With pagsing time the Jackson Airport problem becomes more acute. Now with the delivery of new jet type aircraft the Mississippi Air National Guard is faced with moving out of Jackson completely unless adequate airport facilities are provided promptly, At the time of the completion of the Jackson Airport Master Plan in November 1956 the city had the assurance of the National Guard that they would finance the construction of all facilities required by them at the Rankin County, Miseissippi site, including a runway. This was estimated to cost the Air National Guard a total of $3, 792,000. In good faith, the city proceeded to purchase all land required for the new airport. Now, for reasons beyond the control of the City of Jackson, the National Guard is able to spend only $2, 700, 000 on this facility. An 8000 foot runway and taxiway is considered essential to accommodate not only the new jet aircraft of the National Guard but to make the facility capable of handling any of the new commercial type jet aircraft such 28 the Boeing 707,. Douglas DC-8 and Convair 880 - which are already on order by the commercial airlines, Hawkins Field cannot even handle the Douglas DC-7 airplanes now in use by Delta Airlines and which Delta now would use in Jackson if Hawkins Field would accommodate them, In planning for the Gity of Jackson to participate in the initial construction at the Rankin County site it has been considered advisable to plan a sufficient installation to not only provide for the Air National Guard, but to produce substantial revemie as well, Consequently this prospectus contemplates the construction of necessary National Guard facilities plus a new terminal building, plus terminal and access facil jes sufficient to transfer all commercial scheduled airline operations to the new airport. These facilities ave those recommended in Stages one and two of the Jackson Aixpost Master Plan, ‘This would leave Hawkins Field solely for the use of personal and executive type aircraft and operated under lease to a fixed hase operator. All of the land at Hawkins Field could then be disposed of except the North-South runway and the hangar facilities at the west side of the field. Following is an up-to-date estimate of the cost of the facilities outlined above,GOSTRUCTION COSTS Stages One and Two Air National Guard Facility including 3000' Runway and Taxiway $2, 700, 000 Balance of Runway and Taxiway {5, 000") 1, 386, 782 Terminal Building 643, 885, ‘Terminal Area (Except Building} 1, 57h, 889 TOTAL $6, 302, 556 Following is an estimate of the source of revenue for this construction, SOURCE OF FUNDS Stagos One and Tye. Air National Guard $2, 700, 000 C, A. A. (Runway and Taxiway} 720,962 (Terminal Area-except Building} 790, 688 1, 491, 650 City of Jackson (Including terminal building) 119, 906 TOTAL, $6, 302, 556 ‘The funds required to be provided by the City of Jackson are estimated to be $2,110,906, Tt is suggested that of this total $1, 500, 000 be provided by a municipal pond issue and the balance of $610, 906 be supplied from the sale of approximately 300 acres of the surplus Hawkins Field property west of that area used by the airport. |A detailed study of anticipated revenue after the new airport is in operation indicates an annual surplus in the operating account of $97, 550 in the first year of operation, The financia) analysis depicting the retirement of the bond issue indicates an increase in the annual surplus each year, The amount of the increase is 5% per year which is helieved to be conservative based on an increase in use of at least 10% per year. A bond issue of $1, 500, 000 at 4% interest for a term of 25 years can be funded for $95,100 per year thus indicating that the operating surplus of the new airport will exceed the amount necessary ty amortize the bend issue.Considering that a logical period of me for construction would be two years, the interest on construction financing in 1958 and 1959 would run to about $140,000, This anticipates that CAA matghing funds would not be turned over to the City in most cases until individual items of construction would be complete. This $140,000 can be raised by the selling of approximately 70 acres of surplus land at Ha wkins Field. With the completion of this construction the City of Jackson will still own about 803 acres of Jand at Hawkins Picld. Fhe value of thie land has been variovely estimated at from $2, 000 to $4,000 per acre. Taking a mean vaiue of $3,000 per acre the 803 acres remaining would then bring $2, 409,000. In addition about 800 acres of this total will be eligible for CAA matching funds which will bring in an additional $1, 500, 000. Stage Three construction as outlined ix she Master Plan provided fox.a parallel nunway and taxiway 5,500! in length and a'en exovides for the construction of the light plane area and certain other incidental constriction, Iv the financial analysis, however, @ provision is made for the secend runway and taxiway to be 6,400! in length rather than 5,500', This will bring the airport up to the stage of completion required to transfer all opezations, including private air raft from Hawkins Field to the new air field. At this time Hawkins Field can be completely abandoned, By reference to the Airport financial analysis attached, you will note that with the complete deactivation of Hawking Field the operating revenue will be reduced by $16, 250 per year. Annual income of $41,250 will be lost with the deactivation of Hawkins Field; however, it is estimated that income from gasoline sales and other items at the new airport will be increased by $25,000, the difference of these two amounts being the net decrease in surplus. We are providing further during the time that Hawkins Field is still active and operated by a fixed base operator that the rental of surplus buildings at the field show a gradual reduction of $500. 00 per year in revenue until the field is deactivated, We, therefore, find ourselves with a total of $3, 409,000 cash on hand with which to finance the construction of a second runway parallel to the first and a light plane area. The 6400" runway and taxiway and light plane area shown in the master -3-plan can be constructed for approximately $2, 800,000 at present, However, to project this ten years in the dutive, it is recommended that an itern of $2,000,000 be sex aside for this construction. The balance or $1,409,000 will be available for whatever other expansion or replacement may be indicated at that tinue, and Jf no additional work is required tls» the money can be invested and the proceeds added to the airport revenue ~ “rea sing the operating surplus. The method described above is 9 my one of ious financing plans, In geners] the overall plan should be kept flexible. However, if ie cnrrentty indicated that the Gily of Jackson is in the enviable position of being able ie firance this improvernsat completely as a self liquidating project. Th= reouirement that money received from the sale of present airport property uot he vcod fur t “tHicement of a bond tesue, of course, places a testriction on the moss fexsthte method, However, since so much of this money will not he spent for a wuchor of poses, there may be many changes in CAA regulations which would allow us to lake futle vivaniage of the matching fund aepect. By reference to the financial tables attached you will note that the $1,500, 000 bond issue will be paid off in 25 years and that the airport will be operating with a surplus of $3, 834,008 at that time. Tl is pointed ont, however, that this finaneing scheme does not contemplate the so-called "ultimate stage constrvction' which provides for a cross wind runway and other incidental items, it does indicate, however, that sufficient reserve funds will be available at the end of approximately 19 years to construct these facilities without other financing and witht, a bond issue, In summary it is apparent that this airport construction can be undertaken in Jackson with the issuance of reverue bonds except for thx fact that revenue bonds would carry a substantially higher interest rate than Fuit Faith and Gredit Bonds of the City of Jackson, The point should be stres , however, that these bonds will not be a financial obligation which would require that the City of Jackson spend any funds except those from the operating. surplus of the airport and those from the sale of airport lands, neither of which can under present law be used for anything except airport purposes. ndeDISPOSAL SCHEDULE FOR HAWKINS FIELD Eligible for CAA matching funds 500 acres Not eligible for CAA matching funds 673 acres Total Area TI73 acres Year Acres From Sale Brom CAA. Total 1958 370 750, 906 o 750, 906 i968 603 1, 809, 000 300, 060 2, 709, 000 4969 200 600, 000 300, 000 700, 000 Totals 1173 1159, 907 $7,009, 000 $4, 159, 906JACKSON MUS" Fass cPAL AIRPORT AIRPORT FINANCIAL AbiA LYSIS AFTER PROPOSED FACILITY IS COMPLETED Anticipates Revenue First year of use of New Airport Landing Fees = Agree unt with scheduled a1riines to be renegotiated on basis of 74 per 1009 pounds with specified minimums of ray, « $2,000 per month for Delta and $250, 00 per mianth fer te local eenvice carvers. Anticipated Income {anal} 3 & Commirsion: Delta (7,000 sq. i. @ $2.50 Soudherucineludes cargo and ‘Transhasan -communteations) Resiaurant ~ 6% with minimum of $7, 696 Barber shop & beauty shop & « newrass, Rental Car ~ 12% with $400.00 per racirh miximen Toilet Locks Tas tsies Pavting Lot & Meters Observation Deck Weathar Burean & CAA Divwlay cases and advertising spon. Gane eo Alx National Guard & Military te heduled airlines into-plane @ 2f pev Nov-scheduled airlines contract @ 4 1/; Transient retail @10¢ per gal. O11 Storage rental 500 acres @ $2.50 base Surplus Rentals until sold Aix Navinnal Guard Joint Use Agreement Miynelisneous Income . Anticipated Hapendituree Solaries & Wages, Repair & M Tove cleaning Field « inchides camp supplies Avtomatine Surpivcn Buchaliigs Degheing | chyder ramp lighting) CApiiak Kepanaitures Mitr al acon TOTAL ANTICIPATED SURPLUS 30, 000, 00 47, 500, 00 7, £00. 00) 2,400, 00 4, 800, 00 2, 400, 00 3,000, 00 6,000, 00 1, 200, 00 2, 500, 00 4, 000,90) 108, 00 40, 000, 00 2, $00, 00 4, 000, 00 2, 000.00 2, 500, 00 4,250, 00 25, 000,00 15, 000. 00 10, 900,00 __ 11500, 00 80, 000, 00 2, 400, 00 2, 400, 00 3, 500, 00 4, 800, 00 3,000, 00 7,209. 00 2,000, 00 2, $00, 00 5,000, 00 fh, 000, 00 3,000, 00 224,050, 00 123, 500, 004 Ton Graves 5. Pink Hora Estate & Travis UeCarty a juby Palmer 8s MeCarty, on Jona "Tampon 106 Alberta Gora il. 12. Thoads Booth is. dake Gibson 23, Sophia Webb Ager : Parsons arry, Suarall and i111 Wells + Boss q vggeasee 235i 23436213 43600,00 €, 000,00 5), 00,00 13,997.06 5,485.89 33736.75 5750.00 2,800.00 4,950.00 33,090.00 35,200.00 3,798.46 7,997.63 2) hi 45 2,373.05 23998155 11978.00 1896.50 8,597.35 15,669.00 134,921.48 30,500.00 2,909.00 2,992.78 1,200.00 4200.90 4259.00 3,240.00 53529200 23008230 17,022:16 eee Ree oe wow Hoe houses house house Apuses house houses house house house house building house houses houses houses how house