Joplin Airport Approved for $1.1 Million Federal Grant
A grant of more than $1.1 million will be provided to the Joplin Regional Airport to replace revenue lost by the downturn in airport business because of the COVID-19 pandemic.
The Joplin City Council on Monday night voted 9-0 to authorize acceptance of the grant for up to $1,164,636 provided by the U.S. Department of Transportation's Federal Aviation Administration through the federal coronavirus aid bill.
The purpose of the money made available through the bill is to protect jobs, said Steve Stockam, airport manager.
"One of the best ways to stimulate the economy and recover was to make sure that people still have paychecks," Stockam told the council. "So there is a requirement in there for us to maintain 90% of our employment" through December to retain the grant funding, he said.
Stockam said it is prudent to spend the money over a longer period of time rather than spending it all this year.
"We have four years to be able to spend it, so we can look at stretching that as much as possible," he said.
The airline industry could rebound if the international markets can be reopened in 24 to 30 months, Stockam said of industry predictions.
He said he will work with the city manager and other city staff to optimize the use of the federal funding.
Council member Diane Reid-Adams said there is wording in the grant that one of its purposes is to help maintain safe operations. She asked if it would be possible to buy a backup power generator that is needed at the airport. She also asked if the grant money could be used to pay for replacing lights that need updating.
Stockam said the cost of replacing those lights with LED fixtures is in this year's budget. He said the generator probably will not be eligible for the grant, which is to cover normal operating expenses. The generator will cost about $300,000 and would be considered a capital improvement.
But with the grant funding to go for operations, the city might be able to use other airport revenue to pay for the generator.
Stockam said the revenue losses are ongoing and have not been tabulated.
Councilman Ryan Stanley asked if American Airlines had given Stockam any forecast for operations.
"It really is going to depend on a couple of milestone events, Stockam said. The ability for us to open up major economic markets and international markets is going to hinge on how much we really see passengers come back."
Since May 1, the passenger count at the Joplin airport has increased from 10 a day to 30. Airport business will return more briskly once international markets and leisure destinations, such as beaches and Disney properties, reopen. But it's hard to tell when that will happen.
Councilman Keenan Cortez asked if the airport was able to apply for the amount Stockam felt is needed or if the FAA determined how much could be provided.
The FAA notified the city how much the airport could obtain, and the airport had to submit an application. The process was streamlined to get the money distributed as quickly as possible.
Stockam said the federal government determined grant amounts by using a formula based on the airport budget, debt service and how much cash was in the bank.
In other airport business, Stockam said the council authorized acceptance of a state grant last August to market the airport and its flights. Stockam said that in March, when most flights were canceled, he stopped using that money. Airports in Missouri asked the state to extend the deadline to use the money, and the state extended it to the end of the year.
Stockam said that gives the airport about six more months to see how that money could be used. The council approved a change in the contract for the state grant for the extension.
Additionally, Stockam obtained council approval to accept a $944,000 state grant to help with costs for plans to realign Dennis Weaver Drive, the entrance road to the general aviation side of the airport off Missouri Highway 171.
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