2008 Project Abstract - AirlineInfo · Project Abstract Merced County, CA ... Introductory...
Transcript of 2008 Project Abstract - AirlineInfo · Project Abstract Merced County, CA ... Introductory...
Small Community Air Service Development Program – Docket # OST-2008-0100
Merced County – Castle AirportProject Abstract
Merced County, CA – Castle Airport’s proposal for Small Community Air Service DevelopmentProgram funds includes two project goals: 1) establish and market convenient commercial airlineservice and Castle Airport and make it the airport of choice for inbound and outbound regionaltravelers in the Central Valley to desired destinations currently not being service; and 2) ObtainAir Service Development Zone designation at Castle Airport.
Nearly a million people live within a 50 mile radius of Castle Airport and the two closest airportshave either recently reduced, or ceased air service altogether. Traveling to airports inSacramento or San Francisco often involves lengthy trips which further impacts the alreadycongested roadways and adds to the valley’s existing severe air pollution problem. Castle isstrategically located in the center of the Great Central Valley of California and directly adjacentto two of the major north-south roadways. A recent regional air service assessment indicates theMerced County area is capable of supporting daily flights on a 30 – 37 seat jet aircraft to LAXand SFO, as well eventually supporting expanded daily service to the Denver, Phoenix or SaltLake City area.
Castle Airport, boasting California’s sixth longest runway, is fully equipped and FAA-certifiedto land a variety of jet aircraft, with a new 150 passenger terminal opening in June 2008. By firstestablishing regular, passenger jet service to at least one hub destination, with an immediate planto implement marketing service awareness and expansion, Castle Airport will become the airportof choice for the Central Valley region. Obtaining an Air Service Development Zonedesignation will only enhance the 1996 community-approved Reuse Plan for the former militarybase. The facility includes 1900 acres of available space for development of airline service,aviation support activities and a first-class business park.
Key objectives of this proposal are to establish regional jet air service to desired destinationscurrently not being served; create an air service attraction and expansion program targetingmajor and/or regional airlines; create and rapidly deploy an extensive air service advertising andawareness campaign utilizing a combination of traditional and innovative marketing strategies;and ultimately become a catalyst for regional industry growth, the travel and tourism sector, localbusinesses, and the University of California, Merced.
Merced County – Castle Airport will, with funding assistance from the Small Community AirService Development Program, establish passenger service by the end of 2008; contract forprofessional marketing services to launch an interactive Internet website for advertising,promotion and sales of airline service; host media events, introductions and presentations to localgovernments, Chambers of Commerce and regional economic development corporations toannounce service availability; provide billboard advertisements for Castle Airport and CastleCommerce Center; create electronic lists of travel agencies, major area businesses andeducational institutions, hotels/motels/casinos for letters, email and notifications regarding CastleAirports services and promotions; and regular press releases of new airline routes, fares andpromotions. Continued marketing efforts will enhance service expansion to position CastleAirport as the airport of choice for Central Valley regional travelers, business and aviationindustry leaders.
Proposal Under the Small Community Air Service Development Program
Docket Number: OST-2008-0100
Community: Merced County
Legal Sponsor: Merced County
DUNS Number: 839845682
SMALL COMMUNITY AIR SERVICE DEVELOPMENT PROGRAM2008 Proposal
TABLE OF CONTENTS
Summary and Background......................................................................................................Page 1Narrative ................................................................................................................................ Page 3Section I – Existing Air Service............................................................................................. Page 5Section II – Historical Air Service......................................................................................... Page 9Section III – Previous Air Service Development Efforts......................................................Page 12Section IV – Description of Air Service Needs ....................................................................Page 14Section V – Strategic Plan ....................................................................................................Page 19Section VI – Public-Private Partnerships..............................................................................Page 24Section VII – Funding Detail ................................................................................................Page 26Section VIII – Funding Management ...................................................................................Page 29Section IX – Grant/Project Management ..............................................................................Page 30Section X – Plan to Sustain Project Beyond Grant...............................................................Page 31Section XI – Legal Sponsor ..................................................................................................Page 33Section XII – Support for Air Service Development Zone Designation ..............................Page 34
FIGURESFigure 1 ...................................................................................................................................Page 2Figure 2 ...................................................................................................................................Page 4Figure 3 ...................................................................................................................................Page 6Figure 4 ...................................................................................................................................Page 8Figure 5 ...................................................................................................................................Page 9Figure 6 .................................................................................................................................Page 11Figure 7 .................................................................................................................................Page 14Figure 8 .................................................................................................................................Page 15Figure 9 .................................................................................................................................Page 17Figure 10 ...............................................................................................................................Page 18Figure 11 ...............................................................................................................................Page 35
TABLESTable 7.1 ...............................................................................................................................Page 26
LIST OF ATTACHMENTS .............................................................................................Page 36
APPENDIX B – SUMMARY INFORMATION ...........................................................................
MERCED COUNTY – Castle Airport Summary & Background
Small Community Air Service Development Program Page 1 of 36
Docket Number OST-2008-0100
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 II. 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 around-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 (JPA) that included the City of Merced, City of Atwater and County of Merced took
over reuse authority of the Castle properties.
This JPA made many short-range property decisions that did not provide long-range value. 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 a
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
airport and international business park. Several foreign companies have shown significant
MERCED COUNTY – Castle Airport Summary & Background
Small Community Air Service Development Program Page 2 of 36
Docket Number OST-2008-0100
interest/intent 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 to bring an
airline to Castle?” 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
MERCED COUNTY – Castle Airport Narrative
Small Community Air Service Development Program Page 3 of 36
Docket Number OST-2008-0100
Introductory 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, California, as well as
the surrounding communities of Mariposa, Tuolomne, Madera and Stanislaus. This section will
explore the marketing and incentives that will be used to sustain and expand new airline service
at Castle Airport and the surrounding aviation industrial park.
Merced County – Castle Airport sits, with the State’s sixth longest runway, 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 extensive automobile travel
necessary to reach these airports is inconvenient 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 a severe air pollution problem area; and a more pleasant,
less expensive and 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, State and local funding, more than $17 million has been
invested in upgrades for Castle Airport. The facility was inspected in May 2008, by the FAA
and certified as meeting all requirements of a 14 CFR Part 139 Certificated Commercial Airport,
(Attachment 1). Castle Airport has a full suite of navigational aids including an operating FAA
certified control tower and airfield lighting, a fully staffed and functioning Aircraft Rescue and
Firefighting unit, and a fixed base operator with more than adequate fuel storage and ground
support equipment. A new 150 passenger terminal will open in June 2008, (See Figure 2 – Floor
Plan).
MERCED COUNTY – Castle Airport Narrative
Small Community Air Service Development Program Page 4 of 36
Docket Number OST-2008-0100
Castle Airport is within 10 miles of the Merced Municipal Airport (MCE), a Part 139 airport
with a limited, Essential Air Service subsidized operation that terminated on May 31, 2008 and a
short 5,903 foot runway, 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 would have no such limitations.
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 business/airpark.
Much of the Master Developer’s energies are devoted toward the airpark, cargo operations on the
airfield and outreach/marketing for the entire property.
Figure 2
MERCED COUNTY – Castle Airport Section 1
Existing Air Service
Small Community Air Service Development Program Page 5 of 36
Docket Number OST-2008-0100
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 at
Castle Airport or Merced Municipal Airport, however, the County is in the final stages of
negotiation with an airline to provide passenger jet service from Castle Airport to Reno and
North Las Vegas, Nevada. Barring any unforeseen developments, service should commence in
mid-July 2008, (Attachment 2). 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 factors
which continue to affect the progression of plans for air service at Castle Airport.
Atwater/Merced Catchment Area
The Atwater/Merced 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, (Figure 3, next page).
Local area travelers use one of six airports when diverting from the Castle or Merced Municipal
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, further impacting existing highway congestion.
Travelers seeking outside the area airports point to a lack of major air service available 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. With Merced Municipal
Airport losing its service and Modesto Airport’s recent reduction in air service, this leaves quite
a void in availability of air service. 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
MERCED COUNTY – Castle Airport Section 1
Existing Air Service
Small Community Air Service Development Program Page 6 of 36
Docket Number OST-2008-0100
from these areas, thereby, more efficiently serving the needs of Central Valley flyers. Travel to
other airports to make connecting flights out of state most often coincides with peak travel times
on the major roadways, further impacting the daily commuter traffic. A new airline at Castle
providing a more convenient, efficient, and cost-effective service to central California flyers will
help alleviate the already congested traffic moving toward the Bay Area airports and
Sacramento, as well as the southern-moving traffic toward Fresno.
Figure 3
Figure 3 - Castle Airport Catchment Area
Population Within: 50 Miles – 1,056,175
75 Miles – 3,790,664
MERCED COUNTY – Castle Airport Section 1
Existing Air Service
Small Community Air Service Development Program Page 7 of 36
Docket Number OST-2008-0100
Merced Municipal Airport
The Merced Municipal Airport, as mentioned above currently provides no air service. Mesa
Airlines (dba Air Midwest) terminated service May 31, 2008. This service, subsidized under the
Essential Air Service Program [EAS], had consisted of three to four daily departures to Las
Vegas/McCarran Airport, using Beech 1900 aircraft. Although this service provided travelers
with access to connecting flights to national destinations, the frequency and timeliness of Merced
Municipal Airport has been limited, and at times unpredictable. The EAS support was extended
to Great Lakes Aviation in 2007, but no action has occurred under that contract. Modesto
Airport, located 40 miles north of Castle, provides daily flights to San Francisco (SFO); service
to Los Angeles (LAX) was recently cancelled.
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 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 middle 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 new airline service at Castle. Plans are in the final stages of approval,
pending review and approval of the Environmental Impact Report, to build the new Atwater-
Merced Expressway, which will afford even greater accessibility to Castle Airport, (Figure 4).
MERCED COUNTY – Castle Airport Section 1
Existing Air Service
Small Community Air Service Development Program Page 8 of 36
Docket Number OST-2008-0100
Figure 4
MERCED COUNTY – Castle Airport Section 2
Historical Air Service
Small Community Air Service Development Program Page 9 of 36
Docket Number OST-2008-0100
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 II.
There were several operating units based at Castle during World War II, including the 93rd 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 (1957)
around the world. (see Figure 5)
Figure 5
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
MERCED COUNTY – Castle Airport Section 2
Historical Air Service
Small Community Air Service Development Program Page 10 of 36
Docket Number OST-2008-0100
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 aircraft were transferred to other bases, and Castle was finally closed in
1995, thereby ending the history of the famous 93rd 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 Airport 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.
Community 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 6 on the next page).
West Air/United 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.
MERCED COUNTY – Castle Airport Section 2
Historical Air Service
Small Community Air Service Development Program Page 11 of 36
Docket Number OST-2008-0100
Figure 6
Service Period Airline
April 1979 through February 1980 Air Pacific Airlines
March 1980 through August 1981 Golden Gate Airlines
June 1982 through September 1983 Inland Empire Airlines
April 1984 through August 1987 Wings West/American Air
August 1987 through May 1998 West Air/United Express
June 1998 through September 2001 Skywest/United Express
September 2001 through November
2006 Scenic Airlines
November 2006 to May 31, 2008* Mesa Airlines
(Merced Municipal Airport, Strategic Development Plan (Draft Final Report), By DMJM
Aviation, February 2007; *Mesa Air Group Press Release, Phoenix, May 14, 2008)
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 and make
optimal use of its prime central valley location and lengthy runway.
MERCED COUNTY – Castle Airport Section 3
Description of Community’s Air Service Developments
Small Community Air Service Development Program Page 12 of 36
Docket Number OST-2008-0100
III. 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
JPA 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 2000, Merced
County became sole airport reuse authority and has seen over $17 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 inspections) are
complete, except for the passenger terminal which will be ready for use the end of June 2008.
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 Gallo Farms, Chambers of
Commerce, and many others). These local agencies 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 future travel
needs. Such amenities at Castle (reflecting the most recent development efforts) include:
Castle is home to California’s 6th longest runway
Castle’s runway boasts 1000 feet of overrun (or stopway) on both ends for added safety
State-of- the-art and fully operational air traffic control tower
8000 feet of emergency runway
Newly constructed 150 passenger terminal (will open June 30, 2008)
Abundant parking
Extensive and implementation-ready air service expansion capacity
No noise, flight or operations restrictions and no encroachment
Safe and immediate access to two major north-south California roadways
MERCED COUNTY – Castle Airport Section 3
Description of Community’s Air Service Developments
Small Community Air Service Development Program Page 13 of 36
Docket Number OST-2008-0100
Over the next six months and if awarded funding, Castle Airport will finalize a formal contract
with an airline to begin service in mid-July 2008 and market this available service to the local
and surrounding community. In addition, the Airport Manager and a member of the Developer
Team will continue marketing Castle Airport’s strategic central valley location, lengthy and Part
139-certified runway and control tower, brand new 150 passenger terminal and abundance of
parking to airliner carriers that meet the criteria specified above as well as to industry partners
looking for a location to establish and/or expand their aviation related businesses. The County
has hired an airline consultant to promote the airport with various target airlines. Finally,
because of the airports’ tremendous capabilities, marketing has also begun on the international
level.
MERCED COUNTY – Castle Airport Section 4
Description of Community’s Air Service Needs
Small Community Air Service Development Program Page 14 of 36
Docket Number OST-2008-0100
IV. 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 various agencies.
The community, through their activities to develop a plan for the reuse of Castle Airport,
identified several needs/deficiencies which could be best served by commercial air service at
Castle. Figure 7 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.
Figure 7
Rapid Growth – regional growth has been and is expected to continue
growing at rates averaging 25% per every 5 years.
Population growth estimates for the local region during our current 20 year
period give a cumulative total of approximately 370,894 new residents.
The new University of California at Merced will foster significant new travel
needs, particularly to Los Angeles and points east.
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.
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.
MERCED COUNTY – Castle Airport Section 4
Description of Community’s Air Service Needs
Small Community Air Service Development Program Page 15 of 36
Docket Number OST-2008-0100
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 (2010 – 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 8), population estimates for the
surrounding areas are within 99% of the figures for the 50 mile radius noted in Figure 3 above.
Figure 8
County Population
Mariposa 18,156
Merced 249,116
Madera 147,201
Stanislaus 519,276
Tuolumne 57,347
Total 991,096
According to the above information, Castle Airport currently has a potential consumer base of
approximately one million area residents. And if growth patterns for the area remain consistent,
these numbers will increase dramatically over the next 10 years, creating an increase in airline
travel needs and demand.
MERCED COUNTY – Castle Airport Section 4
Description of Community’s Air Service Needs
Small Community Air Service Development Program Page 16 of 36
Docket Number OST-2008-0100
University of California at 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 10th 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
environmental/biological 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 furtherance 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, located in the heart of California's
Central Valley.
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
family restaurants, video and game arcades, playgrounds and clean, attended restrooms, the park
MERCED COUNTY – Castle Airport Section 4
Description of Community’s Air Service Needs
Small Community Air Service Development Program Page 17 of 36
Docket Number OST-2008-0100
will be a motorsports and recreational destination for racers, race fans and families from
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 9 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 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 from hub airports will be very important to the people of this
market segment.
Figure 9
MERCED COUNTY – Castle Airport Section 4
Description of Community’s Air Service Needs
Small Community Air Service Development Program Page 18 of 36
Docket Number OST-2008-0100
California Regional Air Service Plan – Air Service Needs 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 10):
Figure 10
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.
LAX - “Results of the economic screening indicate that Atwater/Merced could
support daily frequencies on either 30-seat or 37-seat jet aircraft. This initial
screening indicates there is enough demand to warrant new service to Los
Angeles Airport from Atwater/Merced.”
SFO – “Atwater/Merced appears capable of supporting multiple new daily
flights on either 30-seat or 37-seat jet 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/PHX/SLC – “Atwater/Merced 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.”
MERCED COUNTY – Castle Airport Section 5
Strategic Plan
Small Community Air Service Development Program Page 19 of 36
Docket Number OST-2008-0100
V. A Strategic Plan for Meeting Those Needs Under the Small Community Program:
Goal – 1) Establish and market convenient commercial airline passenger service at
Castle Airport and make it the airport of choice for inbound and outbound regional
travelers in the Central Valley to desired destinations currently not being served.
Nearly a million people live within a 50 mile radius of Castle Airport, including large
concentrations of population in the Fresno and Modesto areas. It is the intent of the
County of Merced to promote Castle Airport to achieve its goal of becoming the airport
of choice for air carrier and aviation industry services to the Central Valley and beyond.
Regional travelers also indicate, according to research and public comments gathered by
Mead and Hunt Consultants, 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, DIA –
Denver, and SLC – Salt Lake City.
Last year was the first year in which more travel was purchased online than off-line in
the United States, according to the PhoCusWright Consumer Travel Trends Survey. The
study said that 51 percent of U.S. travel was booked online in 2007, and it projected that
percentage to increase to 56 percent in 2008 and 60 percent in 2009.
Objectives: (measurable/deliverable methods to reach goals)
(1). Establish regional jet air service at Castle.
(2). Create air service attraction and expansion program targeting additional major
and/or regional airlines (specific airline names will not be presented in this
proposal).
(3). Conduct and direct airline visits.
(4). Create and deploy an aggressive 24/7 advertising and air service awareness
campaign, combining traditional marketing opportunities with proven Internet
marketing and promotion strategies targeting regional travelers and the business
community.
(5). Become a catalyst for growth for regional industry, the travel and tourism sector,
local businesses and the University of California.
MERCED COUNTY – Castle Airport Section 5
Strategic Plan
Small Community Air Service Development Program Page 20 of 36
Docket Number OST-2008-0100
Through a recent marketing assessment, the County recognizes that there are several
destinations not being served locally, (Section IV). 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 of 30, 37
or 50 seat regional aircraft. 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
Embraer Regional Jet ERJ-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 promoting Castle Airport’s availability for new carriers to initiate
service to the proposed routes. Flexibility will be the key ingredient. For example, the
County believes 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 has been developed to make potential five-
county passengers aware of the new airline service. This program includes multi-media
facets, including but not limited to; television, radio, billboards, newspapers, local
magazines and periodicals, as well as personal visits to local businesses, organizations
and government centers. In addition, Castle Airport will create and deploy an Internet
Marketing Campaign to include:
MERCED COUNTY – Castle Airport Section 5
Strategic Plan
Small Community Air Service Development Program Page 21 of 36
Docket Number OST-2008-0100
1. Introduction of a new interactive website for Castle Airport.
2. Integration of conventional marketing efforts with internet technology to
create an interactive air service brochure featuring fares, destinations,
current flight, travel and tour information for inbound passengers.
3. Advertising opportunities for new airline services on Castle’s Website.
4. Optimization of Website for Internet search, with a focus on Castle’s top
markets and competition.
5. Distribution of promotional emails, newsletters and surveys to a local
business list and opt-in subscriber database.
Action Steps:
(1). Contract for Professional Marketing Services.
(2). Host a media and press event to announce the start of passenger jet service.
(3). Provide introductions and presentations to local governments, Chambers of
Commerce and regional County Economic Development Corporations (in the five
county area).
(4). Initiate an advertising blitz regarding Castle Airport’s passenger service startup.
(5). Provide Public Service Announcements on radio/television stations in the five
county area.
(6). Offer printed media advertisements in five county area.
(7). Provide at least 4 well-placed billboard advertisements for Castle Airport and new
service.
(8). Create a list of regional travel agency E-mail contacts and scheduled marketing
blitzes.
(9). Establish an electronic list of regional major businesses for letters, notifications
regarding Castle Airport services and scheduled electronic reminders.
(10). Purchase of city/county business license and Chambers of Commerce business
lists for marketing distribution.
(11). Direct contact with regional Visitor Bureaus.
(12). Distribute regular press releases on new routes, fares, promotions and
announcements.
(13). Facilitate contact with local tour companies.
(14). Create an electronic list of hotels/motels/casinos in 5 county areas.
MERCED COUNTY – Castle Airport Section 5
Strategic Plan
Small Community Air Service Development Program Page 22 of 36
Docket Number OST-2008-0100
(15). Establish a Web site and Internet marketing for airline.
(16). Provide Public Service announcements through other media.
The County/Castle Airport intends to be very aggressive in meeting the end goal of
establishing regional service. Once established, continued marketing efforts will enhance
service expansion to position Castle Airport as the airport of choice for Central Valley
regional travelers. 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 identified preferred locations or
a reasonable alternative hub site.
Action Steps Timeline to Establish Passenger Service
1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER
Hire consultant Meet with airlines Meet with airlines Meet with airlines
Validate routes and
aircraft
Establish Air Service
Contract with Airline
Establish Air Service
Contract with Airline
Establish Air Service
Contract with Airline
Identify Compatible
Airlines
If Contracted – Then
Begin Marketing to
Community
If Contracted – Then
Begin Marketing to
Community
If Contract – Then
Begin Marketing to
Community
Establish Attraction
Program
Inaugurate Air Service Inaugurate Air Service Inaugurate Air Service
Create Presentations If No Contract –
Continue to 3rd Quarter
If No Contract –
Continue to 4th Quarter
Pay Quarterly Cost
Offset to Airline
Create Incentive
Package
Meet with airlines
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 funds. The County will
continue to market and promote any service available at Castle for years to come through our
non-airport budget process.
MERCED COUNTY – Castle Airport Section 5
Strategic Plan
Small Community Air Service Development Program Page 23 of 36
Docket Number OST-2008-0100
Goal – 2) Have Castle Airport 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 XII.
MERCED COUNTY – Castle Airport Section 6
Public-Private Partnerships
Small Community Air Service Development Program Page 24 of 36
Docket Number OST-2008-0100
VI. 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
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, EDA and 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 future airline service and business
MERCED COUNTY – Castle Airport Section 6
Public-Private Partnerships
Small Community Air Service Development Program Page 25 of 36
Docket Number OST-2008-0100
opportunities will provide maximum benefit to the surrounding communities, including the
greater Central Valley region.
MERCED COUNTY – Castle Airport Section 7
Funding Detail
Small Community Air Service Development Program Page 26 of 36
Docket Number OST-2008-0100
VII. A Detailed Description of the Funding Necessary for Implementation of the
Community’s Project, Including the Federal and Non-federal Contributions:
Section V displays the 2-year Strategic Plan broken down into elements. The Action Steps are
further displayed chronologically. Table 7.1 below provides the Action Steps budget broken
down by element and funding sources:
Table 7.1 Action Steps Budget
Funding SourcesDescription
U.S. DOT Airport Non-airport
Total
Cash Cash In-Kind Cash In-Kind
Attraction program:
Products $10,000 $2,500 $12,500
Travel $15,000 $6,500 $21,500
Incentive program:
Landing fee abatement $55,120 $55,120
Marketing $206,626 $49,972 $256,598
Cost Reduction $53,374 $53,374
Staffing:
Program administration $30,320 $35,588 $65,908
Consultant $35,000 $35,000
Total $320,000 $85,440 $58,972 $35,588 $500,000
Percent of total project 64.00% 17.09% 11.79% 7.12% 100%
Percent of cash contribution 75.79%
MERCED COUNTY – Castle Airport Section 7
Funding Detail
Small Community Air Service Development Program Page 27 of 36
Docket Number OST-2008-0100
A. Attraction Program: Consists of two main elements, Products and Travel. The products
include all written and 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 $12,500. Travel will be within the five-county market area. Introduction and
presentations will be to local governments, chambers and Merced County Economic
Development Corporations. The total amount budgeted for this item is $ 21,500 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 2009 are listed as $0.47/1000 pounds of
Maximum Takeoff Weight (MTOW) or $16.00/landing (whichever is higher). Similarly,
landing fees for 2010 are listed as $0.50/1000 pounds of Maximum Takeoff Weight
(MTOW) or $20.00/landing (whichever is higher). Using the Dornier 328 Jet, which
has a MTOW of 30,843 pounds and expecting 15 landings per week in 2009 and 41
landings per week in 2010, we compute the amount of landing fees to be abated for 2009
and 2010 respectively to be $12,480 and $42,640 for a total of $55,120.
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; public service announcements on radio/television
stations, billboards, printed media advertisements, introduction and presentations to local
governments, chambers and Merced County Economic Development Corporations,
Castle Airport internet marketing Website with local and destination weather
information, ticket counter locations and an interactive terminal map, as well as personal
visits to local businesses and organizations. $256,598 is budgeted for this item.
MERCED COUNTY – Castle Airport Section 7
Funding Detail
Small Community Air Service Development Program Page 28 of 36
Docket Number OST-2008-0100
Cost reduction at $53,374 was established to assist the airline in paying some of its
operating costs as they relate to Castle Airport for two years. The airline can use this to
pay the terminal rental cost or any other identified cost of operating at Castle Airport.
C. Staffing & Consultants:
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 it’s expected to be quite a bit more)
5% CAED Department Director
5% CAED assistant department director
3% clerical/accounting staff
The total line item amount of $65,908 includes salaries, payroll taxes and benefits paid by
the County of Merced over a two-year period.
Consultants: will be hired to work on the following areas: Promotional Items, Materials,
and Activities Events, Demographic and Passenger Data collection and analysis. The
amount budgeted is $35,000.
Promotional Items, Materials and Activities Events will focus on advertising blitz
regarding passenger service, distribute promotional e-mails, newsletters and surveys to
local businesses, as well as development of a new user-friendly, interactive Website.
Demographic data analysis will focus on area needs to expand our market reach to
customers within the 5 county area.
Passenger Data collection and analysis will be used to provide air service marketing as
well as survey/attraction campaigns.
MERCED COUNTY – Castle Airport Section 8
Funding Management
Small Community Air Service Development Program Page 29 of 36
Docket Number OST-2008-0100
VIII. An Explanation of How the Community Will Ensure That Its Own Funding
Contribution is Spent in the Manner Proposed:
If awarded grant funds 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 County/Department Budget Plan during
the public budgetary process, as well as through the Master Developer Agreement.
Commitment to accept and administer the grant funds will be authorized by the Merced County
Board of Supervisors, coinciding with the process for commitment and execution of the Master
Developer Agreement. Private and matching funds 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 successfully managing both federal and state grant-funded projects and will
diligently track all awarded funds including matching 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.
MERCED COUNTY – Castle Airport Section 9
Grant/Project Management
Small Community Air Service Development Program Page 30 of 36
Docket Number OST-2008-0100
IX. 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 CEO. The committee’s composition will include CAED, Federal Development, Airport
Consultant with reporting required to the County Chief Executive Office and Board of
Supervisors. As airlines commit to operating at Castle they will be added to the Evaluation
Committee for marketing input.
Audits of the funds 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.
Critical milestones to be met:
Establish air carrier service with one airline to provide passenger service within first
quarter.
Increase frequency of flights scheduled.
Assess effectiveness of marketing strategy by quarterly evaluation of website contacts,
ticket sales, etc.
Assess load factor by airline and determine marketing focus based on outcomes.
Based upon quarterly analysis of marketing strategies and if unable to establish daily air
carrier service and expand market share at Castle Airport within twelve months, no
additional grant funds would be requested.
MERCED COUNTY – Castle Airport Section 10
Plan to Sustain Project Beyond Grant
Small Community Air Service Development Program Page 31 of 36
Docket Number OST-2008-0100
X. 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 funds 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 funds 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 marking funds 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
MERCED COUNTY – Castle Airport Section 10
Plan to Sustain Project Beyond Grant
Small Community Air Service Development Program Page 32 of 36
Docket Number OST-2008-0100
equity through the Master Development Agreement, Tax Increment dollars will provide
additional funds and/or bonding ability to see that the facility reaches its’ full potential as a first
class airport and business center.
MERCED COUNTY – Castle Airport Section 11
Legal Sponsor
Small Community Air Service Development Program Page 33 of 36
Docket Number OST-2008-0100
XI. Designation of Legal Sponsor for Administering the Program
County of Merced – Department of Commerce, Aviation and Economic Development,
Castle Airport, 2507 Heritage Dr., Atwater, CA 95301.
DEPARTMENT OF
COMMERCE, AVIATION AND
ECONOMIC DEVELOPMENT
MERCED COUNTY – Castle Airport Section 12
Air Service Development Zone Designation
Small Community Air Service Development Program Page 34 of 36
Docket Number OST-2008-0100
XII. Support for Air Service Development Zone Designation
Merced County is seeking the designation of Air Service Development Zone for Castle Airport.The plans for Castle Airport/Castle Commerce Center include a fully developed CommerceCenter that will offer retail, dining, hotel, entertainment, and professional services to areatravelers. Interest in this commerce center includes attracting high-tech and internationalbusinesses to continue facilitating a progressive relationship with global communities. Alsoincluded are research centers, small/large business developments, commercial and industrialfacilities. Big Creek Lumber, AT&T Mobility and UC Merced are already in place. Plans callfor development of another 6.5 to 7 million sq. ft. of facilities over the next 15-20 years.
Existing Airpark Land
Castle Airport and the adjoining Castle Commerce Center have approximately 1900 acres ofavailable space for the development of airline service, aviation support activities, and a first-classbusiness park. Facilities already existing at Castle include a very long runway, large ramp space,air traffic control tower, two international aviation flight training schools and correspondingstudent dormitories, and plans for a full-service terminal. Castle also has buildings available forlease, as well as ample room for construction of build-to-suit facilities for new businesses. (SeeCastle Concept Map below).
Business Activity
Currently, there are 58 businesses and 2500 personnel working on Castle. These include twointernational aviation schools; Sierra Academy of Aeronautics, training student pilots fromChina, and American School of Aviation, which trains students from India and elsewhere. Localaviation support businesses such as Gemini Flight Support, Fixed Base Operator are also inoperation at Castle, as well as new corporations that have located to the site including Big CreekLumber and the new UC Merced research facilities. In addition, a new high speed railmaintenance facility and a flight simulator company are under consideration.
Access to Major Transportation
As discussed in previous sections of this proposal, Castle Airport is strategically positioned inthe middle of the Central Valley, California, directly adjacent to two of California’s major north-south vehicle corridors. Highway 99, Interstate 5, as well as a major East-West corridor,Highway 152, provides access to Merced County and Castle Airport. These roadways willprovide passenger vehicle traffic and shipping/cargo traffic with safe and convenient entranceinto Merced County and Castle Airport. The County is also served by two railroads, BurlingtonNorthern Santa Fe (BNSF) and Union Pacific (UP), which run and maintain track throughout thearea communities (including a BNSF spur onto the Castle property), offering unique shippingopportunities to companies that locate to the area.
MERCED COUNTY – Castle Airport Section 12
Air Service Development Zone Designation
Small Community Air Service Development Program Page 35 of 36
Docket Number OST-2008-0100
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 dropped44% since the year 2000. There are 20% more people employed in the County than in 1990 andhousehold ownership has risen 15.3 during the last decade. Daily traffic on Merced County’sbusiest highway (Rte 99) has grown from 40,000 to 60,000 in a little over 10 years. There is noquestion that the growth in the County, particularly over the last 5-7 years, greatly outpaces mostcounties in the state.
GOAL: If awarded an Air Service Development Zone Designation, Merced County will link theZone’s image to development plans and enlist the assistance of other participating Federaldepartments’ expertise in locating resources to complete full development, establishment of jobsand attract new tenants.
Merced County is truly excited about the expected development of Castle Airport air servicesand commerce expansions and we look forward to being a part of the Small Community AirService Development Program and a possible designation as an Air Service Development Zone.
Figure 11
MERCED COUNTY – Castle Airport List of Attachments
Small Community Air Service Development Program Page 36 of 36
Docket Number OST-2008-0100
LIST OF ATTACHMENTS
Attachment 1 ..................................................14 CFR Part 139 Certification
Attachment 2...........................................Letter of Intent from Vision Airlines
Attachment 3........................................................... California Counties Map
Attachment 4...............................Federal Development, LLC Letter of Intent
Attachment 5............Merced County Board of Supervisors Letter of Support