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Number 8, June 2008

New state legislation allows airport operators to create authorities to help manage the cost of airport operations and improvements

Newly passed state legislation allows municipalities with airport facilities to create an “airport authority” by appointing an independent governing body to operate the airport and its facilities. The airport “owner” can create an airport authority on its own or through a partnership with its surrounding communities.

Currently, when an airport is located within a specific city or county, the “owner” municipality bears the cost of airport operations, maintenance, and improvements. However, airports generally have a strong economic benefit for the surrounding region. The creation of an airport authority allows surrounding governing bodies to participate in the airport’s future—even if the airport isn’t located directly in their community.

By partnering with surrounding stakeholder communities, the airport authority gains valuable access to additional funding sources, budgeting, and long-term capital investment planning. It can elect authority board members that represent a broader circle than the current city or county elected officials, yet still retain airport oversight. In addition, creating an airport authority allows the “owner” community to remove costly airport operations from its municipal or county budget, which can free up much-needed funds for other public infrastructure or capital improvement projects.

Understanding the legislation

The airport authority legislation gives you more control over important operational and budgetary decisions that affect your community. To leverage this new opportunity, you will need to understand the legislation’s guidelines, as well as how other Minnesota airport authorities are making use of it. The aviation team at SEH has been tracking this legislation and working with key lawmakers at the state level. With our experience in airport design, development, and operations, we can help you to translate this opportunity into cost savings and operational efficiencies.

Next steps to create an airport authority

Whether you are an airport owner or are affected by a local airport, SEH can help to:

• Understand the challenges and benefits of this new
  legislation
• Conduct a study in your community, or communities adjacent to the airport, to help identify stakeholders and stakeholder impacts
• Develop educational materials and programming for potential stakeholders
• Conduct public involvement activities
• Create an airport authority and draft governing bylaws
• Identify potential funding sources
  

What you need to know:

What is an “Airport Authority”?

The Minnesota State Legislature recently authorized Minnesota municipalities to create “airport authorities”, which can operate, budget, maintain, and improve airports and facilities independent of city or county operations, either alone or in partnership with surrounding communities.

Who is affected?

Cities/counties in Minnesota with an airport, as well as surrounding municipalities.

When:

Effective immediately.

More info:

Got to: http://ros.leg.mn/bin/bldbill.php?
bill=S2057.2. html&session=ls85 for complete description of current Airport Authority legislation.

Find out more about SEH Aviation Services

Questions?

Contact
E-mail Ray Strege, PE, or call him at 651.490.2014 with questions about Minnesota’s new airport authority legislation or SEH aviation services.