Mar. 6—PLATTSBURGH — The Clinton County Legislature has created a minimum revenue guarantee fund for potential future airlines at the Plattsburgh International Airport.
The hope is that through this fund, which consists of $1.5 million, new airlines may be more enticed to come to PBG.
"We need to make ourselves as competitive as possible," Airport Director Chris Kreig said at the county's last airport committee meeting.
"One way we can do that is to incentivize airlines to come here. Coming into a new market, in a lot of ways, they need a safety net. This would be that safety net for them, depending on how the service shakes up. This would be a gap filler, if you will, for what they need to be profitable and what they may or may not be making."
'UNLESS THEY NEED IT'
Kreig further explained that the funds would potentially make up any difference in a "shortfall in their (the airlines) revenue."
"What's important to note is depending on the service, depending on the airline, they may use it, they may not use it. Unless they need it, it doesn't get touched," Kreig said.
"We need to be as competitive as possible. I see this when I go to air service conferences, airports out there are pulling out all the stops to get the services ... We should be doing the same."
NOT JUST 'THROWING IT OUT THERE'
Kreig added that they've done plenty of research on airlines to determine what one would be the best for this market.
"We have very targeted conversations when we have conversations with airlines, all very targeted specific roots. We're not just throwing it out there," he said.
"It's specific roots where we know there's a reasonable chance of success for an airline."
HALL: MOVE 'STEP IN THE RIGHT DIRECTION'
Legislator Robert "Bobby" Hall (D-Area 10, City of Plattsburgh), who chairs the Airport Committee, welcomed the creation of the fund.
"I talked to Mike (Zurlo) and Mike came up with the figure of $1.5 million, and he said if we're going to do this, this is the time to do it," Hall said.
"We have the money to do it ... if we're ever gonna have a chance at getting more airlines, this is a big step in the right direction."
AMERICAN RESCUE PLAN FUNDS
A portion of the $1.5 million in the fund will be offset by the American Rescue Plan Act (ARPA) funds, Deputy County Administrator Kim Kinblom had said during the county's regular meeting.
Because of this, the county has a limited amount of time to expend the ARPA funds, as they have to be used by Dec. 31, 2024.
"This is a worst case scenario, this is money that is being put away if we have to incentivize these airlines. The ARPA money can be used up until 2024, after that we can't use ARPA money," she said.
"And we might not have to use any of it at all."
SECONDARY PLAN
Legislator David Bezio (D-Area 4) said he supported the fund to potentially bring on a new airline, but also shared concerns about the county's lack of a secondary plan for the funds should a new airline not eventually come to the airport.
"If you don't spend it, it goes back to the federal government. That's my understanding. So do we have a plan?" Bezio asked the legislature.
"There may be other things that we want to spend this on ... I think as a legislature we should have a secondary plan for what that money can be used for if, in fact, it doesn't get used up by a new airline. We need to think about that. That's all."
Legislature Chairman Mark Henry ((R-Area 3, Chazy) said they will be working on a plan.
"We started to think about that. We don't have a plan ... but we do have a plan to talk to Plattsburgh International and the legislature and see what it is we want to do," Henry said.
"You raise an excellent point."
Hall added that he expects they will have a substantial plan in place within six months.
"I believe we will."
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