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Kalispell to Decide Whether to Close City Airport

City council approaching watershed moment for controversial airport

By Dillon Tabish
Kalispell City Airport. Beacon File Photo

The Kalispell City Council will vote next month whether to close the municipal airport on the south end of town.

After decades of debate and indecision and six major studies costing over $1 million, the city is approaching a watershed moment that could settle one of its longest running disputes.

At the urging of a majority of councilors at a work session on June 2, the city council will vote July 5 on a resolution to either close the 88-year-old airport or move forward with trying to make it financially sustainable. Neither option would be without its sizable long-term challenges but the council appears ready to at least pick a direction.

“I think a decision has to be made one way or another, and the sooner the better,” said councilor Rod Kuntz. “I think we owe it to the pilots. We owe it to the people at the airport and we owe it to all of the citizens of Kalispell.”

Councilors Phil Guiffrida, Chad Graham, Sandy Carlson, Tim Kluesner and Jim Atkinson agreed with Kuntz’s assertion, while councilor Kari Gabriel balked, citing the absence of Mayor Mark Johnson and councilor Wayne Saverud from Thursday’s discussion. Gabriel also raised concerns about unknown consequences, primarily the exact cost of closing the airport. Estimates have ranged from $2.9 million and above to buy out leases and address other costs associated with shuttering the 71-acre airfield.

“If we’re going to have this vote one way or another, I would like to see the exact figures of every single lease and the exact figures of keeping it open. So many numbers have been thrown around, I’m not clear,” she said.

City Manager Doug Russell said the difficulty of nailing down exact figures is tied to the complicated appraisal process for each lease, the fluid operational expenses and the growing maintenance needs.

Guiffrida, an outspoken critic of the airport who serves in Ward 4, which encompasses the south end of Kalispell where the site operates, said closing the facility would create “an end game” that would avoid funding it in perpetuity, which he considers “a huge problem.”

“We can’t do it under the direction we’ve been going. It’s just not successful and it’s not sustainable,” Guiffrida said of the airport.

“If we’re going to keep it, something drastically is going to have to change.”

The latest study, an urban renewal blueprint for south Kalispell completed by CTA Architects Engineers, identified significant deferred maintenance and safety issues at the airport. The firm also found the airport loses money on an annual basis. The airport operated at an average net loss of $99,499 per year from 2010 to 2014, according to CTA. That includes depreciation, which is not a direct cash expense and represents the decline in value of an asset that has already been paid for.

To keep the airport operational, the city would need to invest $900,000 over five years to address overdue maintenance needs and safety issues, according to CTA’s report. After the initial investment, the site would operate at an ongoing loss of $300,000, the report stated.

“This means that the City will need to invest more money than the Airport is expected to return,” CTA stated.

The report added, “However, cities do not operate like for-profit enterprises. Many essential city functions, such as schools, emergency services, and parks and recreation, do not generate profit. These services increase value of private enterprises that use them, which comes back to the City in the form of tax and licensure revenue and quality of life and emergency preparedness.”

CTA’s report mentions the site offers “economic benefit for the community by way of jobs and local tax base” but does not provide details of the prospective finances.

Closing the airport “has the possibility of being a complicated and costly alternative,” CTA stated. It would cost the city at least $2.9 million to buy out the on-site leases. The firm projected that the city would not generate enough revenue from the sale of the airport land to cover the costs associated with selling; however it could generate new tax revenue. The city could tap into its tax increment finance fund to pay for demolition costs, but the TIF funds cannot be used for upgrades at the airport.

The tax increment finance dollars will sunset, or go away, in 2020, when the TIF district expires, creating a significant deadline for the city if it wants to tap into the funds.

Another possibility, re-opening negotiations with the FAA for on-site upgrades, would fly in the face of voters who rejected previous updates, 1,886 to 1,535, in November 2013.

Jeff Zauner, a former city councilor, raised concerns that closing the airport would eliminate an “asset” and could cost millions of dollars.

“I personally believe (the airport) is an asset to this community and I personally believe that the city has dug a hole and buried this airport,” Zauner said.

He criticized the latest CTA report, questioning the integrity of its findings and figures, and recommended the city form a steering committee that could review all of the previous studies and talk with stakeholders to reach an “accurate recommendation.”

“This study doesn’t give that to you,” Zauner said.

He added, “In my opinion, keep (the airport) going and try to figure out how you’re going to maintain it.”

Atkinson, who has expressed support for the airport in the past and had leadership authority at Thursday’s meeting in Johnson’s absence, directed city staff to place the vote on the July 5 meeting agenda.

“It’s pretty obvious that we need to make some sort of decision on the elephant in the room,” he said.


12115 a airport work session
Kalispell City Council. Beacon File Photo

Coverage of the City Airport Over the Years

Fate of Kalispell City Airport in Limbo

Feb. 29, 2016 — City leaders are faced with an unavoidable decision over whether to keep the airport on the south end of town or shutter it »»» READ MORE

 

Firm Lays Out Options for Kalispell City Airport

Jan. 16, 2016 — New plan outlines redevelopment opportunities in south Kalispell »»» READ MORE

 

As Future Plans Emerge in South Kalispell, Age-Old Airport Debate Remains Unsettled

May 2, 2015 — Fate of city airport looms large as engineers craft redevelopment strategy for southern corridor »»» READ MORE

 

What’s Next for Kalispell City Airport?

Nov. 15 2013 — City prepares for a new chapter involving the airport »»» READ MORE

 

City Airport Vote Arrives

Oct. 16, 2013 — Kalispell residents to decide which direction the municipal airport goes »»» READ MORE

 

Residents Gathering Signatures for Airport Vote

Aug. 7, 2012 — One-third of the necessary signatures have been gathered, according to advocate »»» READ MORE

 

Kalispell City Council Rescinds Citywide Airport Vote

July 10, 2012 — Council could reattempt decision about municipal airport July 16 »»» READ MORE

 

Kalispell City Airport Decision Goes to the Voters

May 22, 2012 — The Kalispell City Council failed to reach a consensus on the fate of the city airport Monday night »»» READ MORE

 

Residents Pack City Hall for Kalispell Airport Hearing

May 8, 2012 — Public comment lasted for over three hours with the fate of the airport in limbo »»» READ MORE

 

Finalized Airport Study: Develop at Current Site

April 4, 2012 — Engineering firm recommends that Kalispell invest in updates at facility »»» READ MORE

 

Tensions High as Kalispell Airport Study Proceeds

Feb. 9, 2012 — Stelling Engineers revising city airport report before final submission to FAA »»» READ MORE

 

Future of City Airport Still Up in the Air

Dec. 14, 2011 — Latest study outlines five alternatives, including upgrading or shuttering the current site »»» READ MORE

 

Kalispell to Explore Airport Improvements; Rules Out Closure

Feb. 9, 2010 — City Council takes some options off the table »»» READ MORE

 

At Kalispell Airport Meeting, Concerns Abound

Dec. 1, 2009 — City holds mostly civil “scoping session” on proposed improvements »»» READ MORE