New Agreement Brings Private Operator to Dutchess County Airport

New Agreement Brings Private Operator
to Dutchess County Airport

Poughkeepsie, NY … Dutchess County Executive Marcus J. Molinaro announced the County has entered into a five year lease agreement with FlightLevel Dutchess, LLC, an independent fixed base operator, to provide aviation-related services at Dutchess County Airport. This partnership with the private operator will eliminate the annual operating deficit, while enhancing services and the overall economic benefit of the Airport.

County Executive Molinaro said, “The Dutchess County Airport is an important economic asset with enormous potential. We sought a partner who could help us move forward in our efforts to increase the economic benefit of the Airport, maintain and enhance services for users and importantly, eliminate the taxpayer burden of an operational deficit. FlightLevel Dutchess, LLC is that partner – through their expertise, investment and marketing, we can maximize the Airport’s potential.”

As the Fixed Base Operator (FBO), FlightLevel Dutchess, LLC will provide line services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance and other services. FlightLevel will also provide customers with pilot lounges, car service and taxi scheduling, as well as hotel reservation assistance.

FlightLevel Aviation has a multiple airport network that targets “middle market airports” - airports sized between large corporate jet airports and small piston airports, believed to be the biggest growth segment in aviation service. FlightLevel Aviation currently operates FBO locations in Brunswick, ME; Norwood, MA; and Cape May, NJ. FlightLevel Dutchess, LLC will launch a major marketing campaign to increase its visibility in the New York area.

Peter Eichleay, President and Founder of Flight Level, said, “The entire FlightLevel team is thrilled to be adding the Dutchess County Airport (POU) to our network of locations. POU has been in need of a true full-service FBO for some time and we're committed to making the investment in equipment, quality personnel, and infrastructure to achieve that status. In addition to our plans for marketing and developing the airport, we believe that by providing the high level of customer service our customers have come to expect when they see the FlightLevel name, we can help the airport reach its true potential. Working with the County and airport management has demonstrated that we share in this vision of growth. I know that it will be a good fit and a great partnership for years to come, and we very much look forward to being a part of the community."

Under the terms of the agreement, FlightLevel will rent a portion of the main terminal building, the Hangar 9 building as well as 153,472 square feet known as the “Aviation Development Area” at the Dutchess County Airport. FlightLevel will make an initial capital investment of up $100,000 to make improvements at both the Terminal and Hangar 9 buildings. Within the first three years of the agreement, FlightLevel will establish an aircraft maintenance repair station at the airport that will offer airframe, powerplant, propeller, radio (avionics), instrument, accessory and inspection repair services to aircraft owned or operated by the general public.

FlightLevel will pay fees to store and sell fuel through the “fuel farm” (oil depots where aviation fuel is stored) located at the Airport. FlightLevel will purchase county-owned fuel trucks and ground service equipment. The County will receive 10% of the gross revenue for commercial and general aviation activities (beyond fuel sales) and 3% of gross revenue for all aircraft sales involving Dutchess County-based aircraft, demonstrated or shown at, sourced out of or sold/transferred at the Airport. The agreement calls for a minimum annual guarantee of $200,000 (prorated for 2015). The agreement also allows for optional 7 years additional terms for each $500,000 spent in connection with the construction of a new hangar, up to a total of 40 years.

Dutchess County will continue to oversee general airport operations including runway and ground maintenance, snow removal, FAA administration and other operations. With FlightLevel taking over line services, the County will eliminate four positions related to line services within the airport budget. There will be no county layoffs as the positions will be eliminated through attrition or employee transfers to vacant positions in other county divisions.

The new agreement will ensure taxpayers no longer have to subsidize general operating costs at the Dutchess County Airport. Annual debt service expense related to various capital improvement investments will continue to be incurred by the County. The existing debt service expense decreases each year and will be eliminated within 10 years.

Dutchess County Legislator Joe Incoronato, who represents District 15 in the Town of Wappinger where the Dutchess County Airport is located, noted, “This is a boon and benefit to the taxpayers. We are able to retain and actually enhance the services at the airport without county layoffs, and we are able to eliminate the operational deficit that taxpayers have had to fill. It is an excellent deal for both taxpayers and airport users.”

The agreement with FlightLevel Dutchess, LLC follows a national request for proposals conducted in 2014. The County sought a private-owned FBO as recommended in the Dutchess County Operational & Financial Assessment report completed by airport industry experts Steven Baldwin Associates LLC. (That report can be found on the County’s website at
http://www.co.dutchess.ny.us/CountyGov/Departments/Airport/AirportStudy_Dec2013.pdf).

A private FBO is part of ongoing efforts to maximize the potential of Dutchess County Airport. The County has sought to make greater use of the Airport for public events such as the annual Open House event, the recent Dutchess County Regional Chamber of Commerce Balloon Festival, the Wings of Freedom tour which returns August 21st to 23rd, 2015, as well as concerts scheduled in September. Recently enacted legislation allows for a sales and use tax exemption for the purchase of general aviation aircraft and machinery. Previously, Dutchess County had been at a competitive disadvantage as the exemption was in place in nearby airports in Connecticut and New Jersey. Dutchess Community College has been approved to expand their aviation curriculum to include an Airframe Maintenance Parts (AMP) program as part of the START-UP NY initiative – which offers new and expanding businesses the opportunity to operate tax-free for 10 years within the START-UP zone when it is attracting jobs related to the school’s curriculum. This is an important incentive to help attract maintenance facilities and create high paying aviation jobs. Finally, the County is progressing toward development of critical water infrastructure to the Airport. The Dutchess County Legislature authorized $2.9 million to connect the Airport to the Central Dutchess Water Transmission line - $1.2 million of that total coming from economic development grants from New York State which the County aggressively pursued.

The Dutchess County Airport is second busiest General Aviation (GA) airport in New York State, logging approximately 75,000 aircraft landings and take offs each year, including corporate aviation, charter operators, recreational fliers and small aircraft owners. The FAA defines General Aviation airports as those not designated as commercial, cargo, or reliever. The airport provides an economic impact benefit of more than $44 million annually to the local economy.

Dutchess County Legislator Donna Bolner, who represents District 13 which includes East Fishkill, LaGrange and Wappinger said, “As a member of the Airport Advisory Committee for several years, I know there is so much opportunity for the Dutchess County Airport and I am very pleased with the positive momentum we have going. This partnership with FlightLevel will bring the necessary expertise in aviation operations and marketing to make the Dutchess County Airport the successful enterprise we know that it can be.”