Other Legislators Present:  Barbara Blanchard  (Air Service Task Force); Martha Robertson

Staff:            Ed Marx, Planning Commissioner / Deputy County Administrator; Cheryl Nelson, Public Works Administrator; Bob Nicholas, Airport Manager, Air Service Task Force; Tony Rudy, Airport, Air Service Task Force; Wendy Skinner, Public Information; David Squires, County Finance Director; Jim Strehle, Airport; Steve Whicher, County Administrator; Kathy Wilsea, Planning Dept. Secretary

Guests:    Larry Baum, Computing Center, Air Service Task Force; Tom Corey, Corey Consulting; Hal Craft, Cornell University, Air Service Task Force; John Gutenberger, Cornell University, Tompkins County Chamber of Commerce; Howard Hartnett, M&T Bank, Tompkins County Area Development; Richard McDaniel, Cornell University, Air Service Task Force; Jean McPheeters, Tompkins County Chamber of Commerce
Denise Sanderson, Tompkins County Area Development; Stuart Stein; Bob Steinkamp, Eagle Broadcasting; Joseph Testo, NYS Dept. of Transportation; Andrew Tutino, The Ithaca Journal; Randal Wiedemann, R. A. Wiedemann & Assoc., Inc.; Scott Wiggins, Strategic Tourism Planning Board; Jeffrey Wood, McFarland Johnson
 

Administration

Dick Booth called the meeting to order at 3:05 PM and turned the meeting over to Barbara Blanchard.

Randal Wiedemann, a consultant for NYS Dept. of Transportation, made a presentation on the economic impact of the airport on the community and explained the roles of commercial flights and general aviation.  He noted the Cornell Business & Technology Park was planned for its adjacency to the airport, and proximity to the airport has been mentioned as one of the top three reasons for site selection by tenant businesses.

Bob Nicholas made a presentation on the three negative impacts that have brought about the current state of affairs.  They are the 9/11 terrorist attack, the sagging economy, and airline deregulation.

Randal Wiedemann reviewed economic impact studies.  He said the airport is worthy of the County’s investment due to the number of jobs at the airport and the benefits spelled out in the study.  Business activity is measured at the airport and off site, and has a ripple impact in the community.  The airport provides jobs, income, and tax revenue.  Total income from airport business, visitor spending and induced impact was calculated to be over $30.5 million.  The airport produces $2.61 million state and local tax revenue, and $3 million federal tax revenue.  He noted the airport has had no local taxpayer subsidy to date.

Mr. Wiedemann pointed out the non-monetary impacts of the airport as time saved & costs avoided, stimulant for employment, lifesaving medical evacuations, pilot training, and recreation.  He handed out a statewide technical report, statewide summary report, and a regional airport brochure.

In response to questions, Mr. Wiedemann said 10 to 20 percent of traffic is local one-day trips.  A lot of business occurs here because people can travel by air for meetings.  These types of studies are prepared in order to provide information to government and large companies that might keep a plane at the airport.  He will check the INPLAN model to see if local tax revenue can be isolated.  The impact of visitors can include car rental, motels, and restaurant business.

Bob Nicholas presented a summary of declining airport business over the last three years, and noted enplanement has been reduced 31 percent over this period.  9/11 led to reluctance to fly, security hassles, capacity cuts, fewer connections and people choosing other modes of transportation.  Airline deregulation and economic woes have also impacted airport business.

Challenges include competition from low cost carriers, competition from other regional airports, and USAirways finances.  Currently the airport has no contract with the carrier, but they are operating under verbal extension.  Efforts continue to recruit a new carrier.  An action plan would, for the short term, examine the budget for 2005 and review airline fees for 2005.

Howard Hartnett, Vice Chair of Tompkins County Area Development and a member of the Air Service Task Force, spoke to confirm the importance of the airport to economic health.  TCAD delivers incentives to area businesses, and has devoted energy to infrastructure issues.  He said venture capitalists use our airport for visits, and future prospects would be much weaker without the airport.  He pointed out an article in USA Today that mentioned Ithaca as the best emerging community.

Jean McPheeters, President of the Chamber of Commerce, said most airport visitorship is college related, for admissions and employers coming to interview students.  The Chamber only estimates 5 to 7 percent of visitors as tourists.  She cited a Richard Green article publicized in June, 2000 that found a relationship between airports and economic activity.  She stressed that we need to make it less difficult to do business here, and noted she found it extraordinary that the airport was self-supporting for 30 years.  Dooley Kiefer asked about the importance of general aviation, and responses included parts shipping for local manufacturers, arrival of lecturers, and pilot training.  General aviation businesses don’t use the airport terminal, but their activities can be tracked through takeoffs and landings.

Larry Baum said we find ourselves at an interesting juncture.  We have one of about 5,400 community airports in the US, and one of only 18 in New York State that have scheduled airline service.  General aviation use is increasing.  He proposed using the Air Service Task Force to examine various economic models and make recommendations for Tompkins County.  He said the phenomenon facing airports is new.  It is important to develop a contingency plan in case USAirways closes or goes bankrupt.  Although not everyone in the community uses the airport, all of the community benefits.  He recommended adding people to the task force and seizing this opportunity to reshape the airport’s business model.  He mentioned comments made by Mike Hall at a task force meeting last week.  Mr. Hall said Tompkins County is uniquely situated, has no four-lane highways, has rail service only for coal and salt, our ferries are gone, and we have electronic access to the world.  The airport can keep access to the world that many communities do not have.

There was brief discussion about possible items for the task force to examine, and suggestions for drawing support for keeping the airport.  Closing or reclassifying to general aviation only will also be examined.

It was suggested by Dick Booth that the County Administrator develop a charge for the Air Service Task Force and review it with the appropriate committee of the Legislature.  There was general agreement that this would be how we would proceed from here.

The meeting was adjourned at 4:46 PM.