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Proposal Under the Small Community Air Service Development Program

Docket Number: OST-2007-27370 -a\

Community: Merced County

Legal Sponsor: Merced County

DUNS Number: 839845682

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

TABLE OF CONTENTS

Summary and Background ............................................................................. Page 1 Narrative .................................................................................................. Page 3 Section I - Existing Air Service ...................................................................... .Page 5 Section I1 - Historical Air Service .................................................................... Page 8 Section I11 - Air Service Deficiencies .............................................................. Page 1 1 Section IV - Strategic Plan ........................................................................... Page 16

Section VI - Funding ................................................................................ .Page 22

Section VI11 - GrantProject Management ......................................................... Page 26 Section IX - Project sustainment .................................................................... Page 27

Section XI - Legal Sponsor .......................................................................... .Page 3 1 Section XI1 - Air Service Development Zone .................................................... .Page 32

. .

Section V - Public-Private Partnership ........................................................... ..Page 20

Section VI1 - Funding Management ............................................................... Page 25

Section X - Previous Air Service Development Efforts ......................................... .Page 29

FIGURES Figure 1 .................................................................................................. Page 2 Figure 2 ................................................................................................... Page 4 Figure 3 ................................................................................................... Page 7 Figure 4 ................................................................................................... Page 8 Figure 5 ................................................................................................ .Page 10 Figure 6 ................................................................................................. Page 1 1 Figure 7 ................................................................................................. Page 12

Figure 9 ................................................................................................ .Page 15 Figure 8 ................................................................................................. Page 14

TABLES Table 6.1 ................................................................................................. Page 22

LIST OF ATTACHMENTS ....................................................................... Page 34

APPENDIX . SUMMARY INFORMATION

MERCED COUNTY - Castle Airport Summary 8, Background

Merced County - Summary and Background

Historical Summary

Castle Air Force Base, then known as Merced Army Airfield, was an important pilot training base during World War 11. Its post war career was even more distinguished. Castle, as a Strategic Air Command base was the location of all B-52 and KC-135 flight training and starting location for several record setting round-the-world flights until its closure via the Base Realignment and Closure process. Castle began drawing down with all aircraft leaving in 1993 with a final closure in 1995.

The closure of Castle Air Force Base was devastating to the local community, a situation which has only begun improving within the last five years. As Castle was closing, a Joint Powers Authority (PA) that included the City of Merced, City of Atwater and County of Merced took over reuse authority of the Castle properties.

This JP A made many short-range property decisions that became costly long-range mistakes. However, over time the JPA proved to be ineffective and it was finally dissolved in late 2000 with the County of Merced becoming the sole reuse authority for Castle Airport. In 2002, the County hired its first and only professional airport manager, and in 2004, realigned Castle under a new department, that being the Department of Commerce, Aviation and Economic Development (CAED).

This dynamic department managed a nearly complete overhaul of the entire airfield bringing it up to the Federal Aviation Administration’s commercial airport standards. In addition, the County, through the department, has been engaged with a Master Developer, Federal Development, LLC, as a private partner in the development and marketing of the Castle property. In December 2006, the Air Force finally deeded the Castle Airport property to the County of Merced.

Future Directions

Castle Airport, soon to be re-designated as the Castle Commerce Center and Castle International Airport, will be managed on a whole-base concept that includes the integration of a thriving

Small Community Air Service Development Program

Docket Number OST-2007-27370

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MERCED COUNTY - Castle Airport Summary & Background

airport and international business park. Several foreign companies have signed letters of interesuintent or agreements to build or lease facilities at Castle and open a United States division of their companies. In addition, the airport is currently host to two truly international flight schools, one that is training all the up-and-coming Chinese airline pilots and the other mostly training students from India. Together, the schools will graduate over 200 students with commercial ratings this calendar year.

Castle is expected to continue on its course toward its proper role as an economic engine for the entire community. As Castle officials continue to reach out into the community, they are assailed with many questions, the most common of which is, “When are you going io bring an airline lo CastZe?”. Many people who were in the community at the time of the base closure mourned the loss of the Air Force and have been looking forward to the full utilization of the magnificent Castle Airport and (believe it or not), the noise of airliners and cargo planes again at Castle.

Figure 1

Castle Air Traffic Control Tower, Operations Building and Corporate Aircraft



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MERCED COUNTY - Castle Airport

Introductory Narrative

Narrative

This document is the Merced County, California proposal to the Small Community Air Service Development Program, and contains two components:

1. Part one of this two-year proposal is to establish new air service at Castle Airport (MER) for the communities that make up the greater community of Merced County CA, as well as the surrounding counties of Mariposa, Tuolumne, Madera and Stanislaus. This section will explore the marketing and incentives that will be used to attract and ultimately sustain a new airline service at Castle Airport.

Merced County - Castle Airport sits in the center of the San Joaquin Valley, a part of the Great Central Valley of California. For many air travelers in the five-county area, most travel is done through Fresno (FAT), Sacramento (SMF), and airports in the Bay Area (San Francisco, Oakland or San Jose). The problem is the extensive auto travel to reach these airports for many travelers. Since many reside in mountainous areas, a 70 mile trip can take several hours. Traveling to the Bay Area from the valley is dangerous and can include severe traffic back-up situations. Flights from Castle Airport would alleviate many of the long road trips currently required for people to get to an airport. The reduction in road trip length would provide the following positive results: less traffic on already congested roads; less auto emissions in an air pollution problem area; and a better, less expensive, less time consuming travel experience.

Castle Airport (MER) (the former Castle Air Force Base) was fully deeded to Merced County on December 19, 2006. Through FAA and local funding, more than $7 million has been invested in operational upgrades for Castle Airport. The facility was inspected in July 2006 by the FAA and certified as meetin? all reauirements of a 14 CFR Part 139 Certificated Commercial Airport, except for the requirement of having a scheduled airline servicing the airport. Castle Airport has a full suite of navigational aids including an operating FAA certified control tower and airfield lighting, a fully staffed and functioning AircraR Rescue and Fire Fighting unit, and a fixed base operator with more than adequate fuel storage and ground support equipment. A new 100 + passenger terminal will open in the fall of 2007, (Floor Plan - Figure 2).

Castle Airport is within 10 miles of the Merced Municipal Airport (MCE), a Part 139 airport with a limited, Essential Air Service subsidized operation and a short 5,903 foot runway



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MERCED COUNTY - Castle Airport Narrative

compared to Castle’s 11,802 feet. During summer months, due to the high temperature and field elevation, a regional jet could not safely operate from Merced’s short runway. However, aircraft operating from Castle Airport have no such limitations.

Pipure 2 i

2. The second component is to establish an Air Service Development Zone at Castle Airport - Castle Commerce Center. The Castle Airport properties total 1900 acres; 1300 of these dedicated to the airport and aviation activity and the other 600 acres to be utilized as a businesdairpark. Much of the Master Developer’s energies are devoted toward the airpark, cargo operations on the airfield and OutreacWmarketing for the entire property.



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MERCED COUNTY - Castle Airport Section 1

Existing Air Service

I. A Description of the Community’s Existing Air Service

The Castle Airport (MER) in Merced County has incredible capacity for air service in California’s unique Central Valley. Currently, there is no existing commercial air service izt Castle Airport. Today, the County of Merced, through its Department of Commerce, Aviation and Economic Development, and surrounding communities, have been working toward developing Castle’s potential for safe and efficient air service. There are several key factoirs which affect the progression of plans for air service at Castle Airport.

A twaterMerced Catchment Area

The AtwaterMerced catchment area is bordered by the Modesto City-County Airport catchment area to the north, Fresno Airport’s area to the south, and the San Francisco Bay Area catchment to the west.

Local area travelers use one of six airports when diverting from the Castle or Merced Municipial Airports. The closest in location to Merced is Modesto Airport, which is approximately 40 miles away. As mentioned above, travelers in the five-county area must often use the larger airports in Fresno, Sacramento, or the Bay Area to reach outlying locations which can critically impact north and southbound surface traffic, thereby, impacting existing highway congestion.

Travelers seeking outside the area airports point to a lack of major air service in the Central Valley. Existing airports around Merced County offer limited, if any, service at all, and most travelers must use airports outside the local catchment area. Also, there is an overall lack of north-south interstate hubs in California, as well as a greater need for east-west connecting service.

Castle Airport is strategically located in the Central Valley to provide much-needed air service to north-south hubs and connecting flights out-of-state. Due to some of the surrounding catchments’ limitations, Castle is well positioned to capture major portions of the travel flow from these areas, thereby, more efficiently serving the needs of Central Valley flyers. A new airline at Castle providing a more convenient, efficient, and cost-effective service to California flyers will alleviate tr&ic moving toward the Bay Area airports and Sacramento, as well as the southern-moving traffic toward Fresno.


Docket Number OST--2007-27370

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Merced Municipal Airport

The Merced Municipal Airport, as mentioned above currently provides air service through Mesa Airlines as Air Midwest. This service (subsidized under the Essential Air Service Program PAS]), consists of three to four daily departures to Las Vegas Airport, using Beech 1900 aircraft. Although this service can provide travelers with access to connecting flights to national destinations, the frequency and timeliness of Merced Municipal Airport is limited, and at times unpredictable. The EAS support is scheduled to end in 2008.

Community Economics/Demographics

“Castle Airport is located in the heart of California’s Central San Joaquin Valley, one of the world’s largest and most productive agricultural regions alongside one of the most dynamic, diverse, and high-cost urban centers in the United States,” said the Federal Interagency Task Force for the Economic Development of the Central Valley in 2004.

California is expected to add approximately 11 million residents in the next 20 years, with the Central Valley exceeding the overall state growth rate by an average of approximately 8%. These high-speed growth rates will contribute to the Central Valley’s need for superior air service and California’s overall need for intra-state flight availability with connections to national and international hubs.

Castle Airport’s immediate community, Merced County, is located in the northern section of the San Joaquin Valley, directly in the middIe of the Central Valley and the State of California. Castle Airport has direct access to Highway 99, one of California’s major thoroughfares and main north-south state corridors. Merced County’s Castle Airport is also easily accessed from its western side by Interstate 5, another major north-south travel route. These two arterial roadways provide a constant flow of travelers through Merced County and would provide a strong consumer access base for a new airline service at Castle.



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Fimre 3

Section 1


Figure 3 - Castle Airport Catchment Area

Population Within: 50 Miles - 1,056,175 75 Miles - 3,790,664



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Historical Air Service

II. A Synopsis of the Community’s Historical Service

Castle Air Force Base

The current Castle Airport has been historically owned and operated by the U.S. Air Force. Throughout the twentieth century up until 1995, it was known as Castle Air Force Base or Merced Army Airfield. The Air Force built Castle to be a safe, state-of-the-art runway to be used for military operations, and was utilized as an important pilot training base during World war 11.

There were several operating units based at Castle during World War 11, including the 93d Bomb Wing, which maintained readiness for global strategic bombardment. In 1948, the 93rd Bomb Wing became the first Strategic Air Command bomb group to deploy in full strength to Okinawa, and remained an active military unit through Desert Storm in the 1990’s.

Castle, during its use as a Strategic Air Command Base, was the location of all B-52 and KC-135 aircrew flight training from 1956 to 1995. Castle was also the starting location for several record-setting jet flights, including the deployment of the first jet aircraft nonstop flight (1 957) around the world. (see Figure 4)

Figure 4

1, Three B-52Bs of the

93rd Bomb Wing

prepare to depart Castle

Air Force Base, Calif.,

for their record-setting

round-the-world flight in

1957



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During the 1990's, the U.S. Department of Defense began evaluating various military bases for potential closure. Formally called the Base Realignment and Closure process, Castle Air Force Base was determined to be no longer needed, and was ordered to begin closing in 1991. In the next two years, Castle's aircrafi were transferred to other bases, and Castle was finally closed in 1995, thereby ending the history of the famous 93"' Bomb Wing.

The closure of Castle Air Force Base was devastating to the local community. The economy experienced higher unemployment rates and a loss of tax revenue, causing a local recession which has just begun improving over the last five years. Currently, Castle mort is designated as a Local Agency Military Base Recovery Area (LAMBRA), which provides unique tax incentive opportunities for aviation and economic development onsite. The addition of commercial air service at Castle is part of the community's overall plan to offset the negative economic impact of the Air Force base closure.

Communify Air Service

United Airlines served the community of Merced County until the deregulation of the airline industry in October 1978 and terminated its service in March 1979. From 1979 through 2006, Merced County area has been served by a variety of small airlines, providing service through Merced Municipal Airport (see Figure 5 on the next page).

West AirAJnited Express provided scheduled service to Fresno, San Francisco, and Los Angeles with frequencies of up to seven departures per day using BAe Jet Stream aircraft.

There has been no air service to California hub airports since 2001, despite significant population increases in the county and region.



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Fipure 5

April 1979 through February 1980

March 1980 through August 1981

June 1982 through September 1983

April 1984 through August 1987

August 1987 through May 1998

June 1998 through September 2001

September 2001 through November 2006

November 2006 to present

Air Pacific Airlines

Golden Gate Airlines

Inland Empire Airlines

Wings WedAmerican Air

West AirAJnited Express

SkywestKJnited Express

Scenic Airlines

Mesa Airlines

(Merced Municipal Airport, Strategic Development Plan (Draft Final Report), By DMJM Aviation, February 2007)

Castle Airport - The Community’s Airport

As the Air Force was going through the closure process at Castle Airport (the former Castle Air Force Base), the community developed a “Final Castle Air Force Base Reuse Plan” dated May 9, 1996 in collaboration with a large contingent of community representatives, educators and local government leaders. This master plan for the civilian reuse of Castle Airport and its accompanying Environmental Impact Report were adopted by the entire community through an extensive public participation process and local government approvals.

It is through direction laid out in this document that local agencies, specifically the County of Merced, have begun working to build Castle into a first-class commercial airport.



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Air Service Deficiencies

III. A Description of the Community’s Air Service Needs and Deficiencies

The analysis of Merced County’s air service needs stems from the community’s interest in maximizing Castle Airport’s potential as a commercial airport and business park.

As discussed in the above sections, Castle was historically used as an Air Force base, and was a strong economic driver for the immediate community, as well as the overall Central Valley. Once Castle Air Force Base was closed in 1995, it caused an economic vacuum in Merced County which has gradually improved through the efforts of various agencies.

The community, through their activities to develop a plan for the reuse of Castle Airport, identified several needddeficiencies which could be best served by commercial air service at Castle. Figure 6 below highlights the major deficiencies as well as those needs identified by Merced County Department of Commerce, Aviation and Economic Development with detailed descriptions of each point.

Fipure 6

i Rapid Growth - regional growth has been and is expected to continue growing at rates averaging 25% per every 5 years.

i Population growth estimates for the local region during the next 20 year period give a cumulative total of approximately 370,894 new residents.

i The new University of California at Merced will foster significant new travel needs, particularly to Los Angeles and points east.

k Riverside MotorSports Park Adjacent to Castle Airport - Castle Airport becomes a Destination

> The distance to the nearest hub airports exceeds 60 miles on congested highways.

i. Increased road trips are being linked to higher levels of pollution in the Central Valley, and local air travel is viewed as one potential solution.



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Mariposa Merced Madera Stanislaus

Section 3


18,156

249,116

147,201

519,276

Population Growth and Service to California Hub Airports

Since 2001, there has been little to no service in any of Castle’s surrounding communities to California hub airports. Despite significant population increases in the County and in the region (Counties of Stanislaus, Mariposa, Tuolumne, and Madera), airline service has not expanded mainly because airlines have looked only at Merced County population figures and because the available facility was inadequate to handle larger operations.

Merced County has shown a growth of over 33,000 people during the years 2000 to 2005. The five county region is projected to grow by approximately 175,717 in this decade (2000 - 2010), and another 195,177 in the next decade (20 10 - 2020), providing a cumulative population growth of approximately 370,894 people over the next 20 years (Great Valley Center, 2007).

As discussed in earlier sections, Castle is placed in the unique position of attracting travelers from several different catchment areas due to its location near two of California’s largest north- south corridors and the limitations of surrounding airports. According to information recently released from the California Department of Finance, Figure 6 shows population estimates for the surrounding areas, These numbers are within 94% of the figures for the 50 mile radius noted in Figure 3 above.

Figure 7

According to the above information, Castle Airport currently has a potential consumer base of approximately one million area residents. If growth patterns for the area remain consistent,

Small Communlty Air Service Development Program


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these numbers will increase dramatically over the next 10 years, creating an increase in airline travel needs and demand.

Uriiversity of California af Merced

In 1988, the University of California began planning for a new campus based on population and enrollment projections. At the end of a lengthy planning process, Merced was chosen as the site for the prestigious University’s loth campus. UC Merced opened its doors to its inaugural class in 2005, and has since grown in faculty, programs, and enrollment. Currently, plans are in place to cultivate UC Merced’s potential for cutting-edge research in the fields of environmentaVbiologica1 sciences, engineering, and medicine. In fact, UC’s Sierra Nevada Research Institute and engineering laboratories are located at Castle. Plans are also underway for building the University’s medical school.

The hrtherance of professional academic disciplines located in Merced will continue to dramatically change the face of the area’s economy, and ultimately, consumer travel needs and patterns. The location of the University and its focus on scientific and medical research will foster significant need for travelers to fly statewide, as well as nationally and internationally. Castle Airport’s near proximity to this important institution and onsite research centers will provide business and student travelers with convenient access to and from hub locations.

Riverside MotorSports Park

Riverside Motorsports Park (RMP) is a 1200-acre, motorsports-themed family recreation and entertainment center in development in Merced County, to be located adjacent to Castle Airport.

The Park plans include eight different types of tracks, including a paved super speedway; 3-1/2- mile, multi-configuration road course; 5,000-foot drag strip; kart course; integrated paved oval tracks; integrated dirt oval tracks; an off-road circuit; and a motocross course. Riverside Motorsports Park’s multiple tracks will provide a racing venue for every form of automobile, truck, motorcycle and kart racing-meeting the needs of professional and club racing sanctioning organizations across the United States.

A landscaped environment complete with RV facilities, picnic grounds, upscale food courts and



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family restaurants, video and game arcades, playgrounds and clean, attended restrooms, the park will be a motorsports and recreational destination for racers, race fans and families f?om California, the West, and the entire United States. In addition to motorsports events, the Park plans to feature mid-week racing and technical motorsports schools, music concerts, car shows and business center events (www.rmpracing.com, 2007), (see Figure 8 below). The Park will also be a major national research and testing facility.

The addition of this multi-venue park will enhance Merced County/Castle Airport's position as an airline passenger destination. Castle is also the closest airport to Yosemite National Park, another destination. Based upon experience of other airports near large racing venues, Castle should see a continuous stream of people visiting or supporting RMP coming and going through its passenger terminal. Convenient air travel fiom hub airports will be very important to the people of this market segment.

Figure 8



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http://www.rmpracing.com



Calvornia Regronal Air Service Plan -Air Service Meeds Assessment (2007)

Based upon the final report entitled “California Regional Air Service Plan - Air Service Needs Assessment,” (Mead and Hunt, 2007), Merced County’s Castle Airport exhibits the following passenger demand needs and capabilities (Figure 9):

Figure 9

LAX - “Results of the economic screening indicate that AtwaterMerced could support daily frequencies on either 30-seat or 37-seat aircraft. This initial screening indicates there is enough demand to warrant new service to Los Angeles Airport from AtwaterMerced.”

SFO - “Atwater/Merced appears capable of supporting multiple new daily flights on either 30-seat or 37-seat aircraft based on initial economic screening. Initial results indicate that there is sufficient beyond San Francisco traffic to offset the local market for service to be economically viable.”

DEN/PBX/SLC - “ AtwaterMerced is potentially capable of supporting two daily roundtrip flights to Denver Airport, Phoenix Airport, or Salt Lake City Airport on 50-seat regional jet aircraft.”

This service potential, as recommended in the Regional Air Service Plan, would provide an important link for area travelers to large flight hubs in Los Angeles and San Francisco, as well as important connections to major airports outside of California. Without the development of airline service at Castle, travelers are forced into lengthy commutes northbound or southbound to the larger airports, creating traffic and efficiency issues, which will only be exacerbated as the Central Valley’s population continues to grow.



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Strategic Plan

IV. A Strateeic Plan for Meeting Those Needs Under the Small Community Program:

A. Goals - 1) To provide convenient commercial airline passenger service at Castle Airport for Central Valley travelers to desired destinations currently not being -7 served and 2) have Castle Airport designated as an Air Service Development Zone. Objectives (measurable/deliverable methods to reach goals) B.

(1). (2).

Validate type of service and desired destinations Create new air service attraction program targeting two major and four affiliate or regional airlines (specific airline names will not be presented in this proposal) Conduct and direct airline visits Create and deploy a marketing program to create awareness of the new air service to the community and region

Hire an Airline Service Consultant Validate specific routes and aircraft type(s) to meet demand Identify airlines that appear compatible with the demand Establish an air service attraction program to reach out and meet with the identified prospective airlines

Create Incentive Package and Schedule for incentives Meet with airline representatives and give presentations Establish Air Service Contract with Airline Market new air service to potential passengers via several media formats (including; television, radio, newspapers, local magazines and periodicals, Castle Airport interactive web site, and personal visits

(10). Inaugurate airline service at Castle Airport (11). Evaluate and update marketing for continued promotion of air

service at Castle (1 2). Post inaugural activities

(3).

(4).

C. Action Steps to achieve these objectives

(1).

(2) . (3). (4).

(5). Create airline attraction presentations

(6). (7). (8). (9).

a. Contract with travel agencies to promote and sell airline services

Small Communtty Air Service Development Program


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MERGED COUNTY - Castle Airport Section 4

Strategic Plan

b. Contract with other companies for passenger support services

Contract with transportation agencies for connections to bus and tourist attractions Other activities as necessary to enhance the program

c.

d.

Goal: The project goal is to provide convenient commercial airline passenger service at Castle Airport for Central Valley travelers to desired destinations currently not being served. According to research and public comments by Mead and Hunt, there is a desire/demand to fly to LAX - Los Angeles (and vicinity), SFO - San Francisco, and hubs to the east such as; PHX - Phoenix, DEN - Denver, and SLC - Salt Lake City. It is the intention of the County of Merced to attract a carrier or carriers that will meet one, if not all of these needs.

The companion goal of this proposal is to have Castle AirportKommerce Center designated as an Air Service Development Zone. This designation will be an excellent fit for the type of development and targeted markets planned for Castle. See detailed explanation under Section XI.

Objectives: Through a recently completed marketing assessment, the County recognizes that there are several destinations not being served locally, (Section 111). Based upon this assessment and “passenger comments”, the County will clearly define the desired routes by order of preference and identify the airlines that are most likely to meet those routes with the preferred type of aircraft. The target airlines are not listed in this proposal.

The market assessment referred to specific types of aircraft by seating capacity, 30 or 37 seats and 50 seat regional jets. The aircraft that meet these criteria include but are not limited to:

.) Embraer EMB-120 Brasilia - 30 seats

.) SAAB 340 - 33 or 34 seats

.) Fairchild/Dornier 328 Jet - 30 or 34 seats

.) DeHaviland Dash 8 - 37 seats



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Strategic Plan

.) Embraer Regional Jet EN-145 - 50 seats

.) Bombardier Canadair Regional Jet (CRJ) - 50 seats

The County, working with their private partner, Federal Development, LLC and a hired professional airline attraction consultant, will create a marketing program including presentation materials for a new carrier to service the new proposed routes. Flexibility will be the key ingredient. For example, the County may believe LAX is the preferred route when in reality, an airline may desire to start service to SFO (the County would be willing to accept airline desires). The airline attraction program would include personal visits between County/Castle and Federal Development representatives, and airline officials.

An aggressive local area marketing plan (as a component part of the incentive package) will be developed to make potential five-county passengers aware of the new airline service. This program will include multi-media facets, including but not limited to; television, radio, newspapers, local magazines and periodicals, Castle Airport

interactive Web site, as well as personal visits to local businesses and organizations.

Action Steps: The CountyKastle Airport intends to be very aggressive in meeting the end goal of establishing the new air service at Castle. The County intends to be in a position of meeting with airline officials by Fall of 2007 and is targeting the end of the first quarter in 2008 to inaugurate the new service. The real timeline, when all is said and done, is for the County/Castle to do as much as possible, as quickly as possible, to start airline passenger operations at Castle Airport to one of the preferred destinations.



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Action Stem Timeline

Section 4

Strategic Plan

Begin Marketing to Begin Marketing to passenger support services

agencies for connections to bus

Create Incentive

For quarters five through eight we will continue post inaugural activities to insure that the County builds sufficient service use to reduce dependency on grant hnds. The County will continue to market and promote any service available at Castle for years to come through our non-airport budget process.



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Public-Private Partnership

V. A Description of Any Public-Private Partnership That Will Participate in the Project

Formal Partnership

Merced County is a local public governmental entity and is the current owner/operator of Castle Airport. The County, having already established an Asset Management Agreement, is now negotiating a formal development agreement with a private company called Federal Development LLC. Federal Development LLC will become Castle Airport’s professional Master Developer, bringing private equity and the know-how to develop Castle Airport and Castle Commerce Center’s potential into a first class airport and business park.

Federal Development proposes to develop the approximately 1900 acres of Castle Airport for use as professional offices and warehouses; retail centers; airline services and aviation related activities; air cargo and aircraft maintenance uses; a research and development park; and for hospitality, entertainment and leisure activities. Their marketing plan coincides with the goal of designating Castle Airport and Castle Commerce Center as an Air Service Development Zone. Castle’s designation as a Foreign-Trade Zone and as a Local Agency Military Base Recovery Area (LAMBRA) provides extra incentives for the location of both commercial air services and surrounding business developments.

The County of Merced, as lead entity, will be fully involved in the activities at Castle, in collaboration with the contracted Master Developer. The County will continue to submit grant proposals as funding opportunities arise, and will execute any federal grant awards received, as well as process associated grant documentation and oversee grant administration. The County’s Department of Commerce, Aviation, and Economic Development has been in the past and will continue to be the County’s “point” agency in the development of Castle Airport. They also possess extensive experience in FAA, Economic Development Administration (EDA) and Community Development Block Grant (CDBG) grant administration.

The County of Merced, in its role as owner/operator and lead entity, will also contribute as a major link to surrounding communities. Any development activities occurring at Castle Airport must follow the formal public approval process. This affords the public and community residents the opportunity to participate in the development of Castle Airport. Through this process, it is expected that the reuse of Castle Airport, and its kture airline service and business



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MERGED COUNTY - Castle Airport Section 5

Public-Private Partnership

opportunities will provide maximum benefit to the surrounding communities, including the greater Central Valley region.



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Description

Section 6

Funding

Funding Sources Total

U.S. DOT Airport Non-airport

Cash Cash In-Kind Cash in-Kind

VI. A Detailed Description of the Funding Necessary for Implementation of the Community’s Project, Including the Federal and Non-federal Contributions:

Attraction program:

Products

Travel

Section IV displays the two-year Strategic Plan broken down into elements. The Action Steps are hrther displayed chronologically. Table 6.1 below provides the Action Steps budget broken down by element and hnding sources:

$1 0,000 $1 0,000

$1 0,000 $20,000 $30,000

Table 6.1 Action Stem Budget

Incentive program:

Landing fee abatement

Marketing

Cost Reduction

$11,925 $11,925

$20,000 $240,000 $260,000

$603,000 $50,000 $653,000

Staffing:

Program administration

Consultant

Total

Percent of total project

Percent of cash contribution

$31,200 $36,898 $68,098

$10,000 $1 0,000

$643,000 $43,125 $320,000 $36,898 $1,043,023

61.65% 4.13% 30.68% 3.54% 100.0%

, 66.77% , 0.0% , 33.23% , 0.0% , 92.33%

The non-airport fbnding listed as $320,000 will come from two sources. The County of Merced and Federal Development, LLC will each contribute $160,000 cash to the project.



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Funding

A. Attraction Program: Consists of two main elements, Products and Travel. The products include all written an audio-visual products that can be sent and/or shown to prospective airlines to make them aware of and get them interested in Castle Airport. The budget for this item is $10,000. Travel was computed as 12 trips for 2 people at $1000 for each trip plus 6 trips for 1 person at $1000 each trip. The total amount for this item is $30,000 and will be used in the quest for an airline to service Castle Airport.

B. Incentive Program: Consists of three main elements, Landing Fee Abatement, Marketing, and Cost Reduction. The money identified here will be provided to the airline or reduced from money they would owe to the airport.

The landing fee abatement was computed as follows: Using the County of Merced Ordinance No. 1764 - Establishing Aircraft Landing and Parking Rates and Related Charges at Castle Airport, landing fees for 2008 are listed as $0.45/1000 pounds of Maximum Takeoff Weight (MTOW). Using the DeHaviland Dash 8, which has a MTOW of 36,300 pounds and expecting two landings per day at Castle, we compute the amount of landing fees to be abated for the first year of operation as $1 1,925.

The marketing component will consist of an aggressive local area marketing plan to make the potential five-county (Merced, Stanislaus, Madera, Mariposa, and Tuolumne) passengers aware of the new airline service. This program will include multi-media facets, including but not limited to, television, radio, newspapers, local magazines and periodicals, Chamber of Commerce inserts, Castle Airport interactive Web site, as well as personal visits to local businesses and organizations. $260,000 is budgeted for this item.

Cost reduction at $603,000 was established to assist the airline in paying some of its operating costs as they relate to Castle Airport. This amount is computed as $33,500 per month for 18 months. The airline can use this to pay the terminal rental cost or any other identified cost of operating at Castle Airport.

C. Staffing: Consists of in-kind work performed by three managers and clerical staff within CAED for grant program administration as follows: 10% of airport manager’s time (although we expect it will actually be quite a bit more)



Page 23 of 34


Funding

5% CAED department director 3% CAED assistant department director 3% clerical/accounting staff

The total line item amount of $68,098 includes salaries, payroll taxes and benefits paid by the County of Merced over a two year period.



Page 24 of 34

MERCED COUNTY - Castle Airport Section 7 Funding Management

VII. An Explanation of How the Community Will Ensure That Its Own Funding Contribution is Spent in the Manner Proposed:

If awarded grant hnds through the Small Community Air Service Development Program, monies, including non-airport revenue, will be placed in the Castle Airport Enterprise Fund, and will be managed, tracked and administered by the Merced County Department of Commerce, Aviation, and Economic Development and audited by the Merced County Auditor. Project activities and an action plan will be established in the CountyDepartment Budget Plan during the public budgetary process, as well as through the Master Developer Agreement.

Commitment to accept and administer the grant hnds will be approved by the Merced County Board of Supervisors, coinciding with the process for commitment and execution of the Master Developer Agreement. Private and matching hnds for the project will be obligated through the Merced County Board of Supervisors process to approve the submittal of the grant proposal, and by formal acceptance of an award.

The Merced County Department of Commerce, Aviation, and Economic Development has experience in successhlly managing both federal and state grant-funded projects and will diligently track all awarded funds including local fund contributions. The department is committed to abiding by any and all reporting requirements set forth by the federal Department of Transportation, and any other federal agency that has awarded grant funds for the development of Castle Airport.



Page 25 of 34


GranVProjed Management

VLTZ. Description of How the Community Will Monitor the Progress of the Grant Project:

Progress on the grant project will be monitored jointly by the County of Merced and the Master Developer. The monitoring process will be established through the creation of a Program Evaluation Committee. The Program Evaluation Committee will conduct monitoring activities on a quarterly basis, and report the findings of those activities at the end of each quarter to the County Chief Executive Officer (CEO). The committee’s composition will include CAED, Federal Development, and the Airport Consultant with reporting required to the County CEO and Board of Supervisors.

Audits of the fbnds will be prepared by the County Auditor, and an outside audit company as necessary, in addition to Commerce, Aviation and Economic Development Department’s submittal of any required reports to the Department of Transportation.



Page 26 of 34


Project Sustainment

IX. A Description of How the Community Plans to Continue With the Project if it is Not Self-sustaining After the Grant Expires:

The County of Merced Department of Commerce, Aviation, and Economic Development (CAED) will use fkds from the Small Community Air Service Development grant to attract new airline service and provide a marketing strategy and marketing activities to facilitate a smooth start-up transition for commercial flights. Once the grant period has expired and the hnds are exhausted, CAED will continue its efforts to appropriately manage and market Castle Airport through its Master Developer Agreement.

Continued Marketing

The Master Developer Agreement (currently being negotiated with Federal Development, LLC) is termed for a period of 30 years. During that time, the County of Merced is committed to collaborating for the economic and air service development at Castle Airport. Once airline service is established, the County of Merced and the Master Developer will continue marketing to local and regional business on a regular basis as a part of planned operating activities. The County recognizes this project as a priority, and continued activities in marketing and development will reap benefits for residents of local as well as regional communities. Development proformas include marketing hnds for the next 25 years.

Continued Economic Development

During the Master Developer Agreement period, efforts for economic development of Castle Airport will be ongoing. As new airline service attracts larger consumer flows into the County, Federal Development will be leveraging these new and existing local resources to attract new businesses including retail, hospitality and leisure to the site at Castle. It is anticipated that many of these businesses will negotiate with the County for lease space at Castle Airport. The development of new businesses and business opportunities at Castle will provide a significant revenue source with which to continue efforts to support air service and any needed improvements or additions.

To assist with rehabilitation of the former Air Force Base, the County recently designated Castle Airport and Castle Commerce Center as a Redevelopment Project Area. In addition to private



Page 27 of 34


Project Sustainment

equity through the Master Development Agreement, Tax Increment dollars will eventually provide additional knds and/or bonding ability to see that the facility reaches its %ll potential as a first class airport and business center.



Page 28 of 34


Previous Air Service Development Efforts

X. A Description of the Community’s Air Service Development Efforts over the Past Five Years and the Results of Those Efforts:

During Castle’s tenure as an active Strategic Air Command Air Force Base there were no efforts to develop commercial air service. However, since its closure as a military base, community agencies have been actively engaged in planning for and executing the civilian reuse of Castle.

As described in the Summary and Background section of this proposal, community agencies initially formed a Joint Powers Authority to guide the process for development. Although the P A was later dissolved, it was the first step in a long planning process and illustrates the communities’ consensus for the development of airline service at Castle. In 2001, Merced County became sole airport reuse authority and has seen over $7 million dollars invested by federal, state and local agencies to convert the airport from military to civilian status. All work and approvals (including the 14 CFR Part 139 Commercial Airport Certification inspection) are now complete.

Aggressive marketing of the airport and its capabilities and services has begun. Since 2005, Castle Airport has received many letters from local agencies and businesses in support of air service development at Castle, (Dole, Foster Farms, Joseph Gal10 Farms, Chambers of Commerce, and many others). These local agencies and businesses believe that Castle’s safety measures and capacity for airline and professional services (found nowhere else in the area) will provide the regional community with the best possible option for meeting the area’s current and fbture travel needs. Such amenities at Castle (reflecting the most recent development efforts) include:

> Castle is home to California’s 5* longest runway > Castle’s runway boasts 1000 feet of overrun (or stopway) on both ends for added

safety > State-of- the-art and h l l y operational air traffic control tower > 8000 feet of emergency runway P Existing passenger terminal and plans for a new, 100 passenger terminal > Abundant parking > Extensive and implementation-ready air service expansion capacity > No noise, flight or operations restrictions and no encroachment



Page 29 of 34


Previous Air Service Development Efforts

> Safe and immediate access to major roadways

Over the next six months and if awarded fbnding, Castle Airport will be sending informational letters and packets to prospective airlines as well as making telephone contact. In addition, the Airport Manager and a member of the Developer Team will attend the Jumpstart Conference in June 2007. The County will also be exploring options for hiring an airline consultant to assist in making contact with the appropriate individuals within the various target airlines. Finally, because of the airports’ tremendous capabilities, marketing has also begun on the international level.



Page 30 of 34


Legal Sponsor

XI. Designation of a Legal Sponsor Responsible For Administering the Program:

County of Merced - Department of Commerce, Aviation and Economic Development, Castle Airport, 2507 Heritage Drive, Atwater, CA 95301.

C O U N T Y

DEPARTMENT OF COMMERCE, AVIATION AND ECONOMIC DEVELOPMENT



Page 31 of 34

MERCED COUNTY - Castle Airport Part 2

Air Service Development Zone

XII. Support for Air Service Development Zone Designation

Merced County is seeking the designation of Air Service DeveloDment Zone for Castle Airport. The plans for Castle Airport/Airpark include a hlly developed commerce center that will offer retail, dining, hotel, entertainment, and professional services to area travelers. Interest in this commerce center includes attracting high-tech and international businesses to continue facilitating a progressive relationship with global communities. Also included are research centers, small/large business developments, commercial and industrial facilities. Big Creek Lumber, Cingular Wireless and UC Merced are already in place. Plans call for development of another 6.5 to 7 million sq. A. of facilities over the next 15-20 years.

Existing Airpark Land

Castle Airport and the adjoining Castle Commerce Center have approximately 1900 acres of available space for the development of airline service, aviation support activities, and a first-class business park. Facilities already existing at Castle include a very long runway, large ramp space, air traf€ic control tower, two international aviation flight training schools and corresponding student dormitories, and plans for a hll-service terminal. Castle also has buildings available for lease, as well as ample room for construction of build-to-suit facilities for new businesses. (See Castle Concept 3 Map, Attachment I ) .

Business Activity

Currently, there are 58 businesses located onsite at Castle. These include two international aviation schools: Sierra Academy of Aeronautics, training student pilots fiom China, and American School of Aviation, which trains students from India and elsewhere. Local aviation support businesses such as Gemini Flight Support, Fixed Base Operator are also in operation at Castle, as well as new corporations that have located to the site including Big Creek Lumber. Other industries that have expressed interest include crane support, laser and medical technology, pharmaceutical companies, and a Builders Exchange Expo Center.

Access to Major Transportation

As discussed in previous sections of this proposal, Castle Airport is strategically positioned in the middle of the Central Valley, California, directly adjacent to two of California’s major north- south vehicle corridors. State Highway 99, Interstate 5, as well as a major East-West corridor, State Highway 152, provide access to Merced County and Castle Airport. These roadways will provide passenger vehicle traffic and shipping/cargo traffic with safe and convenient entrance into Merced County and Castle Airport. The County is also served by two railroads, Burlington Northern Santa Fe (BNSF) and Union Pacific (UP), which run and maintain track throughout the area communities (including a BNSF spur onto the Castle property), offering unique shipping opportunities to companies that locate to the area.



Page 32 of 34

MERCED COUNTY - Castle Airport Part 2

Air Service Development Zone

Community Demographics

The County’s population is rapidly increasing, in fact, it has risen 23% in the last 15 years. Median household income has risen 41% in 13 years while unemployment rates have dropped 44% since the year 2000. There are 20% more people employed in the County than in 1990 and household ownership has risen 15.3% during the last decade. Daily traffic on Merced County’s busiest highway (Rte 99) has grown from 40,000 to 60,000 in a little over 10 years. There is no question, the growth in the County, particularly over the last 5-7 years greatly outpaces most counties in the state.

GOAL: If awarded an Air Service Development Zone Designation, Merced County will link the Zone’s image to development plans and enlist the assistance of the Departments’ expertise in locating resources to complete full development, establishment of jobs and attract new tenants.

Merced County is truly excited about the expected development of Castle Airport air services and commerce expansions. We look forward to being a part of the Small Community Air Service Development Program and a possible designation as an Air Service Development Zone.



Page 33 of 34


LIST OF ATTACHMENTS

Attachments

Attachment 1 ......................................................... Castle Concept 3 Map

Attachment 2.. ..................................... .14 CFR Part 139 Certification Letter

Attachment 3 ...................................................... California Counties Map

Attachment 4. ............................. ..Federal Development, LLC Letter of Intent

Attachment 5.. ...................... Atwater Chamber of Commerce Letter of Support

Attachment 6 . . ...................... Sierra Academy of Aeronautics Letter of Support

Attachment 7. .................................. .Gemini Flight Support Letter of Support

Attachment 8. . .......................... .Riverside Motorsports Park Letter of Support

Small Community Air Service Development Program Docket Number OST--2007-27370

Page 34 of 34

c

Attachment 2

U.S. Department of Transportation

Federal Avizition Administration

Western-Pacifc Region Airports Division

P.O. Box 92007 Los Angeles, CA 90009

August 4, 2006

Mr. Scott C. Malta AAE/CAE Ai rpo r t Manager Castle Airport 2507 Heritage Drive Atwater, California 95301

Dear Mr. Malta:

Castle Airport Atwater, California

L r r i t l d AF-qort Certification

The Castle Airport has successfully completed the following requirements in the process of their Class I, Part 139 Airport Certification:

0 In accordance with 14 CFR Part 139.103 (a)(b) the Management of the Castle Airport submitted to this office an application for a Class I Airport Operating Certificate and two copies of the Castle Airport Operations Manual (ACM) for approval. The application was reviewed and was found to be complete and correct. The ACM was later reviewed, revised, stamped and approved by this office as well.

e On July 24, 25 and 26, 2006 a fully credentialed Airport Certification/Safety Inspector from this office conducted the Initial Airport Inspection for the Castle Airport in accordance with the procedures stipulated in F R A Order 5280.b1. Some discrepancies were noted which were brought to the attention of the Castle Airport Management for correction. A formal Letter of Correction (Lot) will be issued by this office at a later date and the items will be corrected. None of the discrepancies, however, would automatically disqualify the Airport for Class I certification.

To date, the only requirement needing to be fulfilled by the Castle Airport is written documentation that air carrier service will begin on a certain date as stipulated in 14 CFR Part 139.107(a).

If you have any questions or concerns about the inspection, call me at (310) 725-3611 or e-mail steven. [email protected] .____ ___-_---__

Sincerely,

ORIGINAL SIGNED BY STEVEN A. OETZELL

Steven A. Oetzell Airport Certification/Safety Inspector

mailto:[email protected]

Attachment 3

OREGON

San Bernardino

Attachment 4

April 16, 2007

Mr. John Fowler, Director Merced County, Department of Commerce, Aviation and Economic Development Castle Airport 2507 Heritage Dr. Atwater, CA 95301

RE: Letter of Commitment For Marketing and Support

Dear Mr. Fowler;

Federal Development LLC., is excited about the prospect of having commercial passenger service flying into and out of Castle Airport. As the County’s business partner, we are committed to the County’s efforts to attract passenger service. Please accept this letter of commitment as a part of your proposal for the Department of Transportation (DOT): “Small Community Air Service Development Program, Docket Number OST-2007-27370.”

Federal Development, LLC., is willing to commit $160,000 of marketing and support over the next two year period toward attracting and retaining commercial passenger service, if and when the DOT grant is awarded.

Thank you for bringing this opportunity to our attention. We look forward to the ability to fly commercially from Castle Airport to many of our business destinations.

Castle Commerce Center 1900 Airdrome Entry Atwater, CA 95301

Tel: (209) 723-6000, Fax: (209) 723-6006

#-

Attachment 5

--

Mr. ScottMalta Airpwt Manager Castle Airport - Aviation & Development Center 2507 Heritage Dr. Atwater, CA 95301

RE: Smali Community Air Service Development Grant, Docket OST-2007-27370

Dear Mr. Malta:

1 am writing OR behalf of the Atwater Chamber &Commerce and to express our support for passenger airline SeNice at Castle Airport. 0 behalf of our Board of Directors and the businesses within this community that we represent we believe that Castle is an exceptional airport and an ideal location for passenger service.

Castle is convenicrttfy located, essentially in the center of 8 rapidly growhg County, making it a natural cboice for the business and pleasure traveler. Castle has a long runway and extensive parking areas for aircraft and vehicles.

We look forward to the growth of passenger services from Castle Airport to other locations, particularly those that service business centers on the West Coast and we feel it is time for Castle to save that need, Please contact me at 209-358-1526 if t k e is anything further needed in regards to supporting this timely endeavor.

Sincerely, * Robert E. Rodarte Jr. 2006-2007 President Atwater Chamber of Commerce

Attachment 6

26 April 2007

John Fowler Director Department of Commerce, Aviation and Economic Development 2507 Heritage Drive Atwater, CA 95301

Re: Passenger Service at Castle Airport ( M E R )

Dear Mr. Fowler:

- 1 Ow compmy wisms io ?&e this opportiiiitj- to zxprcss s i t r d ~ ~ o r t $2: passenger airline service at Castle Airport. Castle is an excellent airport and an ideal location for passenger service in a rapidly growing area. Castle is convenient for traveler’s departures and arrivals. Castle’s 1 1,800 foot runway, extensive aircraft ramp area and other infrastructure makes it very practicable and safe for passenger service. Gemini Flight Support has the necessary equipment and trained staff to support a passenger carrier.

Castle’s location, essentially in the center of Merced County makes it a natural choice for the business and pleasure traveler. Castle is not encroached by housing and has no noise or hours of operations restrictions. It is a natural location for passenger service now and expanded services to this community in the future.

Castle Airport is uniquely equipped in California’s Central Valley to accommodate growth of passenger service requiring larger aircraft that would fly to business centers in the West Coast and beyond.

President Castle Knights Aviation, Inc. dba Gemini Flight Support

SPT:ks

Attachment 7

SIERRA ACADEMY OF AERONAUTICS www.sierraacademy.com

CASTLE hKPOKT 2305 Jetlifl Drive, Atwater, CA 95301 T(209) 722-7522 F(209) 722-7753 LlveKNOKE ~ W O K T 550 Airway Elvd. Livermore, CA 94551 T(925) 443-6100 F(925) 43-61 33

April 26, 2007

Mr. Scott Malta Airport Manager, Castle Airport 2507 Heritage Drive Atwater, CA 95301

Dear Mr. Malta,

I would like to express how the importance of an Airline Passenger Service is very much needed here in Atwater and how it would be very beneficial to our Company. Our manngem-pnt travpis by airiine nnccpngpr r------ ~pr\ljcp fer h l l ~ j f i ~ ~ ~ c\fi yp=illlr 3"'"' hg=;c "---"'

And we also have many students from other countries coming and going from our flight school and it would also be very beneficial for them as well.

President

http://www.sierraacademy.com

Attachment 8

27 April 2007

Mr. Scott C. Malta, AAE/CAE Airport Manager Castle Airport - Aviation 8, Development Center 2507 Heritage Dr. Atwater, CA 95301

Dear Mr. Malta:

Riverside Motorsports Park is a $250 million motorsports development project that was granted entitlements last December (2006) by the Merced County Board of Supervisors. The location of our development project is immediately adjacent to Castle Airport. Once completed, it will be the largest and most advanced motorsports facility in the world, bringing world class motorsports and world-wide racing fans to Merced County. (Please visit our website at www.RMPracing.com for additional information.)

Internal marketing estimates exceed 750,000 guests annually visiting our facility, with over half that number originating from outside a 200 mile radius and extending internationally. Quite simply, more than 350,000 people represent a target demographic that would utilize air travel as their primary means to attend events at our park. Additionally, motorsports teams and business travelers would increase that number by a conservative 10%.

Our strategic decision to locate our project within Merced County was and continues, in part, to be attributed to Castle Airport and its ability to attract commercial airline services. That Castle Airport is now a candidate for a Grant associated with the Small Community Air Service Development Program is an important first step to broad-based airline service growth. If there is anything that Riverside Motorsports Park can do to assist in the progressive development of Castle Airport, please contact me directly.

Very truly yours,

/ John F.S. Condren Chairman & CEO

http://www.RMPracing.com

APPENDIX Page 1 of 3

SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM

DOCKET OST-2007-27370

SUMMARY INFORMATION

All applicants must submit this information along with their proposal. In addition, applicants

- must also f i l l out form SF424 on http://www.grants.gov. (See Appendix C for the SF424 filing

process)

A. APPLICANT INFORMATION: (CHECK ALL THAT APPLY)

Not a Consortium Interstate Consortium Intrastate Consortium

1 Community now receives EAS subsidy - Not this AiVod

Community (or Consortium member) previously received a Small Community Grant If previous recipient, expiration date of grant:

B. PUBLIC/PRWATE PARTNERSHIPS: (LIST ORGANIZATION NAMES)

- Public

1. County of Merced

Private

1. Federal Development, LLC

2. 2.

3. 3.

4. 4.

c. PROJECT PROPOSAL: (CHECK ALL THAT APPLY)

Marketing c] Upgrade Aircraft 0 Personnel Increase Frequency

Travel Bank 0 Service Restoration

NewRoute

0 Low Fare Service

0 Subsidy

http://www.grants.gov


Surface Transportation Regional Service 0 Other (specify)

0 Revenue Guarantee 0 Launch New Carrier

Start Up Cost Offset I First Service

0 Study 0 Secure Additional Carrier

D. EXISTING LANDING AIDS AT LOCAL AIRPORT:

Full ILS 0 OuterMiddle Marker Published Instrument Approach

I Localizer Other (specify) - Control Tower, PAPI, AWOS

E. PROJECT COST:

Federal amount requested:

Total local cash financial contribution:

Airport funds:

$643,000

$320,000 *

$320,000 - Cash, as shown above Non-Airport funds:

State cash financial contribution: $160,000 - * Part of Cash Existing funds:

New funds:

Airport In-kind contribution:

(amount & description)

Other In-Kind contribution:

(amount & description)

Total cost of project:

F. ENPLANEMENTS:

None 2000

None 200 1

None 2002

$160,000 - * Part of Cash

$43,125 Landing Fee Abatement & Program Admin.

$36,898

Staff Time & Program Admin.

$1,043,023

None

None

2003

2004 ___-

None 2005


G.

PROCESS?

IS THIS APPLICATION SUBJECT TO REVIEW BY STATE UNDER EXECUTIVE ORDER 12372

0 a. This application was made available to the State under the Executive Order 12372

Process for review on (date) -

b. Program is subject to E.O. 12372, but has not been selected by the State for review.

c. Program is not covered by E.O. 12372.

H. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? (IF “YES”, PROVIDE

EXPLANATION)

w No 0 Yes (explain)

APPLICATION FOR FEDERAL ASSISTANCE 2. DATE SUBMITIED

A-27-07 Applicant Identifier 1

I - . I

13. DATE RECEIVED BY STATE I State Application Identifier 11. TYPE OF SUBMISSION: I

%e%: MR.

Application

U Construction

First Name: SCOTT

_________. - -_ - -. BY FEDERAL AGENCY

Pre-application

3 Construction

State: CA

Non-Construction 5. APPLICANT INFORMATION

I c! NonConstruction 1

Zip Code 95301

Legal Name:

COUNTY OF MERCED - CASTLE AIRPORT

'hone Number ( w e area code)

I Organizational DUNS: 839845682

Fax Number (gve area code)

Address: Street:

2507 HERITAGE DR.

(209) 3857686

1 city: ATWATER

(209) 383-4959

I MERCED

a. Applicant 18TH DISTRICT, CARDOZA

b. Project

Country:

6. EMPLOYER IDENTIFICATION NUMBER (EM).' USA

SEPTEMBER 2007

~ @ - ~ ~ ~ a H ~ B 8. TYPE OF APPLICATION:

SEPTEMBER 2009

w New 1 1 Continuation 1 Revision Revision, enter appropriate letter(s) in box(es)

0 3 See back of form for description of letters.)

Other (specify)

e. Other

f. Program Income IN-KIND

I O . CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER:

!?iJOJ-[cq[qq PAYMLNTS FOR SbALL.COMMUNiTY AIR SERVICE DEVELOPMENT PGM TITLE Name of Pro ram).

12. AREAS AFFECTED BY PROJECT (Cities. Counties, States, efc.):

MERCED COUNTY

15

.%

w

80,023 . W

13. PROPOSED PROJECT Start Date: I Ending Date:

320,000

kganizational Unit: Fpartment: .OMMERCE. AVIATION AND ECONOMIC DEVELOPMENT Xvision:

liddle Name CHARLES

B. NAME OF FEDERAL AGENCY: DEPARTMENT OF TRANSPORTATION

11. DESCRIPTIVE TITLE OF APPLICANTS PROJECT:

DOCKET OST-2007-27370

ATTRACTION AND ESTABLISHMENT OF NEW AIR SERVICE

ESTABLISHMENT OF AIR SERVICE DEVELOPMENT ZONE

Yes If "Yes" attach an explanation. -@ No I W

1,043,023. g. TOTAL

18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS API dCATIONIPREAPPUCATION ARE TRUE AND CORRECT. THE OCUMENT HAS BEEN DULY AUTHORIZED BY THE GOVERNING BODY OF THE APPLICANT AND THE APPLICANT WILL COMPLY WITH THE TTACHED ASSURANCES IF THE ASSlSTANCE IS AWARDED.

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