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HomeMy WebLinkAboutR-2020-140 Initiation of Airline Incentive Program at Yakima Air Terminal-McAllister FieldRESOLUTION NO. R-2020-140 A RESOLUTION authorizing the initiation of an airline incentive program at the Yakima Air Terminal -McAllister Field. WHEREAS, the City owns and operates Yakima Air Terminal -McAllister Field in accordance with applicable Federal, State and Local regulations; and WHEREAS, in 2017, City Council adopted the Economic Development Strategic Plan, which included a plan to inspire and sustain the growth of Yakima's economy over the long-term by collectively working to grow quality jobs; and WHEREAS, local air service development was identified as an important strategic initiative in order to competitively meet the travel needs of local businesses and residents while providing quality air service to grow both the economy and local tourism while providing benefits to the community; and WHEREAS, in September 2010, the Federal Aviation Administration developed an Air Carrier Incentive Guidebook: A Reference for Airport Sponsors in order to provide guidance to airports interested in offering promotional incentives to attract air carrier services at federally obligated airports; and WHEREAS, a properly structured and administered Air Carrier Incentive Program may enhance air carrier service at an airport and may create an opportunity to increase passenger traffic, which ultimately provides additional revenues to support the daily operations and maintenance at the airport; and WHEREAS, an Air Carrier Incentive Program is one of many tools utilized to encourage public -private partnerships that will leverage a Department of Transportation Small Community Air Service Development Grant to attract a prospective airline to the Yakima community; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to implement the attached Airline Incentive Program at the Yakima Air Terminal -McAllister Field in order to leverage the Air Terminal's ability to attract additional air service to the Yakima community through a reduction in landing fees and terminal building use charges. ADOPTED BY THE CITY COUNCIL this 1st day of December, 2020. ATTEST: Sonya Caar Tee, City Clerk,' 'CV atrice Byers Mayor a\'4\lyy bxk ik 1 " PPd +� PPP d g. P A PPPPPP+Pd s' lii it tYlltYlA.\ta. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4.H. For Meeting of: December 1, 2020 ITEM TITLE: Resolution authorizing the initiation of an airline incentive program at the Yakima Air Terminal-McAllister Field SUBMITTED BY: Robert K. Peterson,Airport Director, 509-575-6149 SUMMARY EXPLANATION: In 2017, City Council adopted the Economic Development Strategic Plan, which included a plan to spur and sustain growth of Yakima's economy over the long-term by collectively working to grow quality jobs. Air service development was identified by the City Council as one of the strategic initiatives needed to competitively meet the travel needs of local businesses and residents. In order to attract additional air service, the City of Yakima must consider an air carrier incentive program. This incentive program is one of many tools utilized to encourage public- private partnerships that will leverage a Department of Transportation Small Community Air Service Development Grant to attract a prospective airline to the Yakima community. This plan will also enhance air carrier service at the airport and may create an opportunity to increase passenger traffic, which will increase revenues to further support operations, maintenance, and capital improvements at the airport. The goals of the incentive program are to: • Increase passenger and/or cargo airline activity at the airport; • Attract new/additional passenger and/or cargo air service to the Yakima market; • Increase the number of non-stop destinations served from Yakima; • Increase the number of passengers traveling through the Airport; • Increase the amount of cargo processed at the Airport; • Increase non-airline revenues (concessions, parking, car rentals, etc.) at the Airport; • Help mitigate the financial impacts on passenger airlines when beginning passenger service at the Airport; • Compete with other airports seeking to attract new entrant passenger airlines. The air carrier incentive plan lays out three different scenarios where airlines may apply and receive discounted rates and charges as they begin new service from the airport. These discounted rates span from 30-50% off landing and/or terminal fees in order to help offset the financial hardships with an airline launching service. These discounted fees apply to the first 12 calendar months of service where the airline would be subject to the full rates and charges 2 established by City Council. ITEM BUDGETED: NA STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: Adopt Resolution ATTACHMENTS: Description Upload Date Type D Resolution 11/1 61 2 02 0 Resolution D Air Carrier Incentke Program 11/1 61 2 02 0 Backup Material