Akron-Canton Airport Could See Funds from State Bill

Feb. 28, 2020

GREEN — The Akron-Canton Airport could add more flights and improve its surrounding infrastructure thanks to a bill making its way through the Ohio Statehouse.

Legislators proposed an economic development tool that would allow a handful of Ohio airports — including the Akron-Canton Airport — to create a special district where fees would be collected and the money would be used to pay for infrastructure projects and to attract and retain airlines.

The bill had its third committee hearing this week and eventually is expected to become law, though there's no timeline for when that might happen.

Sen. Kirk Schuring, who sponsored the bill along with Summit County Sen. Vernon Sykes, said the idea was sparked by conversations last summer about marketing the region jointly as the Akron-Canton Metroplex.

"And part of that was, we said, the heart and soul of what really best represents the Akron-Canton Metroplex is the Akron-Canton Airport," Schuring said.

The first step would be for the board of trustees of the Akron-Canton Airport to pass a resolution to establish an Airport Development District, and, with it, to set up a plan for how the district would operate and how the funds would be spent.

There's no limit for how big the district could be, Schuring said, and the size would be determined by how many of the nearby landowners and businesses wanted to participate. But he said it's mainly designed for the businesses in close proximity, which would see the biggest benefit from the airport and the area around it being improved.

All the property in the area would be subject to a development charge, which could be either up to $2 per square foot of each building or structure, or 2% of gross receipts, profits or other revenues, according to language in the most recent version of the bill.

How much revenue the district generates would depend on how big the district is, Schuring said, so there aren't any projections about possible funds yet.

Property and business owners included in the district would have to agree to its creation — and the attached development charge.

The district's funds could be used to:

Develop and execute public infrastructure projects. Schuring said these could include improving runways and parking or developing vacant land surrounding the airport. Use funds to retain and attract airlines (such as paying for ticket-purchase guarantees), increase the number of flights offered at the airport and attract larger-capacity planes. Set up an office and hire employees.A nonprofit corporation would oversee the district. Its board of directors would consist of two representatives appointed by the airport board, the airport's CEO and four representatives who would be appointed by the property owners within the district.

The Airport Development District fund could offer incentives to airlines to start service, reduce costs for airline operations, reduce capital expenses for the airport, and provide a match for state or federal grants.

"It really has a multitude of benefits both on the airport and airline side," said Ren Camacho, president and CEO of the Akron-Canton Airport.

The legislation was discussed at the airport's board of trustees meeting this week and described to board members as "another tool in the toolbox" the airport can use when ideas for projects come up.

The bill was drafted with the Akron-Canton Airport in mind, but it was expanded to allow the development district to be created around some of the state's other smaller airports — at their request.

"That to me is a validation that people involved with airports know that this will work," Schuring said. "They're excited about it."

The list of qualifying airports includes the Dayton International Airport and the Youngstown-Warren Regional Airport, which lost commercial service in 2017.

In his written testimony in support of the bill, Youngstown State University President Jim Tressel said his university is at a disadvantage to other campuses when competing for students because Youngstown is more than an hour away from an airport with daily flights.

The Ohio Aviation Association also has backed the bill.

"Here is the crux of the issue: air service development funding must be viewed as an investment for the long-term viability of Ohio's current and future potential businesses," Executive Director Stacey Heaton said in written testimony. "Air service development funding must not be viewed as a one-and-done investment, but a longer-term investment for the success of the State."

No one has submitted testimony in opposition of the bill.

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