State agency disburses $9M in airport grants

Six get one-time, $500,000 payouts

The state Aeronautics Commission on Wednesday awarded 31 grants totaling nearly $9 million to 23 airports, the largest monthly amount the agency has awarded.

Fifteen of the airports received grants under a special temporary category established to focus on pavement improvement projects, said Jerry Chism, the Arkansas Aeronautics Department director. The balance came from the agency's two regular grant categories.

The record payout came after the commission saw a buildup in the agency's account balances and decided in April, because of the damage this past winter inflicted on the state's airports, to institute the temporary category, he said.

"This grant ended at today's meeting but was very successful in helping airports across Arkansas address pavement needs to remain a viable tool for economic development, as well as the movement of goods and services," Chism said.

The one-time grant awards were capped at $500,000 apiece and required a 10 percent match from the airport or its sponsor, typically a city or county.

The North Little Rock Municipal Airport was one of the 15, receiving $498,872 to rehabilitate the pavement on the west side of the field. The total project cost is $554,303.

"It was great for us, a great opportunity," said Clay Rogers, the airport's director. "Any time you can do $500,000 worth of work for $50,000 -- the city's match -- is great."

The airport received two other grants under the commission's regular grant categories: $86,132 to make drainage improvements -- also on the west side of the field -- and $45,720 to pave existing hangar floors.

Northwest Arkansas Regional Airport at Highfill was among six airports receiving the maximum amount of $500,000. It plans to use the money to modify and expand the terminal parking lot.

The other airports receiving the maximum amount and their projects are:

• Springdale Municipal -- Rehabilitating pavement at the terminal building and on the east parallel taxiway.

• Saline County in Bryant -- Site work and pavement for its hangar development area.

• Jonesboro Municipal -- Airfield pavement rehabilitation.

• Arkansas International in Blytheville -- Runway repair and construction.

• South Arkansas Regional in El Dorado -- Ramp expansion.

The agency receives no general revenue. Instead, the grants it awards are paid from revenue generated from the department's share of the 6.5 percent sales tax on aircraft, aviation fuel, and aviation goods and services.

Its share equals between $9 million and $12 million annually, Chism said. But the department received a little more than $14 million in fiscal 2014, which ended June 30.

But the agency's accounts have been building over several years because the state's 92 publicly owned/public use airports -- including eight commercial service airports -- that are eligible for the program have not applied for all of the money available every year.

The two regular grant programs also are more limited. One program, which requires a 10 percent local funding match, is capped at $200,000; its other program, which requires a 20 percent local funding match, is capped at $400,000.

That combined with the fact that the money the department receives can build up left the agency with a balance of $21 million. About $7 million of that total already has been committed, Chism said. The money isn't paid out until the work is done.

Several other airports received significant funding under the special grant program. They included Fort Smith Regional, which received $438,875.78; Hot Springs Memorial, $350,496; Russellville Municipal, $332,912; Searcy Municipal, $260,958; and Conway Municipal, $207,239.71.

Gov. Asa Hutchinson -- on a trip to Europe to promote economic development for the state, including an appearance at the Paris Air Show -- welcomed the grants via a statement his office issued through the department, calling them an "investment in the growth of Arkansas."

"Quality airports are an essential economic-development tool," it read. "We can't effectively move goods and services and attract businesses without them. These grants from the Aeronautics Commission will help 23 airports across the state better serve their communities and the economy."

Metro on 06/18/2015

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