MDOT Economic Benefits Analysis Shows 80D Contribution

By DIANNE ALWARD-BIERY

Cleaver Senior Staff Writer

HARRISON – At its May 21 meeting, the Clare County Board of Commissioners heard a presentation by MDOT Aeronautics representative Hilary Hoose on the recently conducted economic benefits analysis of Clare County Airport 80D.

She began by noting the impact of aviation on Michigan’s economy, noting that Michigan general aviation includes agricultural spraying, emergency and medical operations, firefighting, flight training, aerial photography and personal and business travel. Another element of that is the importance of aviation when time is critical, i.e., overnight delivery (FedEx, UPS and USPS), manufacturing for just-in-time delivery; police, firefighting, search and rescue; and health, i.e., air ambulance and organ transportation.

Hoose also explained the direct effect of the airport on the local economy across the categories of Jobs, Labor Income, and Output (on-airport air/not air related, off-site visitor spending, and the capital expenditures of the county. Also noted was the multiplier effect, which encompasses how economic benefits extend outward to other communities, across the state and beyond. The total direct effect of local/state labor income was $320,423 [for both] and local/state output were $967,993 and $1,098,224 with capital expenditures of only $21,674 from the county. Respectively, the multiplier effect turned those numbers into $106,062/$363,768 and $395,224/$1,128,705. The total effect [again, respectively] resulted in Labor as Income as $426,358/$684,190 and Output as $1,363,217/$2,226,928. That’s 80D generating a direct benefit to the county of nearly $1.1 million and a multiplied effect of nearly $2.227 million.

Hoose also provided a Clare County Economic Benefit Analysis Scenario which showed potentially substantial benefit to be derived from three categories: Aircraft Maintenance and Repair at $184,884; Manufacturing at $235,016; and Transportation at $84,605. Included in that scenario was the projected employment increase, and again its direct and multiplied effect. The total effect for on-airport aviation-related employment of 20 yielded an output of $2.507 million; on-airport not air-related employment of 10 with output of $3.138 million off-site air-related or reliant employment of 4 yielding an output of $.805 million. A graphic provided showed the scenario could well put 80D ahead of Alma and Houghton Lake in both direct and multiplied effects.

Hoose also detailed the airport projects of the past five years, which included: 2022 airfield crack sealing with $8,471.10 in state funding, matched with $8,471.10 in local funding; 2023 crack sealing/mastic [done in cooperation with the road commission] with $6,500 in local funding; and the 2024 crack sealing and paint marking at $48,541.46 done solely with state funding.

Airport funding of future projects for 2025 included the lighting updates at $250,000 and crack sealing at $4,806 – both of which would be done using solely state funding.

Hoose offered one summary graphic which made two points: “Your community is fortunate to have an airport” and “If you lose your community airport, it is extremely unlikely you will ever have another.”

Discussion later in the meeting saw Commissioner George Gilmore hedging against approval of the MDOT grants to fund the 2025 projects because he wanted to see a detailed contract for the work before accepting the grants. It was explained by Commissioner Gabe Ambrozaitis that the state contract for the grant was no different than any other grant the BOC had accepted in the past. He also advised that the state was delayed in providing the current grant contracts, and until the county formally accepted the grants, it was in the position of being unable to seek contractor bids for the work because those contractors would not to the time and expense of creating bids without the assurance the county had that money. Additionally, it was noted that the clock was ticking and the work season had begun, meaning it was imperative that contractors be sought in order for the grant money to be spent by December as per the grant requirement.

After considerable discussion, Commissioner Dale Majewski once again employed the phrase “We’ve kicked this can down the road for too long,” and he put forth the two motions to accept the MDOT grants. The motions both passed on a 7:2 vote with dissenting votes cast by Commissioners Gilmore and Marlene Housler.