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## Legal Sponsor: Niagara County Department of Economic Development

DUNS Number:

0675238860000

EIN#:

16

- 6002564

Congressional District Code:

26

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Niagara County Department of Economic Development Page 2 Table of Contents

Executive Summary 3

Niagara Falls International Airport Project Proposal

A. Description of the Community’s Existing Air Service 5

B. Synopsis of the Community’s Historical Service 9

C. Community’s Air Service Development Efforts Over the Past Five Years 10

D. Description of the Community’s Air Service Needs and Deficiencies 13

E. Strategic Plan for Meet ing Needs Under the Small Community Air Program 15

F. Description of Public/Private Entity 18

G. Description of Funding Necessary for Im plementation of the Project 20

H. How Community will Ensure its Own Funding Con tributions Spent per Proposal 22

I. How Community will Monitor Pro gress of the Grant Project 23

J. Community Plans to Continue Project if not Self

- s ustaining After Grant Expires 24

K. Legal Sponsor Responsibility for Administering the Program 25

L. Conclusion 26

Exhibits

Summary In formation

Appendix C (Summary Information)

Appendix D (Application Checklist)

Letters of SupportProposal For the Small Community

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## Executive Summary

The City of Niagara Falls

, New York, located on the eastern banks of the Niagara River on the Niagara escarpment, is one of the State's first and best

- known destinations. Almost 22 million come to the Niagara Region every year to get the best, up

- close experience of the Falls in the historic Niagara Reservation Park (now Niagara Falls State Park). The Niagara Falls International Airport (NFIA) ( IATA : IAG

– ICAO : KIAG

– FAA LID : IAG ) is a joint civil

- military public

- use airport located four miles east of the central business district of Niagara Falls, in Niagara County, New York. Owned and operated by the Niagara Frontier Transportation Authority (NFTA) , the airport shares its runway s with the Niagara Falls Air Reserve Station

.

The N FIA is within one day's driving distance of major eastern and Midwestern United States and southern Canada markets. The aggregate population of this market area exceeds 100
million.

From 1980 to 1984, co mmercial airline service was available at the NFIA via Air Niagara, a post

d eregulation airline with service to Newark Airport. Empire Airlines also served the airport at one time, with service to Syracuse. Kiwi International briefly served the airport i n 1998. In March 2007, Direct Air began direct non

- stop airline service to Myrtle Beach. In September

2009

, Niagara Frontier Transportation Authority completed construction of a new NFIA terminal complex to better service existing air service and is inte nded as an incentive to return
scheduled regional, domestic, and international passenger service to the airport. In October 2010, Spirit Airlines announced service to Fort Lauderdale and Myrtle Beach. In November 2010, Vision Airlines announced service t o Destin/Fort Walton Beach, FL and Miami, FL (MIA).

Today, The NFIA Stakeholder s Group ( Stakeholder Group ) consists of members from the public and private sectors located in both Erie and Niagara Count ies , New York. The Stakeholders are lead by the Niagara County Department of Economic Development (NCDED). Realizing the need for a more unified partnership to accomplish the goals of growing the airport through community involvement, the Stakeholder s Group will furth er support the air service development efforts of the Niagara Frontier Transportation Authority (NFTA) and their promotion of the NFIA. Th is Stakeholder Group operates independently from the NFTA and its incentive program

. The NCDED will serve as the legal sponsor for this US Department of Transportation ( US DOT)

– Small Community Air Service Development Program Grant (SCASDP)

. The Project Director will be responsible for the strategic planning, implementation of program management, i nvoicing and reporting to the community on behalf the use of federal and non

federal funds applied towards the project.

The objective of the S takeholder s Group is to support the NFTA and their efforts to increase air service development that encompasses a variety of activities with the ultimate goal ofProposal For the Small Community

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Niagara County Department of Economic Development Page 4 r etaining/attracting existing air service s or improving air access and capacity in order to develop the economy of the community and region.

The S takeholder s Group is seeking a grant from the US DOT for $ 275 ,000 to be used for two

purposes:

1. Broaden the community’s awareness of the economic and social benefits of the NFIA and

m arketing the NFIA to potential air carrier services

2. Augment costs in support of the NFTA’s financial incentives for air carrier service s as revenue guarantees

. T he community and Stakeholder G roup will continue to support marketing incentives provided by the NFTA

The NCDED understands the payment reimbursement guidelines of this SCASDP Grant.

The NCDED and S takeholder s Group be lieve that additional air service will benefit leisure travelers, the regional business community and residents of the region throughout the entire year. Additional flight services with non

- stop destinations domestic and international destinations will pr ovide additional travel options to millions of residents that reside within a short drive of the NFIA and entire Northeast Region of the United States . These additional air services will promote this regions industry of tourism during the peak and off

- pea k seasons. The new potential services and expansion of NFIA existing carriers will further increase the visitation to the Niagara Region that will promote and benefit the business community that depends greatly on tourism for its business.Proposal For the Small Community

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## A

. 

## Descripti on of the Community’s Existing Air Service

Commercial Airlines NFIA currently has three airlines in operations, Direct Air and Tours, Spirit Airlines and Vision Airlines ( Vision Airlines to resume operations in 11/2011). In March 2007, Direct Air began airline service to Myrtle Beach. In September 2009, a new state

- of

- the

- art, 69,430 sqft terminal complex was completed to better service existing air service s and is intended to be an incentive to return scheduled regional

, domestic and international pass enger service to the airport. In October 2010, Spirit Airlines announced service to Fort Lauderdale and Myrtle Beach. In November 2010, Vision Airlines announced service to Destin/Fort Walton Beach, FL and Miami, FL (MIA).

Terminal
The NFIA is located within a region composed of eight counties in Western New York State on the boarder of the Niagara Peninsula of Ontario, Canada. The region is served by four international bridges connecting the U.S. and Canada and two train crossings. NFIA i s centrally located for distribution to/from major population centers throughout this region.

The NFIA terminal building contains facilities to handle domestic and international scheduled
air carrier and cha rt er flights. The 69,430 square foot terminal c ontains:

 Passenger loading bridge designed to handle a Boeing 747

 Ability to turn a B

- 747 International Flight in 90 minutes

 Eight check

- in counters, plus electronic check

- in positions and curbside check

- in
facilities

 Security lan es with fully functional TSA facilities

 Expedited processing for both international and domestic flights

 State

- of

- the

- art Customs & Immigration facilities

 Over 1 500 parking spots (with additional land for expansion)

 Free Wi

- Fi

Hangars

NFIA encompasses jus t west of the terminal building a general aviation itinerant apron, Fixed Based Operator building and hangar, airport administration building and service vehicle garage. The second general aviation is located west of the main terminal. This area contains hangars and tie downs for based aircraft and aviation organizations. Presently, there are eight conventional hangers, 14 “nested” T

- hangers, 60 tie downs and 17 conventional hangar buildings of various sizes on site. All aircraft hangars in this area ar e privately owned and constructed over paved apron area. Above ground storage holds 30,000 gallon jet fuel capacity (currently being extended to 48,000 gallons) and 10,000 AVGAS, as well as storage for diesel fuel and gasoline for airport ground vehicles.Proposal For the Small Community

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Niagara County Department of Economic Development Page 6 Runway NFIA airfield system consists of three runways, 10L/28R (9,829 long by 150 ft wide), 06/24 (and 10R/28L, and 13 associated taxiways. The maximum take off distance for 10L/28R is 10,829 ft.

Parking
Park ing on site at the NFIA is easily accessi ble and a short convenient walking distance to the terminal. Parking rates are $5 per day with a maximum weekly rate of $25

. There are designated parking spaces that allow for up to two hours of free parking accommodating "meet and greet" patrons.

The N iagara Region includes the major metropolitan areas of New York and Central OntarioProposal For the Small Community

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## NFIA Provides A irlines with an Unconstrained and U ncongested

O perating E nvironment :

• Full capability runways

• 9,825 foot main (10L

– 28R) (10,895 foot takeoff length)

• 5,188 foot crosswind (6

– 24)

• 3,973 foot general aviation parallel (10R

– 28L)

• ATC Tower (0700

– 2300)(BUF tower controls other times)

• Cleveland ATC is uncongested (not New York City or Toronto ATC)

• No noise restrictions or curfews

• Ample aircraft parking, loading and unloading areas

• Full service 24

- hour FBO

• U.S. Customs 24

- hour service (on call from U.S.

– Canada border three miles away)

• Warehouse facilities on site

• Foreign Trade Zone #34 (183 acres adjacent to IAG, with two 50,000 sq. ft. buildings)

The N FIA is positioned to replicate the larger airport service experience by penetrating the Niagara Region market with long haul

– leisure services.Proposal For the Small Community

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## Airline landing fees at NFIA (I AG ) are 7% of those charged at YYZ

Airport Rate per

000 lbs. MTOW B 737

- 800 B 767

- 300ER A330

- 200

155,500 MTOW 380,000 MTOW 513,700 MTOW

IAG $ .90 $ 140 $ 342 $462

JFK $ 6.25 $ 972 $ 2,375 $ 3,211

YYZ $ 12.33 $ 1,917 $ 4,685 $ 6,334

Source: Niagara Frontier Transportation Authority, Port Authority of New York and New Jersey, Greater Toronto Airport Authority; MTOW = Maximum Take Off Weight; Amounts in US$ (August 2010 rates )



## NFIA ( IAG ) charges and fees are simple, limited and very low

Fee/Charge NFIA (IGA)

Landing Fee $.90 per 000 lbs MGLW

Passenger Screening Fee $ .75 per pax $ 75 per flight minimum

Terminal Rent (Optional) $ 10 per sq ftProposal For the Small Community

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## B. NFIA Historical Services

Aviation in Niagara Falls has a proud history, dating to 1928 and the establishment of the city

owned Niagara Falls International Airport. Those four crushed stone run ways, paved a place for the airport. The first terminal opened in 1935. Bell Aerospace set up operations adjacent to the runway , where they would develop the world’s first commercial helicopter and first supersonic plane.

World War II moved the airport into an active military phase, which continues today. The United States Army Air Forces established a base in the Falls, operating the facility throughout
the war. The military added and extended runways, constructed a control tower, added high intensity lights, and an instrument landing system. The base was eventually converted to an Air

Re serve Base and became the upstate home of the New York Air National Guard. With the establishment of the U.S. Air Force in 1947, a U.S. Air Force Reserve Unit took up residence. In 1959, the main runway was extended to over 9,000 feet in order to accommo date the new, more demanding military aircraft.

In 1965 U.S. Customs approved the Niagara Falls Airport for international flights. In 1970 the City of Niagara Falls sold the airport to its current owner, the Niagara Frontier Transportation Authority. In 2003, the NFTA lengthen the runway again, to 2,994 meters (9,825 feet, with a maximum take off distance available of 10,825 feet), making it one of the longest in New York State and enabling the NFIA to accommodate the largest aircraft in the air today. It serves as a
occasional stop off carriers flying the Antonov An

- 124, one of the world’s largest planes.Proposal For the Small Community

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## C. Community’s Air Service Development Efforts Over the Past Five

Years

The NFTA has significantly increased its efforts to promote and market th e NFIA over the last several years. The goal of the S takeholder s Group is to develop means and resources that will

assist the NFTA in the marketing of the new NFIA terminal and all of its amenities to prospective airlines, educate the local community of t he NFIA’s significance to the region and promote the available properties adjacent to the terminal for potential developers. The NFIA is owned and operated by the NFTA; the public authority responsible for the public transportation oversight of Erie and Niagara counties in the State of New York. The NFTA oversees a number
of subsidiaries that include the NFIA.

The state

- of

- the

- art $31.5 million terminal at the NFIA opened for business in December 2009. The new terminal was a major component of an overall $42.5 million airport improvement project. For the past few decades, the NFIA had been hindered by a lack of passenger boarding bridges and adequate terminal facilities. The 69, 430 sq ft facility is three times the size of the former terminal, with a second story that includes two large gates with passenger boarding bridges. The two gates on the ground level are designed for ground loading operations.

With the new term inal, the NFTA is in a better position to attract additional air service, both scheduled and charter. In the first 12 months since the new terminal opened, the airport experienced an expanded flight schedule on Direct Air, which has been flying from NFIA since 2007. Additionally, two new airlines started service at NFIA; Spirit Airlines and Vision Airlines commenced flights from the airport in winter 201 0 . NFIA has both seasonal and year

- round flights to several key leisure destinations, including Myrtle Beach, South Carolina, and Punta Gorda, Fort Lauderdale, West Palm Beach, Melbourne, Destin, and Lakeland, Florida. The estimated economic impact of the air service at NFIA in 2010 was $20

- $30 million. Construction impact of the new terminal project ex ceeded $90 million.

NFIA is undergoing major infrastructure improvements, helping it move into areas other than its traditional role in the past as an airport used primarily as a general aviation airport. NFIA is
also home to a United States Air Force in stallation. The improvements are a joint effort between the Air Force, the Federal Aviation Administration (FAA), the New York State Department of Transportation (NYSDOT), and the NFTA. In the past decade, the length of the airp ort’s main runway (28R/10L ) was extended to more than 10,000 feet, which can accommodate any size military or commercial aircraft. In summer 2011, the airport’s largest secondary runway (6/24) will undergo significant improvements related to the runway’s Safety

Area. In summer 20 12, the airport’s main runway (28R/10L) is slated to receive a new mill and overlay.Proposal For the Small Community

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Niagara County Department of Economic Development Page 11 The NCDED has spearheaded efforts with the assistance from local public and private
stakeholders to help the NFTA’s promot ion of the new state

- of

- the

- art passenger t erminal. Local stakeholders associated with this NFIA marketing initiative include :

Niagara Frontier Transportation Authority (Advisory Role Only) Niagara County City of Niagara Falls Niagara USA Chamber Niagara County Industrial Development Agency

 Niagara Tourism and Convention Corporation

 Hotel/Motel Association

 Seneca Niagara Casino & Hotel

 Fashion Outlets

– Niagara USA and representatives from the Small Business community

 New York State Senate and Assembly

 Niagara Falls Bridge Commission

 Empire S tate Development Corporation

 Buffalo Niagara Enterprise

The mission statement of the NFIA Stakeholder Group is:

To unite stakeholders from the business, government, hospitality, tourism and other interested parties to explore, devise and develop proces ses and procedures that will support and advance the development of air services at the Niagara Falls International Airport.

In addition to securing funding for the promotion of the commercial traffic at the NFIA, during
the construction of the main termi nal

, the NCDED secured funding, through the local New York State Legislative delegation, for adjacent landscape improvement and security upgrades to the terminal. Funding was secured through the state delegation for improvements to the existing air cargo ramp infrastructure by adding a surface consistent with the industry norm for air cargo operations at United States airports, which will enable cargo aircraft at NFIA to land and taxi to cargo warehouse areas for loading and unloading.

Representatives f rom the Niagara Tourism and Convention Corporation (NTCC) , Niagara County’s official Tourism Promotion Agency as designated by I Love New York, have conducted
research in collaboration with the NFTA and Niagara University, to provide accurate and
methodica l information needed when marketing the NFIA to potential airlines.Proposal For the Small Community

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Niagara County Department of Economic Development Page 12 Currently the S takeholder s Group are working to create a 501

- c

- 3 not

- for

- profit that will
advance the marketing initiatives of the community . This Stakeholder Group will further work

t o provide assistance to the NFTA’s marketing initiatives that include:

 Identify and solicit funding for ongoing marketing & revenue guarantee initiatives

 Provide supplemental community incentives and financial resources to airlines in order to mitigate air carrier costs

 Provide incentives and help to offset the costs associated with recruitment of additional full service fixed based operatorsProposal For the Small Community

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## D. Community’s A ir S ervice N eeds and D eficiencies

The NFIA is located in one of the largest tourist destinations in the world. More than te n million people reside within a 125

- mile radius of the NFIA. The community marketing and awareness goals of the NFIA will target this large market. The Niagara Region is a growing
market of million s of US and Cana dian consumers . US

- based air services effectively penetrate
the Canada market

.

The Stakeholders have worked to gain a share of the airline market and believe that their community is at a disadvantage given that the Buffalo International Airport and other larger international airports such as Toronto Pearson Airport (Canada) are within proximity to the

NFIA. T he NFIA has added more direct flights that include international destinations and contingent upon additional funding will continue to promote and me et with air carriers who are seriously considering operations at the NFIA. The NFIA ’s major deficienc ies are the need for
additional community marketing dollars and funds to provide to potential air carriers to mitigate operating costs for air service ope rations. The community is aware that i ncoming carriers require that their operation costs be most cost effective when taking a chance in a new destination airport market.

The NFTA operates both the NFIA and the Buffalo Niagara International Airport. The Stakeholder strongly believes that more resources in the form of grant funding and community donations (including in

- kind) need to be dedicated towards the marketing and revenue guarantees of the NFIA. The Stakeholders have formed a solid group of co mmunity partners willing to assist the NFTA and provide community based incentives that include in

- kind
contributions and cash incentives in order to demonstrate the community’s dedication and importance of attracting new air carriers to the Niagara Falls Community and Western New York Region. Provided, the increased amounts of inbound traffic from Southern Ontario, Canada, additional services are n eed ed to support the airport ’s growth.

Niagara Falls is one of the world’s most visited destinations. Millions of people visit Niagara Falls each year from all around the world. There is a great need for additional air service to provide direct flights to destinations domestic and internation ally . Additional funding is needed to support destination and marketing initiatives of the NFTA . The local stakeholders are poised to help grow the market and provide services to both airlines and tourists who visit the Niagara Falls Region.

Provided the level of activities for business and leisure travelers, the Stakeholder Group
believes the NFIA is an underserved airport community that has all the potential to become a world class destination with unique opportunities

. The Niagara Region attracts m ore than 22 million visitors annually from throughout the world . This region encompasses North America’s
second Largest Wine Region

, World Renowned & Historic Architecture

, Spectacular Nature

Activities

, A National Center for the Performing Arts (Broadway musicals, thea tre, andProposal For the Small Community

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Niagara County Department of Economic Development Page 14 Philharmonic Orchestra, World Class Golf

, Las Vegas Style Gaming and Entertainment and established world prominent higher educational and medical institutions.

A grant from the U SDOT

- SCASDP will help provide additional resources to support the NFTA’s overall marketing/promotion strategy that includes further promotion of the NFIA throughout the region’s business community which will further create awareness of the NFIA and will dr ive business opportunity and increase passengers/visitors to the region. The Stakeholder Group needs to secure large amounts of funding in order to provide financial cash incentives in the form of revenue guarantees to incoming air carriers

. In addition to the NFTA’s Incentive Program which has been created to promote public and industry awareness of NFIA and its facilities, the USDOT

- SCASDP grant will provide the means necessary to increase air travel via marketing and in a supporting role help i ncent potential air carriers to the NFIA

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## E. Plan for Meeting Needs Under the Small Community A ir Program

Specific Project Goals The overall objective of the Sta keholder Group is to support the NFTA’s goals of increas ing air service development that encompasses a variety of activities with the ultimate goal of retaining/attracting existing air service or improving air access and capacity in order to develop the economy of the community and region. The Stakeholder G roup understands most airlines looking to invest within an airport and its surrounding community will now expect most communities to provide some type of incentives to help facilitate and offset thei r air service operations. The S takeholders understand that wh en a commercial airline commits its services to a market this represents a large risk of financial asset s. The overall objective of the
Stakeholder Group provide additional resources in support of the NFTA’s ongoing marketing
initiatives of the NFIA to a t tract additional airline carrier s through offering incentives to provide financial risk mitigation and via marketing enterprises that increas e s community and business

awareness by fostering direct community engagement that support s air service development marketing efforts. The NFIA Stakeholder Committee and the anticipated 501

- c

- 3 will use several different performance measures to gauge the success of their objectives.

Marketing the NFIA is vital to the expansion of this community and region of the c ountry. The group realizes the potential for the NFIA and provided the regions tourism market, the airport is a valuable community resource and economic driver for the community . The Stakeholders will utilize their resources via the community marketing s ervices of the local NTCC and the Aviation

B usiness Development Department of the NFTA. The Stakeholders group will continue the
successes of the current marketing plan that identifies and lists specific strategies that include
but not limited to brochures, tours, print advertising, international marketing events, FAM Tours, press events, open houses, press releases, direct mailings and website development & updates. The Stakeholders will continue to capitalize on the community characte ristics, community resources and geographic location to the North Eastern United States and Canada.

One of the A irport ’ s greatest marketing assets is the low airport cost available to carriers, low taxes and fees on travel and free parking for passen gers. Considering all the factors associated with the marketing plan, the Stakeholders will use funds to further leverage air service development services to the airport in addition to collaborating with the NFTA’s air service development incentives avail able to potential air carriers but that are limited to specific services and uses based on operations. The Stakeholders are working with all community members to prioritize the marketing criteria working to determine what marketing strategies
are successf ul and most beneficial to attracting additional air services.Proposal For the Small Community

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### Measuring Goals The Stakeholders plan for measuring the effectiveness of the marketing plan will include the overall evaluation of how effective the marketing strategies are towards mee ting the overall marketing objectives. Through the help of the NFTA

, NTCC and other tourism based entities

, using existing data research methods and statistical analyses a nd constant monitoring of passengers and surveys feedback will be reviewed to determine the effectiveness of the direct marketing strategies. Following the local and regional media stories as it relates to the success of the airport’s ongoing efforts, the Stakeholders will monitor general trade publications, general news storie s, and the additional media coverage of the airport.

Other major measurements of attaining our goals will be the financial and statistical feedback from the airport management as it relates to their operations and revenues. The greatest performance me asures provided with airport expansion are the new flights to existing
destinations . The number of enplanements, expansion of operations and/ or new destinations
from existing operating carriers

. The Stakeholders will also measure its success by the numbe r of increased flights by new and existing carriers, carriers willingness to expand trial runs and

increase number of international flights. Another major indicator used to measure the success of the Stakeholder’s marketing agenda will be the overall cont entment of the community participation and sense of entitlement of the airport.

Revenue guarantees are another major incentive that the Stakeholder group intends to provide to potential air services. These forms of incentives will consist of both cash and in

- kind from

S takeholders and the local business community. Th e Stakeholder Group intends to establish a 501

- c

- 3 organization; this entity will be charged with generating revenue and in

- kind contributions from corporations, tourism organizations and g overnment entities at different levels. The NFTA currently provides incentives to new entrant air carriers and destination based incentives including airport fee waivers, and cooperative marketing funds.

A great deal of in

- kind contributions have and w ill be provided for the Stakeholders mission. The group has relied on in

- house staff and local professional organizations to facilitate existing funding towards marketing and studying the needs to grow financially to secure additional funding for revenue guarantees.



### D etermined to be Efficient

The NFTA an d the community are aware of the risk mitigating factors associated with attracting
additional services to the NFIA. The NCDED and Stakeholders will continue to work with the professional tourism, marketing and transportations services to promote and leverage additional air carrier services for air service development at the NFIA that benefits not only air passengers but the business community and entire region.Proposal For the Small Community

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### Timeline Activity

January 2010

– J une 2011: NFIA Stakeholders Committee meets regularly t o develop community support for overall airport marketing goals

August 2011: Apply for USDOT Federal Funding

September 2011: 501

- C

- 3 to be established to help secure additional funding sources for the Stakeholder Group

. Stakeholders w ill identify community

- marketing initiatives and support the NTCC and the NFTA’s ongoing marketing agenda for the NFIA

.

January 2012: Receive SCASDP Funding

– continue support for the NFTA marketing agenda and increase Stakeholders community support through community awareness and marketing

February 2012

– December 2012: Continue to support the NTCC and the NFTA’s promotion of NFIA through community marketing initiatives and p rovide additional funding tools for the NFTA to assist in securing additional air

carrier services

.

January 2013

– March 2013: Legal Sponsor submits invoices to USDOT for SCASDP Grant.

April 2013: Project Close OutProposal For the Small Community

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## F. De scription of Public/Private Entity

The Stakeholder G roup will support the NFTA ’s mission to successfully market the airport throughout the region and to air carrier services. T he Stakeholders have declared its full support for a public/private partnership to help support the NFTA’s endeavors.

The Stakeholder s consists of members from the public and private community located in Niagara and Erie County, New York. Realizing the need for a more un ified partnership to accomplish the goals of growing the airport through greater community involv ement and
entitlement , the Stakeholder s are currently work ing with legal counsel to create a 501

- c

- 3, not

for

- profit entity that will be charged with identifyi ng and establishing funding sources for the required services required for the NFIA marketing project.

This entity will be created to leverage charitable donations, corporate and government funding
to advance the mission statement of the Stakeholder s

. The anticipated 501

- c

- 3 entity will have a Board of Directors consisting of elected and appointed government officials, lodging, tourism operators, marketing officials, transportation authorities (government), transportation operators (private businesses), economic development agencies, non

- profits. The efforts to
create this 501

- c

- 3 organization are headed by the Niagara County Center for Economic Development.

This anticipated entity will be formed October 2011.Proposal For the Small Community

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## How P artnerships W ill Actively P artic ipate in the NFIA Project:

Public Partnerships Niagara Frontier Transportation Authority (Advisory Role Only) Owner/Operator of NFIA and Buffalo/Niagara

I nternational A irport and additional transportation services regionally , provides marketing for NFIA NY State Senate & Assembly Provide potential funding opportunities, gather community & political support Niagara County Center for Economic Development Legal sponsor of the SCASDP Grant, facilitate monthly NFIA Stakeholder Marketing Committee meetings, provide funding opportunities Empire State Development Corporation Assist with identifying potential funding opportunities, help utilize economic developm ent resources City of Niagara Falls Provided anticipated funding for project, provides resources for marketing objectives Niagara County Industrial Development Agency Provide potential funding resources tax incentives for potential airport businesses

Private Partnerships Niagara USA Chamber Provide community outreach, marketing resources and networking Niagara Tourism and Convention Corporation Official marketing entity for Niagara Falls/Niagara County, NY

– provide in

- kind marketing services and assist the NFTA with overall marketing agenda of the NFIA Buffalo Niagara Enterprise Provide in

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## G. Funding Neces sary for Implementation of the Project

Federal Funding Required The NCDED as the legal sponsor is asking for a one

- time grant of $500,000 to be spent over a

two

- year period, from 2011

- 2012. The funds will be supplement the NFTA’s program goals
that concentrate on the marketing and revenue guarantees portion of the NFIA Project as
follows:

USDOT

– SCASDP Grant Fund Uses 2011 2012/2013

Marketing $75,000 $75,000

Minimum Revenue Guarantees $175,000 $175,000

Total Contribution from Federal Grant $250,000 $250,000

* Depending on the project’s current status and unforeseen circumstances, if the allocated portion of funds towards either marketing or revenue guarantee is less then estimated, the
NCDED would request to shift the unused funds to the portion of the project in need. Flexibility in shifting funds between the two initiatives will help further allow for the group’s overall success of the project.



## Project’s Funding Sources and Uses

Project Funding Sources Amount

NY State Senate & Assembly Grant $ 150 ,000

City of Niagara Falls Grant $ 50,000

USDOT

– SCASDP Grant $ 500 ,000

Stakeholder In

- Kind Contributions $ 1 50,000

Project Funding Sources Total $ 85 0,000Proposal For the Small Community

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Niagara County Department of Economic Development Page 21 State Funding The NY State Senate and Assembly have secured funding to enhance the marketing opportunities of the NFIA. The NCDED continues to seek additional funding from the NY State Legislature Funds disbursed to date have been reimbursable funds

. Th is funding h as required a final report and detailed description of how the funds are spent and accounted.

Local Funding The City of Niagara Falls has dedicated $50,000 towards the NFTA’s marketing agenda.

In

- Kind Contributions from Community All public & private c ompanies and entities listed will participate heavily in supporting the
NFTA’s marketing the airport to secure additional carriers and entice existing airlines to expand their inbound/outbound destinations. In addition to the Stakeholders providing in

- kin d contributions, members of the business community and greater region will put forth an advanced collaborative effort to provide additional in

- kind resources to meet any new air carriers need to operate at the NFIA.

Leverag ing Additional Funding
The S takeholder group is currently working with public and private entities to secure additional funding that will go towards the overall mission of supporting the existing NFTA’s marketing agenda. The group anticipates that upon award of the USDOT’s Federal F unding, additional community members will contribute to the ongoing NFIA marketing project

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## H. How Community will Ensure its Own Funding Contributions Spent per Proposal

The Program Director (staff from NCDED) will have responsibility for financial oversight and management of funding contributions and will also be responsible for reporting and invoicing to the US DOT

- SCASDP as required. This includes preparing quarterly reports that address financial data, and n oting detailed program achievements. As noted earlier, the NCDED will continue to administer the funding on behalf of the Stakeholders and until the 501

- C

- 3; not

- for

- profit has
been established.

The Program Director will submit the quarterly status r eports to US DOT. The NCDED will review the reports and financial statements to ensure all funding contribution is spent as proposed.

The NFIA Stakeholder Executive Committee and proposed 501

- c

- 3 entity will ensure that all existing funds and future funding from both public and private entities are spent accordingly and efficiently. Currently

, the Stakeholder s meet regularly to discuss ongoing operations and

initiatives and determine their best use of existing funds and in

- kind contributions

.

Marketing Use of Funding Contributions The Stakeholders, local business community and marketing professionals will provide marketing

resources a s needed based upon the project’s timeline and funding. The Stakeholders will support and provide resources in support of the NFTA’s marketing agenda. A ny contractual agreements entered into will be provided to the USDOT along with quarterly reports as to how the funds are being utilized for all intended marketing purposes. The NCDED will share all reports with the community, Stakeholder s and marketing tourism groups to evaluate the results of the program.

Accountability

M embers of the Stakeholder group will participate heavily in sales and marketing efforts for marketing promotions and enticement of the community . The NCDED, NTCC and
Stakeholder s will oversee the community marketing plans to ensure funds are spent as
intended. The Program Director will invoice USDOT for its pro

- rata share eligibility percent of the incurred marketing expense under the USDOT

- SCASDP grant.Proposal For the Small Community

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## I. How Community will Monitor Progress of the Grant Project

The NFIA’s important element for success is the continued marketing endeavors and securing
additional funding resources for air carrier services in order to provide minimum revenue guarantee packages. The community will monitor and account for the success and use of funds by referencing the Stakeholders proposed timeline over the next three years.

The Program Director will have responsibility for the overall project plan and ensuring timelines are on pace and accomplished. The NCDED, NTCC will have responsibility for the marketing activities and coordinating with community businesses; the NFTA has the responsibility for coordinating activities with respect to the airport setting up the appropriate meetings with potential airlines and air carrier services

.

The additio n of air carrier services such as non

- stop flights by new or existing carriers,
additional domestic and international routes added

, increased revenues and financial contributions and/or incentives to further the NTFA marketing project will be a critical ga uge to
monitor the success of the project.

Critical Milestones to During the Life of the Grant:

1. Receive USDOT

- SCASDP Grant funding

– secure additional State/Local/Private Business Funding Sources

2. 4/2012

- Quarterly financial statements and updates from Program Director

3. 8/2012

- Quarterly financial statements and updates from Program Director

4. 12/2012

- Quarterly financial statements and updates from the Program Director

5. Public Presentation and Community Stakeholder Meeting to Provide NFIA Success es

6. Inventory of Project Sources and Uses

7. Final report to USDOT

- SCASDP

8. Submit for USDOT

- SCASDP Grant Reimbursement

In the unlikely event a milestone is missed, the NCDED or Stakeholders will determine how to modify according to projects status and circumstant ial project needs. Any deviation from the projected timeline or critical milestones will be addressed and the USDOT

- SCASDP will be
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## J. Community Plans to Continue Project if not Self

- sustaining After Grant Expires

Prior to any notice of federal funding opportunities, it was the committed efforts by the NFTA to market and promote the airport to existing airlines and travelers. The Stakeholder Group will continue to rely on in

- kind contributions along with funding award s to further sup port the NFTA’s promotion of the NFIA

.

In addition, the Stakeholder group will continue to augment the NFTA efforts to market and seek additional ways of mitigating air carriers’ costs. A dditional public and private funding will be sought to further su pport the mission of incentivizing air service development at the NFIA.Proposal For the Small Community

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## K. Legal Sponsor Responsibility for Administering the Program

Niagara County Department of Economic Development The mission of the Niagara County Department of Economic Development is to: Provide high quality professional planning services to the municipalities, citizens and organizations of Niagara County; promote orderly growth and development through the dissemin ation of information, preparation of plans, projects and programs and provision of technical services.

The Department also promotes sustainable economic development in harmony with the natural environment, creating and retaining jobs, expanding the tax ba se, and improving the quality of life for Niagara County residents under the direction of the Niagara County Manager and policies of the Niagara County Legislature.Proposal For the Small Community

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## L. Conclusion

Major developments have taken place at the NFIA over the last few years be cause the community understands the magnitude of having a fully operational international airport located within such close proximity of their residence, business or institution.

The NCDED and Stakeholders listed understand the significance of securing a dditional funding

to support the NFTA in their marketing agenda for this NFIA

. NFIA is an attractive alternative to currently congested major North American International airports. T he NFIA is ideally suited and strategically located to accommodate vario us types of aviation operations.

The close proximity of the airport to the Canada/USA border, its location just off a major highway, and its central location to the Canada and USA population base, offer great operational advantages. Given the community and regional support of the NFTA’s marketing

mission

, additional community funding sources are needed to support the promotion and marketing developments of the NFTA

. With the financial assistance of the SCASDP grant, the
Stakeholders can fu rther help augment the costs and provide additional funding sources to the NFTA’s overall mission of growing the NFIA into a greater regional and community asset.