HomeMy WebLinkAbout2001-12-13 Airport Commission Packet KENAI AIRPORT COMMISSION
DECEMBER 13, 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
***AGENDA***
ITEM 1:
ITEM 2:
ITEM 3:
ITEM 4:
ITEM 5:
ao
ITEM 6:
ao
b°
Co
ITEM 7:
ao
ITEM 8:
ITEM 9:
ITEM 10:
a°
b,
ITEM 11:
CALL TO ORDER AND ROLL CALL
AGENDA APPROVAL
APPROVAL OF MINUTES -- November 8, 2001
PERSONS SCHEDULED TO BE HEARD
OLD BUSINESS
Discussion -- Travel A§ency Concession Bid
NEW BUSINESS
Recommendation -- Alaska Adventure Air Proposal for Temporary Office
Buildin§/Float Plane Basin.
Recommendation -- Special Use Permit/Challen§er Learnin§ Center Kiosk in
Airport Terminal.
Discussion -- Terminal Parking
Discussion -- Request for FAA Funding -- Hotel/Convention Center Funding in
Conjunction with Economic Development for the City.
REPORTS
Commission Chair
Airport Manager
City Council Liaison
COMMISSIONER COMMENTS AND QUESTIONS
PERSONS NOT SCHEDULED TO BE HEARD
INFORMATION ITEMS
Kenai City Council Meeting Action Agendas for November 7, 21, and December
5, 2001.
11 / 01 Kenai Municipal Airport
Airport Capital Improvement Program (ACIP)
ADJOURNMENT
KENAI AIRPORT COMMISSION
NOVEMBER 8, 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
***AGENDA***
ITEM 1'
CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3:
APPROVAL OF MINUTES -- October 11,2001
ITEM 4:
PERSONS SCHEDULED TO BE HEARD
ITEM 5- OLD BUSINESS
ITEM 6:
NEW BUSINESS
Discussion -- Attracting New Business and Improving Services to
Existing Businesses at the Kenai Airport.
ITEM 7' REPORTS
, ,
ao
Commission Chair
Airport Manager
City Council Liaison
ITEM 8:
COMMISSIONER COMMENTS AND QUF~TION.~
ITEM 9:
PERSONS NOT SCHEDULED TO BE H_EA~D
ITEM 10- INFO~TION ITEMS
Kenai City Council Meeting Action Agendas for October 3 and 17, 2001.
ITEM 11' ADJOURNMENT
KENAI AIRPORT COMMISSION
NOVEMBER 8, 2001
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
CHAIRMAN HENRY KNACKSTEDT, PRESIDING
MINUTES
ITEM 1' CALL TO ORDER AND ROLL CALL
Chairman Knackstedt called the meeting to order at 7'08 p.m.
confirmed as follows:
Roll was taken and
Present:
Absent'
Others Present:
Staff Present:
Public'
Knackstedt, Haralson, Kleidon, Elson, Bielefeld, Van Zee
Holloway
Mayor Williams, Councilman Moore, Councilwoman Swarner,
Councilman Bookey, Councilwoman Porter, Councilwoman
Jackman, Councilman Bannock (arrived at 7:40 p.m.)
Airport Manager Cronkhite, Finance Director Semmens, City
Manager Snow, Department Assistant Harris
LarrY Porter, Mark Carr, Dr. Jim Zirul, Marcus Garner and Jay
Barrett
ITEM 2: AGENDA APPROVAL
MOTION:
Commissioner Haralson MOVED to approve the agenda as presented. Commissioner
Kleidon SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3'
APPROVAL OF MINUTES -- October 11,2001
Commissioner Haralson requested a change in the minutes of October 11,2001 to
read' Item 5 (John Bartels)" .... as a result of low tie-down tenants."
There were no other changes or amendments to the minutes and they were approved
as amended.
ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None'
ITEM 5- OLD BUSINESS-- None
ITEM 6' NEW BUSINESS
Discussion -- Attracting New Business and Improving Services to Existing
Businesses at the Kenai Airport.
Mayor Williams provided the group with an overall objective to the meeting,
adding that the attraction of new businesses and the improvement of
existing services at the Kenai Airport is a larger issue than just taxation. After a
brief introduction of those present, Williams asked the group to address any
concerns and comments regarding the airport. The following concerns were
addressed in an open-forum manner:
(Items have been grouped and were not necessarily discussed in the following
order).
· Fuel availability, fuel tank regulations, bulk fuel options, fuel costs.;
· Runway status and extension;
Taxation/Exemption, Tie down fees;
· Airport facilities: Hangar options, tower issues, availability of mechanical
services; and,
· Float Plane Basin Slip Locations
Fueling: The Float Plane Basin currently has a credit-card system for purchasing fuel
that is bought by the city. Due to the lack of vendor interest, the system was
purchased by the city. Additionally, it is maintained by the city with all generated
revenue collected by the city. The city's price for fuel is set by a competitor's price t°
ensure fair rates. Commissioner Van Zee commented this system was originally put in
place to try to attract tenants and make the area more desirable. Councilwoman
Porter, along with Larry Porter (Kenai), stated at one point they had their own fuel
tanks at the basin, but were forced to remove them. Porter stated, despite taking
many measures to ensure safety, the reasons for requiring the removal included the
potential for vandalism and tank failure. Commissioner Elson stated aboveground fuel
tanks are not allowed within city limits according to the State Fire Code, though mobile
(truck-mounted) fuel tanks are allowed, providing the trucks are indeed mobile. The
group also spoke regarding bulk fuel pre-purchasing options (bulk fuel would require
mobile tanks).
Direction: Request information from bulk fuel providers for policy on special rates for
bulk fuel users (more than 1,500 gallons a month).
Runway Status and Extension: The Float Plane Basin runway is currently 3,500 feet.
L. Porter, Carr, and Dr. Zirul all stated that taking off from the Float Plane Basin with a
fully loaded plane is not possible due to safety restrictions. All agreed an extension of
500 feet would help alleviate take-off hazards. The group discussed runway extension
possibilities and Airport Manager Cronkhite explained to the group the main runway is
on the Airport Capital Improvement Project list for extension in 2004. Cronkhite stated
she hoped to designate the north end of the Float Plane Basin as a materials site and
later convert the gravel pit into a runway extension. But, Cronkhite stated, because of
recent FAA funding diversions, it was not known when this will be'done.
Direction: Target a specific.time period for the runway extension that will enable the
Float Plane Basin runway extension by means of materials site designation.
AIRPORT COMMISSION MEETING
NOVEMBER 8,2001
PAGE 2
Taxation/Exemption, Tie-down Fees: The Airport Commission had passed a motion
at their last meeting requesting Council to amend the Kenai city tax code to both
reflect a $100,000 exemption on aircraft and to amend the Kenai Peninsula Borough
{KPB) aircraft tax code to a fiat tax. Finance Director 8emmens provided the group
with the economic details of each request. Additionally, the following group topics were
addressed'
The tie-down rate at the Kenai Airport is the same as Soldotna. ~.
A complete private property exemption could cost the city $175,000.
If the city adopted a flat tax on aircraft, it would be only for aircraft; boats
would not be included.
Exemptions or flat tax rates need to be determined on a rational basis as
such exemptions could create requests for many more.
The city will lose $30,000 on tax revenue (as 57 accounts are currently
considered). It is not certain the city will make up this revenue with
additional tenants paying at an exemption or flat tax rate.
Lost tenants, some of who are registered and paying taxes in other
boroughs, may be lured back if comparable rates are given.
Councilman Bannock provided the group with a brief overview and
background on the taxation issue beginning with boat owners. Bannock
also stated he felt there were inequities in the tax exemption theory.
If a flat tax is adopted, it should include motorhomes and be based on
gross weight.
Exemptions should be based from (not up to) $100,000.
The gain of additional tenants will create a trickle down effect. Revenue
could be gained by additional services' sales tax revenue, mechanical
services, etc.
Direction: Determine the cost of collecting the currently taxed aircraft vs. potential
revenue generated by additional tenants paying a flat-tax or exempted tax.
Airport Facilities: The group discussed and commented on the following topics:
· Kenai Airport currently has only one mechanical service available.
· Some aircraft owners dislike the tower. Several group participants
theorized the tower contributed to an aircraft owner's decision to tie-down
elsewhere.
· A hangar could attract more users. The group discussed several aspects
of building a T-hangar including:
-- Hangars are very expensive to build. The T-hangar idea has been
previously researched, proposed, and declined due to lack of pavement and
general enthusiasm in the previous plan.
-- Haralson stated that if a hangar was built, many industries could
profit, i.e. insurance, mechanics, airport growth, etc.
-- Tax incentives and subscription-type investment could help the private
industry build a hangar.
AIRPORT COMMISSION MEETING
NOVEMBER 8,2001
PAGE 3
Float Plane Basin Slip Locations:
L. Porter explained to the group commercial operations slip locations are currently at
the end of the Basin and create a wake problem, as it is necessary to tax/to the end to
pick up passengers. This wake creates a 2-3 foot wave and can cause erosion to
planes. To alleviate this problem, the group suggested re-designating slip locati.ons to
better serve commercial users. Cronkhite mentioned several terrain problems involved
with re-designation and added, drawings would be available at the next Airport
Commission meeting so the subject can be explored further.
Direction: Determine logistics of re-designating commercial slip locations at the
Float Plane Basin.
Public Comments:
Mark Carr (Alaska West Air}---Carr stated he was starting a single Pilot operation
from the float plane basin. His concerns included:
· Available utilities: Carr stated the Kenai Airport has very limited
mechanical services available.
· Fuel availability at floatplane basin area -- Carr stated he would like his
own fueling set-up at the basin.
· Runway extensions. Carr stated it was not possible to take-off with a
fully loaded plane. He stated an extension of 500 feet would help create a
larger safety margin. Carr compared the length of the Float Plane Basin
(3,500 feet) to that of Island Lake which is one mile in length.
Dr. Jim Ztrul {Kenaik--Zirul's concerns included the following:
· The airport almost lost his business; no specifics were stated.
· The tax issue is not the only reason why people have left
and would not be the only reason to bring people back. zirul stated an
exemption or fiat-tax could be made up by additional airport tenants.
· Addressing the fuel issue, he requested more information regarding
mobile tanks and bulk fuel.
Larry Porter
(Kenai)--Porter's concerns included the following:
The current location of commercial slips should be re-designated to
alleviate wake related aircraft erosion created by taxiing to the far end of
the basin.
Addressing the fuel issue, he stated he had a personal fueling system at
the Float Plane Basin, however despite taking many measures to ensure
safety, Porter was required to dismantle his fuel tank.
Item 6 concluded at approximately 9'15 p.m. Chairman Knackstedt requested a 10-
minute break to allow the public and council members to depart.
AIRPORT COMMISSION MEETING
NOVEMBER 8, 2001
PAGE 4
ITEM 7: REPORTS
Commission Chair-- No report
Airport Manager -- No report
City Council Liaison -- No report
ITEM 8:
COMMISSIONER COMMENTS AND QUESTIONS -- None
.
ITEM 9'
PERSONS NOT SCHEDULED TO BE HEARD -- None
ITEM 10' INFORMATION ITEMS
10-a. Kenai City Council Meeting Action Agendas for October 3 and 17, 2001'
ITEM 11' ADJOURNMENT
MOTION:
Commissioner Kleidon MOVED to adjourn and Commissioner Van Zee SECONDED the
motion. There were no objections. SO ORDERED.
The meeting adjourned at approximately 9'25 p.m.
Minutes transcribed and prepared by:
Sharon Harris, Department Assistant
AIRPORT COMMISSION MEETING
NOVEMBER 8,2001
PAGE 5
nal
Municipal Airport
Memo
TO'
From:
Date:
Subject-
Airport Commission
Rebecca Cronkhite, Airport Manager~
December 5, 2001
Travel Agency Concession Bid
As many of you are aware, the bid process for the travel agency concession was
put on hold following the events of September 11. Alaska's Best Travel's Special
Use permit was extended to February 28, 2002.
Dottie Fischer, owner of Alaska's Best Travel, has requested that we proceed
with the bid process. The proposed schedule is attached for your information.
Attachment
www.ci.kenai.ak.us.
/~£NA/ AIRPORT
TRAVEL AGENCY CONCESSION
BID SCHEDULE
The City of Kenai is requesting bids for a travel agency concession in the airport terminal building. Bid packets
may be picked up at the Airport Manager's office in the terminal building, 305 N. Willow, Suite 200, Kenai,
Alaska. If you have any questions, please call 907-283-7951, ext. 22.
Date/Time Event
12/19/01
Travel Agency Invitation to Bid & Bid
Schedule to Council for Approval
1/2002 Advertising
Other information
1/31/2002 Bid Opening
10:00am.
1/31/2002
Successful bidder in Council packet
Airport Manager's O~oe
2/6/2002
3/01/2002
iii i
Council awards lease to successful
bidder
New travel agency concession starts
Kenai Airport
305 N. Willow, Suite 200
Kenai, AK 99611
Phone: 907-283-7951
Fax: 907-283-3737
Email: ENAadmin@ci.kenai.ak. us
nal
Municipal Airport
Memo
To:
From:
Date:
Subject:
Airport Commission
Rebecca Cronkhite, Airport Manager
December 5,2001
Alaska Adventure Air Proposal
Attached is a proposal from Mark Carr, owner of Alaska Adventure Air, requesting use of
the floatplane basin. The airport has met with Mr. Carr several times to discuss the
details and how we may successfully accommodate his operation.
It is our recommendation that Alaska Adventure Air lease a commercial tie-down slip at
the floatplane basin (see attached drawing) and be issued a Special Use Permit allowing
placement of a temporary office building on an adjacent site. The proposed cost for the
building space is a $100.00 per month. This cost is based on fees previously charged
for similar spaces to ERA HelicoPters and the State of Alaska Division of Forestry.
Telephone and electricity are available at this location. Mr. Carr indicated that natural
gas is not a requirement at this time. The airport will provide additional portable
restrooms at $155.00 per month per unit to accommodate the operation. The float basin
sign was repainted for $500 and additional signage will be provided if necessary.
Aircraft fueling will be accomplished from a portable tank owned and maintained by
Alaska Adventure Air. Details are being worked out with assistance and expertise from
the Kenai Fire Department. This arrangement is the most operationally efficient and cost
effective for Mr. Carr.
Mr. Carr is rearranging his schedule to attend the December 13, 2001, Airport
Commission meeting to answer any questions you may have.
Does the Airport Commission wish to recommend that the Airport develop a
Special Use for Alaska Adventure Air to place a tempora~ office building in the
commercial tie-down area at the floatplane basin?
Attachment
www.ci.kenai.ak.us.
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October 30, 2001
Alaska Adventure Air
160 Phillips
Kenai, AK 99611
(907)283-3895
City Of Kenai
Airport Manager
Rebecca Cronkite
210 Fidalgo Ave., Ste. 200
Kenai, AK 99611
Dear Ms. Cmnkite:
As requested, we are entering a proposal for the City Of Kenai for usage of the Float Plane
Basin for Mark Carr d.b.a. Alaska Adventure Air.
Our proposal includes:
1. Operations out of the float plane basin during the summer months, generally late
Apdi until late September. In addition,
2. our operation would require the following utilities:
a... phone,
b.- electricity,
c naturalgas, ~'
3. we would be in need of fueling access at our slip, _
4. an area for a temporary, portable office building and
5..~ an adequate parking area.
-.
We understand that the City of Kenai may have concerns with regards to noise abatement;
we believe that even with our extended departures that this will not cause a problem as our
proposed operating ames will be: 6:30 a.m.- 9:00 p.m.
We would like to inquire as to which spaces will be available because we would prefer to
have a spaco that is closest to the taxi way.
We are also interested in any plans the City of Kenai has as regards to:
1. Adding any additional taxi ways,
2. lengthening the float plane basin and· · · .
3. adding additiOnal signage on the mad indicating directions to the float plane basin.
Thank you for considering our proposal. Please let us know if you have questions,
.,
.-.
MarkCarr
Owner
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Municipal Airport
"S i g G Ker a
Memo
To:
From-
Date:
Subject:
Airport Commission
Rebecca Cronkhite, Airport Manager
December 5, 2001
Challenger Kiosk in Terminal
Mayor Williams has requested that Challenger Learning Center be allowed to
place a small fundraising kiosk in the Airport Terminal.
I have met with Steve Horn, Director of the Challenger Learning Center, and he
has identified a possible location, which is indicated on the attached diagram.
I have also 'attached a draft Special Use Permit and a photo of the proposed
kiosk for your information.
Does Airport Commission wish to recommend Council authorize the City
Manager to enter into a Special Use Permit with the Challenger Learning
Center?
Attachments
www. ci.kenai.ak, us.
Draft
SPECIAL USE PERMIT
DATE' December 6, 2001
The CITY OF KENAI (hereinafter sometimes referred to as CITY), whose
address is. 210 Fidaigo Avenue, Suite 200, Kenai, Alaska 9961 1-7794, for
the considerations and pursuant to the conditions and requirements set forth
below hereby grants to'
ALASKA CHALLENGER CENTER
9701 Kenai Spur Highway
Kenai, AK 99611
hereinafter sometimes referred to as the PERMITTEE, the right to that area
in the Kenai Airport Terminal as designated by the Airport Manager on the
attached diagram, for the purpose of a fund raising kiosk.
1. Term' This special use permit shall be in effect on XXXXX, 2002,
to XXXXX, 2002. The permit period may be extended by mutual consent of
both parties.
2. Permit Fees' Waived
3. Right of Entry: XXXXXX, 2002
4. Place and Time of Payments' WAIVED
5. Use' The use by the PERMITTEE of the premises described
above is limited to the purposes specified herein and is not intended to grant
any exclusive use to the described premises unless otherwise provided
above
This use is also subject to the reasonable administrative actions of the City
of Kenai for the protection and maintenance of the premises and of adjacent
and contiguous lands or facilities.
6. Insurance' The PERM ITTEE shall provide proof of insurance
coverage on the kiosk. Such insurance coverage shall be an amount
satisfactory to the City.
7. Unit Maintenance' The PERMITTEE shall be solely responsible for
the maintenance and for keeping the unit clean.
8. Loss or Damaqe' The City of Kenai is not responsible for any
damage to or theft from the kiosk.
December 6, 2001 Page 1 of 3
Draft
9. Forbearance' Failure to insist upon a strict compliance with the
terms, conditions and requirements herein contained or referred to, shall not
constitute or be construed as a waiver or relinquishment of the right to
exercise such terms, conditions or requirements.
10. Regulations' The exercise of the use granted herein is at all
times to be subject to the regulations governing the Kenai Municipal Airport
titled "Kenai Municipal Airport Regulations", issued in 1976 or any
amendments thereto. By signing this permit, the PERMITTEE
acknowledges that he has received a copy of said regulations and has
familiarized himself therewith and will comply with the requirements of said
regulations.
11.Solicitation' Solicitation of donations or the promotion or operation
of any part or kind of business or commercial enterprise not contemplated
by this Special Use Permit upon, in, or above airport lands without the
written consent of the CITY, is prohibited.
12. Installation' The kiosk and the installation of shall be subject to
approval by the Airport Manager.
13. Removal of Property: Any or all personal or real property placed or
used upon lands or in facilities in violation of the preceding prohibitions may
be removed and/or impounded, such property may be redeemed by the
owner thereof only upon payment to the CiTY of the costs of removal plus
storage charges of $25.00 per day.
14. Cancellation' CiTY reserves the right to cancel this permit or to
reassign PERM ITTEE to a different location on 14 days written notice, either
delivered in person to the authorized representative named herein or his
replacement or by mail to the address set out above. Any or all personal or
real property shall be removed at users expense upon cancellation or
termination of this agreement.
PERMITTOR'
CITY OF KENAI
By'
Linda L" Snow '-City Manager
December 6, 2001 Page 2 of 3
Draft
PERMITTEE:
By'_
Name- Title
STATE Of ALASKA
THIRD JUDICIAL DISTRICT
)
)ss
)
THIS IS TO CERTIFY that on this day of
., 2001, LINDA L. SNOW, City Manager of the City of
Ken,i, Alaska, being personally known to me or having produced
satisfactory evidence of --identification, appeared before me and
acknowledged the voluntary and authorized execution of the foregoing
instrument on behalf of said CITY.
Notary Pui~.lic for Alaska...
My Commission Expires'
STATE Of ALASKA
THIRD JUDICIAL DISTRICT
)
)ss
)
THIS IS TO CERTIFY that on this day of
2001, ........ being personally known to me or having
produced sat'isfaCtory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the foregoing
instrument.
Notary Public'for Alaska~'
My Commission Expires'
December 6, 2001 Page 3 of 3
-'l
i _
nal
Municipal Airport
305N. WILLOWST. SUFrE200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To:
From'
Date.:
Subject:
Airport Commission
Rebecca Cronkhite, Airport Manager
December 6, 2001
Terminal Parking
As winter settles in, the loading and unloading area in frOnt of the Terminal has
become more of an enforcement issue. The Airport staff has continued to
brainstorm and look for ways to improve the signage and information so the
public is aware of the parking restrictions; however, we continue to have times
when the area is jammed.
We recognized last year that the traffic flow and parking patterns needed
improvement, and money was budgeted for "Sidewalk and Parking Area Design.
I am working with the City Engineer to develop an RFP for this project. In the
meantime, I would appreciate ideas from the Commission on ways we might
improve our signage or other information to encourage the traveling public to
utilize the driveway for loading and unloading.
I have received a number of suggestions from towing all unattended vehicles -
like they do at the big airports---to just closing off the driveway and making
everyone go to the parking lot. I am really looking for a solution that will allow
people to drive up to the terminal, stop parallel to the sidewalk and either pick up
or drop off passengers and baggage. I would also like to extend the privilege for
people traveling alone to leave their vehicle and bring their baggage into the
terminal without the risk of their car being towed.
These are my goals, and I would appreciate any suggestions you may have to
help accomplish this in the short term while we work through the "Sidewalk and
Parking Area Design" process, including the hiring of a traffic consultant.
www.ci.kenai.ak.us.
KA'S CoN'VENTIONS/[RE
UTGROWI
THEIR HAL
BY MELISSA CAMPBELL
Sales people working for the. John Mazor, president of the Juneau
state's convention centers have Convention and Visitors Bureau.
learned to get a little more crc- Presidents of several of the state's
ative in doing their jobs these days.
There's only so much space in
the state's convention centers, and
space is generally booked years in ad-
vance. The larger hotels often have
some meeting space. But sometimes
it just isn't enough.
That's where creative space-hunting
comes in. In Juneau, for example, the
fish hatchery and the facilities atop
the Mount Roberts Tramway have
been used for gatherings. How does a
meeting in the Sitka raptor center
sound? Or an event at the Alaska State
Fairgrounds in Palmer?
~We can use these when people are
looking for a special place, and they
can pull a theme into an event," said
convention centers say their cities
have outgrown their convention meet-
ing spaces and if their towns, and the
state, want to compete in this fast-
growing market, they have to expand.
While those in the industry say it's
impossible to know exactly how much
money is generated internationally
through various conventions and
meetings, they say it's easily a multi-
billion-dollar market. In one of the
nation's largest convention-holding
cities, for example, Chicago last year
hosted nearly 7.6 million delegates
who spent about $6.3 billion, ac-
cording to the Chicago Convention
and Tourism Bureau.
Those in Alaska's convention
industry have no dreams of bring-
ing in those kind of numbers, but
many say adding square footage to
local convention space would help
their towns and the state grow.
As the state's largest convention
site, Anchorage hosted nearly 102,000
delegates last year who generated
an estimated $70 million in local
spending on such things as travel, ho-
tels, dinner and souvenirs, according
to the Anchorage Convention and
Visitors Bureau. Delegates last year
spent about $12.5 million in Fairbanks
and $8.1 million in Juneau, accord-
ing to those convention bureaus.
With added hall space, and the ser-
vice facilities to support it, the sate
could draw thousands more delegates
who will spend millions more in lo-
cai cities, bureau presidents say·
www. akbizma;.com * Alaska Business Monthly · November 2001
ciety will hold its 2005 convention in
,'-knchorage. Up to 2,000 fisheries sci-
en~/sts and educators will spend several
days in the middle of the world's ideal
fishing haven. Dodds, sales manager
for the Anchorage Convention and Vis-
itors Bureau, spent four years working
to get the nauonal conservation and re-
search group to choose Alaska over the
coundess other sites available.
Unfortunately, that means little
else can be booked for that time frame,
Dodds said. And when the larger ha,
ti'onal and international groups book
their dates, the smaller, mostly
statewide, groups have to settle for the
less desirable time slots and locations
because there just isn't enough space
for them.
Anchorage's 90,000-square-foot
Egan Civic and Convention Center has
long since outgrown its potential, said
Bruce Bustamante, Anchorage's con-
vention bureau president. Conventions
in Anchorage are limited to about 2,000
people, fewer if delegates want a sit-
down dinner or an extensive trade
show. Trade shows often are set up
across the street at the Alaska Center
for the Performing Arts. While the
arts facility is connected to the Egan
Center by a skybridge, it's still a nega-
tive point for convention organizers.
"The (arts center) is not a conven-
tion faciliw,' Dodds smd. "It's helped
a lot, but groups like to have eve ,rything
under one roof."
And the Geor~ Sunivan Sports Arena
isn't a good option either, Bustamante
said. The sprawling 32,000-square-foot
chamber is great for large concern or a
basketball game, but it does not pro-
vide the best setting for a meeting.
Plans have been drawn up for a new
civic and convention center in An-
chorage that would allow just that. Two
studies in the last three years have
looked into a new civic and convention
center, the most recent released in June.
The latest study, prepared by RIM Ar-
chitects and LMN Architects, suggests
two sites for the new center: one on
Ship Creek west of the railroad head-
quarters building and the other on a va-
cant lot just east of the Simon Fifth
The proposed center would span
280,000 square feet and will include a
40.000-square-foot lobby area and up
tO 50,000 feet of exhibit' space.
The new faciliw also could include
·
retail outlets, davcare facilities and more
parking, said Rod Pfleiger, execum'e di-
rector of the Anchorage Downtown Part-
nership. This would bring more people
and businesses to the downtown area,
helping to strengthen the community,.
The proposed center would cost an
estimated $100 million. The study rec-
ommended an increase in the city;s bed
tax from 8 percent to 12 percent, putting
the money raised toward paying off
bonds used to fund the project. Selling
or leasing the Egan Center and seek-
ing state and federal money also was
suggested. A nonprofit task' force was
set up to work toward getting taxpayer
approval for the new center.
"If you have the facility, the citi-
zens will use it. They're knocking on
the door for more f~.cilities," Pfleiger
said. "It has to be market-driven or we
can't support it. If it will create and
strengthen activities in downtown and
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www. akbizmag, com' Alaska Business Monthly · November 2001
, o
will promote diversi~, we support it.
And if it can hold more functions here
instead of having them go Outside. then
it. will benefit the state."
Sound like putting a baseball dia-
mond in the middle of a corn field, with
the hope of-"If you build it, they will
come"? Some believe so.
The main concern is the operating
costs, the latest study found. Costs to
run the center will be nearly triple
that of the Egan Center. The Munici-
parity of Anchorage provides an annual
subsidy from the general fund to op-
erate the center. Last year, the Egan
Center used about $270,000 of that, ac-
cording to the study.
The operating deficit for the new
center was estimated to cost $857,000
the first year, decreasing to about
$667,000 after five years, according to
the 1998 study by Deloitte and Touche.
Property. taxpayers would foot that bill.
And that's relying on researchers ac-
curately estimating the number of con-
ventions that would come.
But supporters say they can meet
the challenge of making the center
beneficial to the taxpayers and to busi-
ness owners.
'If we build it then we've got to work
hard to go out and sell it," Bustamante
said. "Building a bigger convention cen-
ter doesn't mean that more people will
automatically call. We have to sell it."
to get more creative in how to accom-
modate groups."
The study, will review such opuons
as adding a second floor to the exist-
ing Centennial Hall or building a new
facili ,ty to combine civic, culture, con-
vention and visitor use, Mazor said.
When communities want to expand
convention space to get more visitors,
they also must consider where to put
them for the night, convention leaders
say. They may want to shop for sou-
vemrs, or get their shirts pressed and
shoes shined. Convention speakers will
likely need presentation and other
equipment for workshops.
A lack of these services holds back
many of the state's smaller conven-
tion sites. Sitka, for example, can ac-
commodate about 700 people in its
8,700-square-foot Harrigan Centen-'
nia~ Hall, and about 240 people in the
local tribal community house Shee'Ka
Kwaan Naa Kahidi. But this small
Southeast town only has about 250
rooms available during the summer
months and about 50 fewer during the
winter, said Amy Kramer Johnson,
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STUNTING GROWTH
Juneau also is beginning to seriously
look into exp~ions, said Bureau Pres-
ident Mazor. The Juneau Assembly last
summer approved $150,000 for a sur-
vey asking residents ff they would like
'to see convention space grow and how.
Mazor said most residents don't deny
the need to expand the 40,000-square-
foot Centennial Hall Convention Cen-
ter, they just don't know exactly what
they want yet. Seating at the facility is
limited to about 700, or about 1,100 for
a stand-up reception. If groups want
more than a handful of breakout rooms
for, say, educational workshops, they
have to trek over to one of the local ho-
tels for a conference room. Not an ideal
situation, Mazor said.
'Over the last five years we've seen
a trend of groups demanding more
space," he said. ~As conventions have
more impact economically, we've had
www. akbizmag, com* Alaska Business Monthly · November 2001
director of convention sales in Sitka.
Until recently, Fairbanks also was
limited on the number of delegates it
could host. The Carlson Center could
squeeze in about 3,500 people for a
· stand-up event, said Conventions Man-
ager Emma Wilson. But hotel accom-
modations couldn't support nearly that
many. In the last couple of years, four
new hotels have opened, giving the Fair-
banks area more than 3,100 rooms. Wi~
those hotels came more meeting ar-
eas, Wilson said, giving Fairbanks a bet-
ter oppommity to compete for larger
national and international conventions.
MEET IN ALASKA
Convention delegates can sit through
workshops and peruse trade shows m
any meeting hall anywhere in the world.
One big selling point for events is what's
available outside the hall doors.
"We can have 200 to 300 people on'
a boat and within 20 minutes, they are
watching the whales," Juneau's Mazor
smd. "There are not many other areas
that offer that."
?md that's what convention bureau
officials sell-Alaska's uniqueness and
the local activities.
"We've got beautiful countryside that
offers some incredible oppormmties,'
said Wilson, of Fairbanks. "I helped one
group that wanted ice-carving lessons.
We've got berry picking in the fall, ski-
lng and snowmachining m the winter,
and we're close to Denali. Just tell me
what you want to do and I'll do what I
can to make it happen."
Other big draws for convention-goers,
according to convention nmxmgers: whale
watching, glacier cruises, Alaska Native
culture and, along the coastal regiom, a
lessonm the Russian influences. And d-
forget the vast oppommities for ba
and fishing, or the museums and concex ~,.
These things bring milliom, of toumts
to Maska every, year, and they are of-
ten what turn delegates into tourists
after the meeting adjo. ums, said Julie
Saupe, executive director cf the
Matanuska-Susitna Convention and Vis-
itors Bureau. The Mat-Su bureau real-
izes it can't compete for the larger
conventions, but can benefit from those
held in Anchorage.
"People generally find one or two
days for fun," Saupe said. "Our next
plan is to work on how to reach them,
before they come up, so they can plan
to come here for a few days."
Anchorage's Dodds said people of-
ten tack on a few days to their trip, or
they go home and come back as inde-
pendent travelers, bringing their
lies along. And ff they have a good u~::
then they'll tell their friends and
workers, who may come north as well-
with open wallets.
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~l www. akbizmag, com· Alaska Business ltlonthly · November 2001
Statement of
Qualifications
Integrity. Dedication.
Flexibility. Vision.
Creativity. Intuition.
Courage. Common Sense.
These are the driving
principles of our
practice as we
soak to saris6
client needs.
Jinneman, Kennedy, & Mohn, P.S.
Hospitality Investment Advisors
Jinneman, Kennedy, & Mohn, P.S.
Seattle. Washington
HOSPITALITY INVESTMENT ADVISORS
Jinneman, Kennedy & Mohn, P.S. (JK&M) is the leading hospitality investment advisory firm in the
Northwest and Upper Rocky Mountain states. JK&M offers professional advisory services in four
primary areas- brokerage and transaction advisory services, investment and property management
services, valuation services, and consulting services. The following attributes distinguish our firm
from other professional service firms in the hospitality industry.
MARKET KNOWLEDGE
/he principals of JK&M have over 65 years experience providing hospitality services throughout the
Northwest and Upper Rocky Mountain states. We continuously update our market knowledge
through market research and publication-of the "JK&M. Hospitality Report", a quarterly newsletter
addressing hotel sales, development, construction, and franchising activity.
PRACTICAL KNOWLEDGE
The principals of JK&M also successfully own and operate hotels for their own account. We know
what needs to be done to implement ~ theory and recommendations, because we've been there
ourselves, with our own capital at risk. Thus, our clients benefit not only from our years of
investment advisory experience and market knowledge, but also from our practical knowledge
derived fi'om actually owning and operating hotels.
PERSONALIZED SERVICE
We offer the personalized service of a small hospitality investment advisory practice. The principals
of the firm are directly involved with each client, yet we have the same resources available as many
international hospitality advisory firms, through Paul Jinneman's charter membership in the
International Society of Hospitality Consultants. Members of the Society are located in key cities
throughout the world.
COMMITMENT TO CLIENT NEEDS
Our clients are very important to us. The bottom line is we approach every assignment with the
same degree of care and service we would want if we were the client. We listen carefully to each
client's needs and develop a plan to fulfill those needs. Time commitments are kept, and the finest
quality service is delivered to the client.
lhis Statement of Qualifications includes a discussion of the services we typically provide, a list of
representative clients, and the resumes of our principals and associates. Further information is
available on the world wide web at www.jk-a, com. We look forward to working with you.
WHAT OUR CLIENTS SAY ABOUT US
"Your willingness to go above and beyond the contractual call of duty to answer my questions and
provide valuable assistance after our contract was completed is greatl) appreciated"
Project Manager, Port of Grays Harbor
"As seasoned analysts oj'hotel markets and products; long time residents of the Northwest; and their
names emblazoned on what the), do, I am convinced that the studies they provide are far more
valuable than most. Where my money is involved, payingjbr their quali~ of study is simply a good
investment."
Hotel Developer, Bellevue, Washington
"I ... want to thank ),ou .for your excellent work on the ... project. [ have worked with many
consultants who compromise themselves for the sake of the project, or at the owner's insistence,
giving them what they want to hear instead of what is right. [ appreciate how vou stood bv your
injbrmation with fradk and honest commenta~. . Even though I am afraid the project is dea~ I can
say that you did a great job on behalf ofyour clients."
Hotel Developer, Tacoma, Washington
"As you know by this time, we have resolved our problems with ... and have entered into a
settlement of the matter. Your excellent work with respect to the appraisal was extremely helpful in
this regard and contributed greatl3, to the possibility of settlement. When I listened to your testimony
on deposition versus the Bank's expert witness on deposition, I must say that I was shocked at the
difference considering your presence and presentation. This undoubtedly helped in the overall
settlement."
Partner, Large Spokane Attomey Firm
"Thanks very much for your testimony in our hearing the other day. I am certain that the substance
of that testimony, and how it was delivered, played the largest part in our receiving a favorable
result."
Partner, Large Portland Attorney Firm
"From the time we asked for your help on assessing the hotel value to closing day, I can honestly
say I haven't been served better. Your professionalism and constant follow-up on detail make your
brokerage service an easy recommendation for me. I am unequivocally recommending your services
to potential future clients."
President, Large Northwest Investment Firm
SERVICES
AND CLIENTS
Since no two clients are the
same, we've developed
the resources and skills to
provide a broad range of services.
We can provide you with
the superb service
you expect.
Brokerage and Transaction Advisory Services
Investment and Property Management Services
Valuation Services
Consulting Services
BROKERAGE AND TRANSACTION ADVISORY SERVICES
For over a decade, the consulting division of IK&M has closely followed hotel acquisition and
disposition activity throughout the Pacific Northwest. During this period we had the opportunity to
assist many of our clients in their due diligence research and in positioning their properties, for sale.
In.launching the brokerage division of JK&M in 1998, we brought the lodging industry a unique and
highly specialized set of skills and talents. Our clients benefit from the firm's in-depth knowledge of
Northwest markets, our advanced financial and investment analysis capabilities, our hands-on
experience in hotel operations and management, and the foresight and vision that can only come
from years of experience and extensive contacts throughout the lodging industry. In our brokerage
division, we combine these skills with a highly focused marketing program for the sole purpose of
optimizing value for our clients.
Our brokerage division operates with the same level of direct partner involvement and professional
commitment that has built our consulting practice over the last decade. While this type of structure
means our brokerage practice will remain comparatively small, it also ensures our commitment to
provide only the highest level of quality and service to our clients. We personally serve our client's
needs throughout the Pacific Northwest either through direct licensing or through alignment with
cooperating licensees in other states.
Whether you're looking to buy or sell, JK&M's brokerage and transaction advisory services division
provides an unbeatable combination and a very refreshing approach. Let us show you.
JK&M Provided Transaction Advisory Services to:
TONE HO TEL INFES TORS INC. (seller)
And
CA VANA UGH'S HOSPITALITY
CORPORA TION (buyer) C
Relative to CHC's purchase from Sunstone of the:
Best Western Canyon Springs Inn, Twin Falls, Idaho
Best Western Colonial Inn, Helena, Montana
Boise Park Suite Hotel, Boise, Idaho
Quality Inn, Pocatello, Idaho
BROKERAGE AND TRANSACTION ADVISORY SERVICES
(CONTINUED)
JK&M Provided Transaction
Advisory Services to:
FIRST EQUITY PROPER TIES, INC. (seller)
Relative to their sale of the:
Comfort Inn- North, Spokane, Washington
Comfort Inn- Valley, Spokane, Washington
JK&M represented
LAKEWOOD MOTOR INN L.P.
an affiliate of the Mathew G. Norton Company and
Northwest Building Corporation
Relative to the sale of the:
Best Westem Lakewood Motor Inn, Tacoma, Washington
INVESTMENT AND PROPERTY MANAGEMENT SERVICES
JK&M provides property and asset management services consistent with our corporate mission
statement of "Serving every client as if we were the client". The interests of all stakeholders-
the guests, employees, owner(s), and lender- are fully served. JK&M brings tct..each
assignment its many years of experience and exposure to a wide variety of pro~perty
management practices.
Compfi:te property management services are provided to a select group of hotels. JK&M
typically has an ownership interest in these hotels, and they are usually located in resort areas
where conflicts with our independent advisory services division can be minimized. JK&M
currently provides complete property management services for the Best Western Icicle Inn in
Leavenworth, Washington; the Palace Hotel in Port Townsend, Washington; and the Seashore
Resort Motel in Seaside, Oregon.
Asset management services are also available to a wide variety of owners. In these cases,
property owners may either desire to take a more active role in the day-to-day management of
the hotel, or may have engaged the services of another hotel management company. However,
they need a very educated set of "eyes and ears" to oversee their activities or those of the
management company. Our asset management services typically include monthly reviews of
financial statements, guest comments, franchisor activity, and other matters; quarterly visits to
the hotel to inspect the property and interview management; and annual reviews of property tax
assessment, and business and marketing plans.
The Best Western Icicle Inn, a
Leavenworth Resort, is located in the
Bavarian Village of Leavenworth,
Washington. The resort hotel currently
offers 93'guestrooms, almost 4,000
square feet of meeting space, restaurant,
lounge, and family fun center including a
video arcade, Bavarian miniature golf
course, bumper boats, replica train ride,
and other attractions. Paul M. Jinneman
has been a partner/member of this hotel
since it opened in August 1992. An
affiliate of JK&M has provided property
management services since the hotel's
opening.
www.icicleinn.com
INVESTMENT AND PROPERTY MANAGEMENT SERVICES
(CONTINUED)
[ Victorian hotel located in the heart of[[
[ downtown Port Townsend, Washington.
[ The hotel has 17 guestrooms, many of l!
[ which are fumished with period Il
I1 antiques, and over 5,000 square feet
[ leased retail space. Paul M. Jinneman
[ and Michael J. Mohn purchased the hotel
[ in May 1994, and then commenced a
[[ program of significant renovations and
[[ management improvements. An affiliate
![ of JK&M has managed the hotel since its
[~ purchase in 1994.
~ I I III II I I1' 'I I I I11 II I I
www. o lymp us. nct/p a I ac e
..ww~..... seashoreres0rtm ote 1. co m
VALUATION SERVICES
APPRAISALS
JK&M appraisers have appraised over
$500,000,000 of hospitality related
property and businesses. At JK&M we
are better equipped to evaluate the
complexities associated with hotel
operations than are standard appraisers
because of our in-depth market
knowledge, financial analysis skills, and
operational expertise. We are on the
approved appraiser list of most major
banks. Appraisals have also been
completed for estate tax. condemnation.
and litigation support purposes. Projects
appraised range from small rural motels
to large urban hotels and conference
centers and destination resorts.
,, ,
Principals of JK&M appraised the Coeur d'Alene
Resort in Coeur d'Alene, Idaho for initial
development, planning, financing, and property
tax appeal purposes.
_.lllJl. . . 1 ........
.................
PROPERTY TAX APPEALS
Property owners in the United States pay
over $100 billion in real estate taxes
each year. We compute our own income
tax bills, often with the assistance of a
professional. In contrast, real estate
taxes are computed for us by government
officials, and very few people challenge
these bills with the assistance of a
professional. JK&M has had outstanding
success in reducing real estate taxes for
many hospitality clients.
I II ! I II Ill' III I
Principals of JK&M appraised the Anchorage
Hilton Hotel in Anchorage, Alaska for expansion
planning, financing, and property tax appeal
purposes.
JK&M has appraised over 300 limited-service
hotels for development planning, financing,
estate tax, property tax, and other purposes.
FINANCIAL INSTITUTIONS SERVED
Anchor Savings Bank
Bank of America
Bank of Astoria (OR)
Bank of Grays Harbor
Bank of Sumner (WA)
Cashmere Valley Bank
City Commerce Bank (AK)
City National Bank
Clackamas County Bank
Columbia Bank
Community First National Bank
Cowlitz Bank
Far West Federal Savings Bank
First Community Bank
First Independent Bank
First Interstate Bank
First Savings Bank of Washington
Frontier Bank
Idaho Banking Company
Intervest Mortgage Investment Co.
Interwest Bank
Key Bank
Nations Bank
National Bank of Canada
National Cooperative Bank
North Cascades Bank
Pacific First Bank
Puget Sound Bank
Seafirst Bank
Security Pacific Bank
Sierra West Bank
State Bond Companies
Sterling Savings Bank
The Money Store
U.S. Bancorp
Washington First International Bank
Washington Mutual
Wells Fargo Bank
West One Bank
WestCoast Bank
Zions First National Bank
PROPERTY TAX ASSESSMENTS HAVE BEEN
SUCCESSFULLY APPEALED FOR:
Alaska:
Anchorage Westward Hilton- Anchorage
Idaho:
:Coeur d'Alene Resort- Coeur d'Alene
Red Lion Downtowner- Boise
Montana:
Best Western Grant Creek Inn- Missoula
Fairmont Hot Springs Resort- Anaconda
Hampton Inn- Missoula
Oregon:
Beat Western Bard's Inn- Ashland
Ebb Tide Motel- Seaside
Hallmark Resort- Canon Beach
Oregon: (continued)
Hi Tide Motel- Seaside
Red Lion Inn- Astoria
Red Lion Hotel- Coos Bay
Red Lion Hotel- Medford
Seashore Resort Motel- Seaside
Stratford Inn- Ashland
Washington:
Best Western Icicle Inn- Leavenworth
Marriott Hotel- SeaTac
Red Lion Hotel- Bellevue
Red Lion Hotel- Seattle
Sheraton- Spokane
Travelodge- Everett
Warwick Hotel - Seattle
CONSULTING SERVICES
potential. methods of project financing and [[
JK&M has assisted Sonmar Developmem with
market analyses and appraisals of many of their
successful, Pacific Northwest hotels.
JK&M principals have assisted the Kootenai Tribe
of Idaho since 1983 with the successful development
and operation of their Kootenai River Inn in Bonners
Ferry, Idaho.
JK&M principals have assisted the Campbell family
since the mid-1980s in planning for the successful
re-development of their resort and conference center
on Lake Chelan. .
CONSULTING SERVICES
(CONTINUED)
JK&M has provided litigation support
services for a number of law firms on issues
regarding management contracts, market
value, lost profits, market potential, and
· other issues involving the hospitality
industry. Our in-depth experience, along
with the principals' MAI, ISHC, CHA, and
CPA professional designations, allow us to
~provide highly credib, le t~ti.mony. ,,.,
'°'ss ....
DILIGENCE
Due diligence service for acquisition
typically involves evaluating the operating
.pertbrmance and potential of an existing
hotel. This evaluation may include review
· of operating methods and expenses,
marketing strategies, facility renovation
requirements, and competitive market
conditions. Based on this review, we then
identify strategic oppommities to increase
the value of the hotel or minimize risk.
III II II I I
GENERAL CONSULTING
SERVICES
Cliems often call upon JK&M for
specialized services requiring an
. independent analysis and specific knowledge
of the hospitality industry. Services such as
assistance in negotiation of management
contracts, personnel recruitment and
.idevelopment of incemive compensation
: ~plans, market positioning studies, review of
annual budgets, and preparation and review
of marketing plans have been provided to
various hospitality clients.
JK&M provided litigation support services relative
to the condemnation of a portion of the Holiday Inn
in Wilsonville, Oregon.
........
JK&M assisted Goldbelt Corporation with due
diligence related to their acquisition of the Goldbelt
Hotel (formerly the Westmark Hotel) in Juneau,
Alaska.
JK&M has assisted the owners of the Gallatin
Gateway Inn in Bozeman, Montana for many years
.. in imp. roving the operat, i.on of their hotel.
OUR PEOPLE
Our people are by far
our most important asset.
We devote ourselves
to selecting and caring
for individuals who can bring
the highest level of professionalism,
experience, and expertise
to our team.
RECOGNIZED EXPERTISE
The principals of JK&M are often asked to speak before and write articles for trade and
professional organizations. We are also frequently called upon by reporters to offer opinions
on hospitality related topics.
SPEAKING ENGAGEMENTS
Affiliated Tribes of Northwest Indians
Alaska Visitors Association
Bureau of Indian Affairs
Commercial Real Estate Women's
Association
U.S. Department of Housing and Urban
Development
East King County Convention and
Visitors Bureau
Highline Community College
Hospitality Accountants Association
Montana Innkeepers Association
Idaho Lodging and Restaurant
Association
Institute of Building Designers
National Center For American Indian
Enterprise Development
Oregon Lodging Association
Portland's Commercial Brokers
Association
Portland Oregon Visitors Association
(POVA)
Seattle University-WSU Hotel Program
Washington Federation of Clubs
Washington State Hotel and Motel
Association
Washington State Lodging Association
Washington State Tourism Conference
Anchorage Daily News
Big Sky Business Journal
Bozeman Daily Chronicle
Coeur d'Alene Press
Comell Quarterly
Everett Herald
Forbes
Hotel & Motel Management
Meeting News
Oregon Economic Indicators
Portland Business Journal
ARTICLES/QUOTED IN
Puget Sound Business Journal
Reno Air Magazine
Seattle Daily Journal of Commerce
Seattle Post Intelligencer
Seattle Times
Spokane Business Journal
Spokane Chronicle
Spokane Spokesman Review
Tacoma News Tribune
WSH&MA Newsletter
Qualifications Of
PAUL M. JINNEMAN, MAI, ISHC, PRINCIPAL
10629 Titus Road , Leavenworth, WA 98826
Tel: (206) 295-8560 , Fax: (509) 548-9655
E-mail: pjinneman~jk-a.com
Paul is the founding shareholder of JK&M. He brings excellent visionary skills, as well as a
combination of financial, marketing, and operational expertise to each assignment.
PROFESSIONAL HISTORY
· Jinneman, Kennedy, & Mohn, P.S.- July 1988 to Present
General Partner, Port Townsend Hotel Investors I (owner of The Palace Hotel in Port
Townsend, WA) - May 1994 to Present
· Member, Icicle Inn Associates, LLC (owner of the Best Western Inn, a Leavenworth
Resort, in Leavenworth, WA) - December 1991 to Present
· Pannell Kerr Forster- April 1978 to June 1988
AREAS OF EXPERTISE
· Twenty-Three Years of Hospitality Consulting and Appraisal Experience Combined with
the Practical Experience of Owning and Operating Two Hotels
· Market and Economic Feasibility Analyses and Forecasts
, Appraisals and Valuations
· Business and Market Planning
· Litigation Support Services for Hospitality Related Projects
PROFESSIONAL MEMBERSHIPS
· American Institute of Certified Public Accountants
· Appraisal Institute
· Best Western International
· Idaho Lodging and Restaurant Association
, International Society of Hospitality Consultants, Charter Member
· Montana Innkeepers Association
· Washington State Hotel and Motel Association
STATE CERTIFIED GENERAL REAL ESTATE APPRAISER
· Idaho Certificate CGA-54
· Washington Certificate M458DA
EDUCATION
· University of Washington, Bachelor of Arts - Business Administration
Graduated Cum Laude
Qual~[ications Q£
THOMAS P. KENNEDY, CHA, PRINCIPAL
I4108 SE 182'~a St. * Renton, WA 98058
Tel: (425) 277-5755 * Fax: (425) 277-5759
E-mail: tkennedy~jk-a.com
Tom brings many years of hospitality sales and marketing, operations, and consulting
experience to JK&M. He serves as the designated broker for the firm and maintains an
extensive network of hospitality, contacts. Tom's industry experience and market and
economic feasibility analysis skills have served hundreds of clients throughout the Pacific
Northwest.
PROFESSIONAL HISTORY
Jinneman, Kennedy,& Mohn. P.S.- January 1991 to Present
Pannell Kerr Forster - September 1983 to January 1991
· Sr. Manager Responsible for Management Advisory Services
, Hotel Operations, Sales, and Marketing - 1974 to 1983
· Holiday Inns
Westwater Hotels
Super 8 Motels
AREAS OF EXPERTISE
Market and Economic Feasibility Analyses and Forecasts for the Hospitality Industry
Market Research and Analysis
Hotel Operational Reviews
Sales and Marketing Planning
Hotel Brokerage, Due Diligence, and Acquisition
PROFESSIONAL MEMBERSHIPS
Washington State Hotel and Motel Association
Oregon Lodging Association
Commercial Brokers Association
Idaho Lodging and Restaurant Association
EDUCATION/LICENSES/CERTIFICATIONS Licensed Real Estate Broker, State of Washington
American Hotel and Motel Association - Certified Hotel Administrator
University of Washington, Bachelor of Arts- Communications/Advertising
Holiday Inn University- Professional Selling in the Hospitality Industry
Standards of Professional Practice, Parts A and B, Appraisal Institute
Qualifications Of
MICHAEL J. MOHN, MAI, PRINCIPAL
847 Main Street ,Edmonds. WA 98020
Tel: (425) 672.7257 , Fax-(425) 672.8927
E-mail: mmohn~jk-a.com
Michael brings to the firm many years of experience in a variety of commercial real estate
disciplines, augmented by an educational background in architecture and construction. Over
the last decade, he has focused his efforts solely on hospitality industry projects, including
consulting, valuation, brokerage, and management.
PROFESSIONAL HISTORY
· Jinneman, Kennedy, & Mohn, P.S. - January 1992 to Present
· General Partner, Port Townsend Hotel Investors I (owner of The Palace Hotel in Port
Townsend, WA)- May 1994 to Present
· Pannell Kerr Forster- January 1990 to January 1992
· Senior Consultant, Appraisal Services
· Yates Wood and MacDonald, Inc.- April 1987 to December 1989
· Property Manager/Investment Sales/Appraisal Services
AREAS OF EXPERTISE
· Market and Economic Feasibility Analysis
· Appraisals of Hotel, Resort, and Casino Properties
· Litigation Support and Tax Appeal Services for Hospitality Projects
· Due Diligence Studies
· Market Positioning Studies
· Hotel Brokerage, Acquisition, and Disposition Counseling
STATE LICENSES AND CERTIFICATES
· Alaska State Certified General Real Estate Appraiser; Certificate #221
· Oregon State Certified General Real Estate Appraiser; Certificate C-000520
· Washington State Certified General Real.Estate Appraiser; Certificate M-J420K2
· Washington State Real Estate Broker's License- Associate Broker
PROFESSIONAL MEMBERSHIPS
· Appraisal Institute
EDUCATION
, University of Washington, Bachelor of Arts- Architecture
· University of Colorado, Boulder- College of Design and Planning
· Numerous Courses and Seminars in Real Estate Law, Finance, and Hotel Analysis
HOSPITALITY MARKETS ANALYZED
by the Principals of JK&M
ALASKA IDAHO Miles City Silverton
Anchorage Ashton Missoula Springfield
Denali State Park Blackfoot Poison Tualatin
Fairbanks Boise St. Mary Vale
Healy Bonnet's Ferry West Yellowstone Wilsonville
Juneau Burley Whitefish Woodbum
Ketchikan Caldwell Zig Zag
Nome Cascade NEVADA
Seward Coeur d'Alene Jackpot WAS.,HINGTO~
Sitka Coolin Las Vegas Aberdeen
Wasilla Idaho Falls Reno Anacortes
Jewme Arlington
AR!ZO1N, A Kellogg OREGON Auburn
Phoenix Ketchum Albany Bellevue
Tucson Lewi ston Ashland Bell ingham
Scottsdale McCall Astoria Blaine
Meridian Bcaverton Bothell
C ,,,AL!FORNIA Nampa Bend Bremerton
Bakersfield Orofino Clackamas Buckley
Barstow Pocatello Coos Bay Burlington
Buena Park Post Falls Dallas Centralia
Costa Mesa Priest River Eugene Chehalis
Davis Reedsport Florence Chelan
Elk Grove Rexburg Forest Grove Clarkston
Fresno Sandpoint Glenden Dupont
Kop¢o St. Anthony Grants Pass Edmonds
Mammoth Lakes St. Maries Gresham Ellensburg
Marysville Stanley Hillsboro Ephrata
Modesto Twin Falls Hood River Everett
Monterey Wallace Klamath Falls Federal Way
Pasadena Worley LaGrande' Fif~
Paso Robles Lake Oswego Gig Harbor
Rancho Cordova M. ONTANA Lincoln City Grand Coulee
Redding Anaconda Medford Issaquah
Sacramento Billings Mt. Bachelor Kelso
San Francisco Butte Newport Kennewick
San Jose Conrad Ontario Kern
Santa Maria Ft. Benton Oregon City . Kirkland
St. Helena Gallatin Gateway Pendleton Lacey
Stockton Glacier Nat. Park Portland LaConner
Tmcy Glendive Redmond Lakewood
Vacaville Helena Roseburg Lake Pateros
Kalispell Seaside Leavenworth
Longview
Lynnwood
Manson
Marysville ' ~''
Mazama
Moses Lake
Mt. Vernon
Mukilteo
North Bend
Ocean Shores
Okanogan
Olympia
Orondo
Port Angeles
Port Orchard
Port Townsend
Prosser
Pullman
Redmond
Remon
Richland
San Juan Islands
SeaTac
Seattle
Sequim
Silverdale
Snoqualmie Falls
Spokane
Sunnyside
Tacoma
Tuk~ila
Tumwater
Vancouver
Walla Walla
Wenatchee
Winthrop
Woodinville
Yaldma
WYOMING
Jackson
Pinedale
PARTIAL LIST OF CLIENTS OR PROPERTIES SERVED
ALASKA
Anchorage Sheraton
Anchorage Westward Hilton
Best Western Lake Lucille Lodge
Captain Cook Hotel
Hampton [tm- Anchorage
Holiday Inn- Anchorage
Holiday Inn Express- Anchorage
Ramada Inn
Regal Alaskan Hotel
Royal Executive Suites
Voyager Hotel
WestCoast International Inn
Westmark Hotel- Anchorage
Goldbelt Hotel- Juneau.
ARIZONA
Best Western Executive Park Hotel
Comfort Suites
Francisco Grande Hotel
Plaza Hotel
CALIFORNIA
Barstow E~onoLodge
Best Western Stockton Inn
Blackstone Plaza Inn
Casa Munras Garden Hotel
Davis Best Western
Davis EconoLodge
El Bonita
Holiday Inn- BUena Park
Ramada Inn- Bakersfield
Ramada Inn- Fresno
Ramada Inn- Sacramento
Red Lion Inn- San Jose
Red Lion Inn - Costa Mesa
Rodeway Inn- San Francisco
University Lodge
Vagabond Motel - Redding
Wildwood Inn - Mammoth Lakes
,IDAHO
Best Western Airport Inn
Best Western AmeriTel Inn
Best Western Canyon Springs Inn
Best Western Connie's Motor Inn
Best Western Kentwood Lodge
Best Western Kootenai River Inn
Best Western McCall Inn
Best Western Vista Inn
Boise Holiday Inn
Boise Park Suites
Coeur d'Alene Resort
Comfort Inn
Doubletree Club Hotel
Fairfield Inn
Hampton Inn
Holiday Inn - Coeur d'Alene
Holiday Inn- Westbank
Idanha Hotel
Inn America ,,.,.
Pocatello Super 8
Quality Inn Airport Suites
Red Lion- Downtown
Residence Inn- Boise
Shilo- Airport
Shore Lodge
Tapadera Motor Inn
Templin's Resort & Marina
MONTANA
Best Western Colonial Inn
Billings Sheraton Hotel
Chalet Motel
Days Inn- Glendive
Fairmont Hot Springs Resort
Gallatin Gateway Inn
Grad Union Hotel
Rocky Mountain. Lodge
St. Mary Resort
PARTIAL LIST OF CLIENTS OR PROPERTIES SERVED
(continued)
OREGON
Best Western Oceanview Resort
Comfort Inn- Medford
Courtyard by Marriott- Springfield
Delta Inn
Ebb-Tide Resort Motel- Seaside
Embarcadero
Embassy Suites Hotel
Eugene Hilton Hotel
Greenwood Inn- Beaverton
Hi-Tide Resort Motel- Seaside
Holiday Inn- Lloyd Center
Holiday Inn Express- Medford
Holiday Inn Express - Roseburg
Hood River Inn
Hotel Newport
Imperial Hotel- Portland
Kah-Nee-Ta
Mallory ttotel- Portland
Portland Motor Inn
Red Lion Inn - Columbia River
Red Lion Inn - Jantzen Beach
Resort at the Mountain
Riverside Motor Inn
Shilo Inn- Tualatin
Valley River Inn
Village Green Motor Hotel
WASHINGTON
Aldcrbmok Inn
Bellevue Athletic Club
Bellevue Inn
Best Western Baron Inn
Best Western Bay View Inn
Best Western Executive Inn
Best Western Lakeway Inn
Best Western Park Center Hotel
Best Western Redmond Motor Inn
Best Western Tulalip Inn
Campbell's at Lake Chelan
Cavanaugh's Inn at the Park
Cavanaugh's River Inn
Channel Lodge
Com~brt Inn- Bucldey -:.
Comfort Inn- Kelso
Comfort Inn- Lacey
Comfort Inn- SeaTac
Crowne Plaza Hotel
Days Inn- Spokane
Days Inn Town Center
Four Seasons Olympic Hotel
Hampton Inn- Tukwila
ltampton Inn at SeaTac
Holiday Inn- Everett
Holiday Inn- Spokane West
Holiday Inn at SeaTac
Holiday Inn Express- Vancouver
Holiday Inn Richland (now Richland Tower Inn)
Holiday Inn- Renton
Howard Johnson Lodge
Hyatt Regency Bellevue
Inn at Semiahmoo
La Residence Hotel
LaConner Country Inn
LaQuinta Motor Inn- Kirkland
LaQuinta Motor Inn- SeaTac
LaQuinta Motor Inn- Tacoma
Meany Tower Hotel
Nendels Inn- Everett
Nendels Inn- Renton
Plaza Pacific Hotel- Seattle
Pony Soldier Inn - Chehalis
Red Lion Inn - Bellevue (2)
Red Lion Inn- SeaTac
Red Lion Inn - Yakima
Residence Inn- Bellevue
Residence Inn- Lyrmwood
Residence Inn- Tukwila
Residence Inn- Vancouver
Rosario Resort
Sheraton Tacoma Hotel
Shilo Inn- Tacoma
Sixth Avenue Motor Inn
Sorrento Hotel
PARTIAL LIST OF CLIENTS OR PROPERTIES SERVED
(continued)
WASHINGTON (cont.)
Stouffer Madison Hotel
University Motor Inn
University. Plaza Hotel
Warwick Hotel
WestCoast Bellevue Hotel
WestCoast Camlin Hotel
WestCoast Everett Pacific Hotel
WestCoast Gateway Hotel
WestCoast Roosevelt Hotel
WestCoast SeaTac Hotel
WestCoast Silverdale on the Bay Resort Hotel
NATIVE AMERICAN TRIBES
Blackfeet Nation
Coeur d'Alene Tribe of Idaho
Colville Confederated Tribes
Confederated Salish Kootenai Tribes
Confederated Tribes of the Warm Springs
Jamestown Klallam Tribe
Kootenai Tribe of Idaho
Muckleshoot Tribe
Quinalt Indian Nation
Puyallup Tribe Reservation
Sitka Tribe of Alaska
Skokomish Tribe
Swinomish Tribal Community
Tulalip Tribe
Yakima Indian Nation
,GOVERNMENTAL ORGANIZATIONS
Albany (Oregon) Chamber of Commerce
Chehalis-Centralia Airport Board
City of Astoria (Oregon)
City of Clarkston (Washington)
City of Dallas (Oregon)
City of Kellogg (Idaho)
City of Nampa (Idaho)
City of Ocean Shores (Washington)
City of Oregon City (Oregon~
City of St. Anthony (Idaho)
City of Tacoma (Washington)
Conrad (Montana) Development Agency
Greater St. Joe Development Corporation
Miles City (Montana) Chamber of Commerce
Port of Grays Harbor
Port of Whitman County
Portland Development Commission (PDC)
Priest River (Idaho) Development Council
Seafood Consumer Center Astoria (Oregon)
Twin Falls (Idaho) Chamber of Commerce
Salmon Harbor/Winchester Bay (Oregon)
ALAS,KAN NA, TIVE CORP,ORATION~S
Bristol Bay Native Corporation
Cape Fox Corporation
Doyon Limited
Goldbelt, Incorporated
NANA
Sitnasuak Native Corporation
TDX Corporation
Koniag Incorporated
ANCHORAGE AIRPORT MASTER PLAN UPDATE
PUBLIC MEETING
Thursday, November 29, 2001
City Manager Linda Snow and Airport Commissioners Henry Knackstedt, Chairman, and
Dan Van Zee attended a public meeting held in Anchorage on Thursday, November 29,
2001 to present the Anchorage Airport Master Plan Update. Contacts were made with
John Parrott, Airport Operations Superintendent, Jerry Nunnally, FAA, Tom Wardleigh
with the Alaskan Aviation Safety Foundation, and Marvin Adams, Southeast Regional
Director of the Alaska Airmen's Association.
A copy of the public presentation is attached, as well as a report entitled Ted Stevens
Anchorage International ~4irport, Economic Significance 2000 prepared by Scott Goldsmith
of the Institute of Social and Economic Research.
In summary, the Anchorage Airport Master Plan Update presentation by the consulting
firm of HNTB included a description of the Master Plan mission, development process, and
public outreach "to guarantee that future aviation needs of Anchorage and the State of
Alaska are met in a safe, efficient and cost-effective manner." The presentation included a
brief overview of past Airport Master Plan efforts, total airport operations forecasting,
facility requirements, and six long-term conceptual alternatives for meeting future airport
demands.
The six alternatives presented were:
1. No airfield expansion.
2. Limited airfield expansion (new N-S runway) within current ANC boundaries.
3. Limited ANC airfield expansion with new airport at Fire Island.
4. Limited ANC airfield expansion with new airport at Point McKenzie.
5. Full development of ANC (including the possibility of going outside existing
boundaries).
6. Replacement airport.
The primary evaluation criteria used measure the identified alternatives are the following:
airside/landside considerations, airspace/safety, access/surface transportation, and noise.
Additional evaluation criteria include the following: community impacts and
environmental factors, economic impacts, development costs, financial feasibility, MOA
Comprehensive Plan compatibility.
The draft preferred alternative is #2, Limited airfield expansion within the current ANC
boundaries. According to the HNTB, this draft alternative best meets the evaluation
criteria. This alternative provides the ability to start planning for a new North/South
runway (which will probably be needed by 2008); it includes an additional apron to be
located on the east side of the existing N-S runway, will evaluate the means to increase the
capacity of the existing airfield, and also includes plans to update the Master Plan in 5-7
years.
Alternative #2 will displace some light aircraft, presumably to the Lake Hood airstrip. The
FAA contact person did not know of any businesses that would be relocated as a result of
this alternative. It should be made clear the Lake Hood airstrip and lake are not included
as part of this particular Anchorage Airport Master Plan. However, it was understood that
the Lake Hood Airport Master Plan was completed quite recently.
Many, if not most, of the questions and concerns stated during the question and answer
period following the presentation were related to environmental issues pertaining to the use
of the Anchorage Airport generally and by "stop & go" and/or cargo traffic specifically.
Most of those present with identifiable environmental concerns seemed to favor any
alternative that would relocate airport operations far enough away so as to eliminate air
and noise pollution in Anchorage. Kenai was mentioned several times in this context.
Airport Director Mort Plumb estimated that "stop & go" traffic operations are actually
less than 28% of all traffic operations. HNTB also explained and attempted to illustrate by
using the Denver Internationai/Stapleton Airport as an example, the economic fallacy of
separating the cargo functions from the passenger functions---particularly where they are
currently performed by the same business--and by underestimating the high economic
impact of cargo and/or passenger with the airport as the destination point vs. the airport as
a transfer station. According to HNTB, the result would likely be that the cost of doing
business for the carrier would rise dramatically, ultimately rendering the carrier unable to
continue any operations at the ANC facility. Prior to the formal presentation, Airport
Operations Superintendent John Parrott explained that the Kenai Alternative had not
survived the roundtable discussion process as an economically feasible alternative for the
Anchorage Airport Master Plan. Some of the reasons identified were that Kenai is too far
from the major population for the efficient transfer of goods, that Kenai has its own
environmental concerns, and that there would be a negative eConomic impact to
Anchorage. Following the presentation, Mr. Parrott stated that, to the best of his ~
knowledge, there are no plans afoot for the relocation of Kulis Air National Guard. He
stated that such a plan would be very political and, while the Airport could certainly find
other uses for the real estate involved in the event Kulis is ever relocated, the Anchorage
Airport certainly has no plans to precipitate such a move.
For those interested in more detailed information about the Master Plan, the following
completed chapters will be made available on the website at www.anchora~eairport, com:
the inventory chapter, the forecast chapter, and the facility chapter.
LLS
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TED STEVENS
ANCHORAGE
INTERNATIONAL AIRPORT:
ECONOMIC SIGNIFICANCE
2000
by
Scott Goldsmith
Prepared for
Ted Stevens Anchorage International Airport
July 15, 2001
Institute of Social and Economic Research
University of Alaska Anchorage
3211 Providence Drive
Anchorage Alaska 99508
907-786-7710
http://www, iser. uaa. alaska, edu
Acknowledgment
This study was funded by the Ted Stevens Anchorage Imemational Airport
TED STEVENS
ANCHORAGE
INTERNATIONAL AIRPORT:
ECONOMIC SIGNIFICANCE
2000
TABLE OF CONTENTS
1. SUMMARY OF FINDINGS.
eeeee ee®e®®eee I
20 INTRODUCTION ..................................................................... 3
3. ACTIVITY AT THE AIRPORT
4. JOBS AND PAYROLL AT THE AIRPORT ................................... 18
5. TOTAL ECONOMIC SIGNIFICANCE OF THE AIRPORT
.28
6. TOTAL ECONOMIC VALUE OF THE AIRPORT
7. AIRPORT ECONOMIC IMPACT RULES OF THUMB .................. 32
Ted Stevens Anchorage International Airport, Economic Significance July, 2001
1. SUMMARY OF FINDINGS
Employment at the Ted Stevens Anchorage International Airport in 2000 is estimated at
9,119 (annual average), generating an annual payroll of $367 million. This represents
aboUt 7% of all the wage and salary jobs in Anchorage and 8% of total payroll. Adding
the offsite jobs generated by airport businesses making purchases and workers spending
their earnings within the community, the total economic significance of the airport grows
to 14,750 jobs with a payroll of $515 million. If the airport were a separate community it
would be the 5t~ largest economy in the state.
The airport is about 5 times the size one would expect for a community of 260 thousand,
but only partly because most of the travel between Anchorage and the rest of the US is by
air. Most of the activity at the airport is associated with international air cargo, non-
Alaska visitors, and non-Anchorage residents of Alaska. Together these activities at the
airport, which bring new money into the economy and contribute directly to the economic
base of Anchorage, account for 6,443 jobs and $259 million of payroll. Adding the
offsite activity generated by these onsite jobs results in a total impact of these basic
activities of 10,352 jobs and $361 millio~t of payroll. By way of comparison, the
headquarters activity of the oil and gas industry in Anchorage directly employed 3,515 in
1999 with a payroll of $316 million. Viewed this way it is clear that the basic activities
at the airport are an important part of the economic base of the community.
Most of the growth in employment at the airport in recent years can be traced to growth
in the international air cargo operations. The number of cargo landings has been growing
at an annual average rate of 9 percent since 1990, reflecting a doubling in 8 years. As a
consequence Anchorage was ranked as the 5th busiest cargo airport in the world, in 2000
in terms of total cargo moving through the airport.
In contrast the number of passenger landings has been trending downward. Taking both
cargo and passenger traffic together, the total number of revenue landings has not
increased much through the 1990's but the cargo share has grown from 24 percent in
1990 to 44 percent in 2001.
Although the number of passenger landings has declined, the number of passengers
served has continued to grow, albeit not as fast in the 1990.'s as in earlier times. Since
1990 the number of departing passengers has grown at an annual rate of 2.7 percent---
twice the growth rate of the Anchorage population. This is primarily a reflection of the
continuing growth in the number of non-resident visitors moving through the airport.
Employment associated with international air cargo operations has been increasing not
only because of growth in the number of flights, but also because of a continued
expansion in the value added services provided on the ground for each flight. Although
many cargo flights are on the ground in Anchorage for only a short time to refuel and
change crews, over time more services associated with the cargo are being performed on
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
the ground such as customs clearance, sorting, trans-loading, and emplaning and
deplaning of cargo.
As a consequence, air transport employment has increased by 3 7 percent since 1990
compared to just 15 percent for total employment. One in 10 wage and salary jobs added
in Anchorage between 1990 and 1998 was in air transport. During the same period
wages and salaries paid in the air transport industry increased by $95 million (1998 $), or
55 percent, compared to a total increase of $289 million for all industries. This growth
was particularly important because wages and salaries actually fell in some industries
such as petroleum.
Furthermore the real wage in the air transport sector increased over this period while it
was dropping in many other industries. The wage in air transport is near the top of the
list, exceeded in 1998 only by petroleum, the federal government (civilians), and
construction.
As significant as these figures are, the contribution of the airport to the economy of the
community and the state goes beyond the generation of jobs and payroll from providing
air transport and other services. The airport is part of the transportation infrastructure
that links Alaskans and Alaska businesses to each other and to the rest of the world.
Without those links, the cost of doing business and the cost of living would both be much
higher than they are today, precluding many economic activities and making Alaska a
less attractive place to live and work. Although we cannot put a dollar figure on the
value of this linkage, it is a benefit to the entire community.
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
2. INTRODUCTION
This brief report updates our previous studies--Anchorage International Airport 1998:
Economic Significance and The Economic Contribution of the Anchorage International
Airport, which documented the economic importance of the airport and described in
detail the range of activities conducted at the airport. These activities are increasing at a
rapid rate and this report documents the main components of this recent growth.
Ted Stevens Anchorage International Airport covers 4,700 acres and includes both
domestic and international terminals as well as general aviation and air taxi bases around
Lake Hood. Unlike airports in other US cities of comparable population size (about 260
thousand) most activity at Anchorage International revolves around the provision of
services to the international air cargo industry, tourists and other visitors from outside
Alaska, and Alaskans living outside the greater Anchorage region. The airport also is
home to a number of govemmem and private tenants who find it advantageous to locate
close to air transport services.
Because of these functions, according to the Federal Aviation Administration, Anchorage
has 3 times the passenger arrivals and 48 times the cargo arrivals one would expect,
based on population. Clearly the airport is an important part of the economy of the
region.
We begin this report by reviewing growth in measures of passenger and cargo activity at
the airport. Next we calculate the number of jobs at the airport and the annual payroll
associated with those jobs. We present the employment information broken down in
several ways---b~t employer, by service provided, and by client served. We compare the
size of the airport to other communities and track the increasing importance of the airport
to the regional economy over the last 10 years. Next we calculate the total economic
significance of the airport based on the total number of jobs in the community supported
bY airport activity. Following this calculation of the number of jobs that depend on the
airport, we discuss the economic value of the airport to the community. Finally we
include a section on "roles of thumb" which can be used to estimate the economic
significance of new activities at the airport.
Institute of Social and Economic Research, UniverSity of Alaska Anchorage
3 of3Z~ .
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
3. ACTIVITY AT THE AIRPORT
The core activities at the airport are the commercial movement of passengers and freight,
but general aviation is also important. Furthermore there are a number of businesses and
public agencies at the airport that find it advantageous to locate close to air transportation
services.
The number and weight of commercial aircraft are the clearest indicators of the level of
activity at the airport. In fiscal year (fy) 2000 (July 1999 to June 2000) total revenue
landings were 92, 571, an average of 254 per day, and the total weight of the aircraft
(certified maximum gross takeoff weight) was 26,447 million pounds. Measured by the
weight of aircraft using the airport, the Ted Stevens Anchorage International Airport is
one of the largest in the world. Airport operating revenues were $56.7 million.
Passengers
We estimate the number of people that will pass through the airport as passengers
(arrivals, departures, and transits) in fy 2001 will be about 5,047,000 (Table 1.), or about
13,827 on a average day.
Passenger
Departures
ianements
Transit
1,587 1,529
1,729 . 1,069
1,860 785
1,836 .' 577
1,917 543
2,040 598
2,051 679
2,132 782
2,126 767
2,136 688
2,189 648
:2,207 6~7
'Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance July, 2001
Passenger volume, as measured by the number of departing passengers, continues to
trend upward in response to growth of the Anchorage and Alaska populations as well as
the number of tourist and other visitors coming to the state (Figure 1.) Since 1990 the
annual growth rate in the number of departing passengers has been 2.7 %. During this
same period the population of Anchorage increased at an annual rate of only 1.4 %. The
Greater Anchorage area (Anchorage plus the adjoining Matanuska Susitna Borough)
grew at an annual rate of 1.9 %.
Figure 1.
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY DEPARTING PASSENGERS
3ooi
Uj~ 200 I
t"l 150
Z
~) 100
o
I .
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994
Includes Scheduled Passengers on Domestic and International Carriers
Actual and Seasonally Adjustecl Passengers
Source: Anchorage lntemationai Airport
1996
1998 2000
In contrast, the growth rate in departing passenger traffic over the longer period starting
in 1974 to the present has been considerably faster--4.6%, reflecting the faster economic
growth in the 1970's and 1980's that resulted in rapid population and real personal
income growth.
Several factors c°ntribute to the large volume of passenger traffic through the airport
compared to the population of the Greater Anchorage area (Anchorage plus the
Matanuska-Susitna Borough had a population in 2000 of 319,605.)
First, almost all travel to the rest of the US from Anchorage is by air. Second, much of
the travel Within the state is by air, and Anchorage serves as a hub for much of this travel
so that many travelers pass through Anchorage when going from one rural community to
another. Third, Anchorage is the commercial center for much of the rest of the state and
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
draws residem visitors for shopping, medical treatment, entertainment, and other
activities.
In addition, a large share of the one million plus tourists visiting Alaska fly into or out of
Anchorage. The growing importance of this market is reflected in the variation in the
volume of traffic over the seasons of the year (Figure 1.). In recent years there have been
twice as many departing passengers during the summer months compared to the winter.
This seasonal pattern is becoming more accentuated over time as the visitor share of
passenger traffic continues to grow.
The overwhelming majority of passengers (98 %) are carried on domestic airlines (Table
2.). Alaska Airlines, which operates both within Alaska and to destinations in other
states, carries the largest volume with Delta, Northwest, and United providing most of the
remaining service to the rest of the US. Within Alaska the other important passenger
carriers are Era and Peninsula Airlines. Korean, Cathay Pacific, Asiana, and China
Airlines are the most important international carriers.
iiJJJJJJ il, iii,i
~ Domestic ~ Total
I~~ Carriers ~~ ~
1'~~~] 1,679 :~~~¢~ffi 1,729
l~ 1,807 ~ 1,836
J'~~~~ 1,889 ~~~ 1,917
J~~~ 2,094 ~~~:~:~-.;,~~ 2,132
[~~8'~'~~ 2,093 ~~~2~; ~~ 2,126
Most passengers traveling on international carriers are simply in transit when visiting the
Anchorage airport (Table 3.)
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
We estimate that only about 7 percent of the passengers on international carriers moving
through Anchorage will deplane in fy 2001.
Domestic Total
Carriers
142 1,529
137 1,069
173 785
187 5'/7
194 543
189 $98 '
171 679
147 782
165 767
145 688
148 648
142 63?
Since dropping precipitously in the late 1980's due to introduction of longer-range
aircraft, transit passenger traffic has now stabilized and has been relatively constant for
the last several years (Figure 2.).
F~
gure 2.
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY TRANSIT PASSENGERS
0 ,,
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Inclucles Schecluled Passengers on Domestic and International Careers
Actual anti Seasonally Adjusted Passengers
Source: Anchorage International Airport
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
Although the number of passengers served at the airport has been increasing, the number
of passenger landings has been trending downward (Figure 3.) as has the gross weight of
passenger aircraft landings (Figure 4.).
F~
.gure 3'
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY PASSENGER LANDINGS
1991 1992 1993 1994 1995 1996 1997 ' 1998 1999 2000
Includes Scheduled Domestic and International Careers
Actual and Seasonally Adjusted Landings
Source: Anchorage International Airport
Figure 4.
800
700
300
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY PASSENGER
CERTIFIED ,MAXIMUM GROSS TAKEOFF WEIGHT
1991 1992 1993 1994
Includes Scheduled Domestic and International Carders
Actual anti Seasonally Adjuste~ Weight
Source: Anchorage International Airport
1995 1996 1997 1998 1999 2000
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
· _
For example in fy 1995 the number of passenger landings was 61,142 (Table 4) but we
estimate that in fy 2001 the number will be 52,226--a reduction of 15 % in 6 years.. This
will represent 56% of the total number of revenue landings at the airport.
Domestic Total
Carriers - .--
. .
53,159 $9~52
60~887 65~468
68~557 71,459
62,889 65~086
58,415 60,617
58,844 '61,142
52,817 55,474
55,351 58,720
57,108 60,539
50,857 53,814
51,742 54,427
' 52:~26
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Ted Stevens Anchorage International Airport. Economic Significance
July, 2001
Between 1995 and 2000 the weight of passenger aircraft initially jumped up but has been
trending downward for most of this period (Table 5.), and we estimate 2001 to be 5,756
million tons. This will represent 27 % of the total certified maximum gross takeoff
weight of commercial aircraft at the airport.
Domestic Total
Carriers
4,395 8,792
4,707 7,875
~,139 7,065
5,009 6,358
4,720 6,128
4,501 6,106
4,498 6,313
4,528 6,842
4,398 6,.~91
4,365 6,261
4,385 6,180
Recent events that have impacted or will impact passenger traffic at the airport
include'
· Additional summer non-stop domestic flights to different cities in the lower 48
states such as Newark, and
· Alaska Railroad construction of a terminal at the airport for moving passengers.
Cargo
Cargo activity at the airport has been expanding rapidly for a decade and this has
accounted for the majority of the total growth in activity at the airport. The airport does
not have complete data on the weight or volume of cargo moving through Anchorage, but
according to the Airport Council International, in 2000 Anchorage ranked 5th in the world
in the weight of total cargo--including cargo in transit (Table 6.). This is in sharp
contrast to a rank of 147m in the world in passenger traffic, and 46th in terms of total
movements (commercial and non-commercial).
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted SteVens Anchorage International Airport, Economic Significance
July, 2001
Airport % Change
Memphis 3.2
Hong Kong 13.3
Los Angeles 5.9
Tokyo (NRT) 4.9
ANCHORAGE 10
Seoui 13.2
New York 5.7
Frankfurt 11.1
Singapore 12
Miami -.5
The annual growth rate in the number of cargo landings has been over 9 % since 1990,
reflecting a doubling in about 8 years (Figure 5.).
Figure 5
4,000
3,500
3,000
2,500
2.000
1,500
1,000
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY CARGO LANDINGS
1991 1992 1993 1994
Includes Domestic and International Careers
Actual and Seasonally Adjuste¢l Landings
Source: Anchorage International Airport
1995 1996 1997 1998 1999 2000
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
Growth was temporarily halted during the Asian recession in 1998 but quickly resumed.
The increase has been shared among international carders such as Federal Express,
Korean Air, United Parcel Service, Japan Airlines, Nippon Cargo Airlines, China
Airlines, Asiana, Polar Air, Cathay Pacific, and Eva Airways and domestic carders some
of which operate internationally such as Northwest and Polar Air and Alaska, and some
of which operate only instate such as Northern Air Cargo (Table 7.). (Table 7A shows
total flight landings with domestic carders that operate internationally moved to the
imemational cargo category.)
.omesuc
Carriers
7,580 ~.' ~"~'.'~ ~/:'~q-'"' ~:'. ' 19,079
7,077 18,849
7~oo ::~ ..... ' llsqo '--~g 2O, lOO
8;113 ~~ 21,732
7,990 ~~t 23~6326~52
11,986 3i~79
13,753 ~~~]~ 38,144
Domestic
C.r o
5,905 ~' ' ~:2~"~ ~1.'4--,~ 19,079I
5,626 ~~~~~ 18,849I
5,450 ~~ ' 2o,~oo/
4,843 ~~ ~~~3~~~ 19,106/
6~64 ':~:?'. :~68 ~ .~ 21,732/
7,752
10,544 ['¢'~';~ ' ·" 88 ~ 33,932
11~09 .~:-~ ~6" 35 ..'.~;~ 38,144
b'.a~/fit on fa. st ~ of year.
. yeit-~i'~:v-e'n~ An~:h6ra InternatiOnal ':
Institute of Social and Economic Research, University of Alaska Anchorage 12 of 34
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
Because the number of passenger landings has dropped during the 1990's growth in total-
landings has been less than cargo landing growth and the cargo share of total landings has
increased (Figure 6.).
Figure 6
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY REVENUE LANDINGS
PASSENGERS r"] CARGO
Includes $checlul~l Domestic ami International Carders
Source: Anchorage International Airport
We expect total landings to be 92,611 in fy 2001 with cargo accounting for 40,386--44%
(Table 8.). This is an increase in the cargo share of landings from 24 % in 1990.
~..[~~3.~ 65,468 i~i~~49 .... ,~g] ' 84,317
~' '"- -~'~ .... '~ 71,459 ~~'100: ;~' ~''': . =:..- ....... :--:.-.~.,.~~'..'4! 91,559
~~ 68,086 ~~4~ 84,19:2
~ 60,617 ~~7~.~:~~ 82,349
~i 61,142 ~ii~',~ 84,S05
~~~~ 55,474 ~~. _.~~'i~ii~ 82,026
~9~.~.:; ~'~2{ 58,720 ~~3:f9-~ ~] 90,099
~~ 60,539 ~~~003~~ 94,542
~~ 53,814 ~~~~ 87,746
~~ 54,427 ~~4~''~ -- ?_7~ 92~71
~~. 52~26 .
Tea S~eye~ ~ch6mge
Institute of Social and Economic Research, University of Alaska Anchorage
13 of 3'4
Ted Stevens Anchorage Intemational Airport, Economic Significance
July, 2001
i i iii ii
The weight of cargo aircraft moving through Anchorage has increased almost as fast as
the number of cargo aircraft, growing at an annual average rate of 8.4 % during the 1990s
(Figure 7.). The increase has been concentrated among the international carders (Table
9) who are expected to account for 88 % of the total traffic by weight in fy 2001. (Table
9A shows total weight with domestic carriers that operate internationally moved to
international cargo category.)
Figure 7.
2.200
8oo
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY CARGO
CERTIFIED MAXIMUM GROSS TAKEOFF WEIGHT (CMGTW)
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Inclutle$ Domestic and International Careers
Actual and Seasonally Adjusted Weight
Source: Anchorage International Airport
* · .9, .19
Domestic
Carriers
1,966
1,740
1,897
1,780
1,904
1,950
1,954
2,190
2,722
2,352
2,584
2,
half6f
~A~ti0ra
,rrlers
7
Total
10,345
10,243
10,965
10,530
11,422
12,863
14,109
15,846
17,473
17,399
20,268
21
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
Domestic. [~~~'~'E
N/A ~ 10,345
N/A ::~i~;':' ? ':~:'~.: .~., :''::~:~' ~~ 10~43
518 ~, 1~[,- ' 12,863
~63 ' 14,109
626 ~ ~~ 1S,846
729 ~ ~ ] ~~~~~ 17,473
The cargo share of total weight is greater than its share of total landings because of the
larger size of cargo aircraft (Figure 8.).
Figure 8.
ANCHORAGE INTERNATIONAL AIRPORT
MONTHLY
CERTIFIED MAXIMUM GROSS TAKEOFF WEIGHT
· 1- 2,500
2,000
1,500
Z
1,000
Z
500
0
1991 1992
1993 1994 1995 1996 1997 1998 1999 2000
PASSENGERS r'l CARGO
Includes Schecluled Domestic and International Carriers
Source: Anctlorage International Airport
Institute of Social and Economic Research, University of Alaska Anchorage
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
In fy 1990 54 % of the weight was cargo movements. In fy 2001 we expect total weight
to be 27,462 million pounds (Table 10) with 79 % being cargo movements.
Passen: Total
8,792 19,137
7,875 18,119
7,065 18,030
6,328 16,889
6,128 17,~$1
6,106 18,969
6,313 20,422
6,842 22,688
6,$91 24,064
6,261 23,660
6,180 26,448
5,756 27,
The number of flights and the total weight of cargo moving through the airport is
growing because of the expansion of the international air cargo markets across the Pacific
and between the US and the Pacific and Europe. Most of the international cargo flights
·
stopping in Anchorage are moving between the Pacific and cities in the US. Anchorage
is the most convenient location along this route for refueling. A large share of the
international movements is "gas and go" operations during which the cargo remains
aboard the aircraft in transit.
A number of carders have chosen to make Anchorage a hub location and this greatly
increases the level of activity on the ground associated with each flight by these carders.
Among the important hubbing activities are customs clearance and package sorting
between aircraft bound for different destinations. Additionally some carders do
maintenance in Anchorage, provide training, and base crews locally.
The international air cargo market is growing fast, but it is also very competitive and the
carders are constantly searching for more cost effective methods of operation. As a
consequence carrier operations are continuously in flux. Carriers will add or drop flights,
they will change their service provider or choose to provide their own services while on
the ground, they will add hubbing activities or drop them, etc. Thus a description of the
cargo operations on the ground is constantly changing.
Institute of Social and Economic Research, University of Alaska Anchorage
16 of~'4
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
In the last 2 years there have been a number of changes in air cargo operations that have
generally contributed to the increase in cargo activity at the airport. Among the most
important of these have been:
The Alaska Cargopon opened in mid-2000,
· Northwest Airlines began making Anchorage a global cargo hub,
· FedEx, UPS, and Northwest obtained fights to new US-China routes through
Anchorage,
· United Airlines closed its Anchorage hub,
· Reeve Aleutian Airlines went °ut of business, and
FedEx began considering expansion of their hubbing facilities.
Air Taxis and General Aviation~
About 35 air taxi operators are based at the airport, making an estimated 32,000 round
trips annually from Anchorage. A number of charter air carriers whose services are
targeted toward business clients are also located or headquartered at Anchorage'
International Airport. The exact scope of their operations is difficult to estimate
accurately because of the absence of detailed reporting of their activities either to the
airport or the FAA.
About 1,000 general aviation aircraft are located at the airport, including Lake Hood,
engaging in nearly 96,000 operations annually. About 700 of these general aviation
aircraft are located at airport operated tiedown spaces or slips' the rest are at privately
owned tie downs or slips.
Other Tenants
There are a number of government agencies with operations at the airport, some of which
directly use air services and others that benefit from being close to the airport, but could
be located elsewhere. The largest tenant in the former category is the Kulis Air Force
Base while the largest tenants in the later category are the US Postal Service and the
Southcentral Region Headquarters of the Alaska Department of Transportation.
~ The figures for this section are taken from the 1995 ISER report entitled The Economic Contribution of
the Anchorage International Airport.
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage Intemational Airport, Economic Significance
July, 2001
®
JOBS AND PAYROLL AT THE AIRPORT
The number of jobs (annual average) in Anchorage in the air transport industry,
according to the Alaska Department of Labor, .was 5,872 in 1999, generating an annual
payroll of $273 million (Table 11.). These represent about 2/3 of all the jobs at the
airport. (A small fraction of the air transport industry jobs in Anchorage are not at the
airport. Most of these are at Merrill Field, the general aviation airport of the Municipality
of Anchorage.) We estimate air transport employment in 2000 will be 6,102.
Air Transport
Jobs
4,149
4,523
4,721
4,716
4,864
4,695
4,650
5'094
5,720
5,872
6,102
['' cfi ........ " "-'-~':'"":~
'..4.~-m.l~. onb~ase, d on first half of year..
· :_:.;.. , .... · ...... .., * ,z~..- ...... . ..... , .....
.
Some. Alaska Department of Labor SIC Code
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
, I,I
Since 1990 air transport job growth has been averaging 3.2 % per year (Figure 9.),
compared to 1.7 % for total wage and salary jobs in Anchorage and 2.0 % for the Greater
Anchorage Area. The sharp decline in the mid 1990's was due to Markair's expansion
and subsequent bankruptcy. Between 1990 and 1998 Anchorage employment increased
by 16,793 wage and salary jobs---a 15 percent increase. About one in ten of those new
jobs, 1,550, were in air transport--a 3 7 percent increase.
Figure 9.
ANCHORAGE AIR TRANSPORT EMPLOYMENT
6,500
6,000
'5,500
5,000
4,500
4,000
3,500
90 91 92 93 94 95 96 97 98 99 0 1 2
seasonally adjusted and trend
Source: Alaska Department of Labor
Institute of Social and Economic Research, University of Alaska Anchorage
19 of 34
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
The total number of jobs at the airport in 2000 averaged 9,119, with a slight peak during
the summer months at the height of the tourist season (Table 12.). As the international
cargo share of total activity has increased, the seasonality of employment has declined
marginally. The total payroll was $367 million.
Total wage and salary employment in Anchorage in 2000 was 134,500 (Alaska
Department of Labor, Alaska Economic Trends, April 2001). Consequently nearly 7 %
of all wage and salary jobs were located at the airport.
The total labor payroll in Anchorage in 1999 (the most recent year for which the data is
available) was $4,555 million. Consequently about 8 % of all payroll was generated at
the airport.
Annual
Employment
9,119
2,5.02
2,420
1,152
253
422
351
320
709
479
208
120
82
59
42
biise o" .... ' "and caterers .....
Average
Annual
Earnings
$'
$40,246
$45,324
$45,324
$26,280
$29,292
$31,524
$36,936
$45,768
$42,765
$45,768
$19,044
$19,068
$45,732
$25,296
$36,408
Institute of Social and Economic Research, University of Alaska Anchorage
20 of 34
Ted Stevens Anchorage International Airport, Economic Significance
Jobs By Employer
July, 2001
Most of the air transport jobs are with the air carriers (Figure 10.).
Fi gure 10.
ANCHORAGE INTERNATIONAL AIRPORT
JOBS AT THE AIRPORT
BY EMPLOYER IN 2000
AIR CARRIER: INTERNATIONAL
AIR CARRIER: DOMESTIC
AIR SERVICE PROVIDERS
AIR TAXIS & CHARTERS
FREIGHT FORWARDERS
STATE GOVT: AIRPORT OPERATIONS
FEDERAL GOVT: AIRPORT OPERATIONS
GOVT TENANTS: USING AIR SERVICES
GOVT TENANTS: AVIATION RELATED
PASSENGER SERVICES: CONCESSIONS
CAR RENTAL AGENTS
CONSTRUCTION: AIRPORT FACILITIES
PRIVATE TENANTS: USING AIR SERVICES
PRIVATE TENANTS: NOT AVIATION RELA
0 500 1000 1500 2000 2500
TOTAL ANNUAL AVERAGE JOBS -- 9,119
The largest air carder employers are FedEx, Alaska Airlines, and United Parcel Service.
The largest employers are not always the carriers with the largest number of flights
however because the operations of each cartier are unique. For example, some cargo
carders are "gas and go" while others operate hubs. Some purchase ground services from
other carders while others provide their own ground services and also contract out to
provide services to other carriers. Some have large numbers of crew based in Anchorage
while others merely lay crew over in the local hotels.
The rest of the air transport jobs at the airport are in the air service provider and the air
taxi and charter industries. The air service providers give ground support to the air
carders through services such as fuel provision, catering, maintenance, baggage handling,
cleaning, paperwork, warehousing cargo, garbage disposal, and bus service. (Fuel
suppliers and caterers are not counted in the air transport industry by the Alaska
Department of Labor but we include them in this category to simplify the presentation.)
The air taxis and charters tend to be small carriers that do not have regularly scheduled
flights.
The other jobs at the airport are associated with freight forwarding, various government
agencies, passenger services, construction, and a small number of' private tenants. These
jobs as a group have not been growing as rapidly as the air transport jobs that have been
Institute of Social and Economic Research, University of Al'aska Anchorage
21 of 34
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
driven by expansion of the international air cargo business. The private companies derive
most their business from activity within the state such as the transport needs of businesses
operating in rural Alaska or the number of tourist visitors. The 1,859 government agency
jobs---operating the airport, running the post office, maintaining the customs and
immigration station, manning Kulis Air Force Base, and working for the Alaska
Department of Transportation regional office---are not particularly sensitive to the
number of flights, the number of passengers, or the amount of freight coming through the
airport.
Jobs By Service Provider
Most of the businesses and some of the government agencies operating at the airport are
providing air transport services to either passengers or cargo. We roughly attribute 51%
of the jobs at the airport to the provision of air cargo services, both international and
domestic (Figure 11.)
Figure 11.
ANCHORAGE INTERNATIONAL AIRPORT
JOBS AT THE AIRPORT
BY TYPE OF SERVICE IN 2000
PASSENGER
2,902
31.4%
FREIGHT
4,698
5O.9%
TOTAL ANNUAL AVERAGE JOBS = 9,119
OTHER
1,289
14.0%
GENERAL AVIATION & AIR TAXI
3.7%
Next in order of importance is the provision of se~ices to passengers which accounts for
31% of all the jobs. General aviation and air taxi services together account for only
about 4 % of all jobs. The remaining 14 % of the jobs consist of government and private
tenants using air transport services.
Jobs By Client Served
Another useful way to characterize the jobs at the airport is based upon the client served.
We can think of the airport as serving 5 major types of customers---the international air
cargo industry, Anchorage residents, other Alaskans, non-Alaskan visitors, and
Institute of Social and Economic Research, University of Alaska Anchorage
22 of 3~
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
public/private tenants. Viewed in this way, the largest share of jobs, 34 %, serves the
international air cargo industry. Next in order of importance, at 21%, are the jobs
providing passenger and freight services to Anchorage residents. Other Alaskan
passenger and freight needs account for another 19 %. Visitors to Alaska account for 13
% of the jobs at the airport. The remaining 14 % is accounted for by public and private
tenants (Figure 12.).
Figure 12.
ANCHORAGE INTERNATIONAL AIRPORT
JOBS AT THE AIRPORT
BY CLIENT SERVED IN 2000
INTERNATIONAL CARGO
3,058
33.5%
ANCHORAGE BUS AND HH
1,869
20.5%
OTHER ALASKANS
1,728
18.9%
TOTAL ANNUAL AVERAGE JOBS = 9,119
PUBLIC / PRIVATE TENANTS
1.289
14.1%
NON-ALASKA VISITORS
1,176
12.9%
Payroll
The average wage paid at the airport varies with the type of business, with air carrier and
federal government jobs being at the top end and retail concession jobs at the lower end.
The average annual wage at the airport ($40,246) is higher than for all wage and salary
jobs in Anchorage ($35,400 in 1998). This accounts for the payroll being a larger portion
of the Anchorage total than jobs.
Indicators of Economic Importance
The airport plays a much larger role in the regional economy, measured by jobs or
payroll, than virtually any other community in the US. In 1998, according to the US
Department of Commerce, the air transport payroll in Anchorage was 5 % of total
payroll. For the US as a whole air transport was only 1% of the total payroll (Figure
13.). In only one community---Fort Worth-Arlington, Texas--was the air transport share
greater than in Anchorage.
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
Figure 13.
Air Transport Share of Total Earnings
1998
5%
4%
3%
2%
1%
O%
US Anchorage
Source: US Department of Commerce
Another indicator of the importance of air transport activity for the economy comes from
the fact that 10 of the 100 largest private companies in Alaska are in the air transportation
business (Table 13.). The list includes 8 air carriers, one ground service provider and one
catering business. (For 2000, Reeve Aleutian and United Airlines would drop off the list,
but other carriers might move into the top 100.)
Organization
Alaska Airlines
Federal Express
Era Aviation
United Parcel Service
PenAir
Northwest Airlines
Reeve Aleutian Airways
LSG Sky Chefs
Swissport Services
United Airlines
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
Analysis of Growth Since 1990
July, 2001
The composition of employment growth since 1990 reflects the expansion of the tourism
industry, growth in consumer purchasing power from the Permanent Fund Dividend, and
larger federal government transfers to the state for construction and operation of non-
profit corporations' Trade, other services, health care, and engineering services
accounted for most of the jobs added to the economy (Figure 14.). Notably, oil and gas,
manufacturing, and federal civilian jobs all declined.
Figure 14.
Anchorage
Employment Grow(h
1990-1998
Trod,
Other Services
Health
Engineering
AIR TRANSPOR
Buaineee Servtc
Conatruction
Finance
Local Govt
State Govt
Other Traneport
Agl~CUlturelMiac
anufacturlng
Federal Civilian
011 and Gae
(2) (1) 0
Finance includes Insurance and Real Estate
Other Transport includes Communications and Public Utilities
Oil and Gas includes Mining
1 2
Thousand
3' 4 $
Total earnings growth over this same period was $289 million (1998 $)~7 %. Air
transport real earnings, which grew by $95 million, was the largest single contributing
sector to the increase (Figure 15.) as well as being the sector with the largest percent
increase--55 %. The other sectors contributing significantly to increased earnings were
health, engineering, trade, federal civilian, business services, and finance. Oil and gas
earnings fell $138 million -28 %-and state government and other transport were also
lower in 1998 than in 1990.
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage Intemational Airport, Economic Significance
Figure 15.
July, 2001
Anchorage
Real Earnings Growth
1990-1998
AIR TRANSPORT-
Health -
Engineering -
/raae -
Federal Civilian -
Buaineaa Services '
Finance
Local Govt
Other Services
AgdoultumlMlac --
Manufacturing
Conatruction --
Other Tranaport --
State Govt
Oil and Gas -
I
(alSO)
($1oo)
($so)
$0
$50
$100
Million 1998 $
Finance includes Insurance and Real Estate
Other Transport includes Communications and Public Utilities
Oil and Gas includes Mining
Thc growth in total earnings in air transport was greater as a percentage than the growth
in employment because the real monthly wage also increased in air transport by $466
(1998 $). This real wage increase was exceeded only by that of federal civilian workers
(Figure 16.). The average monthly wage grew in that sector by $499.
Figure 16.
Anchorage
Real Monthly Wage Growth
1990-1998
Federal Civilian
AIR TRANSPORT
Mlnufacturtng
Finance
Bt~lnes~ Sewlc~
Health
Agrlculture/Miec
OII and G~
Englnesrlng
Oth~ Services
Trade
Local Govt
Other Transport
State Govt
Construction
($1,ooo) ($soo)
Finance irck~es Insurance and Real Estate
Other Transport emludes Communications and Public Utilities
Oil arm Gas includes Mining
98 $
$0
$500
Institute of Social and Economic Research, University of Alaska Anchorage
26or34
Ted Stevens Anchorage International Airport, Economic Significance July, 2001
The real wage also increased in manufacturing, by $368 per month, in financial services
by $113 and in business services by $90 per month. Most other industries saw a drop in
the average real wage over this period. For example in construction the average real
wage declined by $831 per month.
The contribution of growth in air transport employment from 1990 to 1998 is further
underscored by the average monthly wage paid by industry in 1998. The oil and gas
industry wage was the highest (Figure 17.). Federal civilian, construction, and air
transport came next in the ranking. Payroll in these industries averaged about $4,000 per
month (1998 $). In contrast many trade and service jobs had a monthly wage of less than
$2, 000.
Figure 17.
Anchorage
Average Monthly Earnings
1998
OII and Ga8
Federal Civilian
Construction
AIR TRANSPORT
Local Govt
Emlln#dna
Other TrantuoR
Stat~ Govt
Finance
Mainufactudng
H#lth
Business Services
Trade
Ag_d_culturelMIsc
Other Services
$0 $1 $2 $3
Finance includes Insurance and Real Estate
Other Transport includes Communications and Public Utilities
Oil and Gas includes Mining
$4
Thousand
$8 $6 $7 $8
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
®
TOTAL ECONOMIC SIGNIFICANCE OF THE AIRPORT
The activities at the airport create jobs and payroll not only onsite at the airport, but also
offsite in the rest of the Anchorage and Greater Anchorage economies. We consider
offsite jobs that arise from airport businesses making purchases of goods and services
offsite (including spending for crew layovers), as well as offsite jobs that arise from
workers at the airport spending their income on goods and services within the
community. The majority of these offsite jobs are in the trade and service industries.
Since the average wage paid at the airport is relatively high, the spending within the
community by the typical onsite worker will be relatively high. We estimate that the
9,119 workers at the airport support 5,631 jobs offsite (Table 14.) Combining the onsite
and offsite jobs results in a total of 14,759 jobs in Anchorage that are attributable to
operations on airport property. These jobs account for $515 million in earnings. Based
on total wage and salary employment in 2000 of 134,500 for Anchorage, nearly 11% of
the wage and salary jobs are attributable to activities taking place at the airport.
Furthermore at 14, 759 jobs, the airport, including offsite jobs, would rank as the 5th
largest economy in the state after the Municipality of Anchorage, the Fairbanks North
Star Borough, the Borough of Juneau, and the Kenai Peninsula Borough.
Sum Interna- Anchorage Other Non- Tenants
tional Residents Alasknns 'Alaska
Visitors
14,750 5,185 3,075 2,697 1,604 2,188
9,119 3,058 1,869 1,728 1,176 1,289
5,631 2,127 1,207 970 428 899
$ $15 $ 178 $ 105 $ 98 $ 53 $ 84
$ 367 $ 126 $ 75 $ 69 $ 42 $ 55
$ 148 $ 53 $ 30 $ 26 $ 11 $ 28
We estimate that 808 jobs at the airport are not directly related to air transport or
providing services to the airport, or cargo or passenger operations. Nonetheless these
tenants--the Post Office, the regional headquarters of the Alaska Department of
Transportation, and a few private tenants--all benefit from being located at the airport.
Institute of Social and Economic Research, University of Alaska Anchorage
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Ted Stevens Anchorage International Airport, Economic Significance July, 200
The total economic significance of air transportation activities at the airport is measured
net of these tenants. It is 13,427 jobs and $466 million of earnings (Table 15.).
JOBS PAYROLL
million $
Onsite Offsite Total Onsite Offsite Total
808 :515 1,323 $ 33 $ 16 $ 49
1,869 1,207 3,075 $ 75 $ 30 $ 105
Finally we can consider that part of the activities at the airport that contributes to
economic growth in the community by bringing outside money into Anchorage. This
outside money is associated with the passengers moving through the airport who are not
residents of Anchorage as well as the cargo that is not associated with Anchorage
residents and businesses. Three of the main types of clients using the airport ~
International Cargo, Other Alaskans, and Non-Alaska Visitors--fall into this category.
Economists call these activities that bring money into a community basic sector activities.
The Anchorage airport is unusual for a community of its size in the importance of these
basic sector activities in its overall makeup. Most airports in communities of 260,000
people primarily provide services to their own residents but have only a limited reach
beyond a small service territory. Generally, only airports in much larger communities
might derive a large share of their employment from serving non-residents. The
importance of non-resident customers is the main reason employment at the Anchorage
airport is so large relative to the size of the community.
Basic sector jobs at the airport total 6,643 with a payroll of $259 million. The total
economic impact in the community of these basic sector jobs is 10,352 jobs and $361
million of earnings. By way of comparison, the mining industry (primarily oil and gas)
reported employment of 3,515 in Anchorage in 1999 with a payroll of $316 million. (This
excludes many oil and gas industry employees who live in Anchorage and work on the
Institute of Social and Economic Research, University of Alaska Anchorage
29 of 34
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
North Slope.) Total federal government employment (some of which is at the airport)
was 9,850 with a payroll of $474 million. Consequently when viewed as a basic industry
for the community, the airport is one of the large contributors to the strength of the
economy.
Institute of Social and Economic Research, University of Alaska Anchorage
30 of 34
Ted Stevens Anchorage International Airport, Economic Significance
_
6. TOTAL ECONOMIC VALUE OF THE AIRPORT
July, 2001
The contribution of the airport to the economy of the community and the state goes
beyond the generation of jobs and payroll from providing air transport and other services.
The airport is part of the infrastructure supporting the activities that provide benefits to all
Alaska households and businesses. These benefits exceed the cost of these services to
Alaskans, but we cannot measure the size of this net benefit. Clearly, without the airport,
the cost for transporting goods and people to and within Alaska would be considerably
higher than they are today. Thos would raise the cost of living throughout the state,
which would reduce the well-being of virtually every household and raise costs for every
business.
One of the more obvious benefits the airport provides is access to the community and
state for visitors from out of state as well as from other communities within Alaska.
These visitors come for a variety of reasons, such as tourism, shopping, and medical
services, and while here support local businesses and stimulate employment through their
expenditures. We estimate that spending in Anchorage by visitors who arrive by air
annually accounts for 6,051 jobs in the community and $115 million of payroll (Table
16.). Many, if not most, of the non-resident visitors continue on to other locations within
the state and impact those economies as well.
JOBS PAYROLL
Ilion $
Onsite Offsite Total Onsite Offsite Total
297 6,051 6,051 $ 6 $ 109 $ 115
82 2,684 2,766 $ 2 $ S1 $ ~3
215 3,070 3,285 $ 4 $ 58 $ 62
Institute of Social and Economic Research, University of Alaska Anchorage
31 of 34
Ted Stevens Anchorage International Airport, Economic Significance
®
AIRPORT ECONOMIC IMPACT RULES OF THUMBz
July, 2001
Growth of international cargo traffic is causing rapid growth at the airport, and this is
contributing to a strengthening and diversification of the economic base in Anchorage.
Existing carders are increasing the number of flights through Anchorage; new carders are
using the airport; and the activities in support of cargo handling are expanding at the
airport. In the past, international cargo flights were mostly "gas and go" operation, with
planes on the ground in Anchorage for little more than an hour. How many carriers have
established bus in Anchorage and are finding it advantageous to do sorting while on the
ground Once they have begun this activity, other opportunities open for further
expansion, such as maintenance and training activities in Anchorage.
Relating growth in cargo moving through the airport to employment growth is difficult
became of the variety of activities related to cargo handling and the different operations
characteristic of each carder. It is clear, however, that the employment effect of cargo
activity is related to time on the ground. Simple illustrative roles of thumb identifying
the annual average employment associated with the average flight per week with various
characteristics are shown in Table 17.
INTERNATIONAL
CARGO PASSENGER
Year Round
INTERSTATE
DOMESTIC
PASSENGER
Year Round
This section is taken directly from the 1998 ISER report entitled Anchorage International Airport 1998:
Economic Significanc,e.
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
For each type of flight we show the number of annual average jobs associates with air
transport services that are generated onsite at the airport and offsite within the
community. In addition, for passenger flights that bring non-resident into Southcentral
Alaska, we show the number of jobs created by spending by these visitors within
Anchorage and in the rest of Southcentral Alaska.
A new weekly cargo flight without sorting and handling would add on average about 8
jobs, 5 at the airport, and 3 offsite. (The exact number depends on the particular
circumstances of the carder. We have found that differem carders with similar umbers of
scheduled flights through Anchorage can have very differem numbers of local
employees.) With cargo handling, one additional cargo flight per week would add on
average 17 jobs, 10 at the airport and 7 offsite.
The rules of thumb for destination passenger flights are very dependem upon whether the
flight and cabin crews are based in or only layover in Anchorage. For a weekly
international passenger flight with crease based in Anchorage, 21 jobs would be created,
including the fight crew. Thirteen of those jobs would be at the airport, and 8 offsite.
The total impact on the community of a weekly international passenger flight is much
greater than simply the jobs generated from the transportation services provided to the
travelers. If we assume that a new flight brings new tourist visitors into the state (rather
than taking Alaskans out), the average international passenger destination flight would
represent the creation of 258 average annual jobs in Alaska in the tourist industry and
throughout the rest of the economy. Of these, 237 jobs would be the result of visitor
spending and 21 would be due to the provision of ~ir transport services.
Another set of rules of thumb is shown in Table 18. These show the number of jobs and
the size of the payroll generated within the Anchorage economy from each $1 million in
additional sales (or expenditures) by various businesses at the airport. For example, an
increase in air carrier receipts of $1 million would increase employment in Anchorage by
14.2 jobs, and generate additional payroll of $.41 million.
Institute of Social and Economic Research, University of Alaska Anchorage
33 of 34
Ted Stevens Anchorage International Airport, Economic Significance
July, 2001
EXAMPLE
Receipts from general
operations increase $1
million
Increase in crew spending in
Anch by $1 million
Fixed Base operator sales
increase $1 million
Receipts increase $1 million
Air charter sales increase $1
million
Kulis Air Base budget
increnses $I million
Post Office budget increases
$1 million
Airport operating budget
increases $1 million
Restaurnnt receipts increase
$1 million
Sales increase $I million
Travel Agency receipts
increase $1 million
Sales of generic private
industry increase $1 million
Airport consmsction budget
increases $1 million
Visitor spending increases
$1 million
Visitor spending increases
$1 million
PAYROLL
(million $)
$.41
$.45
$.49
$.45
$.41
$.64
$.64
$.50
$.45
$.71
$.22
$.38.
$.49
$.49
Institute of Social and Economic Research, University of Alaska Anchorage
34 of 34
AGENDA
KENAI., CITY COUNCIL- REGULAR MEETING
NOVEMBER 7, 2001
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
htt~://www, ci.kenai.ak.us
ITEM A:
CALL TO ORDER
1. Hedge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*All items listed with an asterisk {*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be no
separate discussion of these items unless a council member so requests, in which case
the item will be removed from the consent agenda and considered in its normal
sequence on the agenda as part of the General Orders.
ITEM B:
SCHEDULED PUBLIC CO_MM~NTS (10 minutes)
Kathy Gensel -- Alaska's Junior Miss Scholarship Program/Request for
Donation.
ITEM C:
_
PUBLIC HEARINGS
,
e
e
,,
Se
Ordinance No. 1939-2001-- Finding Certain City-Owned Foreclosed
Land, Identified as Lot 2, Block 1, Kaknu Komers, is Needed for a Public
Purpose.
Ordinance No. 1940-2001-- Increasing Estimated Revenues &
Appropr/ations by $45,500 in the General Fund for Ice Maintenance.
Ordinance No. 1941-2001 -- Increasing Estimated Revenue and
Appropriations by $12,000 in the Water and Sewer Fund for a Water
Rate Study.
Resolution No. 2001-79 -- Requesting the State of Alaska Department
of Fish & Game to Take Necessary Actions to Provide for Protection of the
Environment During the Dip Net Fishery .at the South Side of the Mouth
of the Kenai River.
Resolution No. 2001-80 · Recommending the Alaska Historical
Commission and the U.S. Board of Geographic Names Officially Name an
Unnamed Peak in the Aleutian Range, Mount Saint Florian.
-1-
,
,
,
,
Resolution No. 2001-81 -- Awarding the Bid to Dr. Ice for Ice
Maintenance and Refrigeration Technician Services - 2001 for the Total
Amount of $15,357.75 Per Month.
Resolution No. 2001-82 -- Awarding a $14,765 Sole Source Contract to
Office Products Services for Laserfiche Software with Training and
Installation Support.
Resolution No. 2001-83 -- Designating the Kenai Coastal Trail Project
as the City of Kenai's Number One Overall STIP Capital Improvement
Project.
Resolution No. 2001-84 -- Adopting the City of Kenai, Alaska 2002-
2003 Capital Improvement Project (CIP) Priority List for Request of State
Grants.
10.
Resolution No. 2001-85 -- Supporting the State Department of Natural
Resources Purchase of Property Identified as Lots 3-6, Wild Rose
Subdivision, Kenai, Alaska for Development of a Boat Launch Access
Facility for the Lower Kenai River.
ITEM D-
,,
COMMISSION/COMMITTEE RRPORT~
lo
2.
3.
4.
5.
6.
7.
Council on Aging
Airport Commission
Harbor Commission
Library Commission
Parks & Recreation Commission
Plannm§ & Zoning Commission
Miscellaneous Commissions and Committees
a. Beautification Committee
b. Kenai Convention & Visitors Bureau Board
c. Alaska Mumcipal League' Report
ITEM E:
MINUTES
o
*Regular Meeting of October 17, 2001.
ITEM F:
,,
CORRESPONDENCE
ITEM G:
OLD BUSINESS
ITEM H:
NEW BUSINESS
Bills to be Paid, Bills to be Ratified
Purchase Orders Exceeding $2,500
,
*Ordinance No. 1942-2001-- Amending KMC 14.20.280(c)to Remove
the Requ/rement that Notification of Pubhc Hearings be Sent Via Certified
Mail.
,
*Ordinance No. 1943-2001-- Amending KMC 14.05.020 to Increase the
Fee for Applications for Variances, Encroachments, Conditional Use
Permits, and Amendments to the Kenai Zoning Code or the Official Map
from $100 to $200. Various Other Sections of Title 14 are Also Amended
to Reflect This Change.
e
*Ordinance No. 1944-2001 -- Increasing Estimated Revenues and
Appropriations by $20,000 in the General Fund and Kenai Coastal Trail
Capital Project Fund for Additional Environmental and Permitting Work.
e
Approval-- Sublease of Pingo Properties, Inc. and Geoffrey M. Graves,
Individually to David and Janey Ring -- Lot 6A, Block 1, Gusty
Subdivision No. 4.
.
Approval -- Changes in Kenai Community Library Regulations.
8~
e
Approval -- Leif Hansen Memorial Park/Policy and Procedures
Amendments.
Approval-- Kenai Airport ARFF/SRE Facility/Change Order No. 2 --
$28, .88.
Discussion -- Econom/c Development District Forum/November 16 &
17, 2001 -- Sponsorship Request.
~ 11. Discussion -- Borough Ordinance 2001-29/Planning Commission
Membership.
ITEM I: ADMINISTRATION REPORTS
1. Mayor
2. City Manager
3. Attorney
4. City Clerk
5. Finance Director
6. Public Works Managers
7. Airport Manager
ITEM J: DISCUSSION
, ,,
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION- None Scheduled
ITEM K:
Al}... JOURNMENT
AGENDA
KENAI CITY COUNCIL- REGULAR MEETING
NOVEMBER 21,2001
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http' //www. ci.kenai.ak.us
ITEM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be no
separate discussion of these items unless a council member so requests, in which case
the item will be removed from the consent agenda and considered in its normal
sequence on the agenda as part of the General Orders.
ITEM B'
,
SCHEDULED PUBLIC COMMENT_q_ (10 minutes)
Representatives from Kenai Boy Scout Troop 357 and Nikiski Boy
Scout Troop 6t59 -- Citizenship in the Community Merit Badge.
ITEM C:
e
PUBLIC HEARINGS
Ordinance No. 1940-2001-- Increasing Estimated Revenues &
Appropriations by $45,500 in the General Fund for Ice Maintenance.
Remove from table.
Consideration of ordinance.
Resolution No. 2001-81 -- Awarding the Bid to Dr. Ice for Ice
Maintenance and Refrigeration Technician Services - 2001 for the Total
Amount of $15,357.75 Per Month.
Remove from table
Consideration of resolution.
Ordinance No. 1942-2001-- Amending KMC 14.20.280(c) to Remove the
Requirement that Notification of Public Hearings be Sent Via Certified
Mail.
Ordinance No. 1943-2001-- Amending KMC 14.05.020 to Increase the
Fee for Applications for Variances, Encroachments, Conditional Use
Permits, and Amendments to the Kenai Zoning Code or the Official Map
-1-
from $100 to $200. Various Other Sections of Title 14 are Also Amended
to Reflect This Change.
Ordinance No. 1944-2001 -- Increasing Estimated Revenues and
Appropriations by $20,000 in the General Fund and Kenai Coastal Trail
Capital Project Fund for Additional Environmental and Permitting Work.
Resolution No. 2001-86- Donating Certain City-Owned Land Identified
as Tract A, Baron Park Kenai Youth Addition, Located at the Marathon
Road and HEA Access Road Intersection in Kenai, to the State of Alaska
for the Location of a Youth Detention Facility.
Resolution No. 2001-87- Supporting the "Alaska's Children, Alaska's
Future" Statewide Campaign to Achieve Proper Funding for Alaska's
Schools and Adequate Funding for Every Alaskan Student.
Resolution No. 2001-88 - Adopting a Street Name Change from 81,t
Avenue SE to North Strawberry Road.
Resolution No. 2001-89 - Supporting Highway Improvements to the
Sterhng Highway (MP42-60) to Reduce Safety Hazards that Create Undue
Risk of Injury and Road Closures on a Vital Link for the Western Part of
the Kenai Peninsula.
Resolution No. 2001-90 - Transfemng $20,000 in the General Fund for
Abatement of Dangerous Buildings.
*Liquor License Renewal- Kenai Golf Course Cafd--Restaurant/Eating
Place- Seasonal
*Liquor License Renewal - Eagles #3525/Club
ITEM D:
le
2.
3.
4.
5.
6.
7.
ITEM E:
,
COMMISSION/COMMITTEE REPORTS
Council on Aging
Airport Commission
Harbor Commission
Library Commission
Parks & Recreation Commission
Planning & Zoning Commission
Miscellaneous Commissions and Committees
a. Beautification Committee
b. Kenai Convention & Visitors Bureau Board
c. Alaska Municipal League Report
MINUTES
*Work Session of October 25, 2001.
*Regular Meeting of November 7,2001.
-2-
ITEM F: CORRESPONDENCE
ITEM G:
~~.~. ~. :2o
ITEM H:
f' 7 '
ITEM I'
OLD BUSINESS
Discussion- Kenai Coastal Trail/Bluff Restoration Project
Approval- Aircraft Tie-Down Fees
NEW BUSINESS
Bills to be Paid, Bills to be Ratified
Purchase Orders Exceeding $2,500
Discussion -- Request for FAA Funding-- Hotel/Convention Center
Funding in Conjunction with Economic Development for the City.
ADMINISTRATION REPORTS
1. Mayor
2. City Manager
3. Attorney
4. City Clerk
5.. Finance Director
6. Public Works Managers
7. Airport Manager
ITEM J.
DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION- None Scheduled
ITEM K:
ADJOURNMENT
-3-
AGENDA
KENAI CITY COUNCIL- REGULAR MEETING
DECEMBER 5~ 2001
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www, ci.kenai, ak.us
ITEM A:
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be no
separate discussion of these items unless a council member so requests, in which case
the item will be remOved from the consent agenda and considered in its normal
sequence on the agenda as part of the General Orders.
ITEM B:
o
ITEM C:
·
.
ITEM D-
SCHEDULED PUBLIC COMMENTS (10 minutes)
Robert Ruffner -- Kenai River Water Quality Results
PUBLIC HEARINGS
Resolution No. 2001-91 -- Authorizing the City Manager to Enter Into a
Restaurant Concession Agreement for the Kenai Municipal Airport.
*2002 Liquor License Renewal -- Kenai Country Liquor/Package Store
COMMISSION / COMMITTEE REPORTS
o
2.
3.
4.
5.
6.
7.
ITEM E:
Council on Aging
Airport Commission
Harbor Commission
Library Commission
Parks & Recreation Commission
Planning & Zoning Commission
Miscellaneous Commissions and Committees
a. Beautification Committee
b. Kenai Convention & Visitors Bureau Board
c. Alaska Municipal League Report
MINUTES
,
*Regular Meeting of November 21,2001.
ITEM F:
CORRESPONDENCE
ITEM G: OLD BUSINESS
ITEM H:
NEW BUSINESS
Bills to be Paid, Bills to be Ratified
Purchase Orders Exceeding $2,500
Discussion -- Schedule Joint Work Session with Airport Commission to
Further Discuss Airport Operations and Taxation.
.
Discussion -- Update of City Logo
Discussion -- Proposed Discounted Pay-Off of Deed of Trust Notes in
McLane Bankruptcy Cases.
Discussion -- Schedule City Clerk, City Attorney and City Manager
Evaluations.
ITEM I:
ADMINISTRATION REPORTS
1. Mayor
2. City Manager
3. Attorney
4. City Clerk
5. Finance Director
6. Public Works Managers
7. Airport Manager
ITEM J:
DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION-- Possible executive session to discuss proposed discounted
pay-off of Deed of Trust notes in McLane bankruptcy cases.
ITEM K: ADJOURNMENT
2001 Monthly Enplanements
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
(.t) ERA
8,300
7,137
8,216
7,058
8,143
9,044
12,093
10,807
6,334
7,582
7,345
(2)
0
0
0
0
0
0
0
0
0
0
0
1996-2000
Total 5 yr. Average
8,300 8,069
7,137 7,478
8,216 8,288
7,058 7,294
8,143 8,076
9,044 9,814
12,093 13,249
10,807 11,41 2
6,334 8,869
7,582 8,692
7,345 8,229
8,174
92,059 0 92,059
nal
Municipal Airport
Memo
To:
From-
Date'
Subject:
Airport Commission
Rebecca Cronkhite, Airport Manager
November 28, 2001
Airport Capital Improvement Program (ACIP)
At the last Airport Commission meeting, questions were raised regarding the timing of
certain FAA funded airport projects. Below is the current FAA schedule for the Kenai
Municipal Airport. The FAA uses this list as a programming tool Only. Project funds
have not been appropriated or obligated. This list is based on a very optimistic ACIP
funding level, which may see some funds m-programmed for security needs.
Year Project Total Funds
Construct Aircraft Rescue & Firefighting/Snow Removal
2001 Equipment Buildin~ - (Part 139) Phase 1 $3,233,956
Construct Aircraft Rescue & Firefighting/Snow Removal
2002 Equipment Buildin~ -(Part 139) Phase 2 $700,000
2002 Acquire Snow Removal EqUipment (Loader/Sand Truck) $360,000
2002 Acquire Security Equipment $500,000
2002 Extend Runway 1/19 Safety Area (Design) Phase 1 $363,.000
2002 Extend Runway 1/19 (Design) Phase 1 $200,000
2003 Acquire Land for Approaches $250,000
2003 Reconstruct Security Fence $500,000
2003 Extend Runway 1/19 (Construct) Phase 2 $1,000,000
2004 Rehabilitate Runway 1/19 Phase 1 $950,000
2004 Extend Runway 1/19 Safety Area (Construct) Phase 2 $2,000,000
2005 Rehabilitate Runway 1/19 Phase 2 $1,300,000
2006 Extend Float Plane Waterway 300'/Light $488,381
2007 Expand Apron $700,000
2007 Expand Cargo Apron $950,000
2007 Acquire ARFF Equipment $500,000
www. ci.kenai.ak, us.
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
1992
MEMORANDUM
To:
From'
Linda Snow, City Manager
Larry Semmens, Finance Director~~,
Date:
December 5, 2001
Subject:
Property Tax on Aircraft
The attached includes'
Comparison of tax for a large charter operator in the Kenai, Soldotna or
Nikiski taxing jurisdictions and Anchorage.
· Aircraft accounts detail in 2001 and 1998.
· Aircraft accounts opened since 1998.
· Aircraft accounts closed since 1998.
· Memo's regarding personal property tax options.
/This information is compiled for distribution at the joint council and airport ~
bar 13, 200
mmissionmeeting on Decem .
1
COMPARISON Of TAX BY LOCATION FOR a
LARGE CHARTER OPERATOR
Kenai
Plane 1
Plane 2
Plane 3
Plane 4
Value City Tax Borough tax Total Tax
97,000.00 339.50 593.52 933.02
121,000.00 423.50 740.37 1,163.87
162,500.00 568.75 994.30 1,563.05
162,500.00 568.75 994.30 1,563.05
543,000.00 1,900.50 3,322.50 5,223.00
Soldotna
Plane 1
Plane 2
Plane 3
Plane 4
Value Exemption Taxable Value Total Tax
97,000.00 17,863.72 79,136.28 929.85
121,000.00 22,283.61 98,716.39 1,159.92
162,500.00 29,926.34 132,573.66 1,557.74
162,500.00 29,926.34 132,573.66 1,557.74
543,000.00 100,000.00 443,000.00 5,205.25
Nikiski
Plane 1
Plane 2
Plane 3
Plane 4
Value Exemption Taxable Value Total Tax
97,000.00 17,863.72 79,136.28 945.68
121,000.00 22,283.61 98,716.39 1,179.66
162,500.00 29,926.34 132,573.66 1,584.26
162,500.00 29,926.34 132,573.66 1,584.26
543,000.00 100,000.00 443,000.00 5,293.85
Anchorage Registration fee
Plane 1 75.00
Plane 2 75.00
Plane 3 75.00
Plane 4 75.00
,, ,,
300.00
Tax Rates
Kenai 3.50
Soldotna 1.65
CES 2.60
CPGH 0.40
Borough 7.00
College 0.10
Nikiski
Overlapping
11.00
11.75
11.95
Aircraft Accounts 1998
ACCOUNT PROP TYF ITEM VALUE
06377 Total $ 6,620,000
06465 Total $ 1,640,000
07804 Total . $ 190,000
23732 Total $ 35,500
27984 Total $ 28,000
29610 Total $ 45,000
31869 Total $ 39,000
39767 Total $ 26,000
47341 Total $ 29,000
49440 Total $ 704,250
58009 Total $ 34,712
58772 Total $ 31 ,(XX)
59595 Total $ 12,300
60644 Total $ 16,000
63251 Total $ 45,500
63253 Total $ 125,000
63254 Total $ 37,000
64561 Total $ 23,~
65155 Total $ 151,500
65328 Total $ 5,000
66625 Total $ 76,000
66711 Total $ 15,0(X)
67095 Total $ 19,758
67118 Total $ 18,000
67546 Total $ 16,750
68978 Total $ 56,100
69028 Total $ 13,430
69550 Total $ 56,000
69552 Total $ 15,(XX)
69574 Total $ 5(X)
69576 Total $ 400
69739 Total $ 43,000
69881 Total $ 15,250
69947 Total $ 24,000
69961 Total $ 14,500
70228 Total $ 240,500
70243 Total $ 39,500
70341 Total $ 30,000
71237 Total $ 10,(XX)
72024 Total $ 9,000
72702 Total $ 8,500
72852 Total $ 24,000
72935 Total $ 36,500
72936 Total $ 58,000
72982 Total $ 3,500
72983 Total $ 16,000
73930 Total $ 52,000
74097 Total $ 15,500
74961 Total $ 46,000
74969 Total $ 10,700
75125 Total $ 22,000
75301 Total $ 8,000
76278 Total $ 17,000
76780 Total $ 41,000
Grand Total $ 10,909,650
Kenai Tax NAME
23,170 SOUTHCENTRAL AIR INC
5,740 KENAI AIR ALASKA INC
665 KENAI AVIATION
124 BOWEN JACK W & WILLIE MAE
98 HEUS CLIFFORD A & KATHLEEN
158 KONTE FRANK J & WILLA D
137 TURNER PAUL E
91 BALDWIN C R & BARBARA L
102 ALASKA TRAVEL CACHE INC
2,465 ERA AVIATION INC
121 RICHEY ROBERTA
109 DOWNS DENNIS
43 CARR JAMES R
56 DESHONG WILLIAM
159 HOLLAND CARL JR
438 LOFSTEDT VERNON L
130 BOBEK JANICE C
82 BENNETT REX D & CAREN A
530 AVIATION INSURANCE OF ALASKA INC
18 WILLIAMSON JAMES
266 PORTER LARRY E & PATRIClA
53 DUKE AVIATION
69 MACHADO DAVID V
63 WILLARD THOMAS K
59 BENTON DEWAYNE
196 ALASKA FLYING NETWORK INC
47 FEDERAL EXPRESS CORPORATION
196 BIELEFELD JAMES L
53 HARPER KEN C
2 MURPHY MARLENA
I HOUTZ ALLEN D
151 YRAGUl DAVID N
53 SADDLER DARRELL L
84 EICHHOLZ DEAN W
51 MARBLE CHARLES E
842 LOFSTEDT CRAIG
138 LEONARD DAVID J
105 RONS ALASKA LODGE
35 SUYDAM LOWELL K
32 WHITFORD ROY I
30 MACDERMAID HARRY R
84 GRAY TED J & JOAN
128 ERNST RICHARD D
203 MClNTOSH MARGUERITE A
12 FURLONG WILLIAM D
56 HARALSON DOUGLAS K
182 TYLER FISHERIES INC
54 COPPLE CHRISTOPHER G
161 MOORE DALE E OR TJ HENLEY MOORE
37 MAYNARD TIMOTHY W
77 TERHUNE JON P
28 KIPP GLEN
60 DOUBLE AA CHARTERS/SNOWPLOWING
144 JOHNSON JOHNNY L
.
38,184
South Central Air $ 6,620,000 $ 23,170
Net of SCA $ 4,289,650 $ 15,014
Aircraft Accounts 2001
ACCOUNT 2001ITEM VALUE KenaiTax
49440 $ 4,333,427 $ 15,167
06465 $ 1,009,000 $ 3,532
70228 $ 616,000 $ 2,156
78411 $ 354,640 $ 1,241
07804 $ 305,000 $ 1,068
77993 $ 161,000 $ 564
65155 $ 121,000 $ 424
78107 $ 107,000 $ 375
77282 $ 92,000 $ 322
76794 $ 87,000 $ 305
66625 $ 72,000 $ 252
76908 $ 72,000 $ 252
76972 $ 65,951 $ 231
77283 $ 65,000 $ 228
63253 $ 60,000 $ 210
72936 $ 55,000 $ 193
69574 $ 54,000 $ 189
71237 $ 51,000 $ 179
69028 $ 49,082 $ 172
73930 $ 46,000 $ 161
77298 $ 44,000 $ 154
78409 $ 43,652 $ 153
71242 $ 43,000 $ 151
63251 $ 42,100 $ 147
63254 $ 38,700 $ 135
39767 $ 36,400 $ 127
77299 $ 35,600 $ 125
58009 $ 34,256 $ 120
23732 $ 30,867 $ 108
68682 $ 29,100 $ 102
78341 $ 27,980 $ 98
70341 $ 27,100 $ 95
77961 $ 27,000 $ 95
78089 $ 27,000 $ 95
27984 $ 26,100 $ 91
69552 $ 23,500 $ 82
77118 $ 22,200 $ 78
77238 $ 19,600 $ 69
72852 $ 19,600 $ 69
77617 $ 19,600 $ 69
77469 $ 19,500 $ 68
72702 $ 16,831 $ 59
77276 $ 15,800 $ 55
77475 $ 15,800 $ 55
77963 $ 15,600 $ 55
76278 $ 14,900 $ 52
75301 $ 14,500 $ 51
75308 $ 14,500 $ 51
65328 $ 14,500 $ 51
77273 $ 14,300 $ 50
69881 $ 13,200 $ 46
77496 $ 12,500 $ 44
77872 $ 12,000 $ 42
72983 $ 10,330 $ 36
77263 $ 10,000 $ 35
77038 $ 10,000 $ 35
69576 $ 2,000 $ 7
$ 8,619,716 $ 30,169
NAME
ERA AVIATION INC
KENAI AIR ALASKA INC
LOFSTEDT CRAIG
LOFSTEDT CRAIG R
KENAI AVIATION
GROSECLOSE BRIAN K
AVIATION INSURANCE OF ALASKA INC
ARROWHEAD CAPITAL CORP
KENAI HELICOPTERS INC
VERSAW AIR INC
PORTER LARRY E & PATRICIA
THOMSON PETER J
EVERTS CUFFORD R
LOFSTEDT VERN
LOFSTEDT VERNON L
MCINTOSH MARGUERITE A
MURPHY MARLENA P & ROGER L
SUYDAM LOWELL K
FEDERAL EXPRESS CORPORATION
TYLER FISHERIES INC
CRAMER ROGER L
WATKINS ROBERT J
ALASKA WEST GUIDES & OUTFITTERS
HOLLAND CARL JR
BOBEK JANICE C
BALDWIN C R & BARBARA L
NORTHCOTT THOMAS JAMES
RICHEY ROBERT A
BOWEN JACK W & WILLIE MAE
COUP JOE L
JOHNSON DWIGHT
RON'S ALASKA LODGE
BARNES ERIK
WALLINGFORD DAVID P
HEUS CLIFFORD A & KATHLEEN
HARPER KEN C
EARL JOHN M
AVIGO MARC C
GRAY TED J & JOAN
HEAZLETT JAMES R
STROTHER JOHN & BRENDA J
MACDERMAID HARRY R
BANKSON MIKE L
YOUNG CHARLES
CLOUD CONSTANCE L
DOUBLE AA CHARTERS/SNOWPLOWING
KIPP GLEN
WANNAMAKER KlM
WILMAMSON JAMES
GRIEBEL ANDREW R
SADDLER DARRELL L
KNACKSTEDT HENRY H 8,
OLDENBURG SCOTT J
HARALSON DOUGLAS K
BOCK JACQUELINE DAWN
YANCEY EMRON A
HOUTZ ALLEN D
Accounts included in 1998 not in 2001
I · , ......... ...- . .NAME'.'.'- -.i'~.-. .' .~.~.i..~ -I..!'g98.~!TEM~C0STITax
ALASKA TRAVEL CACHEINC $11,050.00 $
BENTON DEWAYNE $8,700.00 $
BiELEFELD JAMEs L ................................. $39,5b0100 $
cA~R jAMEs R ..................... $7,500.00. $
coPPLEbHRISTOPHER G ............ $13,000.00 $
DESHONG WILLIAM $8,000.00. $
DOWNS' DENNIS .......
DUKE AViATiON
EICHHOLZ DEAN W
ERNST RICHARD D
F~'LO-NG"WIL-LJAM D
$12,000.00 $
$9,716.00 $
$8,500.00 $
SI6,000.00 $
$13,000.00 $
JOHNSON JOHNNY L $41,000.00. $
KONTE FRANK J & WILLA D $24,000:'~0 $
LEONARD oArv1D-j ........ ~_¥'i." i~iiiii:i'-/~i ............................................. ..$__15,~0°0:°0': $
MACHADO DAVID V $14,500.00 $
MARBLE CHARLES E ................................................................. $~'0,'000.00 $
M~~A-R-O¥1M-~TH~('-~ $10,000.00. $
Mi~'RE 'DALE'E"OR T~J"H-~NI~E~'M'O-b-RE ..... $42,00~'~)'. $
TURNER PAUL E
WHITFORD ROY I
$8,S00.00 $
108.18
38.68
106.75
23.45
138.25
26.25
45.50
28.00
42.00
34.01
29.75
56.00
45.50
143.50
84.00
52.50
50.75
35.00
35.00
147.00
24.50
75.25
29.75
WILLARD THOMAS K
YRAGUI DAVID N
$OUTHCEN~i~L AIR INC
$10,000.00 $ 35.00
$11.000.00 $ 38.50
$8,845,216.00 $23,958.26
.Grand
Net of South Central Air
$7,266,091.00 $ 25,43.1.32
$ -
$420,875.00 $ 1,473.06
$ 58.92
Accounts in 2001 that are not in 1998
2001'ITEM VALUE::.." Kenai Tax:::.-. .'..::: · -' . r ' '..:'-: "'-. NAME::".' "-"
'$43,000 $" 150.50"ALAsKA WEST GuIDEs & OUTFITTERS ........
.............. $107,000 $ ..................... '374.50 "ARROWHEAD CAPITAL coRP
........................ $19,600 "$ ....................... 68:60"' AvIGO MARC C .........................................................
................................ $~5,800 $ .............................. 55.-:~0 .... B'ANKsoN MiKE L ..................................................................
........... $27,000 $ ........................... ~4:50'. BARNEs ERIK
.................... $-1.0,000 '$ ................................... 35:-00 BOCK JACQUELINE DAWN ...........................................................
................................... '$-1'~',600 $ ............................ ~'.'60'".(~LOLiD'C'ONsTANCE L
.............................. $2911.00 $ ...................... -i--~-i :85 ~ .-(~O-uP-- jOE L
................................... '~8,950 $ ............................ ~'7'i':33' !ci~M'ER RoGER'L
................. $22,'~00 $ ..... 77.~0 ..... EARL"JOHNM ............................................................................
$65;951-'$' 230.83 EVERT~-CLIFFORD R'-
$14,300 $ S0.0S 'GRIEBEL ANDREW R
....................... '$~61'i'000 $ .............. 563:'50' 'G-I~$EcLOSE BRIAN 'K
................................... $i9,600 $ ............................ ~8:~ll~"' H~LETT JAMES R
$27,980 $ 97.93 JOHNSON DWIGHT
................... $92,000 $ ................. ':~2:b0'". K~NA~i"HELICOPTERS' INC
" '$12,500 $ 43.75 KNACKSTEDT HENRY H &
............... $354,640 $ ................... ~'~241',24' 'LOFSTEDT CRAIG R
........................ -$6'$;000 '$ .....227.50 .... L~-I~SyEDT VERN .....................................................
................................ ~35,600 $ ....................... i"2~':~0'-N~3i~THCOTT THOMAs JAMES .....................................
......................................... $-i'2,000 $ ............................ ;~'~':00'" OLDENBURG sCOTT J
................................. $~'9:500 $ .............................. ~:25"'-:STROTHER JOHN"& BREN'DA~J
$72,000 $ 252.00 THOMSON PETER J
$87','§19 ~"$ 307.72 ~VER$~.W'~JR~'INC
$~7,000. $ ~.$0 :WALLINGFORD DAVID P
$14,500. $ 50.75 WANNAMAKERKIM
............................ -$~'~52' '~'" 152.78 WATKiNS"ROBERTJ ....
............................... -$-~'0;000 $ .............................. -~:(~'0'-:~:ANb-EY EMRoN A
................................... -$i'5'.800 ' $ ............................ 55:30' YOUNG'CHARLES .................................................................
................................. $'~-;489,192 ........................... -$51'2i2 ....................................
Memom&tm
Linda Snow, City Manager
Larry Semmens, Finance Director
October 15,2001
Personal Property Tax
Here are details and potential impacts of changes to the tax on personal property. Assessed value
data is from the Borough for calendar year 2001.
Total Personal Property Assessed Value
Tax at 3.5 mils
Number of Accounts 920
$48,424,439
169,485
· Total Assessed Value of Boats
Tax at 3.5 mils
Number of Accounts 497
8,170,637
28,597
Total Assessed Value of Aircraft
Tax at 3.5 mils
Number of Accounts 57
8,619,716
30,169
If the 1 ~t $100,000 of each account was exempt:
Taxable assessed value would be
Tax at 3.5 mils
Number of Accounts 49
$29,718,888
104,016
Loss in revenue $65,469
If just the $100,000 exemption was adopted, there would be 5 boat accounts left with taxable value of
$63,721; 8 aircraft accounts with taxable value of $6,207,067; and 36 other accounts with taxable
value of $23,448,100.
Currently all taxable personal property except automobiles is taxed by the City according to the
taxable assessed value of the property. Automobiles are taxed according to the type and age of the
vehicle, value is not a factor. The motor vehicle tax is collected by the State at the time of
registration. Taxable personal property includes all personal property used in a business, and boats
and airplanes owned by individuals.
The Borough's $100,000 exemption applies to all Borough personal property accounts, whether
individual or commercial, except that boats are taxed on a fiat tax schedule based on length of the
boat. For larger boats the fiat tax is generally much less than the tax based on value, while smaller
boats are often levied more on the fiat tax basis than they would be if the tax was based on value.
Regarding which property should be taxed, one element to be considered is equal treatment among
classes of personal property. If a particular class of personal property, like aircrafL is exempt fi'om
taxation, it is probable that owners of other classes of personal property of similar use or value will
expect the same treatment. There are many options for taxation of personal property that the City
could adopt. Any change must be adopted prior to December 31,2001 to be effective the following
year.
Attached are memo's previously written on this topic. Interestingly, the assessed value of aircraft is
up 20% from last year and boats are down 5% from 1998. In 1998 aircraft assessed value was $11
million including $7 million owned by now defunct South Central Air. The assessed value attributed
to ERA aircraft is significantly higher in 2001 than 1998. There were 54 airerat~ accounts in 1998
and 57 accounts in 2001.
Memoran
Linda Snow, City Manager
Larry Semmens, Finance Director
Date: October 25, 2001
Personal Property Tax Options
I talked to Shane Horan, Borough Assessor and Steve Van Zant, State Assessor. There are many
options for taxing personal property including ad velomm, flat tax, value exemptions, class of owner
exemptions, type exemptions and combinations of all options. The tax must be reasonable and have a
basis in fairness. Other than that there are few limitations.
The Borough exempts the first $100,000 of personal property assessed value per owner, other than
boats. Boats are taxed on a flat tax basis according to length. The City could adopt this plan with
variations on the exemption amount and/or the amount of flat tax. An exemption level of $50,000 on
all personal property except boats would exempt about 70% of aircraft accounts while preserving
78% of the taxable value of aircraft. This exemption would cost about $28,000 in lost revenue.
Taxing Kenai boats at ½ of the borough flat tax schedule would generate the same amount as the
current ad velomm tax - about $30,000. There would be winners and losers: the biggest winner
would save $240 and the biggest loser would see a tax increase of $103. Be assured the people
with projected increases will view this quite unfavorably because these boat owners would be the
only class of personal property owner denied a tax decrease under this plan.
Another option would be a straight exemption on all personal property with the following results:
Revenue Accounts
Loss remaining
All exempt $169,600 0
A $100,000 exemption
$ 56,500 49
A $50,000 exemption
$ 53,000 113
A $25,000 exemption
$ 40,000 234
As mentioned, there are practically limitless options. If you have specific scenarios that you would
like me to evaluate, just let me know.