HomeMy WebLinkAboutAgenda Report - January 16, 2008 E-12, �0010 I ;�
Ah CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Request from San Joaquin Partnershipfor $25,000 to serve as a Partial Match for
a Grant for the Stockton Metropolitan Airport
MEETING DATE: January 16, 2008
PREPARED BY: City Manager
RECOMMENDED ACTION: Deny the request from the San Joaquin Partnership for $25,000 to
serve as a partial match for a grant for the Stockton Metropolitan
Airport.
BACKGROUND INFORMATION: Attached is a letter from the San Joaquin Partnership requesting
that Lodi commit $25,000 to serve as part of a matching grant for
the Stockton Metropolitan Airport.
The County of San Joaquin has submitted a $400,000 grant application for the Stockton Airport. The
grant requires a match of $400,000. The purpose of the grant is to provide marketing and revenue
guarantees to a main line air carrier with direct hub service. The Council of Governments (COG) in April
agreed to provide the required match. However, COG has requested that the San Joaquin Partnership
seek additional support in order to reduce COG's obligation. In response to COG's request, San Joaquin
Partnership has secured $100,000 from San Joaquin County and hopes to secure $100,000 each from
the private sector and the City of Stockton. They hope to secure $25,000 each from the cities of Lodi,
Lathrop, Manteca, and Tracy.
Either the Stockton Airport is a regional transportation facility, in which case, COG should consider
funding, or it is an enterprise activity which should provide a return on investment. If the City were being
asked to make an equity contribution towards an enterprise activity, then more details of return on
investment should be provided
FISCAL IMPACT: Not applicable
FUNDING: Not applicable
Attachment
Blair Kin ity Manager
APPROVED:
YllaiPWng, City Manager
SAN JOAQUIN PARTNERSHIP
k'm atc Nor-i'roht E cnnomic Development Uorporabon Sco Dnp San Joaquin County
December 6,2007
Blair King
Manager — City of Lodi
PO Box 3006
Lodi, CA 95241
Re: Local Match; Small Community Air Service Development Program
Dear Blair,
�p
In April, the San Joaquin Council of Government Board of Directors approved allowing the
Stockton Metropolitan Airport Director to include $400,000 from San Joaquin Council of
Government as the local match for a Small Community Air Service Development Program Grant
Application. TIie County has received notice of award in the full amount of $400,000 the grant
is to provide marketing and revenue guarantees to a main line air carrier with direct hub service.
To date presentation to Delta Airlines in March 2007 has been positive with discussed direct
service to their Salt Lake City Hub. However, Delta may not be the committed carrier however,
it is the level of service these funds are intended to attract.
The San Joaquin Council of Governments in April approved the $400,000 local match for
docLsmentation to submit the grant within avery tight time frame. The Board members requested
other agencies and the private sector be approached to reduce the San Joaquin Council of
Government commitment.
Since April the Board of Supervisors has allocated $100,000 to the match and there has been an
additional $1 00,000 discussed which is pending formal approval.
The intent at this time is to pursue the following distribution of the local match.
San Joaquin County $100,000
City of Stockton $100,000
City of Lathrop, Lodi, Manteca, and Tracy $100,000
Private Sector $100,000
$400,000
FAA Grant (allocated) $400,00
Small Community Air Service Development Program $800,000
As a con f mi i ng part of this effort to bring sclicd a led Airline Service (minimums 2 daily, 7 days a
week) to the Stockton Metropolitan Airport we are requesting each of our four cities to participate
with a coinmitiiient of $25,000. I col}tinue, to work on getting confirmation with the City of
Stockton and generating private sector participation of $100,000.
After your review of this request please contact me as to our next step related to the request of the
City Council consideration.
Sincerely
Michael E. Locke, PI•esident/CEO
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