Each year the Airport seeks Federal grant funding through the Federal Aviation Administration (FAA) Airport Improvement Program (AIP) for capital projects at the Airport.  Annually, the Airport may be awarded a number of AIP grants due to funding allocation, varying projects, and grant timing issues.  Subsequently, each year the Airport seeks the approval and authorization from the City Council for the Mayor to execute the FAA provided AIP grant offers as they are provided.  This year's grant offers could include funding from the Airport's annual entitlements and discretionary grant funding. The grants will provide funding for safety design work for Runway 7/25, the Terminal Building Expansion Project, and land purchase on the west end of the Airport needed for runway protection.  Airport staff anticipates at least two grant offers with a high likelihood of a third funded with AIP discretionary funds.
 
 

City Council may:

• Approve the acceptance of this year's AIP Grants, authorizing the Mayor to execute each Grant offer as they are received; or
• Disapprove the acceptance of this year's AIP Grants and provide direction to staff on how to proceed.
   

While the amount of the Airport's regular grant entitlement program is around $3,000,000, staff also knows that there is the possibility that the Airport could also be awarded a grant from the AIP Discretionary funding pool.  The Discretionary funding would be used for the Terminal Expansion.  Regardless of the amounts for the grant offers received, the Airport will need to provide a local share match, which will be 10% for projects not related to the Terminal Construction.  The grant for the Terminal Construction project will have a local share match close to 17%.  This higher percentage happens because some portions of the Terminal, like concession space, are considered ineligible for grant funding.  Funding for the local share amounts are available in the Airport's Capital Fund.