Warsaw Airport Awarded $6.3M GrantWarsaw Municipal Airport was awarded this week the largest grant the city of Warsaw has ever received, and it’s for a project the city has been working on for years.
The Federal Aviation Administration awarded the city a $6.3 million supplemental grant for phase one of the Warsaw Airport runway extension. Phase one includes the lowering of the electrical powerlines to the east of the east/west runway. The grant will cover the entire cost of the project.
The supplemental funding source is supported by user fees collected by passenger ticket sales and aircraft fuel sales, Mayor Joe Thallemer said. The supplemental funding source was enhanced last year by an additional $1 billion appropriation, authorized by President Trump’s signature on the Consolidated Appropriations Act 2018.
“There are no local or state taxes used to accomplish this project. The construction portion of this project is all supported by this (grant),” Thallemer said.
He said the airport was also applying for discretionary funding that would have required the city to pay for 5% of the project. “So we have avoided a city match by getting this through the supplemental fund program rather than through the discretionary,” Thallemer said.
The Warsaw Airport expects to receive the grant funds sometime in 2020. Engineering most likely will begin next year, with construction also potentially beginning in 2020, depending on receipt of funds.
“This is basically going to be a project with American Electric Power to lower the height of existing high-voltage lines, down to about half of their existing height,” Thallemer said. “The project will improve safety of both incoming and outgoing aircraft on the primary runway. It will save the city the operational costs to support the warning lights associated with the power lines. And then the completion of this first phase will allow the second phase, which will eventually recover and add 2,400 feet of runway, which could result in a 7,500-foot runway when both phases of the project are done.”
The city learned of the grant award Wednesday, but was embargoed by the FAA to discuss it until the official announcement came out Friday. Thallemer said those who have worked hard on the project include longtime Board of Aviation Commissioners member Gene Zale, Board President Jay Rigdon and the rest of the board; Airport Manager Nick King; NGC Airport Consultant Ken Ross; and the congressional delegation “that we think got us across the finish line,” Thallemer said. The congressional delegation included former U.S. Sen. Joe Donnelly, Congressman Jim Banks and U.S. Senators Todd Young and Mike Braun.
Rigdon noted that former Mayors Jeff Plank and Ernie Wiggins were strong supporters of the project. “I can tell you that, probably at this point, it would not go over the finish line had it not been for the personal involvement of Mayor Thallemer and working so hard with the airport, FAA, with our congressional leaders and liaisons to really make this possible, so he deserves a lot of credit,” Rigdon said.
He also gave praise to AEP for working with the city and airport on the project. “Because this moving of the powerlines, no matter how much money we have, we can’t go move the powerlines. They’re going to be moving the powerlines and they’ve got the designs in place to do that and they’ll be cooperating with us to do that. So we appreciate their help in the past and we really look forward to them cooperating and helping us in the future,” Rigdon said.
In a news release Friday from Banks (IN-03), Banks said, “A modernized, high-efficiency airport is crucial to the economic growth of Northeast Indiana. On March 20, 2019, I sent a letter to the FAA requesting Airport Improvement Program (AIP) funds for the modernization efforts championed by Mayor Joe Thallemer. With this grant award, the community will have the funds necessary to ensure that the airport will continue to safely and efficiently connect the critical community of Warsaw with the rest of country and world.”
In another news release, U.S. Secretary of Transportation Elaine L. Chao announced Friday that the Department of Transportation will award $10.5 million in airport infrastructure grants to two airports in the state of Indiana – $6.3 million to Warsaw and $4.2 million to Indianapolis.
“The robust economy is enabling more passengers to travel by air so this administration is investing billions of dollars in America’s airports which will address safer airport operations, fewer airport delays and greater ease of travel for air travelers,” said Chao.
Thallemer said the city and airport do not have any specific details on the actual construction portion of the project. All the documents have been filed with the FAA, and the environmental studies have been completed.
“We’ve done our work, our work is completed. And now, basically, the details, as far as the timing, will all have to be forthcoming as the funds are received and AEP works through their schedule, as well as the specific requirements of this project that they are required to do,” Thallemer said.
He said the city is committed to the airport improvements that are necessary to facilitate the jet traffic that supports local industry.
Zale recalled he joined the airport board in about 1980 after then-Mayor Mike Hodges asked him to be.
“He wanted to have the airport taken over by the city and to get rid of the FBO (fixed-base operator) because of the cost to the city in taxes. By taking over the airport and selling fuel, we would eliminate that tax burden on the city itself,” Zale said.
Then the airport wanted to have another runway, which required the acquisition of land, and Zale said that was a “big hassle.”
“But once we had that done, we were able to become the FBO on the airport, owned by the city, and the airport board would operate that facility as a business. And we were able to eliminate all those dollars in taxes, and with the support of Zimmer, Biomet and DePuy, we were able to pay for everything on that airport, all the improvements,” Zale said. Every dime from fuel sales was put back into the airport. “And that’s what all the companies wanted. They wanted that money put back into the airport, and I wanted the tax load off the city, and we were able to accomplish that. And then we found out we needed to lower those powerlines.”
Zale said working on lowering the powerlines was a “nightmare in itself” because it has taken his nearly 40 years on the aviation board to make that happen. He said they almost had the powerlines lowered two times before but things would fall apart just when the aviation board thought it was ready.
Rigdon said, “It’s been kind of constant issues, of making sure the design is in place with the same time the approvals were in place with the same time as agreements were in place with the same time as money is in place. We finally got to the point where, in fact, everything is in place.”
He said during his time on the board, he’s sure the lowering of the powerlines has taken more time than everything else combined. The project addresses a safety issue, allows the airport to better use the facilities it has and the ability to extend in the future, Rigdon said.
Thallemer said engaging the congressional delegation was important in getting the project moving forward because of the economic impact of the jets, companies and runway and how important it was to maintain that.
King said the last time the airport received discretionary funds was sometime around 1990-92 and “it was nowhere near this amount.” Zale said it was for a land purchase.
“I don’t know of a grant of this magnitude that the city has ever received,” Thallemer said.
The mayor then discussed phase II of the project, which will be the actual physical extension of the runway, and determining the best way to reroute CR 100E, “be it a loop or a tunnel.” Those discussions are ongoing and nothing has been decided, Thallemer said.
Since the city received supplemental funding instead of discretionary funding for phase I of the project, it saved hundreds of thousands of dollars on phase I of the project, King said. Those dollars saved in phase I can potentially be used for phase II.
King hesitated on giving an estimated cost for phase II because it’s uncertain what it will be – a loop or tunnel – and what that will entail.
“We know that the road (CR 100E) is not closing,” King said.
“The road will not close,” Thallemer agreed.
King said the airport has made it clear its preference is a tunnel. “It’s the easiest longterm. If the airport would ever need to expand ... the tunnel is a permanent solution to this. Our ballpark estimates are anywhere from $8-$12 million on that (tunnel) project. We’re still in the very, very beginning stages of that,” King said.
Rigdon said the airport’s decision-making would be coordinated with the county and what its long-term plans for improvements to CR 100E are. “We know there are a lot of folks paying attention to that road as to what needs to get done, regardless of whether or not the airport is there. There are still things that need to be addressed. We’ll be coordinating with the county, and our county commissioners have been communicating with us and cooperating with us,” Rigdon said.
