Mayor McArthur called the meeting to order and welcomed all in attendance. He then offered the invocation. The pledge of allegiance to the flag was led by Councilmember Jon Pike.
CONSIDER APPROVAL OF THE GRANT AWARD AND AGREEMENT BETWEEN THE U.S. DEPARTMENT OF TRANSPORTATION AND THE ST. GEORGE AIRPORT, CITY OF ST. GEORGE, UTAH, ACTING FOR THE COMMUNITY OF ST. GEORGE, UTAH, UNDER THE SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM:
City Manager Gary Esplin explained that the grant documents have been received from UDOT, and the turn around time is very short. The documents have to be approved before the next regularly scheduled City Council meeting. There is a match with this grant, as is normal for grants. The federal match is 85% and the City’s match is 14.9% or $100,000. He suggested that the $100,000 be taken from the Economic Development Fund. He suggested that landing fees not be charged the new flights for the first year. The grant guarantees the airline with the new flight a base amount to determine the feasibility of creating a client base for the new flights.
Mayor McArthur commented that a Denver route is the City’s first pick.
City Manager Gary Esplin advised that the City has used a study and talked to different airlines about the market. The City indicated in its grant application that Denver is the primary target location based on the survey. Air travel is up 18-20% at the new airport. The grant must be spent within three years.
Airport Manager Rich Stehmeier advised that the grant can be extended, but once it is gone, its gone.
City Manager Gary Esplin clarified that the grant funds must be used on a new route. He inquired if the route is successful and all of the grant money is not used, if there is a way to amend the grant and use it for a different new route.
Mr. Stehmeier replied that the remaining funds could be used for marketing, or the grant could be amended to ask for a different route.
St. George City Council Minutes
August 29, 2012
Page Two
MOTION: A motion to accept the grant award, approve the matching funds and agreement was made by Councilmember Almquist.
SECOND: The motion was seconded by Councilmember Bunker.
VOTE: Mayor McArthur called for a vote, as follows:
Councilmember Bunker - aye
Councilmember Almquist - aye
Councilmember Pike - aye
Councilmember Hughes - aye
The vote was unanimous and the motion carried.
ADJOURN:
MOTION: A motion to adjourn was made by Councilmember Almquist.
SECOND: The motion was seconded by Councilmember Pike.
VOTE: Mayor McArthur called for a vote, as follows:
