HomeMy WebLinkAboutMinutes - 19890424MINUTES
ORANGE COUNTY BOARD OF COMMISSIONERS
AIRPORT WORK SESSION
APRIL 24, 1989
The Orange County Board of Commissioners met in special session on April 24,
1989 at 6:30 p.m, in Superior Courtroom, Hillsborough, North Caro].ina_for the
purpose of holding a work session on the proposed airport.
BOARD MEMBERS PRESENT: Chairman Moses Carey, Jr., Commissioners Stephen
Halkiotis, John Hartwell, Shirley E. Marshall and Don Willhoit.
ATTORNEY PRESENT: Geoffrey Gledhill
STAFF PRESENT: County Manager John M. Link, Jr., Assistant County Manager
Albert Kittrell, Deputy Clerk to the Board Kathy Baker, Clerk to the Board Beverly
A. Blythe, Purchasing Director Pamela Jones and Economic Development Director Sylvia
Price.
_.~
Chairman Carey outlined the process that will be followed which will provide at
the conclusion an opportunity for questions from the audience. The first item will
be the presentation by Mr. Tom McDowell, the Management Consultant For McDevco and
Company, who was contracted to work with Orange County on the plan that is being
considered at this time. He will provide an accounting of the process and the
procedures followed up to this point. It began with the appointment of a citizens
task force, that worked on this issue for over a year. Next will be the
presentation of the economic worth component of this plan, and then a presentation
of the criteria for the sites ahd how they have been applied to the 20 potential
sites. He indicated that during the presentation of the criteria of the sites the
Board of Commissioners, the Planning Board and Economic Development Commission will
raise questions which may answer some of the questions of members of the audience.
Afterwards, a IO minute recess will be called and he requested that the communities
that are represented select a spokesperson to present questions based on what has
been heard during the presentation. The question period will be a maximum of 30
minutes after the 10 minute recess. At the end of the question and answer period
the Board will proceed to consider the proposed legislation for an impact tax that
has been continued from a previous meeting last week.
PUBLIC CHARGE
Chairman Carey read the. public charge.
Chairman Carey announced that Nello Teer and Company asked for and received a
voluntary dismissal of their suit against Orange County today. That is good news
and that means that the law suit against Orange County by Nello Teer has been
dropped.
Tom McDowell gave an overview of the regional airport plan, where this process
began through this point in time, and some projection of where it might be going in
the future should the Board desire to continue this process. This process began
on January 20, 1987, when the Board of Commissioners themselves charged an airport
issues task force with the determining the need for a new general aviation airport
for Orange County. They were to 1) identify the advantages and disadvantages and
barriers to the relocation alternatives for the Horace Williams Airport. Secondly,
to solicit early public comment on the subject of possible relocation to clarify
issues and identify special interest groups. Three, to compile an inventory of
current and potential airports users together with their requirements for proximity
to Carrboro, and Chapel Hill-UNC Memorial Hospital. Fourth, to determine the
1
standards governing the location, size and operation of the airport, including FFA,
NCDOT-rules and regulations, natural constraints airport development, and proximity
to existing and proposed residential and business areas and major traffic harbors.
Fifth, plan for relocation, ownership, and operation addressing a) the finance of
land acquisition and construction costs b) operating revenues and c) current and
anticipated costs involved in airport operations and maintenance. Sixth, identify
any other considerations that NCDOT and FFA recommends for consideration of site
relocation. Seventh, solicit comments from Chatham and Durham Counties and the
Raleigh-Durham Airport and finally to submit a report. That task force did bring in
November, 1987 such a report. Their summary of this report was that a new general
aviation airport in Orange County with a runway of 5000 feet in length, located
within an attractive driving time in North Carolina Memorial Hospital was
recommended, one which could generate annual income after operation, maintenance and
improvement cost of 50 to 55 thousand dollars in initial years and 130-135 thousand
dollars after 15 years of operation. This would make possible the relocation of all
aircraft operations from Horace Williams. Upon the receipt of that report and its
review, the Commissioners chose to proceed to the next step of the work session
tonight. A management consultant was hired as well as a planning consultant. A
State grant was secured in the summer of 1988 to enable work to begin in the winter
of 19$8. The workscope was described which involved the process as well as citizen
involvement, the involvement of Economic Development Commission, and the Planning
Board. They first looked at operation of Horace Williams Airport. This is a public
airport, in Orange County, 420 acres in size, and was willed to the University of
North Carolina on March 3, 1934, by Henry'Horace Williams. It is a site to "beheld
and trust forever" and that any income from the property is to be used for the
support of two or more fellowships in philosophy. In taking a look at the history
of that airport, they noticed that there was a limitation on the number of aircraft
that could be based there. The based aircraft varied from 40 to 50 during the past
eight.or nine years. However, in taking a look at the aircraft owned in the County
over that same period, they have varied from a low o£ about 55 to a high of about
$3. The operations of the airport are somewhat tied to the based aircraft of the
airport. The consultant then went about trying to determine what the past demand
had been or what the future demand might be. They did this through sending out a
number of questionnaires, a total of 450 questionnaires were mailed out, $1 of them
went to businesses, and 368 went to individuals. Of those 450 questionnaires that
were sent out, 93 were returned, 20 from businesses, and 73 from individuals, which
is a return rate of about 20~. The consultant took that information and made some
projections as to what type of use might be expected of a new airport suitably
located in the County with the correct facilities. In 1993, which might be
projected as the opening for the airport, it is estimated that 94 aircrafts would be
based at the facility. In planning an airport the consultant generally plans for
about a 20 year cycle, or 1S years beyond the opening date. Therefore, in the year
2008, they are projecting about 148 aircraft based at that airport. The aircraft
will vary as to type but they will be prodominantly small single-engine planes, with
a small number of multi-engine turbo-prop and jet planes. It's estimated that in
the opening year there should be approximately 68,000 annual operations, which is
twice that which takes place at Horace Williams today. By the year 2008, with
approximately 103,000 annual operations, it is estimated the type of jet operation
that would be expected would be the smaller corporate type of jet aircraft. After
all this information is assembled, the airport is designed. The airport would start
out with a 5,000 foot runway. Over the 20-year period, the runway envisioned will
be lengthened to 5500 foot with a 500 foot extension, again with the appropriate
navigational aids, taxi-ways, and a slight enlargement of the terminal building to
4,400 sq. ft. and again increase the vehicle parking, tie-downs, hangers, and things
`, j
of that nature. The next phase of the study involves economic worth and the
economic impact the sirpart will have on this community. Considered next was the ,'°°~
criteria and an attempt to select sites. One criteria that was used was the ,~
available wind data. This provided the best orientation of the runway. Twenty
sites were chosen using this criteria from which all but six sites were eliminated.
These six will be studied further with a recommendation for a final site in the
month of June. Two public hearings are scheduled to receive more detailed comment
from citizens. After this single site is chasm, should the Board desire to
continue with that site and move forward, a grant application will be submitted for
the next phase of planning to begin. That phase of planning is the master plan or
the written document that describes this airport site, the lay-out plan or the map
of this site and then the envixanmental assessment of the site. That will take 9 to
12 months or more depending on the complexities that might be encountered. It will
then be again reviewed by the Board and a series of public hearings will take place.
It will then go to the state clearing house, should the process cantinue, and then
to the FAA, the EPA, and the Federal Agencies for review. If that is approved and
the Board again decides to continue, there is approximately a 3 to 5 year
development scenario far this airport. The price varies greatly according to the
site, terrains, and land-cost. The total cost will be roughly $8,500,000.
Gary Varga stated that Mr. Larry Rogo from their financial feasibility
division is going to present the economic worth study as was presented in the
working paper earlier for this airport.
harry Rogo talked about the economic impact analysis. This is a complicated
and involved series of investigations that are being done by the consultant team at
this time. The economic impact study is one of a number of these investigations
that will help provide abetter picture about the implications of having an airport,
and in some cases to help weigh the choice of one site against another. The m',,,
economic impact analysis would hold true no matter which of the sites might '
ultimately be selected for the airport. A preliminary financial analysis showed
that the airport might possibly be able to realize a net yearly income of about
$50,000 in the early years of operation. That number is a financial number of
interest and further investigation will be made of the financial position of the
airport, which will depend in part on the site chosen. That number has nothing to
do with the economic impact analysis. The economic impact analysis is a measure of
the financial transactions which would take place at the airport. It would also
involve the operation of a number of businesses at the airport. This would include
the fix-base operators who provide various services such as pumping fuel, and
maintaining aircraft and aircraft equipment. In addition to that the airport could
be expected to be the scene of some activity that might be involved with the
business community in Orange County. They might base some aircraft there for
corporate use and there would be a number of private citizens who would have their
own aircraft there, which they use either for pleasure or business. In addition to
that, there would be economic impact generated off the airport property. Visiting
aircraft will arrive and they will bring with them passengers who will stay in the
Orange County area for either pleasure or business purposes injecting some.maney
into the economy by reason of their lodging, food and other expenses. The economic
impact study then becomes a measure of the kind of economic transactions that take
place as a result of the airport. Wilbur Smith and Associates in undertaking this
analysis for the County was guided by a publication of the Federal Aeronautics
Administration, entitled "Measuring The Regional Economics Significance of
Airports". There is an accepted methodology which has evolved over the past 10
years or so for conducting studies of this type. Basically, there are three kinds
of economic impacts that are measured as part of this study. These are the direct
impacts which have already been described as taking place usually on the airport and
arise directly out of the activities which take place there. Then there are the
indirect impacts which take place generally off the premises and a good example of
those would be the visitor's expenditures that arise throughout the community.
Fundamentally, the direct impacts can be looked at as being caused in connection
with the provision of the airport or of the aviation services at the airport. The
indirect impacts can be looked at as a result of the use of the aviation services or
the expenditures incurred due to the maintenance by the corporation or a business of
an airplane that they. might use at the airport or the use of the airport for special
courier or messenger services or for the provision of the medical samples and
testing brought in from other parts of North Carolina and the whole Mid-South
Piedmont region that might be brought in for testing at the Duke Medical Center or
other institutions in this area. The third type of economic impact is what is
termed the induced impact. The induced impact essentially is a function of a
phenomenon which is termed the multiplier effect. These are transactions that occur
elsewhere in the economy of the region as the money which is originally generated is
spent and respent and respent again through 5 or 6 or 7 cycles before it finds its
way out of the Orange County area altogether. The process of estimating the
economic impact is one which draws upon a tool, an economic modeling tool developed
by the Bureau of Economic Analysis of the U.S. Department of Commerce. The Bureau
of Economic Analysis has made available to localities such as Orange County a
modeling system which is referred to as "reams", which means short-hand for the
regional input-output modeling system which captures the benefit of the
sophisticated and costly analysis that the bureau has undertaken for its national
accounts and makes them available on a local basis. In undertaking this work for
Orange County, Wilbur Smith Associates made contact with the Bureau of Economic
Analysis and ordered from them a series of economic multipliers that were tailored
~- specifically to the Orange County region. They are developed on computer disk and
are specific to the Orange County area. In being specific they recognized certain
. characteristics of the local economy so that the data reflects as accurately as
possible the characterist~es of the local economy. These would include the
estimates of the make-up of the population which would use the airport, the plane
mix, the likely tenants of the airport, the initial year economic activity would
take place and that which would take place in subsequent years. The two years were
analyzed as pant of the economic impact analysis with 1989 the initial year. That's
the base year for which data is available representing the present. Forecast
information which had been developed as part of the preliminary development plans
was used far the year 2008 which was the second point in time used as part o£ the
analysis. The studies give a very goad idea of the make-up of activities that take
place at airports of comparable size. He illustrated how it is possible by drawing
on the experience of other places to simulate reasonably well the type of activities
which can be expected to take place at the Orange County airport when it comes into
operation. The financial transactions are codified to prepare them for use with
this computerized model called reams, described earlier. They represent
expenditures in various categories of economic activity. Basically the reams input-
output modeling system takes a dollar, figuratively speaking, which is spent in
anyone of some 53l different categories of expenditure ,and, based on the bureau of
economic analyses work, it traces the flow of economic activity which that dollar in
final demand would stimulate.
He next discussed the results of the study. He listed the economic impacts
which are estimated to be generated in the year 1989 if the airport were active at
this time. The direct impacts due to the provision of the airport service are
estimated at approximately 1.8 million dollars. The indirect impacts which are
expected to arise based on the use of the aviation services at the airport are
estimated to be $979,000. These expenditures were codified and put into the reams
f.', /
computer model and the model provided an estimate of what the total economic impacts
would be. The total impact is actually the sum of the direct, indirect, and what is
called the induced impact which is estimated at about 2 million.
This would provide a total of 4.8 million dollars in economic activity ,,
throughout the Orange County area. In the year 2008, assuming that the growth and
activity at the airport took place in accordance with the general trend that was
illustrated earlier, it's estimated that the sum of the three kinds of impact would
be 5.3 million plus about 1.7, plus another 5.1, totaling 12.1 million dollars in
economic impact. The original 5.3 million would be expended due to the activity of
providing the aviation services at the airport and the additional 6.8 million
dollars would be generated as a result of the activities that would take place
elsewhere throughout the regional. economy. The activity at the airport would also
result in jobs for the Orange County economic unit. About 28 jobs are estimated to
occur on site if the airport were in operation this year. There would be an
additional four jobs estimated to be created due to the employment of pilots and
maintenance and other support people possibly not on the airport site. It is
estimated that an additional 24 jobs would be created throughout the Orange County
economy as a result of the activity at the airport. So the grand total of jobs then
would be some 54 jobs. In 2008 the numbers are correspondingly larger due to growth
totaling on the order of about 114 jobs throughout the economy.
Gary Varga stated that the next phase of the presentation will deal with the
issue of site selection. As he spoke about each site, it was shown on a map. The
site selection poxtion of the study is going to reduce the sites from 20 to 6. This
elimination is based on some broad overview of the criteria that was presented
earlier. One category was social, which effects the number of people who would need
to be relocated, proximity of churches, schools, compatible land use for existing
land, etc. Another category was titled land, which includes the number of parcels
to be acquired, the availability of the land, adequate acreage on the site and so
forth, and whether or not there are obstructions in the area. The third, is
engineering in very broad categories, flooding, adequate run-off, terrain, soil
classifications, whether ar not the sites are heavily cleared or wooded, the
relative cost of the area, that is the land values, the relocation cost, the cost of
relocation of utilities, roads, and so forth, should that be necessary, the required
earth-work on the given site which is a very important criteria, the cost of the
clearing and the cost of exit routes. The category entitled general environmental
includes water quality, history archeology, construction impacts, prime farm land,
and endangered threatened species, noise impacts and so forth. These criteria have
been applied to the 20 sites in an effort to get rid of the sites that obviously are
not worth selecting for the airport. He started by going through the sites that
have been eliminated and he gave the reason for their elimination.
He gave an analysis of each of the sites, how they scored, and some individual
criterias. Thi's is contained in a document in the Permanent Agenda Files in the
Clerk's Office. Site #19 was eliminated. Zt borders Cedar Grove Road and Little
River 'Township between Hawkins Road East and Laws Store Road. The average driving
time to that site from all the users is about 41 minutes. Site 20 was eliminated.
This is also Little River Township, north of N.C. 57 between Holly Ridge Road and
N.C. 157. The average driving time to this site is about 39 minutes. The third
site is Site #18, Cedar Grove Township, East of Walnut .Grove Church Road between
Schley Road and Phelps Road, The average driving time to this site is about 32
minutes. The next several sites have actually two criterias that eliminated them
from consideration. One, is the location of obstructions and the other is the cost
of preparing the site to accommodate the runway. The first site is Site #14. This
is in Eno Township, East of Pleasant Green Road between Mi11 Raad and Ebenezer
Church Road. This site has a very large hill about 3/10th of a mile north of the
site which could not be removed. The second element is that it has an extremely
large amount of earth-work involved because the entire site will have to be grazed.
The next site is Site #15, Eno Township between St. Mary's Road and the Ena River.
This site has some major power lines right off the end of the proposed run-way and
these is also a very excessive amount of earth-work and cost involved with that
site. The next site is site #12, located in Hillsborough Township between I-85 and
I-40 west of N.C. 86. This site has two criterias involved with its elimination.
There are obstructions that would be difficult to remove to site this airport
between the roads southwest of I-40 and east of the southern railroad. There is
also a potential for some hazards from the power line located south of the site.
Secondly, this site has an excessive amount of earth-work involved with establishing
an airport an the site. The next site is site #6 which is in Bingham Township north
of Dairyland Road between Dodsons Crossroads North and Orange Grove Road. This site
has a major gas pipe line going directly through the site and an excessive amount of
earth-work involved in its development. The next several sites are being eliminated
because of the excessive amount of earth-work involved at the site. 'Sites #l3, #1,
#4, and #7 are being eliminated because of an extreme amount of earth-work. The
next series of sites are those that are being recommended to be maintained for
further study for the final site. Site #16 had goad engineering, fairly good soil,
and relative casts appear to be in line, and the environmental elements appear as
though they can be dealt with. The site scored a 61.8 on the matrix. The next site
is site #17 which has some very good land characteristics. The engineering was
adequate, and the environmental aspects appeared as though they could be dealt with
fairly well. Site #17 scored a 62.6. Site #8 has good engineering characteristics,
relative cost of land appear to be in line, and it appears as though the
environmental constraints can be dealt with. Site #8 scored a 53 on the matrix.
The balanced travel time was 23 minutes. Site #11 has good engineering
characteristics. The land evaluation seemed to be in line, and the environmental
aspects appear to be workable. Site #11 scored a 55.7. Site #5 has good
engineering characteristics, and the relative cost of land were in line. It appears
as though the environmental aspects could be dealt with. That site scored a 62.3 on
the matrix.' The balanced travel time to that site is 18 minutes. Site #9, Bingham
Township north of Highway 54 between Orange Grave Raad and Stanford Road, has good
engineering characteristics. The relative land costs appeared to be good, and the
environmental aspects appeared so they could be workable. Site #9 scored a 59.6.
Site #2 scored an average in about all the categories, it had a final score of 40.4.
The very last they recommend to be retained is Horace Williams. This site was not
ranked because to develop this site to meet the standards described in the study
would be almost impossible. Therefore if this were the site to be finally selected
by the County Board of Commissioners, they would recommend that it essentially
remain as it is with the exception of perhaps doing same cosmetic work, some
structural work to the runways, taxi-ways, apron, and perhaps protecting the airport
a little bit mare than it has been in the past through aero-space zoning and so
forth. To summarize, Varga stated that they are recommending to the County Board of
Commissioners that work proceed on sites S, 8, 9, 11 ,16, 17, and Horace Williams
for the remainder of the study. They suggest that site #2 be eliminated because it
is too far out of the grouping points to be considered.
QUESTIONS FROM THE BOARD MEMBERS
Commissioner Marshall asked about the relationship between Raleigh-Durham
Airport and this proposed airport and what may be expected from this airport.
McDevco stated that there is a growth plan for Raleigh Durham taking place at
this time. Basically, Raleigh-Durham will be expanding its carrier type of
operation. What they see as a displacement of operations is that of general
aviation and this would be the type of activity that would take place at the
proposed airport. ---.~
Planning Board member Dan Eddelman asked about the economic worth service and
what part of that modeling is on what is already present versus an assumption that
there is a housing market present to support this kind of operation. The consultant
answered that the economic analysis took into account the forecast that had been
developed by the consulting team as part of the airport planning exercise. There
were no independent forecast made.
Eddelman referred to the statement made that the economic impact analysis holds
true no matter where the site is located, yet some of the sites were eliminated
based on driving distance. The consultant answered that it is true that if the
Orange County Airport is to be successful in the sense that it provides the kind of
service that the aviation community needs and feels it wants, then obviously the
facility must be reasonably convenient and attractive to use. For the purpose of
the economic analysis, they assumed that an appropriate site would be selected that
would permit the planning aspects to be realized.
In answer to a question from Betty Eidenier about airport raise and what is
attracted to the area, Gary Varga stated that .an airport does attract development
around it. The type of development that would take place would be oriented to the
land use controls which would be more of a business-commercial type development.
With reference to the perceived noise impact of placing an airport in a rural area,
they believe that when it is placed in a rural area, the noise levels are perceived
to be greater than in an urban or developed area.
Chris Best asked about taking into account the other regional airports in the
area when choosing a site. McDowell answered that yes, they do in terms of airspace
and in general terms the distance to the airport by surface travel.
In answer to a question from a planning board member, the consultant stated that -.;;
it is an attempt to measure the amount of spending that takes place by all the `1
parties that are active at the airport without any attempt to measure whether the ;l
business is profitable or no't profitable and without respect of who is doing the
spending. It represents the spending by the agency that owns the airport. and the
spending by all the business on the airport premises including salaries and the
indirect impact represents the spending that might take place outside the airport
premises which would include where the visitors stay and eat, etc.
Discussion ensued an economic impact and direct casts and indirect costs of
operating an airport.
With reference to additional criteria to put into the process, the Board agreed
to uniformly mark down those points allocated to engineering and ease of
construction and mark up points that are related to social and environmental
factors. Also, the impact of the travel time and the conditions of the road and the
congestion of certain areas was added to the criteria list.
Barry Jacobsw asked if McDevco is aware of any professional study that addresses
safety concerns at Horace Williams. Tom McDowell stated he was not aware of any
safety study available oz one that will take place.
Chairman Carey announced that the airport planning process does have an option
for the Board of Commissioners to stop at any point in the process or to continue
the process if desired.
QUESTIONS AND ANSWERS
STEVEN LEVINE asked if the Commissioners believe that public opinion is the same
as the airport owners or the pilots and -if they would be willing to submit this
question to a public referendum. Chairman Carey stated that if the project is
funded by bond monies, that the bond would be put to a referendum.
._ 1
JOHN HUNTER made a brief statement as a member o.f the Citizens Airport Task
Force. He stated the task farce was well represented by all groups of citizens in
the County. They looked at the Horace Williams situation and how it related to an
Orange County airport. The situation now results from inadequate zoning. The
concern far vehicle traffic is minimal. They could not find any information that
proved that it is less safe to live near an airport.
JEFFREY PELOOUIN spoke as a representative of the -odsons Crossroads area and
asked if the roads would be upgraded to handle the traffic generated by the airport.
It was decided that this needs to be part of the criteria in determining a
feasible site for the proposed airport.
PATRICK MULKEY asked if the Commissioners would condemn land for the airport.
Chairman Carey stated that it is not a practice of the Board to condemn land.
ROBERT HARTFORD asked why the Commissioners pursued such an elaborate plan based
only on aviators' input and not other citizen's input. Chairman Carey explained
that the Task Force did hold a public hearing and that a survey was done by the
consultants.
SUSAN HAUSER asked about the driving time from site #17 and was told it was
twenty-eight minutes. She asked if an assessment had been done on the decrease of
property value around the airport site and was told it had not been done at this
level in the process.
MADELINE G LEVINE asked why the Commissioners' Report to the People did not
list under major goals the ward airport. She stated that that is not communicating
fully with the citizens of the County. She criticized the questionnaire that did
not include ordinary citizens but only those peaple interested in an airport.
IM CHAEL K. JOLLY stated he felt he had been inadequately informed about the
airport. He stated that the citizens. of Orange County will stand in solidarity'
against an airport.
BOB BURTMAN stated that the need of a new airport was based, according to the
handout, on 93 returned surveys. He asked how 93 surveys can be an indication for a
new airport. He was led to believe that Horace Williams was unsafe and one of the
reasons for a new airport. He asked what other factor led to the indication that a
new airport was needed. He asked how many of the surveyed people were residents of
Orange County. Chairman Carey stated that safety was a problem associated with the
current airport in Chapel Hill. There are schools and homes in the flight path of
this airport.
IMPACT TAX
Chairman Carey stated that he talked with the mayors of Chapel Hill and Carrboro
about this proposed legislation and he recommends that this proposal be tabled and
referred back to the Intergovernmental Task Force for further consideration. A
clearer consensus needs to be developed before the next meeting of the Legislature.
The probability of any proposed legislation receiving approval this year is very
unlikely.
Motion was made by Commissioner Marshall, seconded by Chairman Carey to table
the proposed legislation on the Impact Tax and refer it back to the
Intergovernmental group for further study.
VOTE: UNANIMOUS.
With no further items for consideration, Chairman Carey adjourned the Special
Meeting.
Beverly A. Blythe, Clerk
Moses Carey, Jr., Chair