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Airport Infrastructure in Beaufort County

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Airport Infrastructure in Beaufort County

  1. 1. Airport Infrastructure <ul><li>Overall Economic Impact </li></ul><ul><li>SC airports support the state’s economy </li></ul><ul><li>They are independent economic generators </li></ul><ul><li>Businesses, residents & tourists depend on the ongoing vitality of the airport system </li></ul><ul><li>Airports create jobs, generate spending, increase tax revenues </li></ul><ul><li>Source: South Carolina – The Economic Impact of Aviation – 2006 (Wilbur Smith Associates) </li></ul>
  2. 2. Airport Infrastructure <ul><li>Local Economic Impact </li></ul><ul><li>Hilton Head Island Airport: </li></ul><ul><ul><li>1,438 Jobs </li></ul></ul><ul><ul><li>$33M Payroll </li></ul></ul><ul><ul><li>$81.8M Economic Output </li></ul></ul><ul><li>Lady’s Island Airport: </li></ul><ul><ul><li>90 Jobs </li></ul></ul><ul><ul><li>$2.2M Payroll </li></ul></ul><ul><ul><li>$5.1M Economic Output </li></ul></ul><ul><li>Source: SC Airports System Plan – 2008 (using direct, indirect & multiplier categories) </li></ul>
  3. 3. Airport Infrastructure <ul><li>Economic Development Requirements </li></ul><ul><li>Key criteria for relocating/expanding businesses or HQ facility : </li></ul><ul><li>close proximity to commercial airport or GA </li></ul><ul><li>‘ high-end’ airport services & facilities </li></ul><ul><li>on/off-airport commercial, light industrial, or move-in-ready property </li></ul><ul><li>state/local incentives in place to attract private development </li></ul><ul><li>low personal property rates for based-aircraft </li></ul>
  4. 4. Airport Infrastructure <ul><li>Economic Development Roadblocks </li></ul><ul><li>Runways: </li></ul><ul><li>Runway length at both airports ‘short’ </li></ul><ul><ul><li>Limits aircraft size, capacity </li></ul></ul><ul><ul><li>Reduces & limits commercial operations </li></ul></ul><ul><ul><li>Limits or restricts charter or fractional ownership (NetJets) operations </li></ul></ul><ul><ul><li>Deterrent to potential relocating businesses </li></ul></ul><ul><ul><li>Creates safety and insurance issues </li></ul></ul>
  5. 5. Airport Infrastructure <ul><li>Economic Development Roadblocks </li></ul><ul><li>Hangars: </li></ul><ul><li>Current availability limited or non-existent </li></ul><ul><ul><li>Insufficient availability and size to accommodate long-term lease or ‘overnights’ </li></ul></ul><ul><ul><li>Secure, insulated facilities – insurance requirement </li></ul></ul><ul><ul><li>Additional deterrent to relocating businesses </li></ul></ul><ul><ul><li>Restrictive to residents & tourists </li></ul></ul>
  6. 6. Airport Infrastructure <ul><li>Economic Development Roadblocks </li></ul><ul><li>Product: </li></ul><ul><li>Undeveloped land on & off-airport not viewed as economic development asset </li></ul><ul><li>Land not zoned for commercial, office &/or light industrial development </li></ul><ul><li>No incentives in place to entice private development </li></ul>
  7. 7. Airport Infrastructure <ul><li>Economic Development Roadblocks </li></ul><ul><li>Personal Property Taxes: </li></ul><ul><li>Current rate for registered based-aircraft – 10.5% - uncompetitive </li></ul><ul><li>Potential revenue lost to counties/states with low or no personal property tax </li></ul>
  8. 9. Airport Infrastructure <ul><li>Conclusions: </li></ul><ul><li>Lack of infrastructure & product, outdated facilities & uncompetitive personal property tax rates means Beaufort County is: </li></ul><ul><li>losing business to neighboring counties & states </li></ul><ul><li>losing job creation opportunities </li></ul><ul><li>losing tax revenues </li></ul><ul><li>diminishing the area’s attraction to residents & tourists </li></ul>
  9. 10. Airport Infrastructure <ul><li>Recommendations: </li></ul><ul><li>Beaufort County & Town of Hilton Head give priority to: </li></ul><ul><li>Creating incentives – tied to target industries - to entice private investment in acquisition & development of land adjacent to county airports </li></ul><ul><li>Create appropriate zoning & fast-track permitting </li></ul><ul><li>Upgrade airports’ runways, hangar availability, navigational & safety facilities (FAA-funded) </li></ul><ul><li>Reduce personal property tax rates for based-aircraft </li></ul>
  10. 11. Airport Infrastructure <ul><li>Results: </li></ul><ul><li>Beaufort County will meet site selection criteria of relocating/expanding businesses & HQ facilities </li></ul><ul><li>Incoming businesses will create jobs, diversify county tax base </li></ul><ul><li>County & Hilton Head revenues will increase </li></ul><ul><li>Indirect revenues from ‘high-end’ residents & tourists will continue & increase </li></ul><ul><li>County airports will meet advanced aviation, safety & insurance standards </li></ul>

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