BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

AERODYNAN.nCSINCORPORATED 

for a Certificate of Public Convenience 

and Necessity pursuant to 49 USC§ 41102 

to engage in Scheduled Interstate Air 

Transportation of Persons, Property and Mail 

Docket DOT-OST-2014-0114 

SUPPLEMENT NO. 1 TO 

APPLICATION OF AERODYNAMICS INCORPORATED 

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 

Communications with respect to this document should be addressed to: 

August 28, 2014 

Aaron A. Goerlich 

Jason E. Maddux 

Garofalo Goerlich Hainbach PC 

1200 New Hampshire Avenue, N.W. 

Suite 590 

Washington, D.C. 20036-6802 

202-776-3974 

agoerlich@ggh-airlaw.com 

jmaddux@ggh-airlaw.com 

Counsel for Aerodynamics Incorporated 
Application of 

BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

AERODYNAMICS INCORPORATED Docket DOT-OST-2014-0114 

for a Certificate of Public Convenience 

and Necessity pursuant to 49 USC§ 41102 

to engage in Scheduled Interstate Air 

Transportation of Persons, Property and Mail 

SUPPLEMENT NO. 1 TO 

APPLICATION OF AERODYNAMICS INCORPORATED 

FOR A CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY 

Aerodynamics Incorporated (ADI) hereby supplements its application dated June 25, 

2014. This supplement responds to the Department's request for additional and/or clarifying 

information dated August 11, 2014. 

The August 11 request states at page 1 that ADI "must demonstrate it has obtained all 

of the funding needed to meet our financial fitness test, or at a minimum, have a reasonable 

plan for doing so." The August 11 request advises additionally that DOT has calculated ADI 

will need access to slightly less than $1.2 million to meet the test. 

1. ADI has in place financial resources that exceed $1.2 million by a wide margin. 

These resources include a revenue guarantee of $1.2 million and pre-operating funding of 

$130,000 from the Western Reserve Port Authority, and a line of credit for up to $500,000 

from Far West Capital. Each resource is discussed more fully below. 
Western Reserve Port Authority Revenue Guarantee: In its June 25 application in this 

docket, ADI advised the Department that its initial scheduled service would operate between 

the Youngstown-Warren Regional Airport (YNG) near Youngstown, Ohio, and a major 

carrier's hub, and that this service would provide YNG travelers entree to the broader national 

and international air transportation system - convenient access that has been absent at YN G 

for over a decade. The Western Reserve Port Authority (WRPA), as owner and operator of 

YNG, has been working for several years to re-establish this type of service at YNG; see 

WRPA letter to DOT dated June 21, 2014, included in Attachment T to ADI's June 25 

application. 

WRP A's efforts have included the establishment, in coordination with the other 

Youngstown Parties (see June 21 WRP A letter), of a revenue guarantee in the amount of $1.2 

million to support the new service. The revenue guarantee has been incorporated in a legally 

binding Airline/Airport Use and Operating Agreement between WRPA and ADI (the 

Agreement). A copy of the Agreement is appended as Attachment 1 to this supplement. 

In particular, ADI invites the Department's attention to Article 2.1.B, Article 6.2, and 

Exhibit B of the Agreement. The terms and conditions under which the revenue guarantee 

funds will be provided to ADI are set forth in these provisions. Among other things, ADI is 

assured a 5% profit margin on its YNG service until the service has become self-sustaining, or 

the revenue guarantee has been exhausted. 

While WRP A will undoubtedly be called upon to make revenue guarantee payments 

during the initial stages of the new service, the parties' objective is that the service will 

become self-sustaining at a 5% or better profit margin in less than a year. 1 In the event it does 

not become self-sustaining in that time frame, the revenue guarantee will continue to be 

ADI projects that revenue guarantee payments totaling approximately $860,000 will be 

required over the initial nine months of the service before sustainability is achieved. See Attachment 

T to ADI's June 25 application, page 3. 

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available until exhausted. Should that occur, ADI may then elect to continue or discontinue 

the service. 

Under the Agreement, ADI is free to obtain revenue guarantee disbursements on 

whatever timetable it establishes (except that the Agreement provides ADI will do so no less 

frequently than monthly). For each disbursement, the Agreement requires ADI to submit to 

WRP A an invoice accompanied by an explanatory accounting of the profit/loss margin during 

the period in question, as determined in accordance with Generally Accepted Accounting 

Principles (GAAP) established by the Financial Accounting Standards Board? 

Pre-operating Funding: WRPA will provide $130,000 to ADI to defray ADI's preoperating expenses associated with its establishment of scheduled airline service at YNG. In 

this regard, ADI invites the Department's attention to Articles 2.l.A and 6.1 of the 

Agreement. These funds will be furnished to ADI upon WRPA's public announcement of the 

initial scheduled passenger service to be operated by ADI at YNG, which will be made 

sufficiently in advance of service inauguration to allow for reasonably effective marketing 

and sales activities prior to the first flight. 

Far West Capital Line of Credit: In addition to the above resources, ADI continues to 

have available a line of credit from Far West Capital for up to $500,000. Information on this 

resource is available in Attachment T to ADI's June 25 application. 

2. As evidence of WRPA's ability to deliver on the fmancial commitments 

undertaken in the Agreement, WRP A has furnished the following information: 

2 As noted in WRPA's June 21 letter to DOT included in Attachment T to ADI's application, 

WRP A will be entitled to apply under a SCASD grant for reimbursement of 65% of each 

disbursement, subject to an overall cap of $780,000. This, however, has no bearing on WRPA's 

obligation to provide funding to ADI under the revenue guarantee; see Article 6.3.B of the Agreement. 

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Bank Statements: Appended as Attachment 2 are statements from two WRPA bank 

accounts showing a total of over $1.6 million on deposit as of July 31, 2014. The average 

balances shown on the statements likewise exceed $1.6 million in total. 

Financial Statements: Appended as Attachment 3 is a WRPA financial statement for 

January through July 2014. During this seven-month period, WRPA's total cash receipts 

came to $2,135,669, while its total cash disbursements were $2,092,596. 

Also included in Attachment 3 is WRPA's financial report and management analysis 

for calendar year 2012.3 This document is included primarily to provide the Department an 

overview ofWRPA's scope, finances, and accounting policies and procedures. 

It is important to understand that WRP A is a public agency created over 20 years ago 

by Mahoning and Trumbull Counties, Ohio, for the purpose of assuming ownership of and 

operational responsibility for YNG. Over the years WRPA has evolved into a dynamic, 

multi-faceted agency dedicated to promoting growth and economic development in the region 

and having the ability to access multiple financing, funding and incentive programs offered by 

local, state and federal agencies.

4 As such, the financial support WRPA will provide for 

ADI's service at YNG is fully consistent with WRPA's mission. 

Asset Valuations: Appended as Attachment 4 is an appraisal of WRP A's buildings 

and equipment at YNG as of July 1, 2013. This document was prepared by an independent 

appraisal company as required in conjunction with the insurance protection carried by WRP A. 

The appraisal sets the collective value of YNG's terminal building, several hangars, other 

3 A similar document for 2013 should be available in November 2014, upon completion of 

WRPA's calendar year 2013 audit, which begins next month, and preparation of the report and 

analysis. 

4 Source: WRPA website (westernreserveportauthority.com/about-us). Note additionally that 

under Ohio law, WRP A can exercise broad authority in furtherance of its authorized purposes, 

including issuance of revenue bonds and voted general obligation bonds. Source: WRP A website 

( westernreserveportauthority .com/about-us/statutory-authority). 

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buildings, glycol (deicing) system, runway lighting, and property-in-the-open at 

approximately $22.5 million. This, of course, does not take account of substantial nonaviation WRP A assets located elsewhere. 

The upshot of the WRP A bank statements, financial statements and asset valuations is 

that WRP A is a long-standing and substantial organization with a sound financial foundation. 

The Department need not be concerned about WRPA's ability to deliver on its commitments 

under the Agreement. 

• • • 

WHEREFORE, ADI renews its request that the Department issue to Aerodynamics 

Incorporated a certificate of public convenience and necessity to engage in scheduled 

interstate air transportation of persons, property and mail. ADI also renews its request that the 

Department complete its processes in this matter as expeditiously as possible. 

August 28, 2014 

Respectfully submitted, 

,4_ tl. cf(JvZ_ 

r6-~ Aaron A. Goerlich 

Jason E. Maddux 

Garofalo Goerlich Hainbach PC 

Counsel for Aerodynamics Incorporated 

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CERTIFICATION 

Pursuant to title 18 United States Code section 1001, I, Scott A. Beale, in my individual 

capacity and as the authorized representative of Aerodynamics Incorporated, have not in any 

manner knowingly and willfully falsified, concealed or covered up any material fact or made 

any false, fictitious, or fraudulent statement or knowingly used any documents which contain 

such statements in connection with the preparation, filing or prosecution of the application. I 

understand that an individual who is found to have violated the provisions of 18 U.S.C. 

section 1001 shall be fined nor more than $10,000 or imprisoned not more than five years, or 

both. 

Scott A. Beale, Chief Executive Officer 

Aerodynamics Incorporated 

Dated: August 27, 2014 
ATTACHMENT 1 
WESTERN RESERVE PORT AUTHORITY 

AIRLINE I AIRPORT USE AND OPERATING AGREEMENT 

BETWEEN 

THE YOUNGSTOWN-WARREN REGIONAL AIRPORT 

AND 

AERODYNAMICS IN CORPORA TED 
Article II- Term 

Article III - Premises 

Article IV - Uses, Rights and Privileges 

Article V - Fees and Charges 

Article VI- Airline Operational Start-Up and Revenue Guarantee Funding 

Article VII - Maintenance and Operation of the Airport 

Article VIII - Indemnification and Insurance 

Article IX - General Provisions 

EXHIBIT A - PREMISES EXHIBIT B -AIR SERVICE PLAN 

EXHIBIT C- AIRPORT RATES & CHARGES 

EXHIBIT D- GROUND HANDLING PROPOSAL 

EXHIBIT E- MARKETING & ADVERTISING PLAN 

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4 

5 5 

7 

10 

11 

12 14 

20 

22 

26 

29 

32 
WITNESSETH: 

WHEREAS, pursuant to Chapter 4582, Ohio Revised Code, the Authority is 

engaged in the operation of an airport located in the County of Trumbull, State of Ohio, and 

known as the Youngstown-Warren Regional Airport; and 

WHEREAS, under the laws of the State of Ohio, Authority has jurisdiction, control, 

supervision and management over the Airport and has the jurisdiction to fix, alter, charge, 

establish, and collect rates, fees, and other charges for service and facilities of the Airport; 

and 

WHEREAS, Airline desires to use certain facilities of the Airport for the purpose of 

providing commercial air transportation to the public, and is willing to enter into this 

Airline I Airport Use and Operating Agreement ("the Agreement") and has agreed to pay 

fees and charges therefor as may be reasonably established by Authority from time to time; 

and 

WHEREAS, it is in the mutual best interest of the parties hereto to enter into this 

Agreement; 

NOW, THEREFORE, in consideration of the above recitals that are incorporated 

herein by reference, the parties mutually undertake, promise and agree as follows: 

Article I- DEFINITIONS 

1.1 Definitions 

A. In addition to any other words or terms that may be defined 

elsewhere herein, the following words and terms used in this agreement shall have the 

following meanings unless some other meaning is plainly intended: 

1. "Airline" or "ADI" means AERODYNAMICS IN CORPORA TED, 

a corporation organized and existing by virtue of the laws of the State of 

Michigan and an air carrier certificated by the U.S. Department of 

Transportation (DOT) and Federal Aviation Administration (FAA). 

2. "Airport" shall mean the Youngstown-Warren Regional Airport, 

including any extensions, additions, or improvements thereto. 

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5. "Authority" shall mean the Western Reserve Port Authority of the 

State of Ohio or any successor thereto or its representative. 

6. "Certificated Weight" of an aircraft shall mean its current maximum 

allowable gross landing weight, rounded to the nearest 1 ,000 pound unit and 

expressed in 1 ,000 pound units, at the Airport as operated by Airline and 

certificated by FAA. 

7. "Commercial Aircraft Operator" shall have the meaning set forth in 

the Regulations. 

8. "Common Use" shall mean the use of space in common with other 

airlines. 

9. "Emergency Landing" shall mean any landing of an aircraft which 

after having taken off from the Airport, and without landing at any other 

airport, shall return to land at the Airport because of weather conditions, 

mechanical or operating failure or causes, or for any other reason of caution 

or emergency. 

10. "Enplaned Passengers" shall mean all local boarding, interline 

transfer, and intraline transfer passengers at the Airport. 

11. "FAA" shall mean the Federal Aviation Administration of the United 

States Department of Transportation, or its successor agency or its 

representative. 

12. "Ground Handling Agent" shall mean the entity designated by 

Airline to ground handle Airline's aircraft, passengers, baggage, ticketing 

and other ground operations of Airline as set forth in a separate agreement 

that has been approved by Authority. 

13. "Regulations" shall mean those regulations promulgated by 

Authority pursuant to Chapter 4582 ORC, as the same may be amended, modified, or supplemented from time to time. 

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areas and facilities that are provided by Authority for the ticketing, baggage 

handling, processing of passengers and airline operations at the Airport. 

17. "Youngstown Parties" shall mean collectively the Authority, the 

Airport, Mahoning County, Trumbull County, various private-sector 

corporations/businesses, and YNGAir Partners, a non-profit organization 

providing community-based support for the Airport. 

Article II - TERM 

2.1 Effective Date 

This Agreement shall become effective October 1, 2014 ("Effective Date"), 

except as follows: 

A. A vail ability to Airline of the Start-Up Operational Funding 

described in Article 6.1 of this Agreement shall become effective upon public 

announcement by the Authority of the initial scheduled passenger service to be operated by 

Airline at Airport, which announcement shall not be unreasonably withheld or delayed. 

B. Availability to Airline of the Revenue Guarantee described in Article 

6.2 of this Agreement shall become effective upon Airline's inauguration of scheduled 

passenger service at the Airport. 

2.2 Term 

A. All rights and privileges granted to Airline by this Agreement for 

the use of any premises, space, area, buildings, structures, improvements or facilities at or 

on the Airport, or with respect to or as an incident to the use thereof, whether granted in the 

form of a license or otherwise, are granted for a period of two (2) years commencing on the 

Effective Date until tenninated by either party for any reason, with cause, upon not less than 

ninety (90) days written notice to the other party. 

B. The continued use of the Airport by Airline after the expiration date 

hereof shall not result in the automatic renewal of this Agreement nor shall Authority's 

permission to such continued use operate to extend the term of this Agreement unless 

specifically agreed to in writing; provided that in the event of such continued use, the terms 

and conditions of this Agreement shall continue to apply until superseded by a new 

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A. Airline may use Common Use baggage claim m the Tenninal 

Building. 

3.2 Apron, Parking Positions, Passenger Boarding Bridge and Holdroom 

Airline may use apron, parking positions and Passenger Boarding Bridge 

and holdroom areas associated with Gate 6. Airline shall use other apron, parking position 

and hold room facilities as approved by Authority for negotiated fees. 

3.3 Airline Ticket Counter, Operations Offices and other Space. 

Airline may use ticket counter, offices and other space associated with 

Gate 6. Airline shall use other ticket counter, offices and other space as approved by 

Authority for negotiated fees. Article IV- USES, RIGHTS AND PRIVILEGES 

4.1 Rights of Airline 

A. Authority hereby grants to Airline the non-exclusive right to use the 

Airfield Area, the Tenninal Apron Area, and the Premises described in Article III above in 

common with others, which use, without limiting the generality hereof, shall include: 

1. The operation of a transportation system by aircraft for the carriage 

of persons, property, baggage, cargo, express and mail, including, but 

without limiting the generality hereof, courtesy, test, and training uses 

between the hours of 5 A.M. and 11 P.M. local time. 

2. FAR Part 121 Scheduled Air Carrier Passenger Service to a Network 

Airline hub destination (and to such additional destinations as Airline 

may decide to serve at a later date) as described in Exhibit B. 

3. Posting such notices to passengers as are required by federal laws or 

regulations, to the extent such notices are not already posted at required 

locations. 

4. Support of the Authority's efforts toward the Youngstown-Warren 

Regional Airport's application to re-establish PFC imposition for 

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but shall permit Airline to perform such functions as are incidental to the 

conduct of its own air transportation system. The activities authorized 

by this Paragraph 4.1.A.5 shall be conducted only in areas designated by 

Authority. 

6. The hiring and training on the Airport of personnel in the employ of 

or on contract with, or to be employed or contracted by, Airline. 

7. The servicing by Airline, or by others of Airline's choice, of Airline's 

aircraft and other equipment by truck or otherwise, with gasoline, fuel or 

other propellants, oil, greases, lubricants, or other supplies, including foods and beverages required by Airline; except that nothing herein shall 

be deemed to grant others the right to do business on the Airport without 

the prior approval of Authority, which approval shall not be withheld 

unreasonably. 

8. The landing, taking off, flying, taxiing, towing, loading or unloading, 

of Airline's aircraft. 

9. The loading and unloading of property, cargo, express and mail at 

the Airport by motor vehicles or other manner of conveyance as Airline 

may desire or require in the operation of its own air transportation 

system, with the right to designate the particular ground carrier or 

carriers who should regularly transport Airline's property, cargo, express 

and mail to and from the Airport. 

10. The right and privilege of Airline, its agents, suppliers, employees, 

contractors, passengers, guests, and invitees, of access to the public areas 

and public facilities of the Terminal Building. Airline shall not 

authorize, or permit, the use of said access by any person or firm 

engaged in any activity that, or which performs any act, or furnishes any 

service, for or on behalf of Airline that, Airline is not authorized to 

engage in or perform under the provisions of this Agreement, unless 

expressly authorized by Authority. Authority shall have the right at any 

time or times to close, relocate, reconstruct, change, alter, or modify any 

such means of access provided for Airline's use pursuant to this 

Agreement, or otherwise, either temporarily or permanently; provided 

that Authority shall give reasonable notice to Airline of said intent and 

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operations, shall be available to provide competitive Ground Handling 

Services to the Airline. A Proposed Winner Aviation Ground Handling 

Agreement to ADI is depicted in Exhibit D. 

12. All abatements, revenue guarantees, and in-kind services programs 

are shown in Exhibit C. 

13. The Fly YNG- ADI Marketing & Advertising Plan is depicted in 

Exhibit E. 

4.2 Provision and Sale of Goods and Services 

A Authority expressly waives the right to assess and collect fees for 

inflight catering, vending, ground transportation for employees, and other services provided 

by Airline for its own use; provided, however, that if such services are provided by Airline 

to others for profit, or if Airline has such services provided by others, Authority reserves the 

right to charge reasonable fees therefore. 

B. Except as specifically provided for in this Article IV, nothing herein 

shall be deemed to give Airline any right or permission to sell or provide any goods or 

services at the Airport not incidental to its own air transportation system. Airline may have 

said services provided for it by such company or companies, or through a nominee, of its 

choice, provided that said company, companies or nominee is authorized by Authority to 

conduct such service(s) on the Airport, and further provided that such company, companies 

or nominee shall have no greater rights than Airline hereunder. 

4.3 Ground Handling Agreement 

If Airline agrees to ground handle any portion of the operations of another 

scheduled or un-scheduled airline, or if another airline or private ground handling agency 

agrees to ground handle any portion of the operations of Airline, Airline shall provide 

Authority advance written notice of such proposed activities, including a description of the 

type and extent of services to be provided. Airline shall not agree to ground handle another 

airline if such airline does not have in force an operating agreement with Authority. 

Article V- FEES AND CHARGES 

5.1 General 

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5.2 Monthly Reports 

A. Airline shall furnish to Authority on or before the 15th day of each 

month, an accurate report of Airline's operations at the Airport during the preceding month, 

setting forth all data reasonably necessary to calculate the fees and charges due under this 

Agreement. Said report shall include: (1) Airline's total number of Revenue Landings for 

the month by type of aircraft, the Certificated Weight of each Aircraft, and the Total 

Landing Weight for the month; (2) the total number of Airline's enplaning and deplaning 

passengers; and (3) Airline's amount of cargo, freight, mail, and express arriving and 

departing the Airport by both air and ground transport, each mode (air and ground) to be 

reported separately for such month. 

B. Airline shall furnish to Authority on or before the 15th day of each 

month an accurate report of Airline's planned operations at the Airport for the succeeding 

month. Said report shall include, for each flight scheduled to operate at the Airport at any 

time during the succeeding month: (1) flight number; (2) aircraft equipment types; (3) days 

of week which the flight will operate; (4) scheduled local arrival and/or departure time at the 

Airport; (5) complete itinerary including scheduled local arrival and/or departure time at 

each airport serviced; and (6) the effective and termination date during said month. In 

addition, Airline shall furnish to Authority the total number of seats in each type of aircraft 

operated by Airline at the Airport and shall, from time to time, upon the request of 

Authority, provide current seating capacity of those various types of aircraft. 

5.3 Landing Fee 

A. Airline shall, without invoice from Authority and not later than the 

15th day of the following month, pay Authority for Revenue Landings made by Airline in 

the previous month at the greater of: 

1. The Landing Fee Rate is determined to be $1.29 per unit of Aircraft 

Maximum Landing Weight and is calculated by multiplying the number of 1 ,000-pound 

units of Total Maximum Gross Landing Weight of Airline Aircraft during the month by the 

"Landing Fee Rate" as such may be amended; provided, in the case of Airline, Landing Fees 

are WAIVED THROUGHOUT THE TWO-YEAR PERIOD COMMENCING ON THE 

DATE OF AIRLINE'S INAUGURATION OF SCHEDULED PASSENGER SERVICE 

AT AIRPORT, then charged at a rate of$0.99 per 1,000 lbs. through the fourth anniversary 

of Airline's inauguration of scheduled passenger service at Aimort, then charged per Exhibit 

C, the Airport Rates & Charges Schedule; 

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Paragraph 5.3.A, payments as required by Paragraph 5.3 shall be detennined by assuming 

that Airline's Total Landing Weight for such month(s) that the report is not submitted is 

equal to that of the most recent month for which such data are available for Airline. Any 

necessary adjustment in such Landing Fee shall be calculated after an accurate report is 

delivered to Authority by Airline for the month in question, and resulting surpluses or 

deficits shall be applied as credits or charges to the appropriate invoices in the next 

succeeding month. 

5.4 Premises Fees 

A. Apron and Holdroom. WAIVED THROUGHOUT THE TWOYEAR PERIOD COMMENCING ON THE DATE OF AIRLINE'S 

INAUGURATION OF SCHEDULED PASSENGER SERVICE AT 

AIRPORT, then per Exhibit C, the Airport Rates & Charges Schedule; 

B. Baggage Claim Area. WAIVED THROUGHOUT THE TWOYEAR PERIOD COMMENCING ON THE DATE OF AIRLINE'S 

INAUGURATION OF SCHEDULED PASSENGER SERVICE AT 

AIRPORT, then per Exhibit C, the Airport Rates & Charges Schedule; 

C. Ticket Counter, Operating Office, Other Space. WAIVED 

THROUGHOUT THE TWO-YEAR PERIOD COMMENCING ON THE 

DATE OF AIRLINE'S INAUGURATION OF SCHEDULED 

PASSENGER SERVICE AT AIRPORT, then per Exhibit C, the Airport 

Rates & Charges Schedule; 

D. Passenger Boarding Bridge Fee. WAIVED THROUGHOUT THE 

TWO-YEAR PERIOD COMMENCING ON THE DATE OF 

AIRLINE'S INAUGURATION OF SCHEDULED PASSENGER 

SERVICE AT AIRPORT, then per Exhibit C, the Airport Rates & 

Charges Schedule; 

E. RON Fee. WAIVED THROUGHOUT THE TWO-YEAR PERIOD 

COMMENCING ON THE DATE OF AIRLINE'S INAUGURATION OF 

SCHEDULED PASSENGER SERVICE AT AIRPORT, then per Exhibit C, 

the Airport Rates & Charges Schedule; 

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G. Passenger Facility Charge (PFC). Throughout any period during 

which PFCs are in effect at Airport, Airline shall collect from passengers scheduled to 

enplane at Airport and pay over to Airport (less the amount Airline is authorized by 14 CFR 

158.53 to retain) PFCs at a rate of $4.50 per enplaned passenger, as such may be amended 

with consent of Airline; 

H. Rents and fees for any use of Airport premises not provided in this 

Agreement shall be at the rates provided in Exhibit C, the Airport Rates & Charges 

Schedule, as such may be amended. 

5.5 Payment Due 

All Premises Fees shall be due and payable in advance on the first day of 

each month without invoice. Landing Fees shall be due and payable without invoice on the 

15th day of the month following the month to which the Landing Fees apply. Any payment 

not received on or before the due date shall accrue interest, at the rate of 1.5% per month, 

from said due date until paid in full. PFCs shall be remitted as set forth in Part 158 of the 

FAA regulations, 14 CFR Part 158. 

Article VI- AIRLINE OPERATIONAL START -UP AND REVENUE 

GUARANTEE FUNDING 

6.1 Start-up Operational Funding. 

The Authority, on behalf of itself and the Youngstown Parties, shall 

provide $130,000 to Airline upon public announcement by the Authority of the 

initial scheduled passenger service to be operated by Airline at Airport, which 

announcement shall not be unreasonably withheld or delayed. These funds shall 

constitute initial start-up funding to defray the pre-operating expenses Airline 

must incur to establish and operate the air service from the Youngstown-Warren 

Regional Airport contemplated by this Agreement. 

6.2 Revenue Guarantee. 

The Authority, on behalf of itself and the Youngstown Parties, shall 

provide up to $1,200,000 to Airline as a revenue guarantee, effective from the 

date of Airline's inauguration of scheduled passenger service at Airport and 

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this Agreement. No less frequently than monthly, Airline shall provide a written 

accounting to Authority detailing the profit margin achieved by Airline on its 

service to and from the Airport during the period covered by the accounting. To 

the extent a loss or a profit margin of less than 5% has resulted during the period 

in question, such accounting shall include an invoice issued by Airline. Upon 

receipt of such accounting and invoice, the Authority shall, without delay, issue a 

revenue guarantee payment to Airline in an amount sufficient to cover the 

difference between the profit margin (or loss, as the case may be) achieved and a 

5% profit margin, which shall be the amount invoiced by Airline. Additional 

details of the revenue guarantee are set forth in Exhibit B. 

6.3 Mutual Acknowledgments. 

A. The Authority acknowledges that in entering into this Agreement, Airline 

is relying upon all of the financial considerations set forth in Articles V and VI of 

this Agreement, and that Airline would not enter into this Agreement in the 

absence of such considerations. 

B. Airline acknowledges that the Authority is free to apply for federal 

reimbursement of eligible expenses the Authority incurs (including but not limited 

to revenue guarantee expenses) in relation to the establishment and continuation 

of Airline's service to and from the Airport, to the extent such reimbursement is 

available to the Authority under a Small Community Air Service Development 

(SCASD) grant issued by DOT in August 2012. The Authority acknowledges 

that its obligation to provide to Airline the financial considerations set forth in 

Articles V and VI of this Agreement is independent of (i) the amount of SCASD 

funding available to the Authority, and (ii) whether the Authority is successful in 

obtaining reimbursements under the SCASD grant. 

Article VII - MAINTENANCE AND OPERATION OF THE AIRPORT 

7.1 Authority Obligations 

Authority agrees that it will develop, improve, maintain and operate the 

Airport, including the Terminal Building and all appurtenances, facilities, now or hereafter 

connected therewith as the same relate to Airline's air transportation system, and will keep 

the Airport and its aerial approaches free from obstruction and interference for the safe and 

proper use thereof by Airline, all in a manner at least equal to the standards established by 

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located on the Airport. Airline shall maintain all Airport facilities used by Airline hereunder 

in a neat, clean, and orderly condition, free from litter, debris, refuse, petroleum products, or 

grease that may result from activities of its passengers, employees, agents, or suppliers. 

Airline shall promptly remove all oil and grease spillage which is attributable to Airline's 

aircraft or equipment and shall not pennit any prohibited substance to enter the sewer 

system. No equipment shall be parked on the ramp except in areas specifically designated 

by Authority. 

Article VIII- INDEMNIFICATION AND INSURANCE 

8.1 Indemnification and Insurance 

A. Airline agrees to indemnify and save Authority, its officers, agents, 

and employees hannless from any liability, including, but not limited to, claims, judgments, 

fines, costs, and reasonable attorneys' fees, for death or injury to persons or damage to 

property resulting from or arising out of the use or occupancy of the Airport by Airline, its 

agents and employees, or caused by or resulting from the exercise of the rights and 

privileges granted hereunder, to the extent that said claims, judgments, fines, costs or 

reasonable attorney's fees result from the negligence or willful misconduct of Airline, its 

agents or employees; and further agrees to carry, and furnish to Authority a certificate(s) of 

insurance, with combined single limits not less than the following, if Airline operates: 

Aircraft with less than 1 0 seats, 

Aircraft with 1 0 seats, but less than 25 seats, 

Aircraft with 25 seats or more, 

or 

Aircraft with a maximum gross landing weight 

ofless than 15,000 lbs., 

Aircraft with a maximum gross landing weight 

of 15,000 lbs., but less than 35,000 lbs., 

Aircraft with a maximum gross landing weight 

of35,000 lbs. or more, 

$ 25,000,000; 

$ 50,000,000; 

$1 00,000,000; 

$ 25,000,000; $ 50,000,000; 

$1 00,000,000; 

whichever is the greater, it being agreed that Airline shall provide such insurance in the 

limits prescribed for the aircraft operated by Airline having the greatest numbers of seats or 

the greatest maximum gross landing weight, regardless of the composition of Airline's 

aircraft fleet; which insurance shall provide coverage for public liability, property damage, 

bodily injury in which Authority shall be an additional insured to the extent of the liability 

- 12-
B. In conducting its business hereunder, Airline acts as an independent 

contractor and not as an agent of Authority. The selection, retention, assignment, direction, 

and payment of Airline's employees shall be the sole responsibility of Airline. Authority 

shall not attempt to exercise any control over the daily performance of duties by Airline's 

employees, except to the extent and in the manner required by law or regulation for 

continued operation or certification of the Airport. 

8.2 Nonliability of Authority 

Authority shall not be liable to Airline or its agents, representatives or 

employees, for any injury or damage either to person or property, due to the Airport or any 

improvements thereon or any part thereof or any appurtenances thereof becoming out of 

repair, or due to the happening of any accident in or about the Airport, except to the extent 

that such injury, damage or accident results from the negligence or willful misconduct of 

Authority, its agents or employees; nor shall Authority be liable to Airline or its agents, 

representatives or employees, for any injury or damage either to person or property, due to 

any act or neglect of any tenant or occupant of the Airport, or of any other person. Without 

limiting the generality of the foregoing, in the absence of the negligence or willful 

misconduct of Authority, its agents or employees, Authority shall not be liable for damage 

caused by water, steam, sewerage, gas, bursting or leaking of pipes or plumbing or electrical 

causes, or the negligence of contractors, their employees or agents, or licensees of Authority. 

8.3 If Airline uses Tenninal Building exterior Passenger Boarding Bridge for its 

enplaning and deplaning passengers (the "Passenger Boarding Bridge"), in consideration 

thereof, and in addition to and not as substitution for the indemnification provided by 

Airline to Authority pursuant to Paragraph 8.1 above, Airline, in the absence of the 

negligence or willful misconduct of Authority, its agents or employees, shall assume 

responsibility for loss or damage to property or injury to persons resulting from, arising out 

of, or associated with the use of the Passenger Boarding Bridge, as well as for any claims 

made by or on behalf of Airline's agents, servants, and employees, arising from their 

employment or work and which results from the use of the Passenger Boarding Bridge. 

Airline shall at all times agree to indemnify and hold Authority and its officers, agents and 

employees harmless from and against any and all liabilities, demands, claims, suits, losses, 

damages, causes of action, fines or judgments, including those reasonable and necessary 

costs, reasonable attorney and witness fees, and expenses incidental thereto, arising out of, 

or in connection with, the use of the Passenger Boarding Bridge, except for acts arising from 

the negligence or willful misconduct of Authority, its agents or employees. 

- 13-
operations at, the Airport and use of Authority's facilities. Copies of the Regulations, as 

adopted or amended, shall be forwarded to Airline. Authority agrees that Regulations so 

promulgated shall not alter the tenns of this Agreement, or be inconsistent with any rule or 

regulation of the DOT, FAA, TSA, or any other federal or State agency, which is binding in 

law on Airline or Authority, as the same now are or may from time to time be amended or 

supplemented. 

B. Airline shall not violate, nor knowingly pennit its agents, 

contractors, or employees acting on Airline's behalf to violate, any such Regulations. 

C. Airline shall have the right to lawfully contest the validity of any rule 

or Regulation promulgated by Authority. 

9.2 Compliance with Laws 

A. Airline shall not use the Airport or any part thereof, or permit the 

same to be used by any of its employees, officers, agents, subtenants, invitees, or licensees, 

for any illegal purposes and shall, at all times during the tenn of this Agreement, comply 

with all applicable ordinances and laws of any City, County, or State government or of the 

United States Government, and of any political division or subdivision or agency or 

commission thereof which may have jurisdiction to pass laws or ordinances or to make and 

enforce rules or regulations with respect to the uses hereunder. 

9.3 Use of the Airport by Airline 

A. Airline shall not do, nor shall it permit anyone over which it 

exercises control to do, anything at or about the Airport which may interfere with the 

effectiveness or accessibility of the drainage and sewage system, fire protection system, 

sprinkler system, alarm system, fire hydrants and hoses, if any, installed or located on the 

Airport. 

B. Airline shall not do, nor shall it permit anyone over which it 

exercises control to do, any act or thing upon the Airport which will invalidate, conflict with 

or increase the premium on any fire or other casualty insurance policies covering the Airport 

or any part thereof. 

C. Airline shall not dispose of, nor shall it permit any other person over 

which it exercises control to dispose of, any waste material (whether liquid or solid) taken 

- 14-
assignees and successors in interest agrees as follows: 

I. Compliance with Part 21. Airline shall comply with the 

regulations relative to nondiscrimination in federally assisted programs of 

the Department of Transportation (hereinafter "DOT") Title 49, Code of 

Federal Regulations, Part 21, as they may be amended from time to time 

(hereinafter referred to as Part 21 ), which are herein incorporated by 

reference and made a part of this Agreement. 

2. Nondiscrimination. Airline, with regard to the work 

perfonned by it during the Agreement, shall not discriminate on the grounds 

of race, color, national origin, sex or creed in the selection and retention of 

subcontractors, including procurements of materials and leases of 

equipment. Airline shall not participate either directly or indirectly in the 

discrimination prohibited by section 21.5 of Part 21, including employment 

practices when the Agreement covers a program set forth in Appendix B of 

Part 21. 

3. Solicitation for Subcontracts, Including Procurements of 

Materials and Equipment. In all solicitations either by competitive bidding 

or negotiation made by Airline for work to be performed under a 

subcontract, including procurements of materials or leases of equipment, 

each potential subcontractor or supplier shall be notified by Airline of 

Airline's obligations under the Agreement and Part 21 relative to nondiscrimination on the grounds of race, color, national origin, sex or 

creed. 

4. Information and Reports. Airline shall provide all 

information and reports required by Part 21 or directives issued pursuant 

thereto and shall permit access to its books, records, accounts, other sources 

of information and its facilities as may be determined by the Authority and 

the FAA to be pertinent to ascertain compliance with Part 21, orders and 

instructions. Where any information required of Airline is in the exclusive 

possession of another who fails or refuses to furnish this information, 

Airline shall so certifY to the Authority or the FAA, as appropriate, and shall 

set forth what efforts it has made to obtain the information. 

- 15 -
b. Cancellation, tennination, or suspensiOn of the 

Agreement, in whole or in part. 

6. Incmnoration of Provisions. Airline shall include the 

provisions of paragraphs 1. through 5. in every subcontract, including 

procurements of materials and leases of equipment, unless exempt by Part 

21 or directives issued pursuant thereto. Airline shall take such action with 

respect to any subcontract or procurement as the Authority or the FAA may 

direct as a means of enforcing such provisions including sanctions for 

noncompliance. Provided, however, that in the event Airline becomes 

involved in, or are threatened with, litigation with a subcontractor or 

supplier as a result of such direction, Airline may request the Authority to 

enter into such litigation to protect the interests of the Authority and, in addition, Airline may request the United States to enter into such litigation 

to protect the interests of the United States. 

C. Inasmuch as applicable law requires, notwithstanding any other or 

inconsistent provision of this Agreement, during the term of this Agreement, Airline agrees 

as follows: Airline assures that it will comply with pertinent statutes, Executive Orders and 

such rules as are promulgated to assure that no person shall, on the grounds of race, creed, 

color, national origin, sex, age, or handicap be excluded from participating in any activity 

conducted with or benefiting from Federal assistance. This provision obligates Airline or its 

transferee for the period during which Federal assistance is extended to the airport program, 

except where Federal assistance is to provide, or is in the form of personal property or real 

property or interest therein or structures or improvements thereon. In these cases, the 

provision obligates the party or any transferee for the longer of the following periods: (a) 

the period during which the property is used by Authority or any transferee for a purpose for 

which Federal assistance is extended, or for another purpose involving the provision of 

similar services or benefits; or (b) the period during which Authority or any transferee 

retains ownership or possession of the property. Airline further assures that this provision 

shall be inserted in all contracts, subcontracts, and other agreements at all tiers. 

D. That in the event of breach of any of the above, nondiscrimination 

covenants, Authority shall have the right to terminate this Agreement and to reenter and 

repossess the Premises and the facilities thereon, and hold the same as if said Agreement had 

never been made or issued. 

- 16-
9.6 Non-Waiver ofRights 

A. No tennination of this Agreement in accordance with the rights of 

either party under this Agreement to terminate shall be considered a forfeiture, such rights 

being a part of the consideration for this Agreement and of the essence hereof. 

B. Neither party shall be held to be in breach hereof because of any 

failure to perfonn any of its obligations hereunder if said failure is due to any cause for 

which it is not responsible and over which it has no control; provided, however, that the 

foregoing provision shall not apply to failures by Airline or Authority to pay fees and 

charges or otherwise meet its financial obligations under this Agreement; and provided 

further, that the foregoing provision shall not prevent either party from exercising any right 

which it may otherwise have as a matter oflaw to tenninate the tenn hereof. 

C. The waiver of any breach, violation or default in or with respect to 

the performance or observation of the covenants and conditions contained herein shall not 

be taken to constitute a waiver of any such subsequent breach, violation or default in or with 

respect to the same or any other covenant or condition hereof. 

9. 7 Severability 

If a provision hereof shall be finally declared unenforceable or illegal by any 

court or administrative agency having jurisdiction, the entire Agreement shall not be 

unenforceable, but the remaining provisions shall continue as nearly as possible in 

accordance with the original intent of the parties. 

9.8 Assignment and Sublease 

Airline shall not, directly or indirectly, assign, sublease, sell, hypothecate or 

otherwise transfer this Agreement, or any rights granted herein, without the prior written 

consent of Authority. 

9.9 Entire Agreement and Amendments 

This Agreement, together with all exhibits attached hereto, constitutes the 

entire agreement between the parties hereto, and any other representations or statements 

- 17-
unreasonably withheld. 

9.11 Notices 

Notices to either party provided for herein shall be in writing and shall be 

sufficient if hand delivered or sent by certified or registered mail, postage prepaid, or if 

transmitted by electronic means provided receipt is confirmed contemporaneously, 

addressed as follows: 

To Authority: 

To Airline: 

Western Reserve Port Authority 

ATTN: Daniel J. Dickten, A.A.E. 

Director of Aviation 

Youngstown-Warren Regional Airport 

1453 Youngstown-Kingsville Rd. NE 

Vienna, OH 44473 Aerodynamics Incorporated ATTN: Scott Beale, CEO 

25700 Science Park Drive, Suite 210 

Beachwood, Ohio 44122 

or to such other respective addresses as the parties may designate to each other in writing 

from time to time. 

9.12 Successors and Assigns Bound 

This Agreement shall be binding upon and inure to the benefit of the 

successors and assigns of the parties hereto. 

913 Governing Laws and Time 

This Agreement shall be governed by the laws of the State of Ohio. Time 

shall be of the essence. 

- 18-
IN TESTIMONY WHEREOF, witness the signatures of the pm1ies hereto, this day and 

year first above wlitten. 

WITNESS 

Title: Executive Director of Aviation 

WITNESS Q 

~~ 

AERODYNAMICS IN CORPORA TED 

By: 

/··7 ~~-Scott A. Beale 

Title: Chief Executive Officer 

This Agreement has been approved for the 

Authmity as to le lity of form and content by: 

- 19 -
-20-
PropOIIed 

lld'nrbilhed lU' P.BB 

Elll' • B '137 

4' 10". 8' 6" door height 

B'737·MD83·A320-B'7S7 

8' (/ • 13' 2" doar height 

Will drop 

toS' doorsill 

height but 

ex c:eeds 8_ ~ "'• 

AOAslope 

• • Passenger Hold Room A 

(210 scats) 

• • 

B731-MD83-A320-B167 

8' 6". 14' g• door height 

Will drop to 5' doorsill 

he1ght but exceeds 8.3°1D 

ADA slope 

.. :- ~ Jet~ri~t _ -:::,· 1 . !!---.- . 

--~~~·-:.":; 

YNG TERMINAL SPACE 

Passenger Boarding Bridges Ao.·r ~ - Proposed space 

-- l 
AIR SERVICE PLAN 

-22-
authorize the Director of Aviation to pursue daily service with Aerodynamics Inc. (ADI), a small Part 121 

air carrier in business for nearly 50 years that operates Embraer 145 regional jet aircraft. ADI intends to 

provide daily scheduled air service from the Youngstown-Warren Regional Airport (YNG or Airport) to 

the most optimal airline connecting hub. A planned start-up is projected for October 1, 2014. Upon 

sustainment of the initial destination service, an evaluation is planned to determine whether the level of 

profitability is available to start a second destination. In August 2012 the U.S. Department of 

Transportation approved the use of $780,000 in SCASDP grant funding to reimburse, in part, the costs of 

a locally-provided revenue guarantee and other funding required to attract and establish the service 

described here. These costs are further described below. The revenue guarantee will be utilized to keep 

the airline at a 5% profit margin until the service sustains itself, at which time the subsidy will cease. In 

the event the total revenue guarantee of $1.2 million is depleted prior to the service sustaining itself, no 

additional funds shall be paid to the airline and the airline shall be free to discontinue the service if it so 

elects. 

DESTINATION CANDIDATES 

The following is an alphabetical list of the top preferred business (connecting) destinations based on 

surveys from local business travelers for new start-up daily service from the Youngstown-Warren 

Regional Airport as surveyed by the Airport: 

1. Atlanta {ATL) 5. Detroit {DTW) 

2. Charlotte ( CL T) 6. New York/Newark (LGA/EWR) 

3. Chicago (ORD/MDW) 7. Philadelphia (PHL) 

4. Dallas Ft. Worth {DFW) 8. Washington, DC {DCA/IAD) 

ESTIMATED REVENUE GUARANTEE PAYOUTS/ PROFIT MARGINS OF CANDIDATE DESTINATIONS 

Based on the candidate destination forecasts, the following (1 - 6) are the estimated revenue guarantee 

payouts and eventual profit margins at peak demand for each potential destination calculated by AvPorts. 

Estimated Revenue Eventual 

Market: Guarantee Payout: Profit Margin: Airline Hub 

1. Detroit (DTW) $604,309 39% Delta 

2. Philadelphia (PHL) $997,287 23% New American (AA I US) 

3. Atlanta (ATL) $1,271,929 24% Delta 

4. Charlotte (CL T) $1,273,595 19% New American (AA I US) 

5. Washington-Dulles (lAD) $1,265,940 8% United 

6. Chicago O'Hare (ORO) $1 ,690,449 1% United I New American 

7. New York (LGA) NIA Slot Restricted Delta I American 

8. Newark (EWR) NIA Slot Restricted United 

9. Washington DC (DCA) NIA Slot Restricted US Air I New American 

10. Dallas Ft. Worth (DFW) Currently not Sustainable New American (AA I US) 

The YNG catchment area's total leakage for complete year 2013 was 563,604 annual O&D passengers. 

In each scenario, we estimate that the flights will recapture 7% of total YNG leakage, which is a realistic 

portion of the market. 
additional funding raised from local contributions and in-kind services described below. A fund raising campaign by YNGAir Partners is in progress to provide additional revenue guarantees. WRPA will 

administer all disbursements to ADI and all requests for reimbursement under SCASDP. 

AIRLINE OPERATIONAL "START-UP" FUNDING 

The Youngstown Parties will provide $130,000 to ADI in advance as initial start-up funding to establish 

and operate the air service from the Youngstown-Warren Regional Airport to the most optimal airline 

hub. This funding is independent of all other funding. 

PASSENGER BOARDING BRIDGE- VNG GATE 6 

Upon sustainment ofthe first route, the Airport will provide a Regional Jet Passenger Boarding Bridge at 

Gate 6 in the Terminal South Wing for use by the Airline. The Airport has received bids for a refurbished 

RJ bridge at a cost of $180,000. The Airport will be using a covered walkway with all-weather boarding 

mechanism at a cost of approximately $50,000 as the initial passenger boarding/de-boarding facility at 

Gate 6. These costs will be credited towards meeting the SCASDP grant's in-kind service requirement. 

OPERATIONAL ABATEMENTS 

The Airport will provide operational abatements by waiving all terminal operating costs for the first two 

years in the amount of approximately $150,000. These costs will also be credited towards meeting the 

SCASDP in-kind service requirement. 

MARKETING, ADVERTISING AND PROMOTION 

The Airport will provide start-up marketing, advertising and promotional campaign funding, plus in-kind 

services for additional advertising as provided in the SCASDP grant agreement, as follows: 

Destination A- $15,000 Pre-Start up Campaign I $100,000 In-kind Services over 2-years 

Destination B- $10,000 Pre-Start up Campaign I $80,000 In-kind Services over 2-years 

REVENUE GUARANTEE PROCEDURE 

Virtually all start-up airline service loses money during the initial sustainability phase. The revenue 

guarantee provides funding to enable the airline to maintain a reasonable profit margin of 5% through 

the start-up. 

The airline will provide invoices to WRPA no less frequently than monthly for the operational 

deficiencies experienced, measured against a 5% net profit margin. Payment in response to the airline's 

invoices will be provided by WRPA (on behalf of the Youngstown Parties) to enable the airline to 

maintain a 5% net profit margin. WRPA will then apply for reimbursement under the SCASD grant of 

65% of the disbursement made to the airline, with reimbursement expected to occur within 60 days after the respective application. 
p

g

y 

Accepted Accounting Principles (GAAP) established by the Financial Accounting Standards Board (FASB). 
AIRPORT RATES & CHARGES SCHEDULE 

-26-
Youngstown-Wanen Regional Airpm1 . 

TenninaliRent 

Airport Tenninal (Ticket Counter, Operations Office, Other Space -Airline): 

Signatory 

$12.50 I s.f. 

Non-Signatory 

$15.501s.f. 

GateiPassengerBoardingBridgeFees 

All gates, loading bridges and devices at YNG are common use. Unless the entity is 

currently operating under an existing Airpm1 I Airline or other Use Agreement, the 

WRPA will incorporate the following passenger boarding bridge fee (per use) to recover 

costs associated with the maintenance and operation of the device: 

Gate 

Gate I (PBB): 

Gate 2: 

Gate 3: Gate 4: Gate 5: (PBB) 

Gate 6: 

SignatoryScheduled Operator 

$50.00 

No Cost No Cost 

No Cost 

$50.00 

No Cost 

Remain Over Night (RON) Fees 

Non-Signatory 

Unscheduled Operator 

$75.00 

$25.00 

$25.00 

$25.00 

$75.00 

$25.00 

Commercial Air Cani.ers (Passenger or Cargo) that RON on the Airp011 Terminal or 

Cargo Aprons and Lighter than Air Aircraft that RON on the Airp011 will be charged a 

flat rate fee $50.00 per night. 

Landing Fees 

Unless an entity is cun·ently operating under an existing Airpm1 I Airline or other Use 

Agreement , Commercial Air Cani.ers or private Charters (either passenger or cargo) 

and general aviation aircraft weighing more than 12,500 lbs. (MGL W) will pay 

landing fees in accordance with the following schedule: 
aircraft with a minimum fee of $25.00 for Commercial Service Aircraft. 

Airoort Security and Use Fee 

There shall be an Airpo11 Use fee of$1.00 per enplaned passenger. 

Passenger Facility Charge (Airline) 

There shall be a passenger facility charge of $4.50 per enplaned passenger. 

SIDA I AOA Badging Fees: 

SIDA Badge-Initial Badge: $45.00 /Replacement Badge: $25.00 
GROUND HANDLING PROPOSAL 

-29-
Between 

ANNEX 81.0- LOCATIONS, AGREED SERVICES 

to the Standard Ground Handling Agreement (SGHA) of 2008 

Winner Aviation 

1453 Youngstown-Kingsville RD NE 

Vienna, Ohio 444 73 

And hereinafter referred to as the 'Handling Company' And ADI 

25700 Science Park Dr 

Suite 210 

Beachwood, OH 44122 

And hereinafter referred to as the 'Carrier' 

Location .___Y_NG ____,I Valid From I 5/27/2014 I Valid to I 12/31/2016 I Replaces 

This Annex B is prepared in accordance with the simplified procedure whereby the Carrier and the 

Handling Company agree that the terms are not part of a Main Agreement or Annex A of the SGHA of 

January, 2008 as published by the International Air Transport Association. However, terms shall apply as 

if such terms were repeated here in full. By signing this Annex B the parties confirm that they are familiar 

with aforementioned Main Agreement and Annex A terms and conditions. Winner Aviation has prepared 

this ANNEX B in Accordance with the SGHA of March 12, 2013. 

Section 1: 

Section 2: Section 3: Section 4: 

Section 5: Section 6: 

Handling Fee 

As requested by "Carrier and Agreed by "Handling Company" . See Attachment A. 

Lav Service 

As requested by "Carrier and Agreed by "Handling Company" . See Handling Charges 

Potable Water Service 

As requested by "Carrier and Agreed by "Handling Company" . See Handling Charges 

Deicing Services See Handling Charges 

Sky Cap 

As requested by "Carrier and Agreed by "Handling Company. See Handling Charges. 

Equipment 

As requested by "Carrier and Agreed by "Handling Company. See Handling Charges. 
Section 6 Equipment Provided by Winner Aviation 

Additional Charges 

PARAGRAPH 4 SETTLEMENTS 

4.1 IAT A Standard Ground Handling 

Agreement AHM 810 January 2008, the Handling Company shall: 

(Settlement of Account Shall be effected in US Dollars) 

PARAGRAPH 6 DURATION/TERMINATION 

6.1 The term shall commence on the commencement date of schedule attached after which this 

Agreement may be terminated or renewed by either Party upon a THIRTY (30) day written notice. 

PARAGRAPH 7 LIABILITY AND INDEMNITY 

7.1 The Handling Company shall indemnify the Carrier against any physical loss of or damage to the 

Carrier's Aircraft caused by the Handling Company's negligent act or omission PROVIDED 

ALWAYS THAT the Handling Company's liability shall be limited to any such loss of or damage to 

the Carrier's Aircraft in an amount not exceeding the level of deductible under the Carriers Hull All 

Risk Policy which shall not, in any event, exceed USD 1 ,500,000 except that loss or damage in 

respect of any incident below USD 3000 shall not be indemnified. In the case of damage to the 

Carrier's aircraft the Handler will test its employees involved for the presence of drug or alcohol. 

PARAGRAPH 9 GENERAL 

9.1 In the case of absence of instructions by the Carrier, the Handling Company shall follow its own 

standard practices and procedures. The Carrier requires all personnel involved in the service of its 

aircraft be part of the Handler's or other drug testing program as a condition of employment. Any 

training set forth by the Carrier will be completed in the allotted time given. 

PARAGRAPH11 CONFIDENTIALITY 

11.1 Each party shall use reasonable precautions to keep confidential (including ensuring that its officers, 

employees, sub-contractors and agents keep confidential) all information (i) which one party to his 

Agreement may have, or acquires, in relation to the customers, business, assets or affairs of the 

other party; or (ii) which relates to the contents of this Agreement. Neither party will use for its own 

business purposes or disclose to any third party any such confidential information without the prior 

consent of the other party. 

Signature __________ _ Signature ___________ _ 

Chad Hughes 

Commercial Ground Operations Manager Chairman 
MARKETING & ADVERTISING PLAN 

-32-
Top 20 Destination Survey" have been used to implement the strategies and supporting 

actions in the months and years to come to solidify the Youngstown- Warren Regional 

Airport as the Region's Primary Commercial Service Airport and ADI as the region's air 

service provider. 

• Regain 35% of the market travelers who have been relying on other than 

Youngstown-Warren Regional Airport (YNG) for travel needs in one year. 

• Prevent airport leakage by aggressively promoting the Airport as a convenient, 

reliable, cost-competitive regional alternative to flying out of Pittsburgh, ClevelandHopkins, and Akron-Canton Airport as the preferred and convenient facility. 

• Reverse lingering misperceptions about YNG's air service and heighten awareness 

of the airport as air service opportunities grow at the Airport. 

• Engage the travel agencies as partners in meeting the challenge. 

• Encourage community ownership of the ADI air service solution. This includes 

engaging the local media in a partnership to "get the talk right" about the airport 

and it's air service partner, ADI, and to encourage locals to avail themselves of its 

service. This is an urgent matter, given the delicate status of start-up airline service 

and the new ADI service to the community's most desires destinations. 

• Implement a strong corporate airline use program by attracting corporations to 

choose ADI as their airlines and YNG as their corporate flight facility. 

Program Objectives 

1. Utilize committees in the community to assist in efforts to implement and support 

ADI airline service at YNG. 

* 

* 

* 

* 

Airport Promotional Committees and Support Groups- YNGAir Partners 

Western Reserve Port Authority Aviation Committee 

The Youngstown I Warren Regional Chamber 

Public Relations Committees 

2. Use community support to inform the local traveling public of new ADI air service 

available at the Youngstown-Warren Regional Airport (YNG). 

* Establish a Fare Equalization Committee using YSU student- interns to 

complete a monthly fare analysis among the airlines serving YNG and 

close competitive airports (PIT, CLE, CAK and ERI). 
5. Initiate an ongoing communication with frequent flyers via Flight Bulletin, Luggage 

Tag program and mailing list. 

* Flight Bulletin agreement between the YNGAir Partners Support Group as a 

fund raising project (from advertisements in Flight Bulletin) and YNG Airport. 

* Luggage tag display in terminal inviting businessmen and women to drop 

their card in for a free luggage tag. YNG personnel to make up tags and do 

mailings. 

6. Coordinate with community members, ADI and special events personnel regarding 

advantages of YNG. 

* Radio Program- 26 week 60 second radio spots, Airline specials, 

mystery promotion as "In-Kind" Service. 

* Television - 60 second public service spots also as "In-Kind" Service. 

* Outdoor bulletin boards located throughout strategic points in the 

Mahoning Valley. "Save your sanity, save time, save money at YNG." 

* Youngstown-Warren Regional Airport I Airlines signs at the Eastwood 

Park for the Mahoning Valley Scrappers and other similar events; 

* Luggage Tag give-aways at Scrappers games and other similar activities; 

* Familiarization trips for travel agents into YNG with Hotel I Motel 

Associations, Tourism Group and Airlines. 

* Familiarization trips for travel agents from YNG to destination points 

served by YNG Airlines. 

* Coordination with Advertising Agencies for inclusion of YNG in 

outgoing advertising for the Mahoning Valley area. 

* Aviation Open House Day at YNG with ADI aircraft displays during 

Aviation week complete with jazz band festival. 

* Travel Agents special promotion to Fly ADI at YNG. 

* Flight Bulletin- 10,000 monthly to community on ADI flights at YNG in tourist 

and business related locations. 

Pre-ADI Start-up objectives (3 months out) from Service Announcement to start-up 

The Airport will upon announcement of the service launch a start-up initiative to assist 

with the pre-booking of passengers. The initiative will consist of daily media spots both TV 

and Radio, outside advertising and Facebook, Twitter and Website Promotions. 
1. Earned Media 

a. Upon signing of the agreement: 

1. Conduct a press conference at YNG to announce the start-up of the 

new air service. Attendees will include: 

a. YNG and Western Reserve Port Authority officials 

b. Network carrier officials 

c. State and local public officials and community leaders 

2. Issue press releases to local, state, and national media 

announcing the start-up of the new air service. 

3. Arrange one-on-one interviews with local media for YNG, network carrier, and state and local public 

officials. 

b. On first day of air service: 

1. Arrange for local morning news shows to broadcast from YNG. 

2. Arrange a remote radio broadcast. 

3. Conduct press conference at YNG at the time ofthe first flight. 

4. Arrange one-on-one interviews with J'NG officials, netwm·k airline 

representatives, and passengers. 

5. Issue press release to local, state, and national media. 

c. Ongoing earned media: 

1. Monthly press releases featuring news about the air service including 

success ofthe flights 

2. Paid media directed at the genera I public 

a. TV, radio, and print ads in markets within a 45-mile radius 

of YNG. Ads will begin to run approximately three months 

before initiation of service and will continue for twelve 

months after the first flight. 

1. TV spots will appear on the four Youngstown-based 

network TV outlets and the Time-Warner and 

Comcast cable systems that serve the market area. 

Most spots will run on shows popular with business 

travelers. 

2. Radio spots on stations within the market area that reach business 

travelers 

3. Print ads in the Vindicator, Warren Tribune 

Chronicle, Sharon Herald, and Youngstown 

Business Journal. 
g

YNGAir Partner two months and one month before air 

senice begins, at start-up, and monthly thereafter. 

4. Digital Marketing/Social Media 

a. 

b. 

c. 

Notice of agreement will be posted on YNG, Regional 

Chamber, and YNGAir Partners web sites and Facebook 

pages 

Press conferences and other events surrounding the first 

flight will be five streamed on YNG website 

Schedule and real time flight information will be 

posted on YNG website and Facebook page. 

In addition, the Convention and Visitors Bureaus of Mahoning, Mercer, and 

Trumbull Counties will augment the above campaigns by communicating to potential 

visitors to the Community that air service has returned to YNG and to consider air 

service as a travel option. 

Short-term objectives (3-12 months) 

• Assure the success of the initial ADI air service destination direct non-stop service to 

anywhere in the world through Airport. 

• Assist in the establishment and sustainment of daily non-stop ADI service from 

YNG to a connecting hub airport, such as Chicago, New York (Newark, etc.) or 

Detroit with ADI. Its success can be the harbinger for the YNG airport's 

resurgence. 

• Reduce leakage among those individuals who have long and lingering memories of 

poor past performance, causing them to "swear off'' YNG. 

• Establish a corporate sales and marketing function, staffed by someone whose sole 

responsibility is to call on and recruit regional corporate travel officials to fly ADI 

out of YNG. Implicit in this objective is the design and implementation of a corporate travel program, including incentives and rewards. 

Mid-term objectives (12-24 months) 

• Increase awareness of fundamental service improvements at the airport and ADI air 

service within the traditional catchment area. 

• Assure the success of the daily direct non-stop ADI services to the connecting hub 
attracting new passenger traffic from parts 60 - 100 miles and greater from the airport. 

Note: This is very much a "first impression" risk as in "you only get one chance to make a 

first impression." YNG should be confident that the service marketed to that new service 

area would meet or surpass customer expectations. 

Effective Use of Community Airport Marketing 

I. Background 

• The Airport lost airlines in 2003 and was no longer self-supporting after a four year 

decline in enplanements; 

• Several things were thought to have caused declining enplanements, including loss 

of EAS Program funding however, implementing leisure airline Allegiant Air in 

2006 re-established the airport as a passenger service airport; 

• Effective use of the community's interest in the Allegiant leisure flights to Orlando, 

St. Petersburg and Fort Meyers, Florida Myrtle Beach North Carolina show how a 

dramatic turnaround occurred through the effective use of the community. 

• Effectiveness of the new ADI daily non-stop service. 

2. Media Sources 

* The Youngstown State University Business Department in conjunction with the 

Airport's Marketing Coordinator and Air Service Development Consultant 

conduct week long surveys of passengers at YNG. The results of the surveys 

should indicate what percentage of our population is driving over an hour to 

neighboring airports due to lower fares and more direct flights. The results 

should assist the Airport in determining how better to serve Mahoning Valley 

residents and initiate a task force to suggest ways to set fares more in line and 

acquire more service; 

* Implement an Airport I ADI Promotions Taskforce of community leaders to 

spearhead the development of a marketing plan which suggests a 

penetration strategy to gain back the percentage of the population driving 

to other airports. Members should include the Director of Aviation, Airport 

Marketing Coordinator, Port Authority Staff, YNGAir Partners, Visitors & 

Convention bureaus, County Commissioners, Regional Chamber and Port 

Authority Board Members. 
Service Travel Bank Initiative in 2012-13. The Airport with the Chamber's 

assistance has used this data to market the Airport Airlines for their 

implementation of services to these desired destinations from YNG. The 

Youngstown I Warren Regional Chamber has pledged their support to the 

Airport for the development of scheduled ADI air service to connecting 

Destinations in the attached Endorsement. 

Summary 

ADI daily non-stop service at the Youngstown- Warren Regional Airport is a complex 

challenge and must be addressed on various fronts simultaneously. The plan will not be 

quick; but steady, incremental growth is a real possibility if the community accepts the 

challenge of making ADI at YNG its first choice when fares and schedules allow. This 

marketing plan offers strategic approaches to making that happen, but it needs to be 

flexible, given the nature of the industry, and the board and staffofthe Western Reserve 

Port Authority need to remain vigilant and adjust the plan as market forces dictate. 

Presently, good things are happening with YNG passenger service recently with the success 

of Allegiant Air, but the improvements will not be sustainable unless the catchment area is 

broadened and regional travelers commit to once again traveling out of YNG on ADI on a 

daily scheduled basis and reversing a trend toward using other regional airports. They will 

have to give YNG chance to prove itself, and they will have to help in "getting the talk 

right" about the positive changes in service and reliability. Clearly, one critical success 

factor will be the amount of business travel the airport can generate. The incumbent 

carriers pull no punches in saying business travelers make service sustainable. It is a 

daunting challenge that requires the same kind of community commitment that sparked 

the YNG resurgence with Allegiant Air Service in 2006 by such support groups as the 

YNGAir Partners .. 

To support the activities described in the Marketing & Advertising Plan and to establish 

YNG as a Regional Primary Passenger Service Airport, the airport facilities will require 

additional improvements, many of which have been completed over the past three years. 

The combination of the completed and proposed Airport improvements and continued Air 

Service Development through the Airport Marketing & Advertising Plan will no doubt 

earn the Youngstown- Warren Regional Airport the title, "the Alternative Regional 

Primary Commercial Service Airport " providing positive economic spin-off and jobs to 

the surrounding communities. 
ATTACHMENT 2 
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P.O. Box35 

15985 Eut Hi&h St. 

Middlefield, Ohio 44062 

4401632-1666-8881801-1666 

Fax 440/632-1700 

EasyLine 877/MBC-2794 

BasyLink@middlefioldbenlc.com 

www.middlofioldbank.com 

*******************************SNGLP 

2746 0.4791 SP 0.500 14 1 53 

hu••ll dnlln• •·l••n•nlll•••ln••ullnl••••l•••l••ll•lllll• 

WESTERN RESERVE PORT AUTHORITY 

1453 YO-KINGSVILLE RD NE 

VIENNA OH 44473 

30 

3 

0 

CORTLAND OFFICE 

3450 NILES CORTLAND RD 

CORTLAND, OH 44410 

PHONE:330-637-3208 

BUSINESS MONEY MKT 

ACCOUNT : a· 1 

07/01/14 THRU 07/31/14 

DOCUMENT COUNT: 3 

Page 1 of 1 

BUSINESS MONEY MKT ACCOUNT s•••l 

DESCRIPTION 

BALANCE LAST STATEMENT 

DEPOSIT 

DEPOSIT 

DEPOSIT 

INTEREST 

BALANCE THIS STATEMENT 

TOTAL CREDITS (4) 

TOTAL DEBITS (0) 

AVERAGE LEDGER BALANCE: 

INTEREST PAID THIS PERIOD: 

INTEREST PAID 2014: 

DEBITS CREDITS 

1,066.77 

1,15~.96 

39,839.25 

281.13 

DATE 

06/30/14 

07/21/14 

07/21/14 

07/29/14 

07/31/14 

07/31/14 

42,343.11 MINIMUM BALANCE 

.00 

INTEREST 

INTEREST EARNED: 

DAYS IN PERIOD: 

BALANCE 

1098,564.84 

1099,631.61 

1100,787.57 

1140,626.82 

1140,907.95 

1140,907.95 

1,098,564.84 

1,103,208.96 

281.13 

2,376.93 ANNUAL PERCENTAGE YIELD EARNED: 

281.13 

31 

.30% 

ITEMIZATION OF OVERDRAFT AND RETURNED I TEM FEES 

*********************************************************************** 

* 

* 

TOTAL FOR 

THIS PERIOD 

TOTAL 

YEAR TO DATE 

* 

* 

*---------------------------------------------------------------------* 

* TOTAL OVERDRAFT FEES: $.00 $.00 * 

*---------------------------------------------------------------------* 

* TOTAL RETURNED ITEM FEES: $.00 $.00 * 

*********************************************************************** 

M_,_mber fE) FDIC t:ENm NOTICE: SEE REVHRSE SIDE FOR IMPORT ANT NORMA TION 
Farmers National Bank 

FARMERS 330.533.3341 

1.888.988.3276 612 00014 99 PAGE: 1 

20 South Broad St. I P.O. Box 555 I Canfteki, OH 44406 ACCOUNT= 2 ••• 1 07/31/2014 

MINIMUM BAT..ANCE 

AVERAGE BALANCE 

WESTERN RESERVE PORT AUTHORITY 

YNG-WARREN REGIONAL AIRPORT 

ECONOMIC DEVELOPMENT 

1453 YOUNGSTOWN KINGSVILLE RD 

VIENNA OH 44473 

COMMERCIAL ANAI~YSIS ACCOUNT 211 

.... n 

lAST STATEMENT 06/30/14 

267,364.14 788 CREDITS 

506,973.82 88 DEBITS 

THIS STATEMENT 07/31/14 

- - - - - - - - - - DEPOSITS - - - - - - - - - -

30 

13 

65 

197,484.27 

677,590.33 

350,685.31 

524,389.29 

REF# ..... DATE ... .. . AMOUNT REF# . . ... DATE ..•... AMOUNT REF # •• • •. DATE ...•.. AMOUNT 

07/02 4,165 . 50 07/24 2,137 . 88 07/29 4,755.50 

07/08 3,984.73 07/24 7,998.79 07/29 6,288.00 

07/15 10,398.00 07/29 85 . 00 07/29 43,589.47 

07/16 2,231.26 07/29 94.92 

07/16 43,567.10 07/29 272.57 

OTHER CREDITS - - - - DESCRIPTION DATE AMOUNT 

BANKCARD MERCH DEP 94 237 07/01 3.00 

BANKCARD MERCH DEP 94 237 07/01 14.00 

BANKCARD MERCH DEP 94 237 07/01 17.00 

BANKCARD MERCH DEP 94 37 07/01 17.00 

BANKCARD MERCH DEP 94 237 07/01 18.00 

BANKCARD MERCH DEP 94 31 07/01 18.00 

BANKCARD MERCH DEP 94 237 07/01 21.00 

BANKCARD MERCH DEP 94 237 07/01 2.1.00 

BANKCARD MERCH DEP 94 237 07/01 21.00 

BANKCARD MERCH DEP 94 237 07/01 21.00 

BANKCARD MERCH DEP 94 237 07/01 28.00 

BANKCARD MERCH DEP 94 237 07/01 28.00 

BANKCARD MERCH DEP 94 37 07/01 28.00 

BANKCARD MERCH DEP 94 37 07/01 28.00 

BANKCARD MERCH DEP 37 07/01 28.50 

BANKCARD MERCH DEP 37 07/01 30.00 

BANKCARD MERCH DEP 37 07/01 30.00 

BANKCARD MERCH DEP 37 01/01 30.00 

BANKCARD MERCH DEP 37 07/01 35.00 

* * * C 0 N T I N (J E D * * * 

www. farmersbankgroup.com Gl 

SEE LAST PAGE: Of:< IMPORl ANT INFORMATION l:.. MEMBER FDIC 

Pc 
ATTACHMENT 3 
Western Reserve Port Authority, Ohio 

Combined Statement of Cash Receipts, Cash Disbursements, and Changes in Cash Basis Fund Balances 

For the Period January 1, 2014 Through July 31, 2014 

Port Economic 

Authority Aviation Development 

Cash Receipts 

Intergovernmental - Lodging Taxes $752,876 $0 $0 

Intergovernmental- Economic Development 0 0 0 

Intergovernmental - Aviation 0 9,699 0 

Operational Fees 1,298 98,352 413,500 

Fuel Flowage Fees 0 20,102 0 

Landing Fees 0 41,028 0 

Hangar Rentals 0 116,220 0 

T-Hangar Rentals 0 33,230 0 

Facility I Land Leases 0 101,692 5,000 

Terminal Leases 0 30,631 0 

Parking Lot Fees 0 259,013 0 

Proceeds From Debt 0 0 0 

Refunds and Reimbursements 0 52,769 210 

Passenger Facility Charges 0 163,176 0 

Miscellaneous Receipts 0 11,018 25,856 

Total Cash Receipts 754,174 936,930 444,566 

Cash Disbursements 

Personal Services 0 519,682 124,994 

Materials and Supplies 0 68,608 7,928 

Airport Security 0 29,943 0 

Marketing and Promotions 0 75,224 30,268 

Custodial Services 0 10,586 0 

Capital Outlay 26,200 269,537 4,541 

General and Liability Insurance 0 37,556 0 

Professional/ Contractual Services 65,454 185,130 99,793 

Conferences and Travel 0 17,149 3,760 

Communications 0 15,660 4,177 

Utilities 0 106,586 0 

Fuel and Oil 0 31,007 0 

Repair and Maintenance 0 71,690 0 

Lease Expenses 0 0 542 

Debt Service 0 227,898 0 

Matching Share - Federal Grants 0 914 0 

Miscellaneous Disbursements 25,000 2,741 30,030 

Total Cash Disbursements 116,654 1,669,910 306,033 

Excess of Cash Receipts 

Over/(Under} Cash Disbursements 637,520 ~732,980) 138,533 

Other Financing Receipts and (Disbursements) 

Transfers-In 0 845,000 0 

Transfers-Out (845,000) 0 0 

Total Other Financing Receipts and (Disbursements) {845,000~ 845,000 0 

Net Changes in Fund Cash Balances (207,480) 112,020 138,533 

Fund Cash Balances- January 1. 2014 797,800 258,538 530,315 

Fund Cash Balances • July 31, 2014 $590,320 $370,558 $668,849 

Total 

$752,876 

0 

9,699 

513,149 

20,102 

41,028 

116,220 

33,230 

106,692 

30,631 

259,013 

0 

52,979 

163,176 

36,874 

2,135,669 

644,676 

76,536 

29,943 

105,493 

10,586 

300,278 

37,556 

350,376 

20,909 

19,836 

106,586 

31,007 

71,690 

542 

227,898 

914 

57,771 

2.092,596 

43,073 

845,000 

{845,000~ 

0 

43,073 

1,586,654 

$1,629,727 
Western Reserve Port Authority 

Cash Reconciliation 

Governmental Funds 

July 31, 2014 

<-------Farmers Bank > 

Cortland Bank General Special Middlefield 

Checking Checking Checking MMDA Checking Cuh 

Account Account Account Account On Hand Total 

07/31/14 Depository Balances $66,948.99 $524,389.29 $5,510.46 $35,106.63 $1,140,907.95 $1,200.00 $1,774.063.32 

Add: Deposits-In-Transit 8,785.03 0.00 0.00 0.00 0.00 0.00 8.765.03 

Less: Outstanding Warrants 0.00 149,561.04 3,559.95 0.00 0.00 0.00 153,120.99 

Adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

07131/14 Cash Balances $75,734.02 $374,828.25 $1!950.51 $35,106.63 $1,1401907.95 $11200.00 $1,629,727.36 

I I I I I I v v v v v v Custodial Credit Risk $0.00 $161,885.39 <--1 <---1 $890,907.95 $1~00 00 $1,0531993.34 

<--------- Outstanding Warrants ------> <- Fund Cash Balanc:es --> 

CB Checking Account FNB General Checking Account PA Fund $590,320.20 

Aviation Fund 370,558.24 

None $0.00 9556 $75.00 ED Fund 668,848.92 

I 0.00 9635 26,724.00 

I 0.00 9642 105.78 Total $1,629,727.36 

I 0.00 9643 81 .59 

9644 46.00 Depository >< FIBs f£.00 

$0.00 9645 100.00 

9646 75.00 

Middlefield Checking Account 9647 173.80 9681 1,854.00 

9648 423.72 9682 7,680.00 

None $0.00 9649 32.99 9683 5.862.18 

I 0.00 9650 467.82 9684 671 .26 

I 0.00 9651 64.00 9685 1,287.00 

I 0.00 9652 70.00 9686 2,955.00 

9654 27.60 9687 68.50 

$0.00 9655 35.00 9688 400.00 

9658 600.00 9689 369.23 

FNB Special Checking Account 9657 1,121 .64 9690 448.11 

9658 1,032.47 9691 35.13 

None $949.48 9659 224.94 9692 872.24 

I 841 .10 9660 639.40 9693 30.00 

I 1,080.98 9661 101.87 9694 167.60 

I 360.64 9662 156.00 9695 1,361 .92 

I 327.75 9663 696.44 9696 74.95 

I 0.00 9664 11,723.18 9697 5,652.50 

I 0.00 9665 2,016.00 9698 42.76 

9666 285.00 9699 2,706.52 

$3,559.95 9667 260.00 9700 1.430.00 

9668 460.00 9701 4,330.57 

FNB MMDA Account 9669 153.30 9702 210.70 

9670 661 .00 30209 6,383.80 

None $0.00 9671 207.57 30210 685.10 

I 0.00 9672 32.09 30211 2.500.00 

I 0.00 9673 1361 .69 30212 2,350.00 

I 0.00 9674 151 .38 30213 560.00 

9675 230.88 30214 908.15 

f£.00 9676 300.00 30215 1,380.00 

9677 1,578.08 30216 7,488.08 

9678 519.78 30217 670.32 

9679 91 .55 30218 3,420.00 

9680 !52.67 40008 7,712.89 

40009 24,533.30 

$1C8,561 .04 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Using the Basic Financial Statements 

This annual report is presented In a format consistent with the presentation requirements of Governmental 

Accounting Standards Board Statement No. 34, as applicable to the Port Authority's cash-basis of accounting. 

Report Components 

The Statement of Net Position and the Statement of ActMtles provide Information about the cash activities of the 

Port Authority as a whole. 

Fund financial statements provide a greater level of detail. Funds are created and maintained on the financial 

records of the Port Authority as a way to segregate money whose use is restricted to a particular specified 

purpose. The Statement of Cash Basis Assets and Fund Balances and the Statement of Cash Receipts, Cash 

Disbursements, and Changes in Cash Basis Fund Balances present financial Information by either 

governmental funds or proprietary fund. In addition, the governmental funds statements present the Port 

Authority's General Fund, Airport Improvement Program Fund, Capital Projects Fund, and non-major funds 

(Other Funds) In separate columns. 

The Notes to the Basic Financial Statements are an Integral part of the government-wide and fund financial 

statements and provide expanded explanation and detail regarding the lnfonnation reported in the statements. 

Bale of Accounting 

The basis of accounting is a set of guidelines that determine when financial events are recorded. The Port 

Authority has elected to present its financial statements on a cash-basis of accounting. This basis of accounting 

is a basis of accounting other than generally accepted accounting principles. 

Under the Port Authority's cash-basis of accounting, receipts and disbursements are recorded when cash is 

received or paid. As a result of using the cash-basis of accounting, certain assets and their related revenues 

(such as accounts receivable) and certain liabilities and their related expenses (such as accounts payable) are 

not recorded in the financial statements. Therefore, when reviewing the financial information and discussion 

within this report, the reader must keep in mind the limitations resulting from the use of the cash-basis of 

accounting. 

Reportlna the Port Authorttv p e Whole 

A reporting entity is comprised of the primary government, component units, and other organizations that are 

included to ensure that the financial statements are not misleading. The primary government of the Port 

Authority consists of all funds and departments that are not legally separate from the Port Authority. The Port 

Authority has no component units and or other organizations whose activities are required to be presented in the 

Port Authority's financial statements. 

The Statement of Net Position and the Statement of Activities reflect how the Port Authority did financially during 

2012, within the limitations of cash-basis of accounting. 

The Statement of Net Position presents cash balances and investments of the governmental and business-type 

activities of the Port Authority at year-end. The Statement of Activities compares cash disbursements with 

program specific receipts for each governmental program and business-type activity. Program specifiC receipts 

include charges paid by the recipient of the program's goods or services, and grants and contributions restricted 

to meeting the operational or capital requirements of a particular program. General receipts are all receipts not 

classified as program specifiC receipts. The comparison of cash disbursements with program receipts identifieS 

how each governmental function or business-type activity draws from the Port Authority's general receipts. 

These statements report the Port Authority's cash position and the changes in cash position. Keeping in mind 

the limitations of the cash-basis of accounting, you may think r:A these changes as one way to measure the Port 

Authorit(s financial health. 

I 
Weetem Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Over Ume, increases or decreases in the Port Authority's cash position is one Indicator of whether the Port 

Authority's financial health is Improving or deteriorating. When evaluating the Port Authority's financial 

condition, you should also consider other non-financial factors as well such as the Port Authority's reliance on 

non-local financial resources for operations such as subsidies from other governmental units, the condition of 

the Port Authority's capital assets and infrastructure, the extent of the Port Authority's debt obligations, and the 

need for growth in the major local revenue sources such as property taxes. 

The Statement of Net Position and the Statement of Activities divide the Port Authority into two distinct types of 

activities: 

Governrnenta/ Activities - The Port Authority's basic services and operations, inclusive of all operations of the 

Aviation Division, are reported here. Fees and charges for services, rental and lease Income, subsidies from 

other governmental units, federal assistance grants, and proceeds from debt finance most of these activities. 

Beneftts provided through governmental activities are not necessarily paid for by the people receiving them. 

Business-Type Activities - The Port Authority's activities that enhance, provide, or promote transportation, 

economic development, and other governmental operations within Mahoning and Trumbull Counties are 

reported here. Contributions received from other governmental units and community organizations, federal 

assistance grants, and repayment of debt Issuance finance most of these activities. 

ReDortlna the Port Autborlty Moat Slanlftcant Funda 

Fund financial statements provide detailed information about the Port Authority's funds - not the Port Authority 

as a whole. The Port Authority establishes separate funds to manage better Its many activities and to help 

demonstrate that money that is restricted as to how It may be used is being spent for the Intended purpose. The 

funds of the Port Authority are split into two categories: goverrvnental and proprietary. 

Governments/ Funds - Most of the Port Authority's activities, inclusive of all operations of the Aviation 

Division, are reported In governmental funds. The governmental fund financial statements (The statement of 

Cash Basis Assets and Fund Balances and the Statement of Cash Receipts, Cash Disbursements, and 

ChanQ&s In Cash Basis Fund Balances) provide a detailed view of the Port Authority's governmental 

operations and the basic services it provides. 

Governmental fund information helps determine whether there are more or less financial resources that can 

be spent to finance the Port Authority's programs. The Port Authority maintains ttvee major governmental 

funds, the General Fund, the Airport Improvement Program Fund, and the Capital Projects Fund, which the 

governmental funds statements present In separate columns. The Port Authority maintains three non-major 

governmental funds, the Passenger Facility Charge Fund, the Debt Service Fund, and the Deposits Fund, 

which the governmental funds statements present In one column (Other Funds). The programs reported in 

governmental funds are closely related to those reported In the governmental activities sacUon of the entitywide statements. We desaibe this relationship In reconciliations presented with the governmental fund 

financial statements. 

Proprietary Fund - When a governmental unit charges customers for the services it provides, these services 

are generally reported In proprietary funds. When the services are provided to the public, the activity is 

reported as an enterprise fund. 

The Port Authority maintains one proprietary fund that Is classifteS 86 an enterprise fund, the Economic 

Development Fund. 

The Port Authority maintains an ED Division In an effort to utilize fully Its abilities as a port authority to 

advance economic development within Mahonlng and Trumbull Counties. The Port Authority's activities that 

enhance, provide, or promote transportation, economic development, and other governmental operations 86 

well as grants and contributions received from other governmental units and community organizations to 

finance these activities are accounted for in the Economic Development Fund. 
Western ReHrve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Port Aytborlty a a Whole 

Table 1 provides a comparison of net position at December 31, 2012 and December 31, 2011 on a cash-basis 

of accounting. 

Assets 

(Table 1) 

Nat P08Itlon 

Governmental ActlvK!es Busineu-Tyoe Activities 

2012 2011 2012 2011 

Total 

2012 2011 

Cash and Cash Equivalents $1,900,025 $4,004,450 $341,574 $345,157 $2.241,599 $4,349,607 

Net Poaltlon 

Restricted for: 

Capital Outlay 

Debt Service 

Other Purposes 

Unrestricted 

Total Net Position 

$1,144,473 

182,391 

2,150 

571.011 

$119001025 

$3,357,636 $0 

202,698 0 

0 0 

444.116 341.574 

$410041450 $341.574 

$0 $1,144,473 $3,357,636 

0 182,391 202,698 

0 2,150 0 

345.167 912.585 780.273 

$345,157 $2~411599 $413491607 

Over time, net position can serve as a useful indicator of a govemmenrs financial position. As mentioned 

previously, net position of governmental activities at December 31, 2012 decreased $2,104,425, or 53%, a 

significant decrease from December 31, 2011. This was primarily the result of the Capital Projects Fund 

realizing In 2012 a decrease in cash and cash equivalents of $2,270,201, or 70%, from 2011 due to this amount 

being expended from $3,236,156 in Airport Development Revenue Bond proceeds available at January 1, 2012 

for Airport capital improvement/replacement/acquisition projects. However, and more inportantly, offsetting this 

deaease was the General Fund realizing in 2012 an increase in cash and cash equivalents of $126,895, or 

29%, from 2011 primarily the result of the improvement In the economy in 2012 from 2011 that led to moderate 

increases in corporate and general aviation activity in 2012 as compared to recent years that Increased all 

revenue stream activities of the Aviation Division In 2012 over 2011, and Other Funds realizing in 2012 an 

increase in cash and cash equivalents of $31,666, or 10%, from 2011 primarily the result of the Passenger 

Facility Fund realizing a 171',{, in passenger facility charges collected In 2012 over 2011 the result of a 10% 

Increase in commercial passenger activity in 2012 over 2011. Also, the General Fund's Unassigned 

(Unreserved/Undeslgnated) Cash Fund Balance was $515,733 at December 31, 2012 as compared to $405,897 

at December 31, 2011, a significant increase of $109,836, or 27%. 

In addition, as mentioned previously, net position of business-type activities of $341,574 at December 31, 2012 

remained relatively constant with $345,157 at December 31, 2011 . 

.3 
WMtam Raerve Port Authority, Ohio 

Management's DlscusB/on and Ana/ysi8 

For the Year Ended December 31, 2012 

Table 2 provides a comparison of changes in net position for 2012 and 2011 on a cash-basis of accounting. 

(Table 2) 

Chllnga In Net Poaltlon 

Governmental Gollemm.mal Bu...._Type BUU..Type 

Allltvltl• ActiYitlea Adlvll• Acavltlea Total Toll! I 

2012 2011 2012 2011 2012 2011 

RKelpta: 

PrognJm Receipts: 

Chargee for Services $794,145 $848,997 $8,000 $55,000 $802,145 $703,997 

Operating Grants and Contributions 0 54,908 136,417 64,683 136,417 119,489 

Capltlll GrantB and ContriM.Ions 9801088 1.144.188 0 0 9901088 1.144.188 

Total Program Recelpta 1.784.211 1.848.092 143 ... 17 1UI1

583 1.927.828 1.9ti7.875 

General Reoslpte: 

GraniB and Entitlements not 

Restricted to Specific Programs 1,036, .. 21 884,239 100,000 300,000 1,136,421 1,184,239 

Investment Eamtnga 1,804 1,798 481 1,102 2,065 2,900 

Proceed~ from Debt 1,545,000 3,827,886 0 0 1,545,000 3,827,885 

Repayment d Debt Issuance 0 0 115,000 0 115,000 0 

Other Cash Receipt& 266.415 105.378 81023 0 281.438 105~78 

Total General Receipts 2.838.440 4.619.100 221.484 301.102 3.059.924 ... 820~2 

Total Receipts 4.822.861 8.487.192 384.901 420.885 ... 9871552 618871877 

DleburMrnentl: 

Pet801"181 SeMce8 569,-460 800,500 263,970 205,120 833,430 805,820 

Materials and Supplies 117,013 99,037 3,408 4,884 120,421 103,901 

Conltactual Servicea 1,165,834 837,332 63,502 33,394 1,229,338 870,728 

Conferancas and Travel 20,203 10,843 3,941 2,619 24,144 13,382 

Faclly Leases 0 0 1,825 0 1,625 0 

Utilities 210,116 221,901 1,502 824 211,818 222,525 

Repair and Maintenance 77,281 81,744 0 0 77,281 81,744 

Cepllal Outlay 4,166,418 1,005,679 0 0 ... 166,418 1,005,879 

lauance of Debt 0 0 0 115,000 0 115,000 

Debt Service 325,151 0 0 0 326,151 0 

Other Cash Dlsburaements 78lJIXJ at8.284 30J!38 137 107.135 ~421 

Total Dl8bursemenl8 8.727.078 2.803.320 388.484 361.658 7.096.5&9 3.284.978 

lnc:rea-.'{~88) In Net Postllon (2,104,425) 3,563,871 (3,583) 58,028 (2,108,008) 3,622,897 

Net Poeltlon - January 1, 4.004.460 440.579 346.167 288.131 4.349.607 1261710 

N.t Po81tlon- December 31, $1,800,025 M,ooyeo $341,1574 SM&.1151 !2,241.- $at,S48,107 

Program specific receipts represent 39% of total receipts for governmental activities of which 45% is comprieed 

of charges for servlcea (fees n charges for 181Vices, and rental and leaae Income) and 55% is comprised of 

Intergovernmental receipts consisting of restricted grants from other governmental unlta that must be used to 

provide a specific service. 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Program specific receipts represent 39% of total receipts for business-type actlvttles of which 6% is comprised 

of charges for services and 94% is comprised of intergovernmental receipts consisting of restricted grants from 

other governmental units that must be used to provide a specific service. 

General receipts represent 61% of total receipts for governmental activities of which 54% is comprised of 

proceeds from debt issued for capital projects and 37% is comprised of intergovernmental receipts consisting of 

subsidies from other governmental units that are used for general operations. 

General receipts represent 61% of total receipts for business-type activities of which 45% is comprised of 

operating grants received from other governmental units to finance the Port Authority's economic development 

actJvtty and 52% is comprised of the General Fund's repayment of the $115,000 Bond Anticipation Note issued 

in 2011 for the acquisition and installation of an access control system for the Airport's parking lot. 

Capital outlay (Airport capital improvemenUreplacement/acqulsitlon projects) represents 62% of total 

disbursements for governmental activities of which 80% Is funded by proceeds of the Port Authority's Airport 

Development Revenue Bonds and 17% is funded by the Port Authority's Airport Improvement Program Federal 

Assistance Grants and related required matching funding. Contractual services represent 17% of total 

disbursements for governmental activities of which 48% Is comprised of costs of services, such as Insurance, 

security, marketing, legal, and consulting, that are provided by contracted third-parties, 21% Is for engineering 

costs funded by the Port Authority's Airport Improvement Program Federal Assistance Grants and relatec:l 

required matching funding, and 31% is for englnHring costs funded by proceeds of the Port Authority's Airport 

Development Revenue Bonds. Personal services represent 8% of total disbursements for governmental 

activities and is comprised of payroll and benefit related costs for Aviation Division employees. 

Personal services represent 72% of total disbursements for business-type activities and is comprised of payroll 

and benefit related costs for ED Division employees. Contractual services represent 17% of total disbursements 

for business-type activities and Is comprised of costs of services, such as Insurance, marketing, legal, and 

consulting, that are provided by contracted third-parties. 

Governmental and Buslneu-Type Activities 

If you look at the Statement of Activities, you will see that the first column lists the major S81VIces provided by 

the Port Authority. The next column entitled Cash Disbursements identifies the costs of providing these 

services. The next three columns entitled Program Specific Receipts identify amounts paid by customers who 

are directly charged for services, and for grants received by the Port Authority that must be used to provide a 

specific service. The Net Receipts (Disbursements) columns compare the program specifiC receipts for 

governmental and business-type activities to the cost of the services. 

s 
Governmental Activities 

Western Reserve Port Authority. Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Table 3 provides a comparison of total cost of services and net cost of services for governmental activities for 

2012 and 2011 on a cash-basis of accounting. 

(Tabla 3) 

Cost of Services vs. Net Cost of Services 

Governmental Activities 

Total Cost Net Cost Total Cost Net Cost 

of Services of Services Of Services of Services 

2012 2012 2011 2011 

Personal Services $569.460 ($327,322) $600,500 ($346,009) 

Materials and Supplies 117,013 (67,258) 99,037 (57,065) 

Contractual Services 1,165,834 (679,450) 837,332 (296,754) 

Conferences and Travel 20,203 (11,612) 10,843 (6,248) 

Utilities 210,116 (120,773) 221,901 (127,859) 

Repair and Maintenance . 77,281 (44,421) 81,744 (47,101) 

Capital OutJay 4,165,418 (3,453,998) 1,005,679 (162,859) 

Debt Service 325,151 (187,225) 0 0 

Other Cash Disbursements 76,600 (50,806} 46!284 (11,331} 

Total $6,727,076 ~$4,942,865~ $2,903:320 ~$1,055,226~ 

The chart below illustrates the Port Authority's dependence upon general receipts for 2012 and 2011, as 

program specific receipts have not been suffiCient to cover total disbursements for governmental activities. 

$7,000,000 

$8,000,000 

$1,000,000 

$4,000,000 

$3,000,000 

$2,000,000 

$1,000,000 

$0 

Governmental Activitie• • Program Specific Receipts w. Total DluLnements 

FiKal Year 2012 Fi~l YNr 2011 

aProgrmn SPKiftc Recelpta 

DTatal Dlmu,..mant8 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

The Net Cost of Services amount of ($4,942,865) in 2012 for governmental activities represents the costs of the 

services, which ends up being paid from subsidies provided by Mahoning and Trumbull Counties, investment 

earnings, debt issuances, miscellaneous receipts, and from fund balances available at January 1. Therefore, 

dependence upon general receipts for governmental activities is apparent as 73% of disbursements were 

supported through general receipts. As mentioned previously, an indicator of whether the Port Authority's 

financial health is improving or deteriorating is its reliance on general receipts. In 2011, only 36% of 

disbursements for governmental activities were supported through general receipts, a significant increase in 

2012 from 2011. However, The Port Authority began in 2011 an extensive 26-project Airport capital 

improvementlreplacementlacquisition program to address current demand for aircraft hangar and service 

facilities and expected increase in commercial air service. Therefore, when evaluating financial health, one 

must also consider that it is common for increased reliance on leveraged financing (a general receipt) during 

periods of increased capitaJ improvement. In 2012, $3,815,710, or 57% of disbursements for governmental 

activities were for capital improvement projects and were supported through leveraged financing. 

Therefore, only $1,127,156, or 18%, of non-capital improvement projects disbursements for governmental 

activities were supported through general receipts. In 2011, $981 ,398, or 34%, of non-capital improvement 

projects disbursements for governmental activities were supported through general receipts. Therefore, the 

reliance on general receipts for day-to-day operations decreased significantly in 2012 from 2011 . 

The chart below illustrates the Port Authority's program specific receipts versus general receipts for 2012 and 

2011 for governmental activities. 

Governmental Activities- General Receipts vs. Program Specific Receipts 

$5,000,000 

$4,000,000 

$3,000,000 

$2,000,000 

$1,000.000 

$0 

Fiscal Year 2012 Fiscal Year 2011 

7 
Business-Type Activities 

Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Table 4 provides a comparison of total cost of services and net cost of services for business-type activities for 

2012 and 2011 on a cash-basis of accounting. 

(Table4) 

Coat of Services vs. Net Cost of Services 

Business-T~ Activities 

Total Cost Net Cost Total Cost Net Cost 

of Services of Services Of Services of Services 

2012 2012 2011 2011 

Personal Services $263,970 ($122,822) $205,120 ($109,343) 

Materials and Supplies 3,408 (3,334) 4,864 (4,124) 

Contractual Services 63,502 (62,123) 33,394 (28,315) 

Conferences and Travel 3,941 (3,855) 2.519 (2,136) 

Facility Leases 1,625 (1,590) 0 0 

Utilities 1,502 (1,469) 624 (529) 

Issuance of Debt 0 0 115.000 (97,511) 

Other Cash Disbursements 301536 (29!874} 137 (116} 

Total $368,484 ~$2251067~ $361,658 i$242,074! 

The chart below illustrates the Port Authority's dependence upon general receipts for 2012 and 2011. as 

program specific receipts have not been sufficient to cover total disbursements for business-type activities. 

$400,000 

$300,000 

$200,000 

$100,000 

Bualneae-Type Activities • Program Specific Receipts vs. Total DisbUI'Hmenta 

Fiscal Year 2012 Fiscal Year 2011 

I 

DPrag,_, Specific Recelt* 

aTolall DIUu...,..nts 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

The Net Cost of Services amount of ($225,067) for business-type activities represents the costs of the services, 

which ends up being paid from contributions provided by other governmental units to finance the Port Authority's 

economic development activity, investment earnings, miscellaneous receipts, and from the fund balance 

available at January 1. However, the Port Authority's business-type activities account for the operations of its 

ED Division and 2010 was the ED Division's first full-year of operations. Therefore, a reliance on operating 

grants and contributions from the ED Division's funding partners is expected at this time as it develops into a 

self-reliant enterprise. In addition. as mentioned previously, an indicator of whether the Port Authority's financial 

health is improving or deteriorating is its reliance on general receipts. In 2011, $242,075 of disbursements for 

business-type activities were supported through general receipts. Therefore, this decrease in 2012 from 2011 

suggests improvement in the ED Division's financial condition. 

The chart below illustrates the Port Authority's program specific receipts versus general receipts for 2012 and 

2011 for business-type activities. 

Business-Type Activities- General Receipts va. Progl'llm Specific Receipts 

$400,000 

$300,000 

$200,000 

$100,000 

so 

Fiscal Year 2012 Fiscal YHr 2011 

Port AuJhorlty Funds Analysis 

The Port Authority uses fund accounting to ensure and demonstrate compliance with finance-related legal 

requirements. The focus on the funds is to provide information on inflows, outflows, and balances of spendable 

resources. Such information is useful in assessing the Port Authomys financing requirements. In particular, 

unassigned (unreservedlundesignated) fund balances serve as a useful measure of the Port Authority's net 

resources available for spending at year-end. At December 31, 2012, the Port AuthorftYs General Fund 

Unassigned Cash Fund Balance was $515,733 as compared to $405,897 at December 31, 2011, a 27% 

increase. This increase portrays a significantly stronger cash position for the General Fund at December 31, 

2012 than at December 31, 2011 . 

The Port Authority had total cash receipts of $4,987,552 and total cash disbursements of $7,095,560 for all 

funds in 2012. Total governmental funds had cash receipts of $4.622,651 and cash disbursements of 

$6,727,0761n 2012. 

The General Fund accounts for the general operations of the Port Authority, inclusive of all operations of the 

Aviation Division. Therefore, additional analysis of the General Fund Is presented in the following charts. 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Analysis of General Fund Receipts for 2012 and 2011 

Fees and Charges for Services 1 

Rental/Lease Income 

Intergovernmental Receipts 

Earnings on Investments 

Proceeds from Debt 

Other Receipts 

Transfers and Advances 

$0 

$115,000 

$408.911 

$281,835 

$103,483 

$105,378 

$387,164 

$367.162 

$1,038,421 

$903,820 

$0 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 

Fees and Charges for Services 

RantaiiLeasa Income 

Intergovernmental Receipts 

Earnings on Investments 

Proceeds from Dabt 

Other Receipts 

Transfers and Advances 

52% 

51% . 

·5% 0% 5% 10%15%20%25%30%35%40%45%50%55%60% 

112012 

2011 

•2012 

2011 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

For most of 2009 through 2011, the Port Authority operated in an extremely challenging economic environment, 

as did most public and private sector enterprises. As the economy improved in 2012, so followed the revenue 

streams of the Aviation Division, included as part of the General Fund. Total receipts of the General Fund, 

proceeds of debt notwithstanding, increased from $1,665,240 in 2011 to $1 ,994,566 in 2012, a 20% increase, 

primarily the result of 1) fees and charges for services receipts that increased from $281,835 in 2011 to 

$406,981 in 2012, a 44% Increase, 2) intergovernmental receipts that increased from $903,820 in 20i 1 to 

$1,036,421 in 2012, a 15% increase, and 3) other receipts that increased from $105,378 in 2011 to $163,493 in 

2012, a 55% increase. A discussion of the components of the General Fund's receipts follows. 

The increase in fees and charges for services receipts was primarily the result of 1) a significant increase in 

corporate and general aviation activity in 2012 as compared to recent years and 2) a 10% increase in 

commercial passenger activity in 2012 over 2011 . These two conditions increased FBO concessions, 

parking concessions, landing fees, and fuel flowage fees in 2012 from 2011 by approximately $49,327, 

$41,784,$15,345, and $11,678, respectively. 

The increase In intergovernmental receipts was primarily the result of the Port Authority receiving 1 ) 

$602,360 in subsidies from Mahoning County in 2012 as compared to $542,898 in 2011, an 11% increase, 

and 2) $434,061 in subsidies from Trumbull County in 2012 as opposed to $341,341 In 2011, a 27% 

increase. These subsidies are derived from lodging excise taxes assessed by Mahoning and Trumbull 

Counties. Since the lodging industry usually follows the upward or downward trends of the national 

economy, Management anticipates that the amount of subsidies received from the Counties will continue to 

increase parallel with or slightly better than the economy. 

The increase in other receipts was primarily the result of the Port Authority receiving In 2012 the return of a 

$53,750 deposit on the acquisition of an air cargo building. 

Proceeds from debt decreased from $115,000 in 2011 to $0 In 2012, a 100% decrease. The Economic 

Development Fund issued in 2011 an $115,000 Bond Anticipation Note to the General Fund for the acquisition 

and installation of an access control system for the Airport's parking lot. 

All other General Fund receipts remained moderately constant from 2011 to 2012. 

Analysis of General Fund Disbursements for 2012 and 2011 

Personal Services 

Materials and Suppll• 

ContriiCtual Services 

Tt'bel 

Utilities 

Repairs and Maintenance 

Capital Outlay 

Debt Service 

Other Disbursements 

Transfers •d AdYIInces 

$210.116 

$221,101 

$511.382 

$315.581 

$0 s1oo,ooo $200.000 $300,000 $40o,ooo $500,ooo seoo.ooo SToo,ooo 
Personal Services 

Mottorials and Supplies 

Contractual Services 

Travel 

Utilities 

Repairs and Maintenance 

capital Outlay 

Debt Service 

Other Disbursements 

Transfers and Advances 

Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

6% 

8% 

30% 

23% 

30% 

38% 

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 

•2012 

2011 

Total disbursements of the General Fund increased from $1,591,298 in 2011 to $1,867,671 in 2012, a 17% 

increase, primarily the resutt of 1) personal services disbursements that decreased from $600,500 in 2011 to 

$569,460 in 2012, a 5% decrease, 2) materials and supplies disbursements that increased from $99,037 in 

2011 to $117,013 in 2012, a 18% increase, 3) contractual services disbursements that increased from $365,581 

rn 2011 to $561,362 in 2012, a 54% increase, 4) capital ouUay disbursements that decreased from $134,638 In 

2011 to $105,906 in 2012, a 21% decrease, 5) other disbursements that inaeased from $17,136 in 2011 to 

$57A05 in 2012, a 235% increase, and 6) interfund transfers-out that increased from $59,918 in 2011 to 

$141,187 in 2012, a 226% increase. A discussion of the components of the General Fund's disbursements 

fotlows. 

The decrease in personal services disbursements was primarily the result of 1) the elimination of a position 

in the Accounting and Business Manager's department in 2012, 2) a decrease in the costs of employee 

hearth care benefits in 2012 due to the abovementioned position elimination, and 3) a decrease in retirement 

system costs in 2012 due to the abovementioned position elimination. These three conditions decreased 

personal services disbursements in 2012 from 2011 by approximately $17,927, $9,799, and $3,782, 

respectively. 

The increase In materials and supplies disbursements was primarily the result of 1) an increase in the cost of 

winter materials, such as liquid runway deicer, In 2012 by approximately $11,100 over 2011 due to extended 

periods of inclement weather in 2012 and 2) an increase in the costs of miscellaneous materials and supplies 

used during the performance of certain of the Airport's non-essential annual maintenance programs in 2012 

by approximately $5,000 over 2011 . 

The increase in contractual services disbursements was primarily the result of 1) an increase in engineering 

costs in 2012 over 2011 due to an increase in engineering services required for the Airport's East Side 

Development Project, 2) an increase In legal costs in 2012 over 2011 due to an Increased general need for 

professional legal services In 2012, 3) an increase in audit costs in 2012 over 2011 due to the timing of the 

performances and payments for the audi1S of the Port Authority's 201 0 and 2011 annual financial reports, 

and 4) an inaease in aviation consulting costs in 2012 over 2011 due to the Port Authority initiating in late 

2011 an aggressive campaign to attract daily scheduled commercial air service by a major airline therein 

creating the need to have aviation consultants formulate presentations and proposals for Airport 

Management's discussions with the Airlines and to also represent and/or accompany Airport Management 

during its discussions with the Airtines and/or at Airline Conferences. These four conditions increased 

contractual services disbursements in 2012 from 2011 by approximately $17,672, $26,031, $16,016, and 

$72,856, respectively. 

11--
Westem Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

The decrease in capital outlay was due to scheduling of capital improvement projects funded at 100% by the 

Airport. 

The increase in other disbursements was primarily the result of the Port Authority making in 2012 a $53,750 

deposit on the acquisHion of an air cargo building. 

The increase In interfund transfers-out was the result of an additional $81,269 in matching funds the Port 

Authority was required to contribute from its General Fund Into Its Federal Airport Improvement Program in 

2012 over 2011 due to scheduling of capital improvement projects funded at 90% by the Port Authority's 

Airport Improvement Program Federal Assistance Grants. 

All other General Fund disbursements remained moderately constant from 2011 to 2012. 

Capital Assets and Debt MmlnlstratJon 

Capital Assets - The Port Authority does not currently maintain tracking of its capital assets and infrastructure 

although Management anticipates acquiring software to begin this performance in 2014. However, the Port 

Authority does maintain an Airport Capita/Improvement Plan and a 10-Year Master Plan that collectively are the 

primary planning tools for systematically identifying. prioritizing, and estimating costs for crttical development 

and associated capital needs of the Airport. In addition, the Airport Capital Improvement Plan presents the 

Airport's warranted and eligible capital assets and infrastructure needs as identified by the Airport's Sponsors, 

State of Ohio Aviation OfflclaJs, and the Federal Aviation Administration (FAA) and Is contained In the FAA's 

National Plan of Integrated Airport Systems. The 10-Year Master Plan Is available for viewing on the Port 

Authority's Website at www.vngairoort.com. 

Capital Lease Obligations - The Port Authority financed the acquisition of a mower unit in 2008 through a 

leasing arrangement. This leasing arrangement meets the criteria of a capital lease as defined by FASB 

Statement No. 13 .. Accounting for Leases", which defines a capital lease as one that transfers benefits and risks 

of ownership to the lessee. Future payments collectively to satisfy this capital lease obligation are $977 due In 

2013. 

Debt Administration - The Port Authority's outstanding debt at December 31, 2012 for govemmental activities is 

$7,201,511, $5,160,639 principal and $2,040,872 interest, consisting of 1) $75,000 of principal remaining for a 

zero-percent interest, general obligation loan from Trumbull County received on February 12, 2004, that was 

utilized to assist the Port Authority in providing an operational security deposit to Vacation Express Airlines 

necessary for the Airlines to begin Its operations of providing direct commercial flights to Myrtle Beach, SC and 

to Orlando-Sanford Airport, FL, 2} $3,545,000 of principal remaining for 20-year Airport Development Revenue 

Bonds with various interest rates from 2.125% to 4.625% Issued in December 2011 to provide financial 

resources for the construction and/or improvement of Port Authority Airport facilities. Amounts needed to 

service this debt, including interest and fascal charges, approximately 55% will be derived from Passenger 

Facility Charges that are assessed to each enplaning commercial airline passenger as approved by the Federal 

Aviation Administration and approximately 45% will be derived from revenues (fees. charges, and rents} 

generated from facilities of which the construction and/or improvement thereof were financed by the proceeds of 

the Bonds, 3) $465,639 of principal remaining for a 10-year Development Revenue Bond, 2.84%, issued In 2012 

to provide financial resources for the construction of a 14-unit T-Hangar. Amounts needed to service this debt, 

induding interest and fiscal charges, will be derived from rent generated from the T -Hangar, and 4) $1.075,000 

of principal remaining for a 10-year Development Revenue Bond, 2.60%, issued in 2012 to provide financial 

resources for the acquisition of an air cargo building. Amounts needed to service this debt, including Interest 

and fiscal charges, will be derived from rent generated from the air cargo building. 

J3 
Western Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

The Port Authority's outstanding debt (principal and interest) at December 31, 2012 for business-type activities 

is $75,094,600, $6,394,060 in capital lease payments due to the Director of the Ohio Department of 

Development as related to the Timken Latrobe Steel Distribution Project, $3,095,263 in loan payments due to 

the Director of the Ohio Department of Development as related to the EXAL Corporation Project, $1,426,513 in 

loan payments due to the Summit County Port Authority as related to the EXAL Corporation Project, and 

$64,178,764 in loan payments due to the Director of the Ohio Department of Development as related to the 

Central Waste, Inc. Project. However, debt service obligations for the Tlmken, EXAL, and Central Waste, Inc. 

Projects are made directly from these companies to the trustees of such debt obligations and do not passthrough the Port Authority. 

General Fund and Economic Deyeloament Fund Budaetlna Hlahllahts 

The Port Authority's budget is prepared according to Ohio law and is based upon accounting for certain 

transactions on a basis of cash receipts, cash disbursements, and encumbrances (budgetary basis of 

accounting). The Statements of Receipts, Disbursements, and Changes in Fund Balances - Budget and Actual 

(Budget Basis), presents the Port Authority's estimated resources and appropriations for its major and nonmajor governmental funds and for Its Economic Development Fund (proprietary fund). Budgeting highlights for 

the operating funds of the Port Authority's two major Divisions follow: 

The General Fund had final budgeted receipts of $1,853,401 while actual receipts were $1,994,566 for a 

positive variance of $141,165. The General Fund had final budgeted disbursements of $1,980,708 while 

actual disbursements were $1,922,949, for a positive variance of $57,759. 

The Economic Development Fund had final budgeted receipts of $684,717 while actual receipts were 

$364,901 for a negative variance of $319,816. The negative variance was primarily the result of 1) $225,000 

in subsidies from the ED Division's funding partners that were anticipated to be received In late 2012 but 

were not received until early 2013 and 2) project fees anticipated to be" received In 2012 but were not 

received until 2013 due to the timing of the closing of such projects. The Economic Development Fund had 

final budgeted disbursements of $381,000 while actual disbursements were $378,280 for a positive variance 

of $2,720. 

Currant Issues 

Aviation DMaion 

Concurrent with the appointment of the Executive Director of Aviation in 2010 and recognizing that the Airport is 

underutlllzed, yet its non-terminal facilities are at occupancy capacity, the Port Authority formulated and began 

Implementing aggressively the following three Initiatives: 

Commercial Air Service Development Initiative of which the goals and objectives are to attract additional 

leisure air service and dally regional business service to and from connecting hub airports. For the leisure 

and vacation traveling community, Republic Airways, DBA Frontier Airlines, is beginning charter "junker 

service in February 2013 to such destinations as Atlantic City, NJ, Tunica, MS, and New Orleans, LA. In 

addition, the Airport is receiving consideration from Allegiant Air for future flights to such destinations as Fort 

Lauderdale, FL, New York, NY, and to Las Vegas, NV, potentially as early as the third quarter of 2014. For 

the business traveling community, the Airport has met with several airlines interested In servicing the Airport 

to and from such conneCting hub airports as Washington-Dulles, Detroit-Metro, and Chicago O'Hare, 

potentially as early as the third quarter of 2014. In August 2012, the Department of Transportation awarded 

the Port Authority a $780,000 Small Community Air Service Development Program Grant to reestablish 

regularly scheduled commercial air service at the Airport to a hub of a major U.S. airline in the East, Midwest, 

or Southeast U.S .. This grant, in combination with an additional $420,000 In local cash contributions and 

$480,000 of in-kind services, will be used to develop an airline revenue guarantee program to support the 

first 12 months of such air service by mitigating the Initial business risk that a carrier will face in entering a 

newmarket. 

· Ill 
Westem Reserve Port Authority, Ohio 

Management's Discussion and Analysis 

For the Year Ended December 31, 2012 

Corporate, General Aviation, and Other Aeronautical Development Initiative of which the goals and 

objectives are to satisfy present and anticipated demand for aeronautical facilities. Airport Management 

formulated a Plan for Development that, resultant of a multiphase process, identifies such demand and 

depicts proposed layouts of buildings, access, utilities, other necessary improvements, and a general use of 

land to accomplish the demand for the same. The first Project of the Plan for Development is the 

construction of the East Side Development Project, a designed I planned aircraft hangar and service facility 

development, for which the $1.7 mil Phase I of the Project was completed In 2012 and included the 

construction of the first of three14-unit T -Hangars. 

In 2013, the Port Authority was awarded a $110,000 Appalachian Regional Commission Grant to replace the 

Airport Terminal sanitary sewer line and to provide the same S8fVice to the East Site Development Project. 

In November 2013, the Port Authority issued a $300,000 Development Revenue Bond for the construction of 

a wheeled-vehicle maintenance building, located within the East Site Development Project. An additional 

$1.6 mil is committed toward Phase II of the Project, which is scheduled to be completed by 2014, including 

the construction of the second 14-unlt T-Hangar. Design and engineering for the South Side Development 

Project, a planned aircraft hangar and service facility development, is scheduled for 2014 as well. 

Air Cargo Development Initiative of which the goals and objectives are to establish domestic, national, and 

international air cargo and freight forwarding services at the Airport by Implementing a cooperative strategy, 

that includes the Airport as a regional air cargo facility, with regional freight fOI'Wal"ders, shippers, consignees, 

and air cargo airlines that currently ship signifiCallt cargo to I from the area via other airports, that will result 

in shipping cargo more efficiently and at a lower cost. As mentioned previously, the Port Authority issued in 

December 2012, a $1,075,000 In Development Revenue Bond for the acquisition of an existing air cargo 

building located on the Airport's Air Cargo Apron that will provide space to potential cargo facilitators. 

Economic Development Division 

Through 2012, the Port Authority obtained conduit debt financing In excess of $92,000,000 for economic 

development projects within Mahoning and Trumbull Counties. In July 2013, the Port Authority Issued 

$60,000,000 in development revenue bonds to provide financial resources to Beulah Park Gaming Ventures for 

Its construction of a racino entertainment complex and equipping and furnishing the same. 

As 2012 was only the ED Division's third full-year of operations, the undertaking of other projects such as 1) 

assisting V&M Star with its $650 million pipe mill construction project by purchasing the former lndalex property 

In Girard and leasing it to V&M for storage of construction materials during construction, 2) working with 

Trumbull County to become the lead agency In a countywide redevelopment plan to Identify brownfield sites, 

and seeking state and federal funding for cleanup initiatives, and 3) spearheading a feasibility study to quantify 

how many business that could benefit from an lntermodal facility located in the community, provide testimony to 

the ED Division's abilities and value to the community. In 2013, the Port Authority was awarded a $600,000 

U.S. Environmental Protection Agency Grant to assist with its brownfield sites Initiative. 

Congctlna the Port Authorttv•s Manaaamtnt 

This financial report is designed to provide our users, citizens, taxpayers, creditors, and all other Interested 

parties with a general overview of the Port Authority's finances and to reflect the Port Authority's accountability 

for the monies It receives. Questions concerning any of the information in this report or requests for additional 

Information should be directed to Ron Klingle, Chairman of the Board of Directors, Western Reserve Port 

Authority, Youngstown-Warren Regional Airport. 1453 Youngstown-Kingsville Road, NE, Vtenna, Ohio, 44473. 
ATTACHMENT 4 
603 Stanwix St Suite I 500, Pittsburgh P A 15222 

Phone: 1-800-245-2718, Fax: 412-227-3736 

www.indappr.com 

Introductory Explanation 

The Report is based on the original description of the property covered by our appraisal Contmct. 

We have indicated the month and year of the most recent appraisals for the various classifications shown on the enclosed Report. The 

appmisal date appears to the right of the classification designation. However, in the case of reported changes, the appraisal dates will no1 

appear. Changes will be included at your reported cost, and designated with an "X". The "X" represents unappraised value I items. 

Buildings/structures physically appraised by the Industrial Appraisal Company after January I, 2006 will include several data elements ol 

eacb building/structure. Most of these are self-explanatory, such as the estimated year of construction, number of stories, and occupancy. 

The construction class information is based on the ISO (Insurance Service Office) code. These are identified as; 

Class 1: Frame Construction 

Class 2: Joisted Masonry 

Class 3: Non Combustible 

The frre alarm designations in the report are defrned as follows: 

None: No fire alarm exists 

Local: Alarm sounds in captioned building only 

Class 4: Masonry, Non Combustible 

Class 5: Modified Fire Resistant 

Class 6: Fire Resistant 

Central: Alann sounds in captioned building and at a remote designated location (fire station, residence, etc.) 

The square foot areas listed on the summary pertain only to buildings/structures physically appraised by the Industrial Appraisal Company. 

The total square foot area for all properties included in the Report and appraised by the Industrial Appraisal Company after January I, 2006 

will be listed at the end of the summary. Buildings/Structures appraised prior to January I, 2006* and unappraised or reported 

buildings/structures will not have their square footage listed. (*This will not apply to some large risk pool clients or some diocesan clients.) 

The Report is presented as a six column summary, arranged in well-defined property classifications and furnishes a disinterested and 

impartial statement of: 

Cost of Reproduction new (Columns I, 2, 3) 

Sound Value (Columns 4, 5, 6) 

The "Cost of Reproduction New" is defined as the cost to reproduce the entire property at one time, in new condition of like lcind and 

quality at current prices for material, labor, cost of freight and installation, contractor's overhead and profits, but without provision for 

overtime, bonuses, and premiums of any kind. 

The "Sound Value" is defined as the Cost of Reproduction New less accrued depreciation resulting from observed conditions involving age, 

condition, utility, and remaining serviceable life. 

The "Exclusions" set out in our Summary represent items that are usually excluded by the insurance policy and comprise of the following 

items: excavations and filling; portions of foundations which are below the undersurface of the lowest basement floor, or, where there is no 

basement, which are below the surface of the ground; and underground sewerage, piping, and wiring. 

Certain items, such as articles containing gems, precious metals, antiques, fine arts (which include, among other things, art glass windows, 

murals, icons, iconostasis), organs, sacred vessels, vestments, articles of historical value, trophies, books, periodicals, and library volumes are 

not repriced. 

Data Processing Equipment, due to rapid obsolescence factors and the pricing practices of manufacturers, is shown as a separate classification 

on the summary. This category is not repriced, but reflects the initial valuation and any reported changes. Software is not usually included; 

however, we will include it at your instruction. The Software classification will not be repriced. 

Special arrangements for coverage of the above exceptions should be made with your insurance carrier or agent. 

On receipt of this Report, we suggest that you call your insurance agent or broker and check the amount of insurance carried on the appraised 

property against the Inclusion Values shown in the Summary. 

If your property is insured on the basis of Cost of Reproduction New (Replacement Costs) the values in Column 3 apply. If your insurance is 

based on Sound Values (Actual Cash Value) the values in Column 6 apply. 

Should you have any questions regarding the age of your appraisal or the advisability of a reinspection, please contact either your District 

Representative or this office at the number listed above. 

Form 54F 8-12 
IMPORTANT NOTICE ABOUT THIS REPORT 

The values contained in this Report have been determined on the basis of an operating 

unit and we do not assume any responsibility for matters of a legal nature and have not 

examined the title to or encumbrances on the properties included in the Report. We 

have made no investigation of and assume no responsibility for title to or liabilities 

against the properties appraised. We have no present or prospective interest in the 

property appraised nor is our compensation for this appraisal contingent in any way to 

the conclusions of value. Our estimates of value should be viewed as independently 

established, reasonable, true and correct to the best of our knowledge. 

When reviewing this Report, it is important to keep in mind the date of the appraisal of 

the properties covered. As pointed out on our Certification, the Report is an office 

repricing in summary form and changes may have occurred that may not have been 

reported to us. Reinspections should be accomplished on a periodic basis to bring our 

files into agreement with the actual condition of the property and to include items not 

covered by the original appraisal. 

These updated replacement cost estimates do not include any increase caused by a 

restriction or probation in any by-law, regulation, ordinance or law. They do not consider 

or include possible changes in local building codes, federal standards, or other legal 

restrictions. No value was assigned to the cost of demolition or the removal of debris 

should a loss occur. This appraisal update does not include land, additional value due to 

historical relevance, or landscaping. 

Many insurance policies contain an "Amount of Insurance" clause- sometimes referred 

to as a "Stipulated Amount" or an "Agreed Amount" clause. These policies require the 

filing of a notarized statement of values each year. Failure to do so may revert the 

insurance coverage to a coinsurance basis. 

Under the coinsurance clause, adjustment of insurance coverage must be made 

periodically or the insured runs the risk of coinsurance deductions at the time of a loss. 

We suggest you have your insurance agent assist you in filing values and/or adjusting 

coverage as required by the terms of your insurance policy. Your annual appraisal 

protection service supplies some of the valuation data required for this purpose. 

6-12 
INDUSTRIAL APPRAISAL COMPANY .. INSURANCE SUM

BUILDING OR UNIT 

Western Reserve 

Port Authority 

1453 YN6·Kingsvilla Rd 

Vienna 

OH 

44473 

VALUATION DATE 7/01/13 

BLDG. 0101 

YHG·Ter•inal 

1453 YHG-Kingsvi11e Rd 

CITY : Vienna 

STATEs OH 

ZIP CODE: 44473 

COUNTY: Tru•bull 

OCCUPANCY: 

COHST.YEARS: 1961·1941/1978/2000 

CONSTRUCTION CLASS: 4 

SUPER Sqft: 43,481 

BASEMENT Sqft: 6,685 

STORIES: 2 

BUILD COND: Good 

EMERGENCY GEN: YES 

BUILDING 

ARCHITECT FEES 

TOTAL BUILDING 

EQUIPMENT 

OFFICE FURN & FIXTURES OFFICE MACH & DEVICES 

EDP EQUIPMENT 

TELEPHONE SYSTEM 

COHHUHICATIONS EQUIPHE 

TOTAL EQUIPMENT 

TOTAL 

6/11 

6/11 

6/ll 

6/11 

6/11 

6/11 

6/ll 

COST OF REPRODUCTION NEW 

TOTAL I EXCLUSIONS I INCLUSIONS 

COLUMN 1 COLUMN 2 COLUMN 3 

9,182,794 

642.796 

9,825,590 

399,224 

48,379 

14,701 

28,280 

33,698 

2,843 

5271 125 

10,352,715 

322,368 

322,368 

322,368 

8,860,426 

642,796 

9,503,222 

399,224 

48,379 

14,701 

28,280 

33,698 

2,843 

527,125 

10,030,347 

SOUND VAL

TOTAL 1 EXCLu

COLUMN 4 COLUM

6,173,251 

432,128 

6,605,379 

229,155 

28,737 

6,042 

20,336 

16,647 

2,203 

303,120 

6,908,499 

PLEASE READ INTRODl . . a.'ORY EXPLANATION 
BUH.DING OR UNIT 

BLDG. 0102 

YHG·Hanoar •1 

YNG·Kingsville Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44473 

COUNTY: Tru•bull 

OCCUPANCY: Hangar 

COHST.YEARS: 1941 

CONSTRUCTION CLASS: 4 

SUPER SqFt: 29,737 

STORIES: 1 

BUILD COND: Average 

BUILDING 

ARCHITECT FEES 

TOTAL BUILDING 

TOTAL 

BLDG. 0103 

YNG·Hangar •z 

1453 YNG-Kingsvi1ls Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44473 

COUNTY: 

OCCUPANCY: Hangar 

CONST.YEARS: 1941 

CONSTRUCTION CLASS: 4 

SUPER SqFt: 17,740 

STORIES: 1 

BUILD COND: Good 

BUILDING 

ARCHITECT FEES 

TOTAL BUILDING 

TOTAL 

INDUSTRIAL COMPANY- INSURANCE SUM

COST OF REPRODUCTION NEW SOUND V

TOTAL I EXCLUSIONS I INCLUSIONS 

COLUMN 1 I COLUMN 2 COLUMN 3 TOTAL I EXC

COLUMN 4 COL

6/11 2,653,712 64,336 2,5119,376 1,109,251 

185,760 185,760 77.6411 

2,839,472 64,336 2,775,136 1,186,899 

2.1139,472 64,336 2,775,136 1,186,1199 

6/11 1,374,170 41,756 1,332,414 643,112 

96,192 96,192 45,018 

1,470,362 41,756 1,428,606 688,130 

1,470,362 41,756 1,428,606 6118,130 

PLEASE READ INTRODUCTORY EXPLANATION 
~ 

BUll..DING OR UNIT 

BLDG. 0104 

YNG-Hangar •3 

1453 YNG·Kin;sville Rd 

CITY1 Vienna 

STATE: OH 

ZIP CODE: 114473 

COUNTY: Tru•bull 

OCCUPANCY: Hangar 

COHST.YEARS: 1941 

COHSTRUCT[ON CLASS: 3 

SUPER SqFt: 14,1165 

STORIES: 1 

BUILD COND: Good 

CENTRAL FIRE ALARM SYSTE":100 

BUILDING 6/11 

ARCHITECT FEES 

TOTAL BUILDING 

TOTAL 

BLDG. 0105 

YNG-Hangar 14 

1453 VNG·Kingsville Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44473 

COUNTY: Tru•bull 

OCCUPANCY: Hangar 

CONST.VEARS: 1980 

CONSTRUCTION CLASS: 3 

SUPER SqFt: 11 '033 

STORIES: 1 

BUILD COND: Good 

BUILDING 6/11 

ARCHITECT FEES 

TOTAL BUILDING 

TOTAL 

INDUSTRIAL APPRAISAL COMPANY- INSURANCE SUMM

COSf OF REPRODUCTION NEW SOUND VAL

TOTAL J EXCLUSIONS J INCLUSIONS 

COLUMN 1 COLUMN 2 COLUMN 3 TOTAL I EXCLU

COLUMN 4 COLUM

1,108,153 39,027 1,069,126 474,290 

77,571 77,571 33,200 

1,185,724 39,027 1.146,697 507,490 

1.185,724 39,027 1,146,697 507,490 

881,989 32,183 ....... I 539' 777 

61,739 61,739 37,784 

943,728 32,183 911,545 577,561 

943,728 32,183 911,545 577,561 

PLEASE READ INTRODL_.i.'ORY EXPLANATION 
~ INDUSTRIAL APPRAISA....., COMPANY- INSURANCE SUM

COST OF REPRODUCTION NEW SOUND V

BUILDING OR UNIT 

TOTAL I EXCLUSIONS I INCLUSIONS COLUMN l COLUMN 2 COLUMN 3 TOTAL I EXCL

COLUMN 4 COLU

BLDG. 0106 

YNG-H;tngar •5 145~ YNG-Kingsville Rd CITY: Vienna 

STATE: OH 

ZIP CODE: 41\473 

COUNTY: Tru•bull 

OCCUPANCY: Hangar/Offices 

CONST.YEARS: 1980 

CONSTRUCTION CLASS: 3 

SUPER SqFt: 17,761\ 

STORIES: 1 

BUILD COND: Good 

BUILDING 6/11 1,375,538 46,998 1.328,540 841,829 

ARCHITECT FEES 96,288 96,288 58,928 

TOTAL BUILDING 1.471,826 46,998 1,424,828 900,757 

TOTAL 1,471,826 46,998 1,424,828 900,757 

BLDG. 0107 

YNG-Maintenance Garage 

1453 YNG-lingsvill• Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44473 

COUNTY: Tru•bull 

OCCUPANCY: "aintanance Garage CONST.YEARS: 1992-2010 

CONSTRUCTION CLASS: 3 

SUPER SqFt: 9,515 

STORIES: 1 

BUILD COND: Good 

BUILDING 6/11 I 858,339 34,577 82~.762 734,669 

ARCHITECT FEES 60,084 60,084 51,427 TOTAL BUILDING 918,425 34,577 883,846 786,096 

PLEASE READ INTRODUCTORY EXPLANATION 
~ 

BUILDING OR ~'IT 

MACHINERY 6/11 

EQUIPMENT 6/11 

COMMUNICATIONS EQUIPHE 6/11 

EQUIPMENT - AVG RETAIL 6/11 

"OBILE EQUIPMENT 6/11 

TOTAL EQUIPMENT 

TOTAL 

BLDG. 0108 

YHG-Tenant Maintenance 

Garage/Storage 

1453 YNG-Kingsville Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44~73 

COUNTY: Trumbull 

OCCUPANCY: Garage/Storago 

CONST.YEARS: 1941 

CONSTRUCTION CLASS: 2 

SUPER SqFt: 4,879 

STORIES: 1 

BUILD COND: Average 

BUILDING 6/11 

ARCHITECT FEES 

TOTAL BUILDING 

MOBILE EQUIPMENT 6/11 

EQUIPMENT-STATED VALUE 6/11 

TOTAL EQUIPMENT 

TOTAL 

A~bu ~ 1 

v~~i 

INDUSTRIAL APPRAISAL COMPANY- INSURANCE SUM

COST OF REPRODUCTION NEW 

TOTAL 

COLUMN 1 

13,374 

38,121 

6,318 

56,000 

2,351,105 

2,464,918 

3,383,341 

180,063 

12,604 

192,667 

43,913 

11,500 

55,413 

248,080 

EXCLUSIONS 

COLUMN 2 

34,577 

8,412 

8,412 

8,412 

INCLUSIONS 

COLUMN 3 

13,37~ 

38,121 

6,318 

56,000 

2,351,105 

2,464,918 

3,348,764 

171,651 

12,604 

184,255 

43,913 

11,500 

55,413 

239,668 

TOTAL 

COLUMN 4 

7,650 

18,832 

3,007 

56,000 

1.779,786 

1,865,275 

2,651,371 

62,662 

4,386 

67,048 

25,470 

11,500 

36,970 

104,018 

PLEASE READ INTROD~ lORY EXPLANATION 

SOUND VA

EXCLU

COLUM
~ INDUSTRIAL APPRAISAL, COMPANY- INSURANCE SU

COSI' OF REPRODUCTION NEW SOUND V

BUILDING OR UNIT 

TOTAL I EXCLUSIONS I INCLUSIONS COLUMN 1 COLUMN 2 COLUMN 3 TOTAL I EXC

COLUMN 4 COL

JLDG. 0109 

YNG-T-Hangar T1/T6 

1453 YNG-Kingsville Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44475 

COUNTYr Tru•bu11 

OCCUPANCY: T- Hangar 

CONST.YEARS: 1941 

CONSTRUCTION CLASS: 3 

SUPER SqFt: 5,188 

STORIES: 1 

IUILD COND: Poor 

: 

IUILDING 6/11 212,844 6,241 206,596 67,615 

ARCHITECT FEES 14,199 14,899 4.731 TOTAL IUILDING 227,743 6,241 221.495 72,423 

TOTAL 227,743 6,248 221,495 72,423 

ILDG. 0110 

YNG-T•Hangar T7/T12 I I I li 

1453 YNG·K1ngsv11le Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE1 44473 

COUNTY: Tru•bu11 

OCCUPANCY• T•Hanear l ,._r, I I COHST.YEARSr 1941 I CONSTRUCTION CLASS: 3 ~ ~ I SUPER SqFt: 5,188 ~\ STORIES1 1 

IUILD COND: Poor 

BUILDING 6/11 I 212,844 6,241 ....... I 61,615 

ARCHITECT FEES 14,899 14,899 4,738 TOTAL BUILDING 227,743 6,248 221,495 72,423 

TOTAL 227,743 6,241 221,495 72,423 

PLEASE READ INTRODUCTORY EXPLANATION 
~ INDUSTRIAL APPRAISAL COMPANY- INSURANCE SUM

COST OF REPRODUCTION NEW SOUND VAL

BUR.DING OR UNIT 

TOTAL EXCLUSIONS INCLUSIONS TOTAL EXCLU

l COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUM

I 

BLDG. 0111 

YNG-Old Electrical 

Building 

1453 YNG-lingsville Rd 

CITY: Vienna 

STATE1 OH J ZIP CODE: 44473 COUNTY: Tru•bull OCCUPANCY: Storaoe CONST.YEARS: 1941 

CONSTRUCTION CLASS: 4 

SUPER SqFt: 788 

BASE"EMT SqFt: 560 

STORIES ; 1 

BUILD COND: Average 

BUILDING 6.1'11 94,744 6,247 88,497 39,603 

ARCHITECT FEES 6,632 6,632 2,772 

TOTAL BUILDING 101,376 6,247 95,129 42,375 

TOTAL 101,376 6,247 95, 129 42,375 

BLDG. 0112 

YNG-Rental Car Service J Building 1453 YNG-Klngsville Rd CITY1 Vienna STATE: OH ZIP CODE: 44473 

COUNTY: Tru•bul1 

OCCUPANCY ; Garage 

CONST.YEARS; 1950 

CONSTRUCTION CLASS 1 2 

SUPER SqFt1 827 STORIES; 1 

BUILD COMD : Good 

BUILDING 6/11 38,546 1 2,780 35,766 16,112 

ARCHITECT FEES 2,691 ' 2,698 1,128 

TOTAL BUILDING 41,244 1 2,780 38,464 17,240 

TOTAL 41,244 2,780 38,464 17,240 

l 

I 

I 

PLEASE READ INTROD'L -. .L'ORY EXPLANATION 
~ INDUSTRIAL APPRAIS~ COMPANY- INSURANCE SU

3UILDING OR UNIT 

BLDG. 0113 

YNG-Elaetrieal Vault 

lutldint 

1453 YNG·lintsville Rd 

CITY: Vhnna 

STATE: OH 

ZIP CODE: ct4473 

COUNTY: Tru•bull 

OCCUPANCY: Electrical Controls 

CONST.YEARS: 2000 

CONSTRUCTION CLASS: 4 

SUPER SaFt: 2,371 

STORIES: 1 

BUILD COND: Good 

BUILDING 

ARCHITECT FEES 

TOTAL IUILDINS 

MACHINERY 

MOillE EQUIPMENT 

EQUIP"EHT·STATED VALUE 

TOTAL EQUIPMENT 

TOTAL 

ILDG. 0114 

YNG·Genarator Building 

1453 YNG-~ingsvilla Rd 

CITY: Vienna 

STATE: OH 

ZIP CODE: 44473 

COUNTY: Tru•bull 

OCCUPANCY: Generator 

CONST.YEARS: 2000 

CONSTRUCTION CLASS• 2 

SUPER SqFt: 230 

STORIES: 1 

BUILD COND: Good 

EHERGENCY GEN: YES 

BUilDING 

ARCHITECT FEES 

TOTAL BUILDING 

TOTAL 

6111 

6/11 

6/11 

6/11 

6/11 

COSI' OF REPRODUC110N NEW 

TOTAL I EXCLUSIONS I INCLUSIONS 

COLUMN 1 COLUMN 2 COLUMN 3 

516,439 

36,151 

552,590 

21,062 

47,389 

2,500 

70,951 

623,541 

182,344 

12,764 

195,108 

195,108 

10,403 

10,403 

10,403 

1,642 

1,642 

1,642 

506,036 

36,151 

542,187 

21,062 

47,389 

2,500 

70,951 

613,131 

180,702 

12,764 

193,466 

193,466 

SOUND V

TOTAL 1 EXc

COLUMN 4 COL

482,236 

33,757 

515,993 

14,364 

40,044 

2,500 

56,908 

572,901 

152,074 

10,645 

162,719 

162,719 

PLEASE READ INTRODUCTORY EXPLANATION 
~ INDUSTRIAL APPRAISAL COMPANY - INSURANCE SUM

BUlLDING OR UNIT 

BLDG. 0115 

YNG·Parking Attendants 

luildine 

1455 YHG·lingsville Rd 

CITY1 Vienna 

STATEs OH 

ZIP CODE: 44475 

COUNTY1 Tru•bull 

OCCUPANCY: Parking Attendant 

CONST.YEARS: 2000 

CONSTRUCTION CLASS1 3 

SUPER Sqft: 35 

STORIES• 1 

IUILD COHO: Good 

BUILDING 6/11 

TOTAl BUILDING 

TOTAL 

BLDG. 0196 

YNG-Cargo Glycol 

Syst•• 

1453 YNG-Kingsville Rd 

ClTYr Vienna 

SlATE1 OH 

ZIP CODEr 44473 

COUNTYs Tru•bull 

OCCUPANCY• Equip•ent Only 

EQUIPMENT 

TOTAL EQUIPMENT 

TOTAL 

6/11 

COS!' OF REPRODUCTION NEW 

TOTAL I EXCLUSIONS I INCLUSIONS COLUMN 1 COLUMN 2 COLUMN 3 

14,769 

14,769 

14,76!1 

2,948,656 

2,948,636 

2,9tlfl,636 

1,518 

1,511 

1,518 

13,251 

13,251 

13,251 

2,948,636 

2,948,636 

2,948,636 

SOUND VA

TOTAL I EXCLU

COLUMN 4 COLUM

12,317 

12,317 

12,317 

2,010,970 

2,010,970 

2,010,970 

PLEASE READ INTROD~.. _ .. 'ORY EXPLANATION 
~ INDUSTRIAL APPRAISAL·COMPANY- INSURANCE SUM

COST OF REPRODUCTION NEW SOUND V

BUILDING OR UNIT 

TOTAL I EXCLUSIONS I INCLUSIONS COLUMN 1 COLUMN 2 COLUMN 3 TOTAL 1 EXC

COLUMN 4 COL

BLDG. 0197 

YNG-Ter•inal Apron Glycol Syste• 

1453 YNG-Kingsville Rd CITY: Vienna 

STATE: OH 

ZIP CODEa 44473 

COUNTY: Tru•bull 

OCCUPANCY: EquipMent Only 

EQUIPMENT 6/11 I 2,948,636 2,948,636 2,010,970 TOTAL EQUIPMENT 2,948,636 2,948,636 2.010,970 TOTAL 2,948,636 2,948,636 2,010,970 

JLDG. 0198 

YNG-Runway Liehtint 

1455 YNG-lingsville Rd CITY: Vienna 

STATEa OH 

ZIP CODEa 44473 

COUNTY: Tru•bull 

OCCUPANCY• Runway Lighting 

INSURABLE PROPERTY IN 

THE OPEN 6/11 2,948.297 •••••••• 7 I 1,465,304 TOTAL BUILDING 2,948,297 2,948,297 1,465,304 TOTAL 2,948,297 2,948,297 1,465.304 

JLDG. 0199 

YNG-PITO 

1453 YNG-lingsville Rd CITY r Vienna 

STATE: OH 

ZIP CODE: 44475 

COUNTY: Tru•bull 

OCCUPANCY: Property in the Open 

INSURABLE PROPERTY IN 

THE OPEN 6/ll I 3,121,336 I I 3,121,336 I 2,7111.110 I TOTAL BUILDING 3,121,336 3,121,336 2,781,110 

PLEASE READ INTRODUCTORY EXPLANATION 
~ 

INDUSTRIAL APPRAISAL COMPANY- INSURANCE SUMM

BUILDING OR UNIT 

MACHINERY 

EQUIPMENT 

MOilLE EQUIPMENT 

EQUIPMENT-STATED VALUE 

TOTAL EQUIPMENT 

TOTAL 

6/11 

6/11 

6/11 

6/11 

IUILDINii TOTAL 

ARCHITECT FEE TOTAL 

GRAND TOTAL IUILDING 

EQUIPMENT TOTAL 

GRAND TOTAL EQUIPMENT 

GRAND TOTAL 

GRAND TOTAL APPRAISED 

SQ. FOOTAGE: 165041 

CrniTOF~ODOCTIONNEW 

TOTAL I EXCLUSIONS I INCLUSIONS COLUMN 1 COLUMN 2 COLUMN 3 

12,953 

126,791 

103,511 

1,500 

244,762 

5,366,091 

24,956,921 

1,321,077 

26,277,991 

9,260,441 

9,260,441 

35,538,439 

624.743 

624,743 

624,743 

12,953 

126,791 

103,518 

1,500 

244,762 

3,366,098 

24,332,118 

1,321,077 

25,653,255 

9,260,441 

9,260,441 

34,913,696 

SOUND VAL

TOTAL I EXCLU

COLUMN 4 COLUM

9,132 

114,999 

40,786 

1,500 

166,417 

2,947,527 

15,662,967 3

798,297 

16,461,264 3

6,450,630 

6,450,630 

22,911,194 3

PLEASE READ INTROD'L .... 'ORY EXPLANATION 
PROOF OF LOSS SERVICE 

In the event of a loss covered by insurance, provided immediate 

written notice is given to our Home Office and our Annual Revaluation · 

Service is in effect. the Industrial Appraisal Company will provide 

updated values, for preparation of proof of loss, of the appraised 

property as of the date of the loss. 

Industrial Apprafsai Company 

Two Gateway Center 

603 Stanwix Street 

Suite 1500 

Pittsburgh, PA 15222-9008 

FORM NO. 770 CoPYiiRhl1975 lndvslriol Aoorcisal Comoonv 
CERTIFICATE OF SERVICE 

I hereby certify that a copy of the foregoing supplement, including all attachments, has been 

provided by email on August 28, 2014, to each of the following persons: 

FAA Flight Standards District Office - Atlanta 

Attn: Bruce Clamp, POI 

107 Charles Grant Parkway, Suite 301 

Hapeville, Georgia 30354 

alton. clamp@faa.gov 

Dan Dickten, A.A.E. 

Executive Director of Aviation 

Youngstown-Warren Regional Airport 

1453 Youngstown-Kingsville Road NE 

Vienna, Ohio 44473 

ddickten@yngairport. com 

Thomas J. Naughton, CEO 

Wayne County Airport Authority 

1 Detroit Metro Airport 

Detroit, Michigan 48242 

tom. naughton@wcaa. us 

Michael Koester