# 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 In c orporat e d

# 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.

-2-

# 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.

-3-

# 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).

-4-

# 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

-5-

# 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 1WESTERNRESERVEPORTAUTHORITYAIRLINEIAIRPORTUSEANDOPERATINGAGREEMENTBETWEENTHEYOUNGSTOWN-WARRENREGIONALAIRPORTANDAERODYNAMICSINCORPORATEDTABLEOFCONTENTSAIRLINEIAIRPORTUSE&OPERATINGAGREEMENTArticleI-DefinitionsArticleII-TermArticleIII-PremisesArticleIV-Uses,RightsandPrivilegesArticleV-FeesandChargesArticleVI-AirlineOperationalStart-UpandRevenueGuaranteeFundingArticleVII-MaintenanceandOperationoftheAirportArticleVIII-IndemnificationandInsuranceArticleIX-GeneralProvisionsEXHIBITA-PREMISESEXHIBITB-AIRSERVICEPLANEXHIBITC-AIRPORTRATES&CHARGESEXHIBITD-GROUNDHANDLINGPROPOSALEXHIBITE-MARKETING&ADVERTISINGPLAN-1-PAGE224557101112142022262932AIRLINEIAIRPORTUSEANDOPERATINGAGREEMENTTHISSIGNATORYAIRLINEIAIRPORTUSE&OPERATINGAGREEMENT,ismadeandenteredintothis25thdayofAugust,2014,byandbetweentheWESTERNRESERVEPORTAUTHORITY(the"Authority")andAERODYNAMICSINCORPORATED,aMichigancorporation("ADIorAirline");WITNESSETH:WHEREAS,pursuanttoChapter4582,OhioRevisedCode,theAuthorityisengagedintheoperationofanairportlocatedintheCountyofTrumbull,StateofOhio,andknownastheYoungstown-WarrenRegionalAirport;andWHEREAS,underthelawsoftheStateofOhio,Authorityhasjurisdiction,control,supervisionandmanagementovertheAirportandhasthejurisdictiontofix,alter,charge,establish,andcollectrates,fees,andotherchargesforserviceandfacilitiesoftheAirport;andWHEREAS,AirlinedesirestousecertainfacilitiesoftheAirportforthepurposeofprovidingcommercialairtransportationtothepublic,andiswillingtoenterintothisAirlineIAirportUseandOperatingAgreement("theAgreement")andhasagreedtopayfeesandchargesthereforasmaybereasonablyestablishedbyAuthorityfromtimetotime;andWHEREAS,itisinthemutualbestinterestofthepartiesheretotoenterintothisAgreement;NOW,THEREFORE,inconsiderationoftheaboverecitalsthatareincorporatedhereinbyreference,thepartiesmutuallyundertake,promiseandagreeasfollows:ArticleI-DEFINITIONS1.1DefinitionsA.Inadditiontoanyotherwordsortermsthatmaybedefinedelsewhereherein,thefollowingwordsandtermsusedinthisagreementshallhavethefollowingmeaningsunlesssomeothermeaningisplainlyintended:1."Airline"or"ADI"meansAERODYNAMICSINCORPORATED,acorporationorganizedandexistingbyvirtueofthelawsoftheStateofMichiganandanaircarriercertificatedbytheU.S.DepartmentofTransportation(DOT)andFederalAviationAdministration(FAA).2."Airport"shallmeantheYoungstown-WarrenRegionalAirport,includinganyextensions,additions,orimprovementsthereto.-2-3."AirfieldArea"shallmeantherunways,taxiways,approachandclearzones,infieldareas,navigationalaids,andotherfacilitiesrelatedtoaircrafttaxiing,landing,andtakeoff.4."AirOperationsArea"shallhavethemeaningsetforthmtheRegulations.5."Authority"shallmeantheWesternReservePortAuthorityoftheStateofOhiooranysuccessortheretooritsrepresentative.6."CertificatedWeight"ofanaircraftshallmeanitscurrentmaximumallowablegrosslandingweight,roundedtothenearest1,000poundunitandexpressedin1,000poundunits,attheAirportasoperatedbyAirlineandcertificatedbyFAA.7."CommercialAircraftOperator"shallhavethemeaningsetforthintheRegulations.8."CommonUse"shallmeantheuseofspaceincommonwithotherairlines.9."EmergencyLanding"shallmeananylandingofanaircraftwhichafterhavingtakenofffromtheAirport,andwithoutlandingatanyotherairport,shallreturntolandattheAirportbecauseofweatherconditions,mechanicaloroperatingfailureorcauses,orforanyotherreasonofcautionoremergency.10."EnplanedPassengers"shallmeanalllocalboarding,interlinetransfer,andintralinetransferpassengersattheAirport.11."FAA"shallmeantheFederalAviationAdministrationoftheUnitedStatesDepartmentofTransportation,oritssuccessoragencyoritsrepresentative.12."GroundHandlingAgent"shallmeantheentitydesignatedbyAirlinetogroundhandleAirline'saircraft,passengers,baggage,ticketingandothergroundoperationsofAirlineassetforthinaseparateagreementthathasbeenapprovedbyAuthority.13."Regulations"shallmeanthoseregulationspromulgatedbyAuthoritypursuanttoChapter4582ORC,asthesamemaybeamended,modified,orsupplementedfromtimetotime.- 3 -14. "Revenue

Landing"

shall

mean

an aircraft

landing

at the Airport

by any aircraft

of Airline

other

than

an Emergency

Landing. 15. "Terminal

Apron

Area"

shall

mean

the aircraft

parking

ramp

and apron adjacent

to the Tenninal

Building. 16. "Terminal

Building"

shall

mean

the Airport

terminal structure(s), 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 

### - 4-agreement.AnysuchnewagreementshallincorporatethediscountedLandingFeeRatesspecifiedinArticle5.3.A.1ofthisAgreement.ArticleIII-PREMISES(AsdepictedinExhibitA.)3.1BaggageClaimA.AirlinemayuseCommonUsebaggageclaimmtheTenninalBuilding.3.2Apron,ParkingPositions,PassengerBoardingBridgeandHoldroomAirlinemayuseapron,parkingpositionsandPassengerBoardingBridgeandholdroomareasassociatedwithGate6.Airlineshalluseotherapron,parkingpositionandholdroomfacilitiesasapprovedbyAuthorityfornegotiatedfees.3.3AirlineTicketCounter,OperationsOfficesandotherSpace.Airlinemayuseticketcounter,officesandotherspaceassociatedwithGate6.Airlineshalluseotherticketcounter,officesandotherspaceasapprovedbyAuthorityfornegotiatedfees.ArticleIV-USES,RIGHTSANDPRIVILEGES4.1RightsofAirlineA.AuthorityherebygrantstoAirlinethenon-exclusiverighttousetheAirfieldArea,theTenninalApronArea,andthePremisesdescribedinArticleIIIaboveincommonwithothers,whichuse,withoutlimitingthegeneralityhereof,shallinclude:1.Theoperationofatransportationsystembyaircraftforthecarriageofpersons,property,baggage,cargo,expressandmail,including,butwithoutlimitingthegeneralityhereof,courtesy,test,andtrainingusesbetweenthehoursof5A.M.and11P.M.localtime.2.FARPart121ScheduledAirCarrierPassengerServicetoaNetworkAirlinehubdestination(andtosuchadditionaldestinationsasAirlinemaydecidetoserveatalaterdate)asdescribedinExhibitB.3.Postingsuchnoticestopassengersasarerequiredbyfederallawsorregulations,totheextentsuchnoticesarenotalreadypostedatrequiredlocations.4.SupportoftheAuthority'seffortstowardtheYoungstown-WarrenRegionalAirport'sapplicationtore-establishPFCimpositionfor-5-·'approved''PFCprojectsofwhichAirlinewillhavetheopportunitytoreviewandcommentonaspartoftheapprovalprocess.5.Therepairing,maintaining,conditioning,servicing,testing,parkingorstorageofAirline'sownedorleasedaircraftandancillaryequipmentowned,leasedoroperatedbyAirline,providedthatsuchrightshallnotbeconstruedasauthorizingtheconductofaseparatebusinessbyAirline,butshallpermitAirlinetoperformsuchfunctionsasareincidentaltotheconductofitsownairtransportationsystem.TheactivitiesauthorizedbythisParagraph4.1.A.5shallbeconductedonlyinareasdesignatedbyAuthority.6.ThehiringandtrainingontheAirportofpersonnelintheemployoforoncontractwith,ortobeemployedorcontractedby,Airline.7.TheservicingbyAirline,orbyothersofAirline'schoice,ofAirline'saircraftandotherequipmentbytruckorotherwise,withgasoline,fuelorotherpropellants,oil,greases,lubricants,orothersupplies,includingfoodsandbeveragesrequiredbyAirline;exceptthatnothinghereinshallbedeemedtograntotherstherighttodobusinessontheAirportwithoutthepriorapprovalofAuthority,whichapprovalshallnotbewithheldunreasonably.8.Thelanding,takingoff,flying,taxiing,towing,loadingorunloading,ofAirline'saircraft.9.Theloadingandunloadingofproperty,cargo,expressandmailattheAirportbymotorvehiclesorothermannerofconveyanceasAirlinemaydesireorrequireintheoperationofitsownairtransportationsystem,withtherighttodesignatetheparticularground carrierorcarrierswhoshouldregularlytransportAirline'sproperty,cargo,expressandmailtoandfromtheAirport.10.TherightandprivilegeofAirline,itsagents,suppliers,employees,contractors,passengers,guests,andinvitees,ofaccesstothepublicareasandpublicfacilitiesoftheTerminalBuilding.Airlineshallnotauthorize,orpermit,theuseofsaidaccessbyanypersonorfirmengagedinanyactivitythat,orwhichperformsanyact,orfurnishesanyservice,fororonbehalfofAirlinethat,AirlineisnotauthorizedtoengageinorperformundertheprovisionsofthisAgreement,unlessexpressly authorizedbyAuthority.Authorityshallhavetherightatanytimeortimestoclose,relocate,reconstruct,change,alter,ormodifyanysuchmeansofaccessprovidedforAirline'susepursuanttothisAgreement,orotherwise,eithertemporarilyorpermanently;providedthatAuthorityshallgivereasonablenoticetoAirlineofsaidintentand-6-shallprovideareasonablyconvenientandadequatealternativemeansofaccessinlieuthereof.AuthorityshallsuffernoliabilitybyreasonthereofandsuchactionshallinnowayalteroraffectanyofAirline'sobligationsunderthisAgreement.11.TheAuthmity'sapprovedFBO,WinnerAviation,experiencedintheaboveandbelowwinggroundhandlingofcommercialserviceairlineoperations,shallbeavailabletoprovidecompetitiveGroundHandlingServicestotheAirline.AProposedWinnerAviationGroundHandlingAgreementtoADIisdepictedinExhibitD.12.Allabatements,revenueguarantees,andin-kindservicesprogramsareshowninExhibitC.13.TheFlyYNG-ADIMarketing&AdvertisingPlanisdepictedinExhibitE.4.2ProvisionandSaleofGoodsandServicesAAuthorityexpresslywaivestherighttoassessandcollectfeesforinflightcatering,vending,groundtransportationforemployees,andotherservicesprovidedbyAirlineforitsownuse;provided,however,thatifsuchservicesareprovidedbyAirlinetoothersforprofit,orifAirlinehassuchservicesprovidedbyothers,Authorityreservestherighttochargereasonablefeestherefore.B.ExceptasspecificallyprovidedforinthisArticleIV,nothinghereinshallbedeemedtogiveAirlineanyrightorpermissiontosellorprovide anygoodsorservicesattheAirportnotincidentaltoitsownairtransportationsystem.Airlinemayhavesaidservicesprovidedforitbysuchcompanyorcompanies,orthroughanominee,ofitschoice,providedthatsaidcompany,companiesornomineeisauthorizedbyAuthoritytoconductsuchservice(s)ontheAirport,andfurtherprovidedthatsuchcompany,companiesornomineeshallhavenogreaterrightsthanAirlinehereunder.4.3GroundHandlingAgreementIfAirlineagreestogroundhandleanyportionoftheoperationsofanotherscheduledorun-scheduledairline,orifanotherairlineorprivategroundhandlingagencyagreestogroundhandleanyportionoftheoperationsofAirline,AirlineshallprovideAuthorityadvancewrittennoticeofsuchproposedactivities,includingadescriptionofthetypeandextentofservicestobeprovided.AirlineshallnotagreetogroundhandleanotherairlineifsuchairlinedoesnothaveinforceanoperatingagreementwithAuthority.ArticleV-FEESANDCHARGES5.1General-7-InreturnforuseoftheTenninalBuildingandAirportfacilities,andfortherightsandprivilegesgrantedhereunder,AirlineagreestoprovidecertaininfonnationtoAuthorityandtopayAuthority,withoutdeductionorsetoff,duringthetennofthisAgreementcertainfeesandchargesassetforthin thisArticleVandExhibitC,Authority"sLeasing,Rates&ChargesPolicy,AirportRates&ChargesSchedule.5.2MonthlyReportsA.AirlineshallfurnishtoAuthorityonorbeforethe15thdayofeachmonth,anaccuratereportofAirline'soperationsattheAirportduringtheprecedingmonth,settingforthalldatareasonablynecessarytocalculatethefeesandchargesdueunderthisAgreement.Saidreportshallinclude:(1)Airline'stotalnumberofRevenueLandingsforthemonthbytypeofaircraft,theCertificatedWeightofeachAircraft,andtheTotalLandingWeightforthemonth;(2)thetotalnumberofAirline'senplaninganddeplaningpassengers;and(3)Airline'samountofcargo,freight,mail,andexpressarrivinganddepartingtheAirportbybothairandgroundtransport,eachmode(airandground)tobereportedseparatelyforsuchmonth.B.AirlineshallfurnishtoAuthorityonorbeforethe15thdayofeachmonthanaccuratereportofAirline'splannedoperationsattheAirportforthesucceedingmonth.Saidreportshallinclude,for eachflightscheduledtooperateattheAirportatanytimeduringthesucceedingmonth:(1)flightnumber;(2)aircraftequipmenttypes;(3)daysofweekwhichtheflightwilloperate;(4)scheduledlocalarrivaland/ordeparturetimeattheAirport;(5)completeitineraryincludingscheduledlocalarrivaland/ordeparturetimeateachairportserviced;and(6)theeffectiveandterminationdateduringsaidmonth.Inaddition,AirlineshallfurnishtoAuthoritythetotalnumberofseatsineachtypeofaircraftoperatedbyAirlineattheAirportandshall,fromtimetotime,upontherequestofAuthority,providecurrentseatingcapacityofthosevarioustypesofaircraft.5.3LandingFeeA.Airlineshall,withoutinvoicefromAuthorityandnotlaterthanthe15thdayofthefollowingmonth,payAuthorityforRevenueLandingsmadebyAirlineinthepreviousmonthatthegreaterof:1.TheLandingFeeRateisdeterminedtobe$1.29perunitofAircraftMaximumLandingWeightandiscalculatedbymultiplyingthenumberof1,000-poundunitsofTotalMaximumGrossLandingWeightofAirlineAircraftduringthemonthbythe"LandingFeeRate"assuchmaybeamended;provided,inthecaseofAirline,LandingFeesareWAIVEDTHROUGHOUTTHETWO-YEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenchargedatarateof$0.99per1,000lbs.throughthefourthanniversaryofAirline'sinaugurationofscheduledpassengerserviceatAimort,thenchargedperExhibitC,theAirportRates&ChargesSchedule;- 8 -B.DocumentationforAirline'scalculationinsubparagraph5.3.AshallbeprovidedwithAirline'spayment.AcceptancebyAuthorityofanypaymentshallnotprecludeAuthorityfromverifyingtheaccuracyofAirline'scalculation,orfromrecoveringorrefundinganydifferencesestablishedbyAuthority.C.IfAirlinefailstofurnishAuthoritywiththereportrequiredbyParagraph5.3.A,paymentsasrequiredbyParagraph5.3shallbedetenninedbyassumingthatAirline'sTotalLandingWeightforsuchmonth(s)thatthereportisnotsubmittedisequaltothatofthemostrecentmonthforwhichsuchdataareavailableforAirline.AnynecessaryadjustmentinsuchLandingFeeshallbecalculatedafteranaccuratereportisdeliveredtoAuthoritybyAirlineforthemonthinquestion,andresultingsurplusesordeficitsshallbeappliedascreditsorchargestotheappropriateinvoicesinthenextsucceedingmonth.5.4PremisesFeesA.ApronandHoldroom.WAIVEDTHROUGHOUTTHETWOYEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenperExhibitC,theAirportRates&ChargesSchedule;B.BaggageClaimArea.WAIVEDTHROUGHOUTTHETWOYEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenperExhibitC,theAirportRates&ChargesSchedule;C.TicketCounter,OperatingOffice,OtherSpace.WAIVEDTHROUGHOUTTHETWO-YEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenperExhibitC,theAirportRates&ChargesSchedule;D.PassengerBoardingBridgeFee.WAIVEDTHROUGHOUTTHETWO-YEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenperExhibitC,theAirportRates&ChargesSchedule;E.RONFee.WAIVEDTHROUGHOUTTHETWO-YEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,thenperExhibitC,theAirportRates&ChargesSchedule;-9-F.AirportSecurityandUseFee.WAIVEDTHROUGHOUTTHETWO-YEARPERIODCOMMENCINGONTHEDATEOFAIRLINE'SINAUGURATIONOFSCHEDULEDPASSENGERSERVICEATAIRPORT,providedthereshallbeanAirportUsefeeof$0.50perenplanedpassengerthroughthesecondanniversaryofAirline'sinaugurationofscheduledpassengerserviceatAirport,thenperExhibitC,theAirportRates&ChargesSchedule;G.PassengerFacilityCharge(PFC).ThroughoutanyperiodduringwhichPFCsareineffectatAirport,AirlineshallcollectfrompassengersscheduledtoenplaneatAirportandpayovertoAirport(lesstheamountAirlineisauthorizedby14CFR158.53toretain)PFCsatarateof$4.50perenplanedpassenger,assuchmaybeamendedwithconsentofAirline;H.RentsandfeesforanyuseofAirportpremisesnotprovidedinthisAgreementshallbeattheratesprovidedinExhibitC,theAirportRates&ChargesSchedule,assuchmaybeamended.5.5PaymentDueAllPremisesFeesshallbedueandpayableinadvanceonthefirstdayofeachmonthwithoutinvoice.LandingFeesshallbedueandpayablewithoutinvoiceonthe15thdayofthemonthfollowingthemonthtowhichtheLandingFeesapply.Anypaymentnotreceivedonorbeforetheduedateshallaccrueinterest,attherateof1.5%permonth,fromsaidduedateuntilpaidinfull.PFCsshallberemittedassetforthinPart158oftheFAAregulations,14CFRPart158.ArticleVI-AIRLINEOPERATIONALSTART-UPANDREVENUEGUARANTEEFUNDING6.1Start-upOperationalFunding.TheAuthority,onbehalfofitselfandtheYoungstownParties,shallprovide$130,000toAirlineuponpublicannouncementbytheAuthorityoftheinitialscheduledpassengerservicetobeoperatedbyAirlineatAirport,whichannouncementshallnotbeunreasonablywithheldordelayed.Thesefundsshallconstituteinitialstart-upfundingtodefray thepre-operatingexpensesAirlinemustincurtoestablishandoperatetheairservicefromtheYoungstown-WarrenRegionalAirportcontemplatedbythisAgreement.6.2RevenueGuarantee.TheAuthority,onbehalfofitselfandtheYoungstownParties,shallprovideupto$1,200,000toAirlineasarevenueguarantee,effectivefromthedateofAirline'sinaugurationofscheduledpassengerserviceatAirportand-10-continuinguntilthesecondanniversaryofsuchservice;provided,thatintheeventthetotalamountpaidtoAirlineundertherevenueguaranteereaches$1,200,000priortosuchsecondanniversary,therevenueguaranteeshallthereupontenninateautomatically.ThepurposeoftherevenueguaranteeistoprovidetheAirlineassurancethatthroughouttheinitialtwoyears(orsuchlesserperiodasmaybethecase)ofitsserviceattheAirport,theAirlinewillachieveaprofitmarginofnotlessthanfivepercent(5%)ontheservicecontemplatedbythisAgreement.Nolessfrequentlythanmonthly,AirlineshallprovideawrittenaccountingtoAuthoritydetailingtheprofitmarginachievedbyAirlineonitsservicetoandfromtheAirportduringtheperiodcoveredbytheaccounting.Totheextentalossoraprofitmarginoflessthan5%hasresultedduringtheperiodinquestion,suchaccountingshallincludeaninvoiceissuedbyAirline.Uponreceiptofsuchaccountingandinvoice,theAuthorityshall,withoutdelay,issuearevenueguaranteepaymenttoAirlineinanamountsufficienttocoverthedifferencebetweentheprofitmargin(orloss,asthecasemaybe)achievedanda5%profitmargin,whichshallbetheamountinvoicedbyAirline.AdditionaldetailsoftherevenueguaranteearesetforthinExhibitB.6.3MutualAcknowledgments.A.TheAuthorityacknowledgesthatinenteringintothisAgreement,AirlineisrelyinguponallofthefinancialconsiderationssetforthinArticlesVandVIofthisAgreement,andthatAirlinewouldnotenterintothisAgreementintheabsenceofsuchconsiderations.B.AirlineacknowledgesthattheAuthorityisfreetoapplyforfederalreimbursementofeligibleexpensestheAuthorityincurs(includingbutnotlimitedtorevenueguaranteeexpenses)inrelationtotheestablishmentandcontinuationofAirline'sservicetoandfromtheAirport,totheextentsuchreimbursementisavailabletotheAuthorityunderaSmallCommunityAirServiceDevelopment(SCASD)grantissuedbyDOTinAugust2012.TheAuthorityacknowledgesthatitsobligationtoprovidetoAirlinethefinancialconsiderationssetforthinArticlesVandVIofthisAgreementisindependentof(i)theamountofSCASDfundingavailabletotheAuthority,and(ii)whethertheAuthorityissuccessfulinobtainingreimbursementsundertheSCASDgrant.ArticleVII-MAINTENANCEANDOPERATIONOFTHEAIRPORT7.1AuthorityObligationsAuthorityagreesthatitwilldevelop,improve,maintainandoperatetheAirport,includingtheTerminalBuildingandallappurtenances,facilities,noworhereafterconnectedtherewithasthesamerelatetoAirline'sairtransportationsystem,andwillkeeptheAirportanditsaerialapproachesfreefromobstructionandinterferenceforthesafeandproperusethereofbyAirline,allinamanneratleastequaltothestandardsestablishedby-11-theFAAandanyothergovernmentalagencyhavingjurisdictionthereof,exceptforconditionsbeyondthecontrolofAuthority.7.2AirlineObligationsAirlineshallperfonn,atitssoleexpense,ordinarypreventivemaintenanceandordinaryupkeepandrepairofallownedfacilities,personalpropertyandequipmentlocatedontheAirport.AirlineshallmaintainallAirportfacilitiesusedbyAirlinehereunderinaneat,clean,andorderlycondition,freefromlitter,debris,refuse,petroleumproducts,orgreasethatmayresultfromactivitiesofitspassengers,employees,agents,orsuppliers.AirlineshallpromptlyremovealloilandgreasespillagewhichisattributabletoAirline'saircraftorequipmentandshallnotpennitanyprohibitedsubstancetoenterthesewersystem.NoequipmentshallbeparkedontherampexceptinareasspecificallydesignatedbyAuthority.ArticleVIII-INDEMNIFICATIONANDINSURANCE8.1IndemnificationandInsuranceA.AirlineagreestoindemnifyandsaveAuthority,itsofficers,agents,andemployeeshannlessfromanyliability,including,butnotlimitedto,claims,judgments,fines,costs,andreasonableattorneys'fees,fordeathorinjurytopersonsordamagetopropertyresultingfromorarisingoutoftheuseoroccupancyoftheAirportbyAirline,itsagentsandemployees,orcausedbyorresultingfromtheexerciseoftherightsandprivilegesgrantedhereunder,totheextentthatsaidclaims,judgments,fines,costsorreasonableattorney'sfeesresultfromthenegligenceorwillfulmisconductofAirline,itsagentsoremployees;andfurtheragreestocarry,andfurnishtoAuthorityacertificate(s)ofinsurance,withcombinedsinglelimitsnot lessthanthefollowing,ifAirlineoperates:Aircraftwithlessthan10seats,Aircraftwith10seats,butlessthan25seats,Aircraftwith25seatsormore,orAircraftwithamaximumgrosslandingweightoflessthan15,000lbs.,Aircraftwithamaximumgrosslandingweightof15,000lbs.,butlessthan35,000lbs.,Aircraftwithamaximumgrosslandingweightof35,000lbs.ormore,$25,000,000;$50,000,000;$100,000,000;$25,000,000;$50,000,000;$100,000,000;whicheveristhegreater,itbeingagreedthatAirlineshallprovidesuchinsuranceinthelimitsprescribedfortheaircraftoperatedbyAirlinehavingthegreatestnumbersofseatsorthegreatestmaximumgrosslandingweight,regardlessofthecompositionofAirline'saircraftfleet;whichinsuranceshallprovidecoverageforpublicliability,propertydamage,bodilyinjuryinwhichAuthorityshallbeanadditionalinsuredtotheextentoftheliability-12-assumedbyAirlinehereunder.IfAirlineoperateslicensedorunlicensedvehiclesintheAirOperationsArea,Airlineshallprovideinsurancecoverageforsuchvehiclesinthesameminimumlimit(s)asrequiredaboveinthissubparagraph8.1.A.AirlineshallfurnishsatisfactoryevidencethatsuchinsuranceisineffectandwillnotbecanceledduringthetennofthisAgreementwithoutthirty(30)days'priorwrittennoticeofsuchcancellationtoAuthority.AirlineshallcarryWorker'sCompensationandEmployersLiabilityInsurancecoveringitsemployeesemployedattheAirport.B.Inconductingitsbusinesshereunder,AirlineactsasanindependentcontractorandnotasanagentofAuthority.Theselection,retention,assignment,direction,andpaymentofAirline'semployeesshallbethesoleresponsibilityofAirline.AuthorityshallnotattempttoexerciseanycontroloverthedailyperformanceofdutiesbyAirline'semployees,excepttotheextentandinthemannerrequiredbylaworregulationforcontinuedoperationorcertificationoftheAirport.8.2NonliabilityofAuthorityAuthorityshallnotbeliabletoAirlineoritsagents,representativesoremployees,foranyinjuryordamageeithertopersonorproperty,duetotheAirportoranyimprovementsthereonoranypartthereoforanyappurtenancesthereofbecomingoutofrepair,orduetothehappeningofanyaccidentinorabouttheAirport,excepttotheextentthatsuchinjury,damageoraccidentresultsfromthenegligenceorwillfulmisconductofAuthority,itsagentsoremployees;norshallAuthoritybeliabletoAirlineoritsagents,representativesoremployees,foranyinjuryordamageeithertopersonorproperty,duetoanyactorneglectofanytenantoroccupantoftheAirport,orofanyotherperson.Withoutlimitingthegeneralityoftheforegoing,intheabsenceofthenegligenceorwillfulmisconductofAuthority,itsagentsoremployees,Authorityshallnotbeliablefordamagecausedbywater,steam,sewerage,gas,burstingorleakingofpipesorplumbingorelectricalcauses,orthenegligenceofcontractors,theiremployeesoragents,orlicenseesofAuthority.8.3IfAirlineusesTenninalBuildingexteriorPassengerBoardingBridgeforitsenplaninganddeplaningpassengers(the"PassengerBoardingBridge"),inconsiderationthereof,andinadditiontoandnotassubstitutionfortheindemnificationprovidedbyAirlinetoAuthoritypursuanttoParagraph8.1above,Airline,intheabsenceofthenegligenceorwillfulmisconductofAuthority,itsagentsoremployees,shallassumeresponsibilityforlossordamagetopropertyorinjurytopersonsresultingfrom,arisingoutof,orassociatedwiththeuseofthePassengerBoardingBridge,aswellasforanyclaimsmadebyoronbehalfofAirline'sagents, servants,andemployees,arisingfromtheiremploymentorworkandwhichresultsfromtheuseofthePassengerBoardingBridge.AirlineshallatalltimesagreetoindemnifyandholdAuthorityanditsofficers,agentsandemployeesharmlessfromandagainstany andallliabilities,demands,claims,suits,losses,damages,causesofaction,finesorjudgments,includingthosereasonableandnecessarycosts,reasonableattorneyandwitnessfees,andexpensesincidentalthereto,arisingoutof,orinconnectionwith,theuseofthePassengerBoardingBridge,exceptforactsarisingfromthenegligenceorwillfulmisconductofAuthority,itsagentsoremployees.-13-

### Article

IX- GENERAL PROVISIONS 9.1 Regulations A.

Airline

shall observe

and obey

all lawful Regulations promulgated, from

time

to time during

the

term hereof,

by Authority

governing

conduct

on,

and 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-from,orproducts(whetherliquidorsolid)usedwithrespectto,itsaircraftintothesanitaryorstonnsewersattheAirportunlesssuchwastematerialorproductsshallfirstbeproperlytreatedbyequipmentinstalledwiththeapprovalofAuthorityforthatpurpose.9.4NondiscriminationA.DuringtheperfonnanceofthisAgreement,Airline,foritself,itsassigneesandsuccessorsininterestagreesasfollows:I.CompliancewithPart21.AirlineshallcomplywiththeregulationsrelativetonondiscriminationinfederallyassistedprogramsoftheDepartmentofTransportation(hereinafter"DOT")Title49,CodeofFederalRegulations,Part21,astheymaybeamendedfromtimetotime(hereinafterreferredtoasPart21),whicharehereinincorporatedbyreferenceandmadeapartofthisAgreement.2.Nondiscrimination.Airline,withregardtotheworkperfonnedbyitduringtheAgreement,shallnotdiscriminateonthegroundsofrace,color,nationalorigin,sexorcreedintheselectionandretentionofsubcontractors,includingprocurementsofmaterialsandleasesofequipment.Airlineshallnotparticipateeitherdirectlyorindirectlyinthediscriminationprohibitedbysection21.5ofPart21,includingemploymentpracticeswhentheAgreementcoversaprogramsetforthinAppendixBofPart21.3.SolicitationforSubcontracts,IncludingProcurementsofMaterialsandEquipment.InallsolicitationseitherbycompetitivebiddingornegotiationmadebyAirlineforworktobeperformedunderasubcontract,includingprocurementsofmaterialsorleasesofequipment,eachpotentialsubcontractororsuppliershallbenotifiedbyAirlineofAirline'sobligationsundertheAgreementandPart21relativetonondiscriminationonthegroundsofrace,color,nationalorigin,sexorcreed.4.InformationandReports.AirlineshallprovideallinformationandreportsrequiredbyPart21ordirectivesissuedpursuanttheretoandshallpermitaccesstoitsbooks,records,accounts,othersourcesofinformationanditsfacilitiesasmaybedeterminedbytheAuthorityandtheFAAtobepertinenttoascertaincompliancewithPart21,ordersandinstructions.WhereanyinformationrequiredofAirlineisintheexclusivepossessionofanotherwhofailsorrefusestofurnishthisinformation,AirlineshallsocertifYtotheAuthorityortheFAA,asappropriate,andshallsetforthwhateffortsithasmadetoobtaintheinformation.-15-5.SanctionsforNoncompliance.IntheeventofAirline'snoncompliancewiththenondiscriminationprovisionsofthisAgreement,theAuthorityshallimposesuchcontractsanctionsasitortheFAAmaydetenninetobeappropriate,including,butnotlimitedto:a.WithholdingofpaymentstoAirlineundertheAgreementuntilAirlinecomplies,and/orb.Cancellation,tennination,orsuspensiOnoftheAgreement,inwholeorinpart.6.IncmnorationofProvisions.Airlineshallincludetheprovisionsofparagraphs1.through5.ineverysubcontract,includingprocurementsofmaterialsandleasesofequipment,unlessexemptbyPart21ordirectivesissuedpursuantthereto.AirlineshalltakesuchactionwithrespecttoanysubcontractorprocurementastheAuthorityortheFAAmaydirectasameansofenforcingsuchprovisionsincludingsanctionsfornoncompliance.Provided,however,thatintheeventAirlinebecomesinvolvedin,orarethreatenedwith,litigationwithasubcontractororsupplierasaresultofsuchdirection,AirlinemayrequesttheAuthoritytoenterintosuchlitigationtoprotecttheinterestsoftheAuthorityand,inaddition,AirlinemayrequesttheUnitedStatestoenterintosuchlitigationtoprotecttheinterestsoftheUnitedStates.C.Inasmuchasapplicablelawrequires,notwithstandinganyotherorinconsistentprovisionofthisAgreement, duringthetermofthisAgreement,Airlineagreesasfollows:Airlineassuresthatitwillcomplywithpertinentstatutes,ExecutiveOrdersandsuchrulesasarepromulgatedtoassurethatnopersonshall,onthegroundsofrace,creed,color,nationalorigin,sex,age,orhandicapbeexcludedfromparticipatinginanyactivityconductedwithorbenefitingfromFederalassistance.ThisprovisionobligatesAirlineoritstransfereefortheperiodduringwhichFederalassistanceisextendedtotheairportprogram,exceptwhereFederalassistanceistoprovide,orisintheformofpersonalpropertyorrealpropertyorinterestthereinorstructuresorimprovementsthereon.Inthesecases,theprovisionobligatesthepartyoranytransfereeforthelongerofthefollowingperiods:(a)theperiodduringwhichthepropertyisusedbyAuthorityoranytransfereeforapurposeforwhichFederalassistanceisextended,orforanotherpurposeinvolvingtheprovisionofsimilarservicesorbenefits;or(b)theperiodduringwhichAuthorityoranytransfereeretainsownershiporpossessionoftheproperty.Airlinefurtherassuresthatthisprovisionshallbeinsertedinallcontracts,subcontracts,andotheragreementsatalltiers.D.Thatintheeventofbreachofanyoftheabove,nondiscriminationcovenants,AuthorityshallhavetherighttoterminatethisAgreementandtoreenterandrepossessthePremisesandthefacilitiesthereon,andholdthesameasifsaidAgreementhadneverbeenmadeorissued.-16-9.5 Nonliability

of Agents

and Employees No member,

officer,

agent, director,

or employee

of Authority

or Airline shall

be charged personally

or held contractually

liable

by

or

to the other

party

under

any tem1

or provision

of this Agreement

or because

of any breach

thereof

or because

of

its

or their execution

or attempted

execution. 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-heretoforemade,verbalorwritten,aremergedherein.ThisAgreementmaybeamendedonlyinwritingexecutedbydulyauthorized representativeofthepartieshereto.9.10ConsentofthePartiesInallinstancesinthisAgreementwhereconsentorapprovalofonepartyisrequiredforanactionbytheotherparty,suchconsentshallbeinwritingandnotunreasonablywithheld.9.11NoticesNoticestoeitherpartyprovidedforhereinshallbeinwritingandshallbesufficientifhanddeliveredorsentbycertifiedorregisteredmail,postageprepaid,oriftransmittedbyelectronicmeansprovidedreceiptisconfirmedcontemporaneously,addressedasfollows:ToAuthority:ToAirline:WesternReservePortAuthorityATTN:DanielJ.Dickten,A.A.E.DirectorofAviationYoungstown-WarrenRegionalAirport1453Youngstown-KingsvilleRd.NEVienna,OH44473AerodynamicsIncorporatedATTN:ScottBeale,CEO25700ScienceParkDrive,Suite210Beachwood,Ohio44122ortosuchotherrespectiveaddressesasthepartiesmaydesignatetoeachotherinwritingfromtimetotime.9.12SuccessorsandAssignsBoundThisAgreementshallbebindinguponandinuretothebenefitofthesuccessorsandassignsofthepartieshereto.913GoverningLawsandTimeThisAgreementshallbegovernedbythelawsoftheStateofOhio.Timeshallbeoftheessence.-18-

# IN TESTIMONY WHEREOF, w i t ne ss th e s ignatur es of the pm1i es h e r et o

, this da y and

yea r fir s t above wlitten.



# WITNESS

Title: Ex ecuti ve Director of Aviation



# WITNESS Q

# ~~ AERODYNAMICS IN CORPORA TED

B y:

# ~~- /·· 7 Scott A. Beal e

Title: C hi ef Execu ti ve Officer

Thi s Ag r ee m e nt h as b ee n a ppro ve d for the

Authmity as t o l e lit y of f o rm a nd co nt e nt by:



# - 19

-EXHIBITAPREMISES-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**

-- lEXHIBITBAIRSERVICEPLAN-22-EXHIBIT

B YNG -AERODYNAMICS,

INC.

AIR SERVICE 

### AIR SERVICE

PLAN OVERVIEW The Western

Reserve

Port Authority

{WRPA)

Board

of Directors

on June

11, 2014 passed

a Motion

to 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.EXHIBITBVNG-AERODYNAMICS,INC.AIRSERVICEFUNDINGRESOURCESTheYoungstownParties(WRPA/Youngstown-WarrenRegionalAirport,MahoningCounty,TrumbullCounty,variousprivate-sectorcorporations/businesses,andYNGAirPartners)areprovidingarevenueguaranteeofupto$1.2milliontoattractandestablishtheservicedescribedhere.TheYoungstownPartiesanticipatereceiptofreimbursementof65%{$780,000)ofthissumundertheSmallCommunityAirServiceDevelopmentProgram(SCASDP)grantnotedabove.TheYNGPartieswillalsoprovidetheadditionalfundingraisedfromlocalcontributionsandin-kindservicesdescribedbelow.AfundraisingcampaignbyYNGAirPartnersisinprogresstoprovideadditionalrevenueguarantees.WRPAwilladministeralldisbursementstoADIandallrequestsforreimbursementunderSCASDP.AIRLINEOPERATIONAL"START-UP"FUNDINGTheYoungstownPartieswillprovide$130,000toADIinadvanceasinitialstart-upfundingtoestablishandoperatetheairservicefromtheYoungstown-WarrenRegionalAirporttothemostoptimalairlinehub.Thisfundingisindependentofallotherfunding.PASSENGERBOARDINGBRIDGE-VNGGATE6Uponsustainmentofthefirstroute,theAirportwillprovideaRegionalJetPassengerBoardingBridgeatGate6intheTerminalSouthWingforusebytheAirline.TheAirporthasreceivedbidsforarefurbishedRJbridgeatacostof$180,000.TheAirportwillbeusingacoveredwalkwaywithall-weatherboardingmechanismatacostofapproximately$50,000astheinitialpassengerboarding/de-boardingfacilityatGate6.ThesecostswillbecreditedtowardsmeetingtheSCASDPgrant'sin-kindservicerequirement.OPERATIONALABATEMENTSTheAirportwillprovideoperationalabatementsbywaivingallterminaloperatingcostsforthefirsttwoyearsintheamountofapproximately$150,000.ThesecostswillalsobecreditedtowardsmeetingtheSCASDPin-kindservicerequirement.MARKETING,ADVERTISINGANDPROMOTIONTheAirportwillprovidestart-upmarketing,advertisingandpromotionalcampaignfunding,plusin-kindservicesforadditionaladvertisingasprovidedintheSCASDPgrantagreement,asfollows:DestinationA-$15,000Pre-StartupCampaignI$100,000In-kindServicesover2-yearsDestinationB-$10,000Pre-StartupCampaignI$80,000In-kindServicesover2-yearsREVENUEGUARANTEEPROCEDUREVirtuallyallstart-upairlineservicelosesmoneyduringtheinitialsustainabilityphase.Therevenueguaranteeprovidesfundingtoenabletheairlinetomaintainareasonableprofitmarginof5%throughthestart-up.TheairlinewillprovideinvoicestoWRPAnolessfrequentlythanmonthlyfortheoperationaldeficienciesexperienced,measuredagainsta5%netprofitmargin.Paymentinresponsetotheairline'sinvoiceswillbeprovidedbyWRPA(onbehalfoftheYoungstownParties)toenabletheairlinetomaintaina5%netprofitmargin.WRPAwillthenapplyforreimbursementundertheSCASDgrantof65%ofthedisbursementmadetotheairline,withreimbursementexpectedtooccurwithin60daysaftertherespectiveapplication.EXHIBITBYNG-AERODYNAMICS,INC.AIRSERVICEForanycalendarmonthinwhichtheairlineexperiencesanetprofitmarginof5%orgreater,norevenueguaranteedisbursementshallbeprovided.Whentheairlinehasexperiencedanetprofitmarginof5%orgreaterforeachof12consecutivecalendarmonths,theserviceshallbeconsideredtohaveachievedsustainabilityandtherevenueguaranteeshallcease.Inconnectionwitheachinvoice,whichshallbeaccompaniedbyanexplanatoryaccountingpreparedbytheairline,determinationoftheairline'snetprofitmarginshallbemadeinaccordancewithGenerallyAcceptedAccountingPrinciples(GAAP)establishedbytheFinancialAccountingStandardsBoard(FASB).EXIDBITCAIRPORTRATES&CHARGESSCHEDULE-26-EXHIBITCAIRPORTRATES&CHARGESSCHEDULEAirlinesSectionTherates,chargesandfeesforAirlineOperationsbelowhavebeenestablishedbytheWestemReservePortAuthorityinanefforttomeettherevenuegoalsfortheYoungstown-WanenRegionalAirpm1.TenninaliRentAirportTenninal(TicketCounter,OperationsOffice,OtherSpace-Airline):Signatory$12.50Is.f.Non-Signatory$15.501s.f.GateiPassengerBoardingBridgeFeesAllgates,loadingbridgesanddevicesatYNGarecommonuse.UnlesstheentityiscurrentlyoperatingunderanexistingAirpm1IAirlineorotherUseAgreement,theWRPAwillincorporatethefollowingpassengerboardingbridgefee(peruse)torecovercostsassociatedwiththemaintenanceandoperationofthedevice:GateGateI(PBB):Gate2:Gate3:Gate4:Gate5:(PBB)Gate6:SignatoryScheduledOperator$50.00NoCostNoCostNoCost$50.00NoCostRemainOverNight(RON)FeesNon-SignatoryUnscheduledOperator$75.00$25.00$25.00$25.00$75.00$25.00CommercialAirCani.ers(PassengerorCargo)thatRONontheAirp011TerminalorCargoApronsandLighterthanAirAircraftthatRONontheAirp011willbechargedaflatratefee$50.00pernight.LandingFeesUnlessanentityiscun·entlyoperatingunderanexistingAirpm1IAirlineorotherUseAgreement,CommercialAirCani.ersorprivateCharters(eitherpassengerorcargo)andgeneralaviationaircraftweighingmorethan12,500lbs.(MGLW)willpaylandingfeesinaccordancewiththefollowingschedule:Page2.ScheduledICommercialSignatoryOperators$1.29/1,000lbs.UnscheduledICommercialNon-SignatoryOperators$1.49/1,000lbs.•Weightwillbebasedonthecet1ifiedmaximumgrosslandingweightofeachaircraftwithaminimumfeeof$25.00forCommercialServiceAircraft.AiroortSecurityandUseFeeThereshallbeanAirpo11Usefeeof$1.00perenplanedpassenger.PassengerFacilityCharge(Airline)Thereshallbeapassengerfacilitychargeof$4.50perenplanedpassenger.SIDAIAOABadgingFees:SIDABadge-InitialBadge:$45.00/ReplacementBadge:$25.00EXHIBITDGROUNDHANDLINGPROPOSAL-29-...wWINNERAVIATION_BetweenSTANDARDGROUNDHANDLINGAGREEMENTSIMPLIFIEDPROCEDUREANNEX81.0-LOCATIONS,AGREEDSERVICEStotheStandardGroundHandlingAgreement(SGHA)of2008WinnerAviation1453Youngstown-KingsvilleRDNEVienna,Ohio44473Andhereinafterreferredtoasthe'HandlingCompany'AndADI25700ScienceParkDrSuite210Beachwood,OH44122Andhereinafterreferredtoasthe'Carrier'Location.___Y_NG____,IValidFromI5/27/2014IValidtoI12/31/2016IReplacesThisAnnexBispreparedinaccordancewiththesimplifiedprocedurewherebytheCarrierandtheHandlingCompanyagreethatthetermsarenotpartofaMainAgreementorAnnexAoftheSGHAofJanuary,2008aspublishedbytheInternationalAirTransportAssociation.However,termsshallapplyasifsuchtermswererepeatedhereinfull.BysigningthisAnnexBthepartiesconfirmthattheyarefamiliarwithaforementionedMainAgreementandAnnexAtermsandconditions.WinnerAviationhaspreparedthisANNEXBinAccordancewiththeSGHAofMarch12,2013.Section1:Section2:Section3:Section4:Section5:Section6:HandlingFeeAsrequestedby"CarrierandAgreedby"HandlingCompany".SeeAttachmentA.LavServiceAsrequestedby"CarrierandAgreedby"HandlingCompany".SeeHandlingChargesPotableWaterServiceAsrequestedby"CarrierandAgreedby"HandlingCompany".SeeHandlingChargesDeicingServicesSeeHandlingChargesSkyCapAsrequestedby"CarrierandAgreedby"HandlingCompany.SeeHandlingCharges.EquipmentAsrequestedby"CarrierandAgreedby"HandlingCompany.SeeHandlingCharges.HandlingChargesInclusionsChargesSection1HandlingforE-145aircraft$250perturnSection2LavatoryserviceIncludedSection3PotableWaterServiceIncludedSection4De-icing&Anti-icingServices$16.99TypeI$18.99TypeIVSection5SkyCapIncludedinturncostSection6EquipmentProvidedbyWinnerAviationAdditionalChargesPARAGRAPH4SETTLEMENTS4.1IATAStandardGroundHandlingAgreementAHM810January2008,theHandlingCompanyshall:(SettlementofAccountShallbeeffectedinUSDollars)PARAGRAPH6DURATION/TERMINATION6.1ThetermshallcommenceonthecommencementdateofscheduleattachedafterwhichthisAgreementmaybeterminatedorrenewedbyeitherPartyuponaTHIRTY(30)daywrittennotice.PARAGRAPH7LIABILITYANDINDEMNITY7.1TheHandlingCompanyshallindemnifytheCarrieragainstanyphysicallossofordamagetotheCarrier'sAircraftcausedbytheHandlingCompany'snegligentactoromissionPROVIDEDALWAYSTHATtheHandlingCompany'sliabilityshallbelimitedtoanysuchlossofordamagetotheCarrier'sAircraftinanamountnotexceedingthelevelofdeductibleundertheCarriersHullAllRiskPolicywhichshallnot,inanyevent,exceedUSD1,500,000exceptthatlossordamageinrespectofanyincidentbelowUSD3000shallnotbeindemnified.InthecaseofdamagetotheCarrier'saircrafttheHandlerwilltestitsemployeesinvolvedforthepresenceofdrugoralcohol.PARAGRAPH9GENERAL9.1InthecaseofabsenceofinstructionsbytheCarrier,theHandlingCompanyshallfollowitsownstandardpracticesandprocedures.TheCarrierrequiresallpersonnelinvolvedintheserviceofitsaircraftbepartoftheHandler'sorotherdrugtestingprogramasaconditionofemployment.AnytrainingsetforthbytheCarrierwillbecompletedintheallottedtimegiven.PARAGRAPH11CONFIDENTIALITY11.1Eachpartyshallusereasonableprecautionstokeepconfidential(includingensuringthatitsofficers,employees,sub-contractorsandagentskeepconfidential)allinformation(i)whichonepartytohisAgreementmayhave,oracquires,inrelationtothecustomers,business,assetsoraffairsoftheotherparty;or(ii)whichrelatestothecontentsofthisAgreement.Neitherpartywilluseforitsownbusinesspurposesordisclosetoanythirdpartyanysuchconfidentialinformationwithoutthepriorconsentoftheotherparty.Signature___________Signature____________ChadHughesCommercialGroundOperationsManagerChairmanEXHIBITE MARKETING

& ADVERTISING

PLAN -32-EXHIBITEYNG-ADIMarketing&AdvertisingPlanThePrimarythrustoftheMarketing&AdvertisingPlanistoregainlocaltravelersattheYoungstown-WarrenRegionalAirport(YNG).Managementwillusethisframeworktocreateacomprehensivetacticalplantofurtherthecommunity'sDailyAirlineServiceneedswithAerodynamics,Inc.(ADI)atthe"hometown"aircarriertoservetheMahoningValley.TheAirport'scurrentStrategicAirServiceDevelopmentPlanandthe"Airport'sTop20DestinationSurvey"havebeenusedtoimplementthestrategiesandsupportingactionsinthemonthsandyearstocometosolidifytheYoungstown-WarrenRegionalAirportastheRegion'sPrimaryCommercialServiceAirportandADIastheregion'sairserviceprovider.•Regain35%ofthemarkettravelerswhohavebeenrelyingonotherthanYoungstown-WarrenRegionalAirport(YNG)fortravelneedsinoneyear.•PreventairportleakagebyaggressivelypromotingtheAirportasaconvenient,reliable,cost-competitiveregionalalternativetoflyingoutofPittsburgh,ClevelandHopkins,andAkron-CantonAirportasthepreferredandconvenientfacility.•ReverselingeringmisperceptionsaboutYNG'sairserviceandheightenawarenessoftheairportasairserviceopportunitiesgrowattheAirport.•Engagethetravelagenciesaspartnersinmeetingthechallenge.•EncouragecommunityownershipoftheADIairservicesolution.Thisincludesengagingthelocalmediainapartnershipto"getthetalkright"abouttheairportandit'sairservicepartner,ADI,andtoencouragelocalstoavailthemselvesofitsservice.Thisisanurgentmatter,giventhedelicatestatusofstart-upairlineserviceandthenewADIservicetothecommunity'smostdesiresdestinations.•ImplementastrongcorporateairlineuseprogrambyattractingcorporationstochooseADIastheirairlinesandYNGastheircorporateflightfacility.ProgramObjectives1.UtilizecommitteesinthecommunitytoassistineffortstoimplementandsupportADIairlineserviceatYNG.****AirportPromotionalCommitteesandSupportGroups-YNGAirPartnersWesternReservePortAuthorityAviationCommitteeTheYoungstownIWarrenRegionalChamberPublicRelationsCommittees2.UsecommunitysupporttoinformthelocaltravelingpublicofnewADIairserviceavailableattheYoungstown-WarrenRegionalAirport(YNG).*EstablishaFareEqualizationCommitteeusingYSUstudent-internstocompleteamonthlyfareanalysisamongtheairlinesservingYNGandclosecompetitiveairports(PIT,CLE,CAKandERI).EXHIBITE3.HoldreceptionsfortravelagentstoadvisethemofthelatestconditionsandnewADIairlineserviceatYNG.4.Holdbusinessman'sreceptionstorequestandthankthemforsupportfortheAirportandadvisethemofthelatestconditionsandnewserviceobjectivesatYNG.*ArrangebyYoungstownIWarrenRegionalChamber'smembershipsurvey.*PaidbyAirlines,theAirportandtheRegionalChamber5.InitiateanongoingcommunicationwithfrequentflyersviaFlightBulletin,LuggageTagprogramandmailinglist.*FlightBulletinagreementbetweentheYNGAirPartnersSupportGroupasafundraisingproject(fromadvertisementsinFlightBulletin)andYNGAirport.*Luggagetagdisplayinterminalinvitingbusinessmenandwomentodroptheircardinforafreeluggagetag.YNGpersonneltomakeuptagsanddomailings.6.Coordinatewithcommunitymembers,ADIandspecialeventspersonnelregardingadvantagesofYNG.*RadioProgram-26week60secondradiospots,Airlinespecials,mysterypromotionas"In-Kind"Service.*Television-60secondpublicservicespotsalsoas"In-Kind"Service.*OutdoorbulletinboardslocatedthroughoutstrategicpointsintheMahoningValley."Saveyoursanity,savetime,savemoneyatYNG."*Youngstown-WarrenRegionalAirportIAirlinessignsattheEastwoodParkfortheMahoningValleyScrappersandothersimilarevents;*LuggageTaggive-awaysatScrappersgamesandothersimilaractivities;*FamiliarizationtripsfortravelagentsintoYNGwithHotelIMotelAssociations,TourismGroupandAirlines.*FamiliarizationtripsfortravelagentsfromYNGtodestinationpointsservedbyYNGAirlines.*CoordinationwithAdvertisingAgenciesforinclusionofYNGinoutgoingadvertisingfortheMahoningValleyarea.*AviationOpenHouseDayatYNGwithADIaircraftdisplaysduringAviationweekcompletewithjazzbandfestival.*TravelAgentsspecialpromotiontoFlyADIatYNG.*FlightBulletin-10,000monthlytocommunityonADIflightsatYNGintouristandbusinessrelatedlocations.Pre-ADIStart-upobjectives(3monthsout)fromServiceAnnouncementtostart-upTheAirportwilluponannouncementoftheservicelaunchastart-upinitiativetoassistwiththepre-bookingofpassengers.TheinitiativewillconsistofdailymediaspotsbothTVandRadio,outsideadvertisingandFacebook,TwitterandWebsitePromotions.EXHIBITEMULTIMEDIAMARKETING,ADVERTISINGANDPROMOTIONALCAMPAIGNOncetheYoungstown-WarrenRegionalAirportandanetworkcarrierhavefinalizedanagreementforregularlyscheduledcommercialairservice,thesesamepartnerswilllaunchcomprehensivepublicawareness,marketing,andpromotionalcampaignsinsupportofthenewairservice.Thesecampaignswillcompriseoffourcomponents:1.EarnedMediaa.Uponsigningoftheagreement:1.ConductapressconferenceatYNGtoannouncethestart-upofthenewairservice.Attendeeswillinclude:a.YNGandWesternReservePortAuthorityofficialsb.Networkcarrierofficialsc.Stateandlocalpublicofficialsandcommunityleaders2.Issuepressreleasestolocal,state,andnationalmediaannouncingthestart-upofthenewairservice.3.Arrangeone-on-oneinterviewswithlocalmediaforYNG,networkcarrier,andstateandlocalpublicofficials.b.Onfirstdayofairservice:1.ArrangeforlocalmorningnewsshowstobroadcastfromYNG.2.Arrangearemoteradiobroadcast.3.ConductpressconferenceatYNGatthetimeofthefirstflight.4.Arrangeone-on-oneinterviewswithJ'NGofficials,netwm·kairlinerepresentatives,andpassengers.5.Issuepressreleasetolocal,state,andnationalmedia.c.Ongoingearnedmedia:1.Monthlypressreleasesfeaturingnewsabouttheairserviceincludingsuccessoftheflights2.PaidmediadirectedatthegeneraIpublica.TV,radio,andprintadsinmarketswithina45-mileradiusofYNG.Adswillbegintorunapproximatelythreemonthsbeforeinitiationofserviceandwillcontinuefortwelvemonthsafterthefirstflight.1.TVspotswillappearonthefourYoungstown-basednetworkTVoutletsandtheTime-WarnerandComcastcablesystemsthatservethemarketarea.Mostspotswillrunonshowspopularwithbusinesstravelers.2.Radiospotsonstationswithinthemarketareathatreachbusinesstravelers3.PrintadsintheVindicator,WarrenTribuneChronicle,SharonHerald,andYoungstownBusinessJournal.EXHIBITE3.Paidmediaspecificallytargetedtobusinesstravelersa.DirectmailpiecetomembersoftheRegionalChamberandYNGAirPartner(membershiprollscollectivelyexceed2,500).Mailpieceswillbesentthreemonthsbeforeservicebegins,atstart-up,andonemonthafterairserviceisunderway.b.E-mailblaststomembersoftheRegionalChamberandYNGAirPartnertwomonthsandonemonthbeforeairsenicebegins,atstart-up,andmonthlythereafter.4.DigitalMarketing/SocialMediaa.b.c.NoticeofagreementwillbepostedonYNG,RegionalChamber,andYNGAirPartnerswebsitesandFacebookpagesPressconferencesandothereventssurroundingthefirstflightwillbefivestreamedonYNGwebsiteScheduleandrealtimeflightinformationwillbepostedonYNGwebsiteandFacebookpage.Inaddition,theConventionandVisitorsBureausofMahoning,Mercer,andTrumbullCountieswillaugmenttheabovecampaignsbycommunicatingtopotentialvisitorstotheCommunitythatairservicehasreturnedtoYNGandtoconsiderairserviceasatraveloption.Short-termobjectives(3-12months)•AssurethesuccessoftheinitialADIairservicedestinationdirectnon-stopservicetoanywhereintheworldthroughAirport.•Assistintheestablishmentandsustainmentofdailynon-stopADIservicefromYNGtoaconnectinghubairport,suchasChicago,NewYork(Newark,etc.)orDetroitwithADI.ItssuccesscanbetheharbingerfortheYNGairport'sresurgence.•Reduceleakageamongthoseindividualswhohavelongandlingeringmemoriesofpoorpastperformance,causingthemto"swearoff''YNG.•Establishacorporatesalesandmarketingfunction,staffedbysomeonewhosesoleresponsibilityistocallonandrecruitregionalcorporatetravelofficialstoflyADIoutofYNG.Implicitinthisobjectiveisthedesignandimplementationofacorporatetravelprogram,includingincentivesandrewards.Mid-termobjectives(12-24months)•IncreaseawarenessoffundamentalserviceimprovementsattheairportandADIairservicewithinthetraditionalcatchmentarea.•Assurethesuccessofthedailydirectnon-stopADIservicestotheconnectinghubEXHIBITE•Establishandsustainaseconddailynon-stopADIservicefromYNGtoaconnectinghubairport,suchasWashington-Dulles,NewYork,AtlantaorDallasFt.WorthwithanotherNetworkAirline.Long-termobjectives(24-48months)•UseimprovementsinADIservice,customerserviceandfareequitytobeginattractingnewpassengertrafficfromparts60-100milesandgreaterfromtheairport.Note:Thisisverymucha"firstimpression"riskasin"youonlygetonechancetomakeafirstimpression."YNGshouldbeconfidentthattheservicemarketedtothatnewserviceareawouldmeetorsurpasscustomerexpectations.EffectiveUseofCommunityAirportMarketingI.Background•TheAirportlostairlinesin2003andwasnolongerself-supportingafterafouryeardeclineinenplanements;•Severalthingswerethoughttohavecauseddecliningenplanements,includinglossofEASProgramfundinghowever,implementingleisureairlineAllegiantAirin2006re-establishedtheairportasapassengerserviceairport;•Effectiveuseofthecommunity'sinterestintheAllegiantleisureflightstoOrlando,St.PetersburgandFortMeyers,FloridaMyrtleBeachNorthCarolinashowhowadramaticturnaroundoccurredthroughtheeffectiveuseofthecommunity.•EffectivenessofthenewADIdailynon-stopservice.2.MediaSources*TheYoungstownStateUniversityBusinessDepartmentinconjunctionwiththeAirport'sMarketingCoordinatorandAirServiceDevelopmentConsultantconductweeklongsurveysofpassengersatYNG.Theresultsofthesurveysshouldindicatewhatpercentageofourpopulationisdrivingoveranhourtoneighboringairportsduetolowerfaresandmoredirectflights.TheresultsshouldassisttheAirportindetermininghowbettertoserveMahoningValleyresidentsandinitiateataskforcetosuggestwaystosetfaresmoreinlineandacquiremoreservice;*ImplementanAirportIADIPromotionsTaskforceofcommunityleaderstospearheadthedevelopmentofamarketingplanwhichsuggestsapenetrationstrategytogainbackthepercentageofthepopulationdrivingtootherairports.MembersshouldincludetheDirectorofAviation,AirportMarketingCoordinator,PortAuthorityStaff,YNGAirPartners,Visitors&Conventionbureaus,CountyCommissioners,RegionalChamberandPortAuthorityBoardMembers.EXHIBITE*TheRegionalChambershouldfocusonidentifyingbusinesseswhoflyandlearnofpreferreddestinationsaswellasincreasingawareness.TheAirportconductedsurveysin2010and2013thatidentifieddestinationswherebusinessessaytheywanttoflyandwhereMahoningValleybusinessesandresidentsactuallyflyto,atwhatfrequencytheytravel,andtheexpensesincurredasaresultofairtravel.ThisinformationwasacquiredthroughtheAirServiceTravelBankInitiativein2012-13.TheAirportwiththeChamber'sassistancehasusedthisdatatomarkettheAirportAirlinesfortheirimplementationofservicestothesedesireddestinationsfromYNG.TheYoungstownIWarrenRegionalChamberhaspledgedtheirsupporttotheAirportforthedevelopmentofscheduledADIairservicetoconnectingDestinationsintheattachedEndorsement.SummaryADIdailynon-stopserviceattheYoungstown-WarrenRegionalAirportisacomplexchallengeandmustbeaddressedonvariousfrontssimultaneously.Theplanwillnotbequick;butsteady,incrementalgrowthisarealpossibilityifthecommunityacceptsthechallengeofmakingADIatYNGitsfirstchoicewhenfaresandschedulesallow.Thismarketingplanoffersstrategicapproachestomakingthathappen,butitneedstobeflexible,giventhenatureoftheindustry,andtheboardandstaffoftheWesternReservePortAuthorityneedtoremainvigilantandadjusttheplanasmarketforcesdictate.Presently,goodthingsarehappeningwithYNGpassengerservicerecentlywiththesuccessofAllegiantAir,buttheimprovementswillnotbesustainableunlessthecatchmentareaisbroadenedandregionaltravelerscommittoonceagaintravelingoutofYNGonADIonadailyscheduledbasisandreversingatrendtowardusingotherregionalairports.TheywillhavetogiveYNGchancetoproveitself,andtheywillhavetohelpin"gettingthetalkright"aboutthepositivechangesinserviceandreliability.Clearly,onecriticalsuccessfactorwillbetheamountofbusinesstraveltheairportcangenerate.Theincumbentcarrierspullnopunchesinsayingbusinesstravelersmakeservicesustainable.ItisadauntingchallengethatrequiresthesamekindofcommunitycommitmentthatsparkedtheYNGresurgencewithAllegiantAirServicein2006bysuchsupportgroupsastheYNGAirPartners..TosupporttheactivitiesdescribedintheMarketing&AdvertisingPlanandtoestablishYNGasaRegionalPrimaryPassengerServiceAirport,theairportfacilitieswillrequireadditionalimprovements,manyofwhichhavebeencompletedoverthepastthreeyears.ThecombinationofthecompletedandproposedAirportimprovementsandcontinuedAirServiceDevelopmentthroughtheAirportMarketing&AdvertisingPlanwillnodoubtearntheYoungstown-WarrenRegionalAirportthetitle,"theAlternativeRegionalPrimaryCommercialServiceAirport"providingpositiveeconomicspin-offandjobstothesurroundingcommunities.

# A TTACHMENT 2

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# 15985 

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# Middlefield, Ohio 44062

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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•

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# 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 Nationa l Bank



# FARMERS 330.533.334 1

1 .888.988.3276 612 00014 99 PAGE: 1

20 South Broad St. 

# I P .O. Bo x 555 

# I Canfteki, O H 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 

# 2 1

1

.... 

# 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 FD I C 

# 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 Spec i al 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-Trans i t 

# 8,785

. 03 0

. 00 0

. 00 0

. 00 0

. 00 0

. 00 8

. 765

. 03

Less : Outstand i ng Warrants 

# 0

. 00 149,561.04 3

, 559

. 95 0

. 00 0

. 00 0

. 00 153

, 120

. 99

Adjus t ments 

# 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

. 00 968 5 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 entity

# wide 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 1UI

1 

# 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 

# 8 1 023 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 6 

# 1 887 

# 1 877



# 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 activit i es 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 20 1 1

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 

# 5 2%

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 Oh i o 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 pass

# through 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 no 1

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 f or

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

- 12INDUSTRIALAPPRAISALCOMPANY..INSURANCESUMMARYBUILDINGORUNITWesternReservePortAuthority1453YN6·KingsvillaRdViennaOH44473VALUATIONDATE7/01/13BLDG.0101YHG·Ter•inal1453YHG-Kingsvi11eRdCITY:ViennaSTATEsOHZIPCODE:44473COUNTY:Tru•bullOCCUPANCY:COHST.YEARS:1961·1941/1978/2000CONSTRUCTIONCLASS:4SUPERSqft:43,481BASEMENTSqft:6,685STORIES:2BUILDCOND:GoodEMERGENCYGEN:YESBUILDINGARCHITECTFEESTOTALBUILDINGEQUIPMENTOFFICEFURN&FIXTURESOFFICEMACH&DEVICESEDPEQUIPMENTTELEPHONESYSTEMCOHHUHICATIONSEQUIPHETOTALEQUIPMENTTOTAL6/116/116/ll6/116/116/116/llCOSTOFREPRODUCTIONNEWTOTALIEXCLUSIONSIINCLUSIONSCOLUMN1COLUMN2COLUMN39,182,794642.7969,825,590399,22448,37914,70128,28033,6982,843527112510,352,715322,368322,368322,3688,860,426642,7969,503,222399,22448,37914,70128,28033,6982,843527,12510,030,347SOUNDVALUETOTAL1EXCLumoNsCOLUMN4COLUMN56,173,251432,1286,605,379229,15528,7376,04220,33616,6472,203303,1206,908,499210,184210,184210,184PLEASEREADINTRODl..a.'ORYEXPLANATIONPAGE18·356-500INCLUSIONSCOLUMN65,963,067432,1286,395,195229,15528,7376,04220,33616,6472,203303,1206,698,315BUH.DINGORUNITBLDG.0102YHG·Hanoar•1YNG·KingsvilleRdCITY:ViennaSTATE:OHZIPCODE:44473COUNTY:Tru•bullOCCUPANCY:HangarCOHST.YEARS:1941CONSTRUCTIONCLASS:4SUPERSqFt:29,737STORIES:1BUILDCOND:AverageBUILDINGARCHITECTFEESTOTALBUILDINGTOTALBLDG.0103YNG·Hangar•z1453YNG-Kingsvi1lsRdCITY:ViennaSTATE:OHZIPCODE:44473COUNTY:OCCUPANCY:HangarCONST.YEARS:1941CONSTRUCTIONCLASS:4SUPERSqFt:17,740STORIES:1BUILDCOND:GoodBUILDINGARCHITECTFEESTOTALBUILDINGTOTALINDUSTRIALCOMPANY-INSURANCESUMMARYCOSTOFREPRODUCTIONNEWSOUNDVALUETOTALIEXCLUSIONSIINCLUSIONSCOLUMN1ICOLUMN2COLUMN3TOTALIEXCLUSIONSCOLUMN4COLUMN56/112,653,71264,3362,5119,3761,109,25126,1192185,760185,76077.64112,839,47264,3362,775,1361,186,89926,8922.1139,47264,3362,775,1361,186,119926,8926/111,374,17041,7561,332,414643,11219.54296,19296,19245,0181,470,36241,7561,428,606688,13019,5421,470,36241,7561,428,6066118,13019,542PLEASEREADINTRODUCTORYEXPLANATIONPAGE28-356-500INCLUSIONSCOLUMN61,082,35977,6481,160'0071,160,007623,57045,018668,588668,588**~** 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 SUMMARY

COSf OF REPRODUCTION NEW SOUND VALUE

TOTAL J EXCLUSIONS J INCLUSIONS

COLUMN 1 COLUMN 2 COLUMN 3 TOTAL I EXCLUSIONS

COLUMN 4 COLUMN 5

1,108,153 39,027 1,069,126 474,290 16,704

77,571 77,571 33,200

1,185,724 39,027 1.146,697 507,490 16,704

1.185,724 39,027 1,146,697 507,490 16,704

881,989 32,183 ....... I 539' 777 19,696

61,739 61,739 37,784

943,728 32,183 911,545 577,561 19,696

943,728 32,183 911,545 577,561 19,696

PLEASE READ INTRODL_.i.'ORY EXPLANATION PAGE 3 11-356-500 INCLUSIONS

COLUMN 6 457,586

33,200

490,7116

490,786 520,081

37,784

557,865

557,865

# ~ INDUSTRIAL APPRAISA....., COMPANY- INSURANCE SUMMARY

COST OF REPRODUCTION NEW SOUND VALUE

BUILDING

OR UNIT TOTAL 

# I

EXCLUSIONS 

# I

INCLUSIONS

COLUMN l COLUMN 2 COLUMN 3 TOTAL 

# I

EXCLUSIONS

COLUMN 4 COLUMN 5

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 28,763

ARCHITECT FEES 96,288 96,288 58,928

TOTAL

BUILDING 1.471,826 46,998 1,424,828 900,757 28,763

TOTAL

1,471,826 46,998 1,424,828 900,757 28,763

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 29,529

ARCHITECT

FEES 60,084 60,084 51,427

TOTAL

BUILDING 918,425 34,577 883,846 786,096 29,529

PLEASE READ INTRODUCTORY EXPLANATION PAGE 4 8-356-500

INCL U SIONS COLUMN

6 813,066 58,928 871,994 871,994 705,140 51,427 756,567**~** 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 SUMMARY

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 VALUE EXCLUSIONS

COLUMN 5 29,529 2,927 2,927 2,927 PAGE 5 8-356-500 INCLUSIONS

COLUMN 6 7,650

18,832

3,007

56,000

1,779,786

1,865,275

2,621,842 59,735

4,386

64,121 25,470

11,500

36,970

101,091

# ~ INDUSTRIAL 

## APPRAISAL, COMPANY- INSURANCE SUMMARY

COSI' OF REPRODUCTION NEW SOUND VALUE

BUILDING

OR UNIT TOTAL 

# I

EXCLUSIONS 

# I

INCLUSIONS



### COLUMN 1 COLUMN 2 COLUMN 3 TOTAL 

# I

EXCLUSIONS



### COLUMN 4 COLUMN 5

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 1,987

ARCHITECT FEES 14,199 14,899 4.731

TOTAL

IUILDING 227,743 6,241 221.495 72,423 1,917

TOTAL 227,743 6,248 221,495 72,423 1,987

ILDG. 0110 YNG-T•Hangar

T7/T12 

# I I I l

i

1453

YNG·K1ngsv11le Rd

CITY:

Vienna

STATE:

OH

ZIP

CODE1 44473

COUNTY:

Tru•bu11 OCCUPANCY• T•Hanear 

# l ,._r,



# I I I

COHST.YEARSr 1941 CONSTRUCTION

CLASS: 3



# ~ **~** I

SUPER SqFt: 5,188

**~\**

STORIES1 1 IUILD

COND: Poor BUILDING 6/11 

# I 212,844 6,241



# ....... I 61,615 1,917

ARCHITECT FEES 14,899 14,899 4,738

TOTAL BUILDING 227,743 6,248 221,495 72,423 1,987

TOTAL 227,743 6,241 221,495 72,423 1,987

PLEASE READ INTRODUCTORY EXPLANATION PAGE 6 8-356-500 INCLUSIONS 

### COLUMN 6 65,698 4,731 70,436 70,436 65,691

4, 738 70,436 70,436

# ~ INDUSTRIAL APPRAISAL COMPANY- INSURANCE SUMMARY PAGE 1

8 · 356-500

COST OF REPRODUCTION NEW SOUND VALUE

BUR.DING

OR UNIT TOTAL

EXCLUSIONS INCLUSIONS TOTAL EXCLUSIONS INCLUSIONS



## l

COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6



## I

BLDG. 0111 YNG-Old

Electrical

Building

1453 YNG-lingsville Rd

CITY:

Vienna

STATE

1 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 2,U1 36,992

ARCHITECT

FEES 6,632 6,632 2,772 2,772

TOTAL

BUILDING 101,376 6,247 95,129 42,375 2,611 39,764

TOTAL

101,376 6,247 95

, 129 42,375 2,611 39

, 764

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 1,162 14,950

ARCHITECT

FEES 2,691 ' 2,698 1,128 1,128

TOTAL

BUILDING 41,244 1 2,780 38,464 17,240 1

, 162 16,078

TOTAL

41,244 2,780 38,464 17,240 1,162 16,078

l I I PLEASE READ INTROD'L

- . .L 'ORY EXPLANATION

# ~ INDUSTRIAL **APPRAIS~** 

## COMPANY- INSURANCE SUMMARY

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 VALUE

TOTAL 1 EXcLumoNs

COLUMN

4 COLUMN 5

482,236 33,757 515,993 14,364 40,044 2,500 56,908 572,901 152,074 10,645 162,719 162,719 9,092 9,092 9,092

I ,369 1,369 1,369

PLEASE READ INTRODUCTORY EXPLANATION PAGE 8 8-356•500 INCLUmONS COLUMN 6 473,144 33,757 506,901 14,$64 40,044 2,500 56,908 563,809 150,705 10,645 161,350 161,350

# ~ INDUSTRIAL APPRAISAL COMPANY

- INSURANCE SUMMARY

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 VALUE

TOTAL



# I

EXCLUSIONS



### COLUMN 4 COLUMN 5

12,317 12,317 12,317 2,010,970 2,010,970 2,010,970 1,266 1,266 1;266

PLEASE READ **INTROD~..** _

.. 'ORY EXPLANATION PAGE 9 8·356-500 INCLUSIONS 

### COLUMN 6 11,051 11,051 11,051 2,010,970 2,010,970 2,010,970

# ~ INDUSTRIAL APPRAISAL

· COMPANY- 

## INSURANCE SUMMARY

COST OF REPRODUCTION NEW SOUND VALUE

BUILDING

OR UNIT TOTAL 

# I EXCLUSIONS 

# I INCLUSIONS



### COLUMN 1 COLUMN 2 COLUMN 3 TOTAL 1 EXCLumoNs



### COLUMN 4 COLUMN 5

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

I

TOTAL BUILDING 3,121,336 3,121,336 2,781,110

PLEASE READ INTRODUCTORY EXPLANATION PAGE 10 8·356-500 INCLUSIONS 

### COLUMN 6 2,010,970 2,010,970 2,010,970 1,465,304 1,465,30<4 1,465,304

2, 781,110 2,781,110

# ~ INDUSTRIAL APPRAISAL COMPANY- 

# INSURANCE SUMMARY

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 VALUE

TOTAL



# I

EXCLUSIONS

COLUMN

4 COLUMN 5

9,132 114,999 40,786 1,500 166,417 2,947,527 15,662,967 373,711

798,297 16,461,264 373.711

6,450,630 6,450,630 22,911,194 373,711



# PLEASE READ INTROD'L

.... 'ORY 

# EXPLANATION PAGE 11 8·356-500 

# INCLUSIONS 

# COLUMN 6 9,132 114,999 40,786 1,500 166,417 2,947,527 15,289,256 798,297 16,087,553 6,450,630 6,450,630 22,538,183

# 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

. 7 7 0 CoPYiiRhl1975 lndvslriol Aoorcisa l 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