Rolla National Airport A Field of Opportunities

Rolla National Airport A Field of Opportunities

* Public asset and land holding estimated at $5 million in replacement value; * Negative cash flow of $79, 000 per year; * Direct economic impact of payroll is $350, 000 - $400, 000; * Undetermined indirect impact from regular corporate users such as Briggs & Stratton, Kingsford Charcoal, PCRMC, UMR, Wal Mart, State of Missouri and numerous intermittent commercial users; * Indirect benefit from Airport users (13, 140 operations/year) containing an average 2 persons/flight spending $50/day (conservative assumption) in the Rolla region = $326, 500 per year.

HISTORY OF ROLLA NATIONAL AIRPORT 1958: The United States conveyed to the City of Rolla by deed dated October 6, 1958, the land known as the Rolla National Airport. The tract of land containing 1204. 74 acres with 165. 29 acres of easement, was developed by the United States for wartime purposes. It was conveyed to the city under provision of the Surplus Property Act of 1944. The City of Rolla is required to maintain all public airport improvements. The FAA also prohibits any airport that receives federal or state grants from deriving any profits from the airport operation. Revenues generated by the Airport are not to go into the City's General Revenue Fund.

1994: The FAA Authorization Act of 1994 gave the Secretary of Transportation authority to grant waivers to the terms of the sale of the airport. If the City conveys any interest in the property, the City will receive an amount for such interest which is equal to the fair market value. Any such amount so received shall be used by the City for development, improvement, operations, or maintenance of the airport. The Rolla National Airport has two 5500' x 100' runways, and is located in Maries County approximately 14 miles north of downtown Rolla.

ROLLA NATIONAL AIRPORT DEVELOPMENT HISTORY 1979: Lighting and Navigational Aids Project. 1983: FAA Grant (#3 -29 -0073 -01) to overlay and mark Runway 4 -22, shoulder grading and drainage for Runways 4 -22 and 1331, transition overlay for 13 -31, and seeding. 1985: Airport Maintenance Building extended by 40 feet. 1991: Combination State Block Grant (Project AIR-905 -56 -A) and FAA (Project #AIP-3 -29 -0073 -02) provided for overlay of NE Taxiway, Apron and SW and NW taxiway, overlay of Runway 13 -31, Relocation of both VASI-2 installations, and the addition of lights to Runway 13 -31 ($581, 000 grant).

1993: Ten (10) T-Hangars constructed by City for lease to public. 1991 -1998: ALP Update; Runway Lighting Project delayed 5 years during implementation. Project cost overruns; design standard changed; Paint restriping and sealed; MO Engineering ALP Addendum ($220, 000 grant) 2002: Pending crack fill, seal and reinstall markings on 422 and taxiways; ($113, 000 grant) 2002/03: Pending installation of ODALS/PAPI on Runway 22; new lights on 4/22; T-hangar apron ($544, 000 grant)

ROLLA NATIONAL AIRPORT CITY OF ROLLA SERVICES AND OPERATIONS * AVGAS AND JET FUEL SALES * LEASE OF TEN (10) CITY-OWNED T-HANGARS * LEASE OF 5 -7 SPACES INSIDE OLD MILITARY HANGAR (CITY ASSUMED CONTROL IN 2000) * TIE DOWN SPACE FOR SEVEN AIRCRAFT * LAND LEASES: AGRICULTURAL S&S LEASING (PRIVATE HANGAR) E&L LEASING (BARON AVIATION HANGAR) SCOTT CHARTER (HANGAR/FLIGHT TRAINING) JRS ENTERPRISES (6 RENTAL HANGARS) PRIVATE MOBILE TRAILER SPACE

ROLLA NATIONAL AIRPORT CURRENT BUSINESS STATUS * One Private Business On Site (baron Aviation) * Hangar Rentals * Federal Express Services Employment Provided: 13 Full-Time Employees * Public Operators on Site (City of Rolla) * Fuel Service * Hangar Storage * Building Maintenance and Repair * Mowing of 80 -100 acres * Employment: Airport Technician-Wes Faulkner; Airport Laborer - Kathy Sherman; 2 -3 Permanent P-T

ROLLA NATIONAL AIRPORT LAND LEASE AGREEMENTS Name Lease Expiration Terms S&S Leasing 01/01/90 -12/31/19 $250 per month (Stricker & Summers) Land for Hangar E&L Leasing 09/27/77 - 09/26/02 (Ed Schmitt & Lee Maples) 03/85; annual rent $675. 60; Automatically Renewable Lease for 35 year term with CPI Adjustment. $500 rent in '77. . Review 5 years; cpi added in increased to

William W. Hoertel 12/01/84 - 11/30/09 $100 annually (Land for private hangar) FAA 1991 - 2006 $200/month for automated surface observing system JRS Enterprise 10/15/99 - 10/14/16 7 year rental $115; 2006 - $200/yr; 2011 - $300/yr. Adams Agriculture 03/07/2000 - 03/06/05 $12, 955 annual w/ 5 yr. Option; Haying/pasture of 864 acres

FUEL SALES PROFIT/LOSS FY 1997 100 LL Inventory October 1, 1996 20, 120 gal. Av. Gas Purchased 34, 739 gal. Av. Gas Sold (36, 931 gal) Inventory September 30, 1997 17, 928 gal. (Average Purchase Price/Gallon: $48, 796 34, 739 gal = $1. 4046/gal. ) Jet Fuel Inventory October 1, 1996 29, 659 gal. Jet Fuel Purchased 30, 101 gal. Jet Fuel Sold (35, 159 gal. ) Inventory September 30, 1997 (Average Purchase Price/Gallon: $23, 803 30, 101 gal. = $. 79/gal. ) Fuel Sales Revenues $122, 091 Adjusted Inventory ($7, 075) Fuel Purchases (72, 600) FET & Sales Tax: ( 9, 628) Gross Profit/(Loss) $32, 788 72, 090 gal. Sold = $. 455/gal 24, 601 gal.

FUEL SALES PROFIT/LOSS FY 2001 100 LL Inventory October 1, 2000 14, 841 gallons Av. Gas Purchased 25, 615 gallons Av. Gas Sold (25, 231 gallons) Inventory September 30, 2001 15, 235 gallons Note: Average Purchase Price: $47, 224 25, 615 gal = $1. 844/gal; Ave. Sale Price = $2. 40 Jet Fuel Inventory October 1, 2000 15, 381 gallons Jet Fuel Purchased 60, 061 gallons Jet Fuel Sold (54, 149 gallons) Inventory September 30, 2000 21, 293 gallons Note: Average Purchase Price: $80, 338 60, 061 gal = $1. 34/gal; Ave. Sale Price = $2. 30 Fuel Sales Revenues $168, 171 Adjusted Inventory $8, 630 Fuel Purchases ($124, 871) FET & Sales Tax: ($9, 804) Gross Profit/(Loss) $ 42, 126 79, 380 gal. Sold = $. 531/gal

Aviation Fuel Sale History 1989 1990 1991 1992 1993 1994 1995 $130, 235 $132, 971 $158, 499 $163, 661 $199, 692 $164, 134 $124, 978 (Less Fuel Prchs. ) $83, 720 $ 77, 632 $ 68, 063 $117, 569 $134, 251 $ 80, 009 $ 84, 924 Gross Profit $46, 515 $ 55, 339 $ 90, 436 $ 46, 092 $ 65, 441 $ 84, 125 $ 40, 054 35. 7% 41. 6% 57. 0% 28. 2% 32. 8% 51. 3% 32. 0% 1996 1997 1998 1999 2000 2001 Average Fuel Sales $114, 443 $125, 778 $134, 386 $145, 698 $142, 420 $168, 171 $146, 544 (Less Fuel Prchs. ) $95, 591 $72, 690 $86, 441 $74, 427 $38, 443 $43, 300 $53, 928 Gross Profit $18, 852 $53, 088 $47, 945 $71, 427 $38, 443 $43, 300 $53, 928 16. 5% 42. 2% 35. 7% 49. 0% 27. 0% 25. 7% 36. 8% Fuel Sales

STATEMENT OF INCOME Rolla National Airport 1989 - 2001

2001 Total Average *Fuel Sales $168, 171 $1, 905, 066 $146, 544 Grant $0 $1, 325, 914 $101, 993 Lease/Rent $36, 359 $434, 008 $33, 385 Miscellaneous $4, 900 $46, 260 $3, 558 *Total $209, 430 $3, 711, 248 $285, 481 Personnel $68, 307 $713, 896 $54, 915 *Fuel Purchase $124, 871 $1, 204, 549 $92, 658 Supplies & Bldg. Mtnc. $10, 583 $155, 335 $11, 949 Services $19, 283 $227, 214 $17, 478 Maint. & Imp. $11, 487 $181, 865 $13, 990 Cap. Imp. $25, 479 $2, 251, 188 $173, 168 *Total $260, 010 $4, 734, 047 $364, 157 Excess of Rev over Expen (50, 580) (1, 022, 799) Revenues Expenses (78, 677)

PILOT/CORPORATE SURVEY Rolla National Airport

During December - January, 2001 surveys were mailed to a total of 120 registered pilots in the south central region of the MO Pilot's Association to gain a letter understanding of the needs and preferences of area pilots. 73 responses were submitted. Similarly, a questionnaire was delivered to corporate/industrial users resulting in 23 responses. Based on pilot data the cessna and piper were the predominate single engine airplane used at the Airport. 23 pilots identified RNA or Rolla Downtown as their base facility. When asked about fuel purchases from RNA 60% of the respondents indicated they purchased fuel from RNA in 2001 with 85% of those respondents being somewhat or very satisfied with the quality of fuel and service. Six respondents were dissatisfied with the price of fuel. 95% of the respondents indicated they estimate increasing their flying time in 2002.

The "Industrial Employer Questionnaire" was mailed or delivered to any known corporate customer in 2001. A total of 23 surveys were returned with half of those respondents indicating they rely on RNA to transport at least some goods or services with 6 corporate users indicating the Airport is essential to their economic vitality. Sixteen respondents indicated their company/business owns an airplane for business-related travel. Cessna was again the airplane of choice but 7 planes are turbo-props and 2 are turbo-jet. When asked for suggested improvements at the Airport three businesses suggested precision approaches and two businesses (plus 3 local pilots) expressed interest in additional hangar space. Eighteen businesses purchased fuel from RNA in 2001 with all respondents being very satisfied with the quality of fuel and service. Finally, when asked if a planned industrial park were developed at RNA three companies expressed an interest in locating there.

SUPPLEMENTAL INFORMATION * Summary of 1998 Report on RNA by Kathy Boswell * RNA Activity Report (Voluntary) - 2/02 * APA, "General Aviation Airports - Paving Their Way" * NATA, "Aviation Business and the Services They Provide" * Sample Economic Impact Reports - Mo. DOT (Pennsylvania and Wisconsin)

General Aviation Activity Pilot Survey 1) Are you the owner of a General Aviation aircraft? Yes: 52 No: 23 2) If you answered 'Yes" to Question 1, could you specify the following for your aircraft? Manufacturer: Cessna: Beechcraft: Bellanca: Aeronca: Luscombe: Piper: Mooney: Fairchild: Robinson: American Aerocraft: Home Built: Grumman: Challenger: American Champion: Bonz: 23 4 2 2 1 9 1 2 1 1 1 3 1 1 1

Model: Cessna: 210: 1 172 P: 2 172: 6 172 M: 1 182 Sky Lane: 2 177 Cardinal: 2 206: 1 206 T: 1 150 J: 1 150: 2 150 L: 1 182: 2 182 P: 1 Beechcraft: 95: 1 Baron B-58: 1 Baron B-55: 1 A 36: 1 Bellanca: Cessna 140: 2 Aeronca: 11 AC: 1 118 A: 1 Luscombe: 8 D:

Piper: PA-12: 1 PA-46 -350: 1 PA-28 -151: 1 PA-28 Warrior: 1 PA-28 -235: 1 Tri-Pacer: 1 Apache: 1 PA-28 -151 Warrior: 1 PA-18 A: 1 Mooney: M-20 -E: 1 Fairchild: F-22 -C 7 F: 1 Merlin 3: 1 Robinson: R-22: 1 American Aerocraft: Falcon P: 1 Home Built: K R-2: 1 Grumman: Tiger: 1 Tiger AASB: 1 AA-5 B: 1 Challenger: Two: 1 American Champion: 7 ECA: 1 Bonz: PA-22: 1

Type of engine: *Piston Single engine: 46 *Piston Two-engine: 4 *Piston Three + engine: 0 Turbo-Prop: 1 *Turbo-Jet: 0 *Other: 0 Rolla National: 17 Cuba: 4 UUV Sullivan: 2 Lebanon: 1 Sylvania (e 89): 1 St. Charles: 1 Winter Field: 3 Rolla Downtown: 6 Pritchett Field: 2 Hearr Field: 1 Lamar (LLV): 2 Salem Memorial : 4 Base Location: Airport Name: 1 K 15: Fulton: 1 Lee C. Fine: 1 Powell WY: 1 Springfield: 1

3) Are you instrument rated? Yes: 33 No: 39 4) In 2001 please estimate the number of flight operations you performed at Rolla National Airport: 0: 18 1 -20: 30 21 -40: 11 41 -60: 3 61 -80: 3 81 -100: 1 101 -200: 5 Over 200: 2 ! 5) As a User at Rolla National Airport, please describe the improvements or conditions which could enhance your flying experience. 6) "The runway characteristics are more than adequate for my needs. " 7) "I will need hanger space sometime this summer. " 8) "A grass runway would be dandy. " 9) "All NAV aids are not in. " 10) "There is much needed maintenance repair on grounds. " 11) "The terminal facilities are great. " 12) "Need to build more hangers. " 13) "Need sandwiches and snacks in the pilot's lounge. " 14) "An ILS would be helpful. "

"More security may be required. " "7, 500 feet of runway may attract larger air crafts. " "They need an FBO. " "Need runway signs. " "We need to repave all taxiways. " "Ample ropes for tie downs should be provided. " "Rolla National Airport is a well maintained airport. " 6} Did you purchase fuel from the Rolla National Airport in 2001 ? Yes: 44 No: 29 Jet Fuel: 2 AVGas: 42 If "yes", how satisfied were you with the quality of fuel and service? Very Satisfied: 33 Somewhat Satisfied: 6 Not Satisfied: 5 If "no" was it because of: Price: 6 Availability: 2 Credit Card: 1 Service: 1 Fuel Type: 2

7) What is the maximum acceptable automobile driving time to and from your base airport and your primary location? Less than 15 minutes: 20 15 -30 minutes: 36 30 -45 minutes: 3 45 -60 minutes: 4 More than 60 minutes: 2 8) Would you estimate that your flying time will increase or decrease during 2002, relative to your activity in 2001? Increase: 43 Decrease: 3 Industrial Employer Questionnaire 1) Which of the following apply to your businesses aviation needs? A. We own our own aircraft: 16 B. We rely on Rolla National airport to transport goods and/or services; 11 1) Daily: 1 2) Weekly: 2 3) Monthly: 3 4) Quarterly: 4 C. The Rolla National airport is essential to our economic vitality: 6 D. The Rolla National airport while beneficial is not essential to our operation: 8

2) Could you indicate your firm's primary business interest in the Rolla area by listing specific products or services provided? Flight training/instruction: 2 Fuel: 1 Oil: 1 Air charter transportation: 1 Air cargo: 1 Store fixtures: 1 Wood products: 1 Transporting people: 3 3) Does this company/business own an airplane for business-related travel or shipping/delivery purposes? Yes: 16 No: 4 4) If you answered "Yes" to Question 3, could you specify the following for your aircraft? Manufacturer- Piper: 2 Cessna: 7 Beechcraft: 3 Lear Jet: 1 Aero Commander: 1 Rockwell: 2 What type of engine? Piston Single: 10 Piston Two: 4 Piston Three: 0 Turbo-Prop: 7 Turbo-Jet: 2 Other: 0 5) In 2001 please estimate the number of flight operations you performed at Rolla National airport. 0 -10: 9 10 -20: 3 20 -30: 0 30 -40: 0 40 -50: 2 Above 50: 5 6) As a Corporate/Business User at Rolla National airport, please describe the improvements or conditions which could enhance your flying experience. "ILS would be a big benefit. " "Additional covered aircraft storage is needed. " "ILS would be appreciated. " "Keep surfaces repaired frequently. " "More precision approaches, visual aids, etc. " "A mechanic on field would be very welcomed. " "Spots in hanger for overnights. " "Need to improve crew lounge/sleep room. "

7)Did you purchase fuel from the Rolla National airport in 2001 ? Yes: 18 No: 2 Jet fuel: 10 AVgas: 12 How satisfied were you with the quality of fuel and service? Very satisfied: 19 Somewhat satisfied: 0 Not satisfied: 0 8) What types of supportive services do you require in your business which, in your opinion, could be improved within Maries/Phelps County? "Control tower. " "Courtesy cars for pass or rent a wrecks for short area trips. " "A reasonable wastewater pretreatment ordinance in Cuba, MO. " "Maintenance hanger, mechanic on field, ground handling equipment. " "Better snow removal equipment. " 9)If a high quality commuter air service were to be established at Rolla National airport would your firm be interested in using the service for business-related travel or air freight purposes? Yes: 6 No: 9 10) As a user of the Rolla National airport could you estimate the economic impact of the airport on your business? "Could not function as a flight examiner without this facility. " "Hard to define but very important to our company. " "We need this airport on our way to Philadelphia for disaster recovery. " "Baron Aviation Services is headquartered in the Rolla area because of the facilities available at the Rolla National airport. " "The closer we can get to our clients the better. "

11) Do anticipate a need for a new or expansion building site within Maries/Phelps County? "Yes. Your facilities are limited and not up to everyone's standards. " "A flight school would be good. " 12)If a planned airport industrial park were developed at Rolla National, would your company have an interest in locating there? Yes: 4 No: 2 ' 13) Do you have any other comments or questions? "Don't loose this airport!" "The airport is a very large and definite asset to Rolla. " "The staff are among the best. " "The line crew has been very helpful. " "The Rolla National airport is an essential asset to the city of Rolla. A modern well maintained airport and related facilities are a requisite in the site selection process of today's industry. An airport is as essential to a cities ability to compete for a new and retain existing industry as are its schools, parks, roads, and related entities. "