airport

Page 19

The Airport Authority will provide a quarterly report to the DOT as to the progress of the program. This report will include such things as the announcement of new service, current enplanement statistics, marketing reports and financial statements. ONGOINGFUNDINGREVENUES: ECONOMIC DEVELOPMENT CORPORATION OF UTAH (EDCU) STUDY

During the past 6 months, the Economic Development Corporation has completed a study about possible economic benefits of an expanded Logan/Cache Airport. The EDCU findings are reported below. It is important to note that the numbers do not reflect the overall impacts that an upgraded airport might have as a result of attracting new business to Cache County or of inducing existing businesses to expand their operations. EDCU focused exclusively on the impact of the airport upgrades themselves. Assumptions

Airport expansion was assumed to take place in three time periods. For the first four years, operations would continue much the same as at present. Currently, 56 people work at the airport with annual salaries totaling about $1,400,000. Sales of fuel and other services by fixed base operators are $8,900,000 per year. Taxable real property at the airport is valued at $3,250,000 (primarily private hangers) and taxable personal property (primarily aircraft) is valued at approximately $8,000,000. The first phase of expansion would occur in years five through nine. It was assumed that air and cargo service would be initiated and that other support services, such as parking, car rental, maintenance, security and management would be upgraded. During this period, it was estimated that there would be 42 additional employees with salaries totaling $1,143,000 per year. It was also assumed that the airport would serve 30,000 passengers and 15,000 visitors each year. Finally, as a result of first phase expansion, it was projected that the vaiue of private real property and taxable sales of vendors would increase. The second phase of expansion was assumed to be completed by year ten with the addition of 19 more employees. Analysis and Results

EDCU estimated the economic impact of airport expansion using a standard inputloutput model. With this technique, it is assumed that new expenditures made in a community have a multiplier effect. That is, when a dollar is spent, it is received by a merchant, landlord, or other business. In turn, owners of those enterprises re-spend at least part of that dollar in the local community. Thus, the initial expenditure has a multiplied effect on expenditures in the local economy. In addition to having a multiplied effect on spending, new jobs are also created as businesses expand to meet the additional demand for goods and services.

Proposal of Logadcache Airport

Page 20

Focusing on the complete expansion that would occur after ten year, EDCU estimated that 128 new jobs would be created and personal income would increase by nearly $2,500,000 per year in Cache County as a result of airport expansion. It was also projected that local sales and property tax revenue would increase by about $170,000 per year which could provide additional funding for ongoing marketing and management of the airport. CONCLUSION Benefit to the Community 0

0

0

Commercial air service will allow the Cache Valley and other communities served by the Airport to be competitive with other similar sized cities, which have scheduled commercial airline service. Commercial air service would save time and money for local residents and alleviate the problems of hazardous winter driving to the Salt Lake City Airport and problems due to spring flooding. Air Service will make our existing businesses and industries more competitive and will help Cache County to attract technology based industries which are attracted to the area because of the synergism of research and students at Utah State University. Utah State University research and technology programs are growing, which means that national and international industry leaders are working on long-term projects in Logan. The Space Dynamics Laboratory works as a prime or sub contractor with major U.S. defense and aerospace companies. In addition Utah State University has many other federal partners which need timely air service. The new air service will benefit Utah State University research, academic, and sports programs by allowing easier access to the national transportation system.

Conclusion: Local tax revenues based on airport growth alone could provide the additional revenue needed to fund ongoing marketing in year three. However, the expenditures of the first two or three years would be an investment or “priming the pump” and may not be recouped in the near future. The economic benefit to local businesses and industry justifies the investment. Without air service at Logan/Cache Airport, it will be extremely difficult for Logan and Cache County to compete with other communities for domestic and international business. Providing funding will promote community and economic development by helping to bring commercial air service to the Logan/Cache Airport. This grant application is aimed at fulfilling the goal of providing air service to Cache Valley.

Proposal of Logan/Cache Airport

Page 21

APPENDICES

Proposal of Logan/Cache Airport

Page 22

CACHE COUNTY TOURISM PROFILE

~~

.. .-

~

Travel & Tourism Related

TOURISM TAX REVENUES (000 Local Tax Revenues from Traveler Spending Gross Taxable Room Rents Transient Room Tax Restaurant Tax Car Rental Tax Gross Taxable Retail Sales (millio

SR-91 UTAD Traffic Count SR-89 UTnD Traffic Count Bear Lake (3 Locations) Willard Bay S.P.

Total Acres in County Federal Government BLM US Forest Service National Recreation Areas National Parks National Wildlife Refuge USFS & BLM Wilderness Area Other* St ate Government Utah State Parks & Recreation Utah State Wildlife Reserves State Trust Lands American Indian Private** *Includes Military and Bankhead Jones land **May include somc local government land

R

100.0% 37.2% 0.0% 29.9%

278,308

223,614

54,582 215,411 35.077

I I

1.3% 28.8% 4.7%

2.4% 434,350

58.1%

Land Ownership - 1999

Cache County Tourism Profile Spending by Travelers (current dollars)

Millions $80.0

$60.0

s40.0

$20.0

$0.0

7

1991

1992

1993

1994

1995

1997

1996

1998

1999

ZOO0

7

-I

2OOl(o) ZWl(n)

2062

I

Travel & Tourism Related Employment

I

2,400 2,000 1,600 1,200 800 400 0 1991

Thousands

1992

1993

1994

1995

1996

1998

1997

1999

ZOO0

2001(0)

2001(n)

2002

Transient Room Tax Collections (current dollars)

$300.0

$250.0 $200.0

$150.0 $100.0

$50.0 $0.0

-

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

CACHE COUNTY CORPORATION REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31,2002 LOGAN CACHE AIRPORT FUND S L E PERIOD ACTUAL

M D ACTUAL

BUDGET

UNEARNED

PCNT -

INTERGOVERNMENTAL REVENUE 31.726.32

77-33-10416 77-33-10417 77-3344403 77-33-44416

FED GRANT AIP2I# FED GRANT AIP #I3 STATE GRANT -2002 STATE GRANT AIW12 77-33-44417 ST GRANT AIP #I3 77-33-70105 LOGAN CITYSHARED NET u(p

.oo .oo .oo .oo .oo

TOTAL INTERGOVERNMENTAL REVENUE

415.726.32 818,460.00

.oo 19.128.00 40,770.00 67,354.00

521,503.00 909.400.00 16O,oO0.00 23,289.00

105.776.68

79.7

90,940.00 90.0 160,oO0.00 4.161.00 4.530.00

.o

82.1 90.0 .00 100.0

45.300.00 67,354.00 1,726,846.00

365,407.68

78.8 -

31.726.32

1.361.438.32

GAS TAX REFUND FUEL FLOW -STORAGE FEES BUILDING RENTS SUNDRY REVENUE

.oo .oo .oo .oo

12.475.24 15.506.92 19,640.00 3.701.75

9,971.00 ( 12,626.00 ( 18.240.00 ( 3.702.00

2.504.24 ) 2.880.92) 1,400.00) .25

TOTAL MISCELLANEOUS REVENUE

.oo

51,323.91

44,539.00

(

6,784.91 ) 115.2

.oo

28.41 1.35

27,505.00

(

906.35 ) 103.3

.oo

20.41 I.35

27,505.00 (

906.35)103.3

.oo .oo

67,354.00

.00

67,354.00 196.756.00

196,756.00

TOTAL CONTRIBUTIONS

.oo

67,354.00

264.1 10.00

196,756.00

TOTAL FUND REVENUE

31,726.32

1,508,527.58

~

MISCELLANEOUS REVENUE ~

~~

77-36-15000 7736-18000 77-36-20000 77-36-90000

125.1 122.8 107.7 100.0

-

-

AIRPORT REVENUE ~

~~

~~

77-3780000 AIRPORT FEES-LAND LEASE INCOME TOTAL AIRPORT REVENUE

-

CONTRIBUTIONS 77-38-20000 CONTRIB FROM GENERAL FUND 77-38-70000 APPROPRIATED SURPLUS

FOR ADMINISTRATION USE ONLY

100 % OF THE FISCAL YEAR HAS ELAPSED

2,063,000.00

.00 100.0

554.472.42

05/07/2004

.O 25.5 -

73.1

10:08AM

PAGE: 3

CACHE COUNTY CORPORATION EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31.2002 LOGAN CACHE AIRPORT FUND S L E PERIOD ACTUAL

M D ACTUAL

BUDGET

UNEXPENDED

PCNT

11,315.14 4,922.02 1,070.68 2,262.18 2,366.85 2,420.35 963.82 647.27

47.0 45.2 57.2 9.5 52.7 51.6 91.2 35.3

.oo

100.0

10,380.00

13.5

AIRPORT 77-4460-110 77-4460-130 77-4460-230 77-4460-240 77-4460-250 77-4460-260 77-4460-270 77-4480-280 77-4460-290 77-4460-310 77-4460-311 77-4460-330 77-4460-510 77-4460600 77-4460-620 77-4460-621 77-4460-730 77-4460-731 77-4460-732 77-4460-734 77-4460-739 77-4460-990

SALARY EMPLOYEE BENEFITS TRAVEL OFFICE EXPENSE & SUPPLIES EQUIPMENT SUPPLIES & M I N T BUILDING & GROUNDS UTILITIES TELEPHONE RENT PROFESSIONAL 8 TECHNICAL PROF & TECH ACCOUNTING EDUCATION a TRAINING INSURANCE SUNDRY EXPENSES MlSC SERVICES MlSC BOARD SERVICES IMPROVEMENTS IMPROVEMENTS-UNDERGRD IRR LINE OTHER CAPITAL IMPROVEMENTS STATE GRANT - 2002 GRANT PROJECTS CONTRIBUTIONTO FUND RESERVE

.oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo

10,034.86 4.052.98 1,429.32

21,350.00 8,975.00 2,500.00

237.82 2,633.1 5 2,579.65 10,036.1 8 352.73 600.00 1,620.00 850.00

2.500.00 5,000.00 5.000.00 11,000.00 1.000.00 600.00 12.000.00 850.00 1,000.00 9,826.00 3,974.00 37.400.00 500.00 38,433.00 1.740.00 30,000.00

.00 9,826.00

.00

.00 100.0 1,000.00

.O

.oo

100.0

3,974.00 3.730.42 500.00 28.059.50 110.57

.o

.oo .oo .oo .oo .oo

33,669.58 .00 10.373.50 1,629.43 .00 .00 1.390.235.41 .00

1,626.666.00 42,686.00

200.000.00 236,430.59 42,688.00

TOTAL AIRPORT

.00

1.480.160.61

2,063,000.00

582.839.39

71.8

TOTAL FUND EXPENDITURES

.OO

1,480,160.61

2,063,000.00

582,839.39

71.8

31,726.32

28,366.97

NET REVENUE OVER WENDITURES

FOR ADMINISTRATION USE ONLY

.OO

100 % OF THE FISCAL YEAR HAS ELAPSED

200,000.00

.00 (

30,000.00

28,366.97)

05/07/2004

90.0

.o 27.0 93.7

.o .o 85.5

.o -

.O

10:08AM

PAGE: 4

CACHE COUNTY CORPORATION REVENUES WITH COMPARISONTO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31,2003 LOGAN CACHE AIRPORT FUND S L E PERIOD ACTUAL

YTD ACTUAL

BUDGET

UNEARNED

PCNT

INTERGOVERNMENTAL REVENUE

77-33-10416 77-33-10417 77-33-10418 7733-44403 77-33-44416 77-33-44417 77-3344418 77-33-70105

.OO

FED GRANT AIP #12 FED GRANT AIP #l3

.oo .oo .oo

FED GRANT AIP #14 STATE GRANT -2002 STATE GRANT AIP#12 ST GRANT AIP #13 STATE GRANT AIP #14 LOGAN CITYSHARED NET EXP

.oo .oo .oo .oo

TOTAL INTERGOVERNMENTAL REVENUE

.oo

17,785.00 64,448.00 .00 91,276.91 848.00 2.253.00 67,354.00

17.785.00 64,448.00 67,767.00 180,000.00 848.00 2.253.00 4,371.00 67,354.00

243.964.91

404.826.00

.00

.oo .oo 67,767.00 88,723.09

.oo .00 4,371.00

100.0 100.0 .O

50.7 100.0 100.0 .O

.oo

100.0

160.861.09

60.3

MISCELLANEOUSREVENUE

7736-15000 77-36-18000 77-36-20000 77-36-90000

GAS TAX REFUND FUEL FLOW -STORAGE FEES BUILDING RENTS SUNDRY REVENUE

.oo .oo

TOTAL MISCELLANEOUS REVENUE

.oo

10,651.16 15,429.49 15,440.00 2.00

lO.oO0.00 ( 13.300.00 ( 15.440.00 500.00

651.16) 106.5 2,129.49 ) 116.0 .oo 100.0 498.00 .4

.oo

41,522.65

39,240.00 (

2.282.65 ) 105.8

.oo

31,581.35

29,000.00 (

2.581.35) 108.9

.oo

31.581.35

29.000.00 (

2,581.35) 108.9

.oo .oo

67,354.00

67,354.00 142,472.00

.oo

100.0

.oo

142,472.00

.O

TOTAL CONTRIBUTIONS

.oo

67.354.00

209.826.00

142.472.00

32.1

TOTAL FUND REVENUE

.oo

384,422.91

682.892.00

298,469.09

56.3

.oo

AIRPORT REVENUE

77-37-80000 AIRPORT FEESUND LEASE INCOME TOTAL AIRPORT REVENUE

CONTRIBUTIONS

77-38-20000 CONTRIB FROM GENERAL FUND 77-38-70000 APPROPRIATED SURPLUS

FOR ADMINISTRATION USE ONLY

~~~~

100 % OF THE FISCAL YEAR HAS ELAPSED

05/07/2004

10:OBAM

PAGE: 3

CACHE COUNTY CORPORATION EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING DECEMBER 31.2003 LOGAN CACHE AIRPORT FUND SLE PERIOD ACTUAL

M D ACTUAL

BUDGET

UNWENDED

PCNT

AIRPORT 77-4460-110 77-4460-130 77-4460-230 77-4460-240 77-4460-250 77-4460-260 77-4460-270 77-4460-280 77-4460-290 774460310 774460311 774460330 77-4460510 77-4460400 77-4460-620 77-4460-621 77-4460-710 77-4460-730 77-4460-731 77-4460-732 77-4460-734 77-4460-739

SALARY EMPLOYEE BENEFITS TRAVEL OFFICE EXPENSE & SUPPLIES EQUIPMENT SUPPLIES & MAINT BUILDING 8 GROUNDS UTILITIES TELEPHONE RENT PROFESSIONAL& TECHNICAL PROF & TECH ACCOUNTING EDUCATION &TRAINING INSURANCE SUNDRY EXPENSES MlSC SERVICES MlSC BOARD SERVICES LAND IMPROVEMENTS IMPROVEMENTSUNDERGRDIRR LINE OTHER CAPITAL IMPROVEMENTS STATE GRANT 2002 GRANT PROJECTS

.oo .oo .oo .oo .oo .oo .oo .oo .oo .oo .oo

TOTAL AIRPORT

.oo

TOTAL FUND EXPENDITURES

NET REVENUE OVER EXPENDITURES

-

27,117.00 6,275.00 2,500.00 2,500.00 8,000.00 6,000.00 12.000.00 1,000.00 600.00 16.500.00 850.00 1,o00.00 10,255.00 1,o00.00 42,400.00 500.00 105,000.00 42,451 .OO 2,000.00 30,000.00 200,000.00 164,944.00

37.3 69.5 79.9 19.1 92.9 86.6 81.1 33.9 .O 74.5 .00 100.0 1,000.00 .O 120.29 98.8 1,000.00 .o 74.0 11.028.92 500.00 .O 97.5 2.608.71 36.5 26.945.85 69.0 620.98 30.000.00 .O 99.191.21 50.4 164,944.00 .O

314,381.65

682,892.00

368.510.35

46.0

.oo

314,381.65

682,892.00

368,510.35

46.0 -

.oo

70,041.26

.00

.oo .oo .oo

10.114.81 4.363.58 1,996.90 478.32 7,434.60 5.197.00 9,732.21 339.19

.oo 12,285.00 850.00 .00 10.134.71

.oo 31,371.08

.oo .oo .00

.oo .oo .oo .oo

.00 102.391.29 15,505.15 1.379.02 .00 100,808.79 .OO

.OO (

17.002.19 1.91 1.42 503.10 2.021.68 565.40 803.00 2,267.79 660.81 600.00 4.215.00

70,041.26)

.O

~~

FOR ADMINISTRATION USE ONLY

100 % OF THE FISCAL YEAR HAS ELAPSED

05/07/2004

10:08AM

~

~~~~~

PAGE. 4

STATE OF UTAH OFFICE O F THE G O V E R N O R S A L T LAKE CITY 84 I 14-060 I

OLENE S . WALKER GOVERNOR

GAYLE F. MCKEACHNIE LIEUTENANT QOVERNOR

April 19,2004 The Honorable Nonnan Mineta Secretary U. S.Department of Transportation 400 Seventh Street, S.W. Washington, D. C. 20509 Re: Proposal Under the Small Community Air Service Development Pilot Program Logan-Cache County Airport Development Task Force Dear Secretary Mheta: I am aware that the U. S.Department of Transportation is soliciting applications regarding the Small Community Air Service Development Program. In response to thisixocess, the Logan-Cache County Airport Development Task Force is filing an application with USDOT to participate in the program.

The Airport Development Task Force in Cache Valley is working toward the initiation of commercial air service at the Logan-Cache Airport to support Utah State University and local businesses. This commercial air service is essential in order to be competitive in global markets. Many Cache businesses are penalized for doing business in a community with insufficient facilities, and the valley is in jeopardy of losing some businesses and impeding the growth of others. The development of Logadcache Airport translates into jobs and future development for Cache Valley. Commercial air service at the Logadcache Arport is essential for Cache County’s economic progress. The funds would be used to develop a marketing plan designed to encourage business and community use of the Logadcache Airport. The application is very detailed and well documented illustrating the justification and benefits for the communities in Cache County and the north central Utah region. I believe that approval of the Logadcache Airport’s application and participation in the Air Service Development Program will represent a major step forward in improving the economy in Utah. Any support you can lend to this issue will be very much appreciated.

Sincerely,

Olene S. Walker Govemor

ORRIN G. HATCH

COMMITTEES:

UTAH

JUDICIARY PATRICIA KNIGHT CHIEF OF STIFF

MUIW

FINANCE 131 Ru&l

CHAIFiMU'J, SUBCOMMlllEE ON TAXATION AN0 I S OVERSlGHT

Senate M iBuilding

Telephone: (202) 224-5251 TDD (202) 224-284!3

WASHINGTON, DC 20510-4402

E-mail: enator-hatWhatch.sen8te.p

INTELLIGENCE INDIAN AFFAIRS

Website: httpJiwww.aenate.gwl-haW

April 30,2004

The Honorable Norman Mineta Secretary, US Department of Transportation 400 Seventh Street, SW Washington, DC 20590

RE: Proposal Under the Small Community Air Service Development Pilot Program Logan-Cache County Airport Development Task Force Dear Secretary Mineta.

I write today in support of the Logan-Cache County Airport Development Task Force and c- Air Service their application to be considered for funding under the Small Community Development Program. The Airport Development Task Force is working towards the initiation of commercial air service at the Logan-Cache Airport to support Utah State University and local businesses. This commercial air service is needed to be competitive in global markets. Cache County businesses are penalized for doing business in a community with insufficient facilities and is in jeopardy of losing some of these businesses and impeding the growth of others. The development of the Logan-Cache Airport translates into jobs and future development for Cache valley. Commercial air service is essential for economic progress. The Logan-Cache County Airport Development Task Force is seeking funding to assist in the development of a marketing program and to off set some of the first year commercial air service costs. The Airport Development Task Force is a public/private partnership that seeks to make positive changes to the air service in northern Utah.

I urge your full consideration of this request.

Omn G. Hatch United States Senator OGH: mcc

UNIVERSITY VLCE PRESlDENT FOR RESEARCHOFFLCE 1450 Old Main Hill Logan, UT 84322-1450 Telephone: (435) 797-1 180 FAX: (435) 797-1367 Email: [email protected]

April 10,2004

The Honorable Norman Mineta Secretary, U.S. Department of Transportation 400 Seventh Skeet, S.W. Washington, D.C. 20590 Dear Secretary Mineta:

In Fiscal year 2004 (FV04)the U.S. Department of Transportation is soliciting applications regarding the Small Community Air Service Development Program.In response, the Logan-Cache County Airport Development Task Force is filing an application. The Airport Development Task Force in Cache Valley is working towards the initiation of commercial air service at the Logan-Cache Airport to support Utah State University and local businesses. This commercial air service is needed to be competitive in global markets. Cache businesses are penalized for doing business in a community with insufiicient ficilities. The vaUey is in jeopardy of Iosing some ofthese businesses and impeding the growth of others. The development of the Logadcache Airport translates to jobs and future development for Cache Valley. Commercial air service at the Logadcache Airport is essential for Cache County's economic progress. The Task Force is submitting to the Small Community Air Service Development Pilot program for $750,000 to assist funding a marketing program and offsa some of the fmt year commercial air service costs that will result from obtaining air service at the LoganKache Airport. The ADTF is a publidprivate partnership that seeks to make positive changes to the air service for northem Utah. The community contribution toward this project is $SO,ooO for maTkctmgwith mer 11mi\liun do\\ars abcady s p m fix akrpmt improuementsOVCT fne last 5 years. The application is very detailed and well supported, showing the justification and benefits Cache County and the northem Utah region. Approval of the Logadcache Airport's application and participation in the Air Service Development program will be a major step toward an improved economy in our state. Any help and support you can lend to this issue will be sincerely appreciated. Sincerely,

Brent C. Miner,Ph.D. Vice President for Research

May 10,2004 The Honorable Norman Mineta Secretary U.S. Department of Transportation 400 Seventh Street, S.W. Washington, D.C. 20590 Re:

Proposal Under the Small Community Air Service Development Pilot Program Logan-Cache County Airport Development Task Force

Dear Secretary Mineta:

In the latest legislation Fiscal year 2004 (€9’04) The U.S. Department of Transportation is soliciting applications regarding the Small Community Air Service Development Program. In response to this process, the LoganCache County Auport Development Task Force is filing an application to USDOT to participate in this small community air service development program. The Airport Development Task Force in Cache Valley is working towards the initiation of commercial air service at the Logan-Cache Airport to support Utah State University and local businesses. This commercial air service is needed to be competitive in global markets. Cache businesses are penalized for doing business in a community with insufficient facilities. The valley is in jeopardy of loosing some of these businesses and impeding the growth of others. The development of the Logadcache Airport translates to jobs and future development for Cache Valley. Commercial air service at the Logadcache Airport is essential for Cache County’s economic progress. To assist with this development, the Task Force is soliciting the Small Community Air Service Development Pilot program for $750,000 to assist h d i n g a developmental marketing program and off set some of the first year commercial air service costs that will result in obtaining air service at the Logadcache Airport for both businesses and the community. The ADTF is a public/private partnership that seeks to make positive changes to the air service for northern Utah.The community contribution toward this project is $80,000 for marketing with over 11 million dollars already spent for airport improvements over the last 5 years. The application is very detailed and well supported showing the justification and benefits for the communities in Cache County and the north central Utah region. We believe that approval of the Logadcache Airport’s application and participation in the Air Service Development program will represent a major step forward toward an improved economy in our state. Any help and support you can lend to this issue will be sincerely appreciated.

Mayorlaity of Logan

255 North Main Street

Logan, Utah 84321

Phone (435) 716-9002

FAX (435) 716-9003

May 5,2004 The Honorable Norman Mineta Secretary, U.S. Department of Transportation 400 Seventh Street, S.W. Washington, D.C. 20590 Re:

Proposal Under the Small Community Air Service Development Pilot Program Logan-Cache County Airport Development Task Force

Dear Secretary Mineta:

In the latest legislation Fiscal year 2004 (FY04) The U.S. Department of Transportation is soliciting applications regarding the Small Community Air Service Development Program. In response to this process, the Logan-Cache County Airport Development Task Force is filing an application to USDOT to participate in this small community air service development program. The Airport Development Task Force in Cache Valley is working towards the initiation of commercial air service at the Logan-Cache Airport to support Utah State University and local businesses. This commercial air service is needed to be competitive in global markets. Cache businesses are penalized for doing business in a community With insufficient facilities. The valley is in jeopardy of loosing some of these businesses and impeding the growth of others. The development of the Logadcache Airport translates to jobs and future development for Cache Valley. Commercial air service at the Logadcache Airport is essential for Cache County’s economic progress. To assist with this development, the Task Force is soliciting the Small Community Air Service Development Pilot program for $750,000 to assist fimding a d e v e l o p m a 1 marketing program and off set some of the first year commercial air service costs that will result in obtaining air service at the Logadcache Airport for both businesses and the community. The ADTF is a public/private partnership that seeks to make positive changes to the air service for northern Utah. The community contribution toward this project is $80,000 for marketing with over 11 million dollars already spent for airport improvements over the last 5 years. The application is very detailed and well supported showing the justification and benefits for the communities in Cache County and the north central Utah region. We believe that approval of the Logadcache Airport’s application and participation in the Air Service Development program will represent a major step forward toward an improved economy in our state. Any help and support you can lend to this issue will be sincerely appreciated.

Chair of the Board of Directors Cache Chamber of Commerce

05/07/2804

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May 5,2004 Thc Honorable Norman Mineta Secretary, U.S.Dcpartmcnt of Transportation 400 Seventh Strwt, S.W.

.

I

Washington, D.C.20590

Rc:

Proposal Under the Small Community Air Scrvice Development Pilot Program Logan-CacheCounty Airport Devclopmcnt Task Force

Dear Secretary &eta:

In the latest legislation Rsd year 2004 (FYO4) The U.S. Department of Transportation is soliciting applicationsregarding the Small Community Air Scrvice Development Program. In response to this process, the Logan-Cache County Airport Development Task Force is filing an application to USDOT to participate in this s d l community air sefvjcs development program.

The Airport Development Task Force in Cache Valley is working towards thc initiation of commercial air service rit the Logan-CacheAirport to support Utah State University and local businesses. This commercial air service is needed to be competitive in global marketa. Cache businesses ~IXpenalized for doing business in a community with insufficient facilities. The valley is in jeopardy of losing some of these busincsscs and impeding the growth of others. Thc dcvclopment of the Logadcache Airport translates to jobs and future dcvclopment for Cache Vallcy. Commercial air service at the LogadCacbe Airport is essential for Cache County's cconomic p r o p s . To assist with this dcvclopment, the Task Force is soliciting the Small Community Air Service Development Pilot program for $750,000 to assist funding a dcvclopmental marketing program and offset somc of the first year commercial air service costs that will result h obtaining air service at the Logadcache Airporrt for both businesses and thc community. The ADTF is a publidprivate partnership that seeks to make positive changes to the air scrvicc for northern Utah. The community contribution toward this project is $80,000for marketing with over 1 1 million dollars dready spent for airport improvements over the last 5 years. The application is very detailed and well supported showing the justification and benefits €or the comm,unitiesin Cache County and the north central Utah region. We believe that approval of the Logan/Cache Airport's application and participation in the Air Service Development program will represent a major stcp forward toward an improved ec0nom.y in our state. b y help and support you can lend to this issue will be sincmcly appreciated.

Sincerely,

"Pone: 435-753-ASR4 I Toll R O O : 800-522-5355

-

Fax: 435-759-AS89

- Irrtcrnct:

rwww,hyclnn+.cnm

PER" Cell Culture Dtvhlon

Sun0 2,2003

Mr. Norman Minela Sccrctary US. Department of Transportation 400 7mSWCG S.W. Washington, D.C.20590

Re: Proposal Undcr the Small Community Air SerVicc Dcvclopmcnt Pilot Program Logan-CacheCounty AirpoTi: Developmcnt Task Force Dear Secretary Minela:

In the latest IegkJation Fiscal year 2003 (FY03)Omnibus Appropriationsbill (PL108-7) The U.S. Department o f Transportation will soon be soliciting applications regarding thc Small Community Air Service Developmcnt Program. In response to this process, the Logan-Cuche County Airport Development Task Forcc will be filing an application to USDOT to participate in this midl community air scrvicc devclopmcnt pmgrm.

The Task Force is working towards the initiation of commercial air service at the Logan-Cache Airport to support local bushesses. This commercial air service is necdcd by local busincsscs, hying to compete in national and international markcts and yet, arc penalized for doing busincss in il community with insuiricicnt facilitics. The valley is in jeopardy of loosing somc of thcsc busincsscs and impcding thc growth of others. The development of the Cache Logan Airport tmslatcs to jobs and futurc development for Cache Valley. Commercial air service at the ']Logan Cache Airport is essential for Cache County's economic progress.

As an active member of the local businas community, 1believe that approval of the LoganCache County's application and participation in the Air Service Development program will rcprcscnt a major step forward toward an improved economy in our valley and our state. Any help and support you c a lend ~ to this issue will be sincerely appreciated,

Sincerely,

Rknt Roberts Uioh Jet Center Iugan-Cache Airport 2500 N.900 W. Logan Utah 84341