01-08-1997 ARC Packet�
� � • . ■ ti`
�,;•■�,' , � �, , � � ,
; �. � ;•
. ., � �, � � �
1. Call to Order - 7 p.m.
2. Roll Cail
3. Approval of December 11,1996 Meeting Minutes.
4. Unfinished and IVew Business:
a. Review Final Contract for Third Parallei Runway
b. Review MSP Noise Mitigation Program
5. Updates
a. Airport Noise Report - Subscription
b. Non Simultaneous Departure Procedures
6. Acknowledye Receipt of Various Reports/Correspondence:
a. Part 150 Buyout Update - Issue 36
b. Star Tribune Article on Northwest Airlines
7. Other Comments or Concerns.
S. Adjourn.
Auxiliary aids for disabled persons are available upon request at least 120 hours in advance. If a notice
of less than 120 hours is received, the City of Nlendota Heights will make every attempt to provide the
aids, however, this may not be possible on short notice. Please contact City Administration at 452-
1850 with requests
Y
�
_
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
' ' '' �' ' • • � � •
! ..
.
The regular meeting of the Mendota Heights Airport Relations Commission was
held on Wednesday, December 11, 1996 in the City Hall Large Conference Room,
1101 Victoria Curve. ;l"he meeting was called to order at.7:00 p.m. The following
members were present: Beaty, �euman, Olsen and Stein. Commissioners Fitzer
and Gross were excused. Commissioner Surrisi was absent. Also present were
City Administrator Kevin Batchelder and Senior Secretary Kim Blaeser.
....� , f -,
Commissioner Leuman moved approval of the November 13, 1996 minutes.
Commissioner Olsen seconded the motion.
AYES: 4
NAYS: 0
REVIEW DRAFT CONTRACT FOR
THIRD PARALLEL RUNWAY
Administrator Batchelder informed the Commission that on December 4,
1996 Mendota Heights was able to reach preliminary agreement with MAC
over the terms and conditions of a contracfi. giving the City approval
authority over the construction of a third parallel runway.
Batchelder explained that after many hours of negotiations, only minor
changes to the draft proposal are needed. He stated that the Mayor does
not feel a need to argue over the changes. He explained the Council will
review this document on Tuesday, December 17.
Batchelder explained that the primary issue was the term of the contract.
He explained that the City of Minneapolis is reluctant to give support to the
portion of the contract which stipulates that "the City promises that it shall
take no action to oppose the planning and consfiruction of a North South
Runway". He sfiated that there is a political movement in Minneapolis to
oppose any expansion to the airport. He stated that Minneapolis is
continuing to negotiate with the MAC and that an agreement is needed
1� )
— 1
before December 31, 1996. .
��
Batchelder stated that Minneapolis supports Mendota Heights' signing of the
contract and that there is a provision to allow Minneapolis or Eagan to join
our contract, should they do desire.
The Commission inquired about the minor changes within the contract.
Regarding Section I- Recitals - No. 4- the clause "good faith" should be
removed and Sectian III - Terms - No. 6, the "MAC added deadline of July 1,
1997" could be removed.
A discussion ensued regarding the City of Eagan and how they are
responding to the proposed contract.
The Commission acknowledged the hardworking efforts of Mayor
Mertensotto, Councilmember Smith and Administrator Batchelder in
negotiating a contract which will benefit the City of Mendota Heights.
Administrator Batchelder submitted an arfiicle from the Star Tribune which
indicates that MSP International Airport may not be growing as fast as
originally indicated.
DISCUSS NON S111AULTANEOUS DEPARTURE
PROCEDURES - FAA LETTER
Administrator Batchelder informed the Commission that he had spoken with
Ms. Annette Davis, of the FAA Great Lakes Office in Chicago, who
indicated that the FAA has made a determination fihat the magnetic heading
issues originally impairing the non simultaneous departure procedure from
being implemented afi MSP is no longer a concern and that the finished
document will be open for public comment. She indicated that she does not
anticipate any public comments. Batchelder stated that the City of Eagan
requested an expanded environmental review and that the FAA believes the
conflict resolved. He stated that the City of Eagan will probably insist on an
EIS. He stated that the City of Mendota Heights has requested a FONSI and
that one has not yet been issued. Chair Beaty encouraged staff to send a
letter to the FAA informing them that the City of Mendota Heights is
anticipating the preparation of a FONSI and that copies of the HNTB's report
be attached to that letter.
i • �' ••� •,
Batchelder explained that the Commission desired to know more about the
2 �
�..
�i process the MSP Noise Mitigation Program and the implementation of the
MSP Mitigation Program since it was adopted by MAC in October. The
Commission a k
c nowled
ed recei t of
g p copies of the full MSP Mitigation
Program. He stated that this program is to be reviewed by the State
Advisory Council on Metropolitan Airport Planning, as indicated in a letter
from Jeff Hamiel, Executive Director of MAC.
Chair Beaty inquired when there will be a move on decreasing nighttime
activity. . He wondered how this will take place and how it will be "policed".
The Commission discussed having the City's MASAC representative pursue
this further. Chair Beaty felt that the Commission should give suggestions
to Councilmember Smith by February. The Commission was of the
consensus to provide a list of suggestions to Administrator Batchelder who
will then forward to Councilmember Smith for her review.
, ..�. � .�. �
Commissioner Stein moved to request the City Council to approve a one
year subscription to the Airport Noise Report with funding to be allocated
from the airport noise budget.
Commissioner Leuman seconded the motion.
AYES: 4
NAYS: 0
The Commission discussed how, according to the GAO article, in 1990, a
survey of the 66 largest U.S. airports revealed that 85 percent of their gates
were leased to established airlines under long-term, exclusive-use leases.
The Commission discussed booking incentives for travel agents and how it
limits competition for business traffic.
ACKNOWLEDGE RECEIPT OF VARIOUS
REPORTS/CORRESPOIVDENCE
The Commission acknowledged receipt of the MASAC Agenda for December
3 and October 22, 1996 Minutes.
The Commission acknowledged receipt of the MASAC Technical Advisor's
Report for August, September and October.
The Commission acknowledged receipt of the MASAC Complaint Summary
i )
- 3
�
for October 1996.
_ �
The Commission acknowledged receipt of the MASAC Corridor Gate
Penetration Analysis for August and October 1996.
The Commission acknowledged receipt of the Part 150 Buyout Update -
Issue 36.
The Commission acknowledged receipt of the NOISE Conference in
Minnesota. It was noted that this conference is to be held in Eagan.
The Commission acknowledged receipt of the Eagan Airport Relations
Commission Agenda for December 10, 1996.
The Commission acknowledged receipt of the Northern Dakota County
Airport Relations Coalition Minutes of October 15, 1996. It was noted that
this group needs to refocus on its original airport/air noise concerns.
MISCELLe4NE0US
�. •
Chair Beaty noted that Commissioner Surrisi has not been in attendance for
quite some time. He stated that he would call her and inquire about her
intentions. Commissioner Olsen informed the Commission that he intends to (
resign from the Commission at the end of January. Administrator
Batchelder requested a written resignation to staff who will then forward to
fihe Council for their acceptance.
There being no further business, the Airport Relations Commission moved to
adjourn its meeting at 8:50 p.m.
Respectfully submitted,
Kimberlee K. Blaeser
Senior Secretary
4 �
,� 1' FI . p� ,
January 6, 1997
To: Airport Relations Commission
From: Kevin Batchelder, City Admi.nistrator
Subject: Unfinished and New Business
� ,�
For tonight's agenda. are the following items:
1. Review Final Contract for Third Parallel Runwav
Attached please fmd a copy oi the ima1, executed version of the Contra.ct to Prohibit
the Third Parallel Runway. City Council approved this contract on December 17,
1996. The Commission should review this document.
2. Review MSP Noise Mitigation Program
At the December 11, 1996 meeting, the Commission received copies of the full-length
version of the MSP Noise Mitigation Plan. The Commission decided to review this
document to identify concerns about implementa.tion of this program or details that
need to added to ensure compliance with the Mayors' intents. The Commissions
should review this plan and come prepared to provide direction to stafF and MASAC
member Jill Smith regarding how MAC will carzy out the mitigation program.
C�
C�
CONTRACT PERTAIN.Q�TG TO LIlVIITS
ON CONSTRUCTION OF A
THIltD PAR.ALLEL RUNVVAY
I. Recitals.
�
1. The Minnesota Legislature,. at its 1996 session, has enacted. Laws of Minnesota,
Chapier 464, Art. 3, Sec. 10 (hereinafter "the Runway Statute"), which amends
Minnesota. Statutes 1994, Sec. 473.608 to require the Metropolitan Airports Commission
(hereinafter "i110 COTT1tT11SSlOri" OT "M1�lC") to enter into certain contracts with "affected
cities."
2. The Runway Statute defines "affected city" as being any city that would
experience an increase in the area located within the 60 Ldn noise contour as a result of
operations using a third parallel runway constructed at the Twin Cities International
Auport (hereina:f�er "the Airport"). ,
3. The Commission has determined that the City of Mendota FIeights (hereinafter
"the City") is an affected city within the meaning of the Runway Statute.
4. The Commission and the City have met and negotiated in good faith concerning
the terms and conditions of the contract required by the Runway Statute, and have arrived
i ) at an agreement (hereinafter "the Agreement") which both parties desire to set forth in
..
wnhng-
II. Definitions.
1. The term "third parallel runway" shall mean any runway used for the arrival or
depa.z-�ure of air traffic at the Airport constructed to the north of and generally parallel to
the existing parallel runways known as 29L/11R and 29RI11L.
2. The term "construct" shall mean physical constnaction and actions prelirninary to
conshuction, including land acquisition, inclusion of funds for construction in the capital
improvement program budget or solicitation of bids for performance of physical
construction �rovided that the term shall not include planning activity. The term
"construct" shall not include land acquisitions by the Commission which include as a
resfirictive covenant in the deed of conveyance; that the acquired land shall not be used for
runway purposes during the period for which this Agreement is effective, �rovided that
such restrictive covenant sha11 expressly run for the benefit of affected property owners
and the City.
3. The terna "approval" shall mean a Iegally binding assent occurring through action
by which the city legally binds itself.
4. The term "affected property owner" means any owner of real property which
? property is within that part of the City wluch:
a) would be brought into the 60 Ldn noise contour as a result of operations
on the third parallel runway; or
b) is within the 60 Ldn contour as deternuned without the third pazallel
runway and which would experience a 1.5 or greater Ldn i.ncrease as a result of
operations on a third parallel runway.
The Comrnission and the City agree that a diagram wluch designates the area meeting
this criteria shall be developed by the Commission not later than ninety days subsequent
to execution of this Agreement by the City, which diagram will be subject to the City's
review and approval.
III Terms
1. The term of this Agreement shall be from the date of approval by the City to
December 31, 2020, subject to the provisions of this paragraph. On January 1 of 2021,
January 1 of 2031 and January 1 of 2041, this agreement shall be automatically renewed
for an additional ten-year term unless both the City and the Cornmission agree, at any
time prior to the expiration of tlie previous term, that the agreement shall terminate
without such renewal. Commencing on January l, 2021, this Agreement and any
renewals thereof may be termi.nated by statutory enactment which contains an express
finding by the Minnesota Legislature that, in its judgment taking into account the welfare
of the State of Minnesota, there is no prudent or feasible alternative to construction of a
third parallel runway.
2. During the period for which this Agreement is effective, the Commission
promises that it shall not, without the approval of the City, construct a third para11e1
runway. The Commission promises that prior to Decerrmber 31, 2020, it shall not
affirmatively advocate construction of a third parallel runway, nrovided that nothing in
this Agreement shall prevent the Commission from responding to requests for
information and advice made by the legislative or executive branches of state
government, or their constituent parts or designees.
3. During the period for which this Agreement is effective, the City promises that it
shall take no action to oppose the planning and aonstruction of a North South Runway, as
such runway is described in the Airport's 2010 long-tern comprehensive plan, the
implementation of which is authorized by Laws of Minnesota 1996, Ch. 464, Art. 3,
Subd. 24. Without limiting the generality of the foregoing, the City agrees:
a) its approval of this Agreement constitutes a declaration of the City
endorsing the conshuction of the above-described North South Runway; and
C.
(
b) it shall not institute, be a party to, financially contribute to or in any other
manner support any legislation or legal proceedings (whether judicial,
administrative or other) which have as a goal or effect the delay or prevention of
construction of the above-described North South runway, including without
limitation, proceedings asserting rights under environmentallaws or regulations.
4. It is intended by the Commission and the City that, during the period for which
this Agreement is effective, the affected. property owners sha11 have third party
beneficiary rights to enforce this Agreement in the event that a state law changes,
supersedes or invalidates this Agreement or if a state law authorizes or enables the
Commission to construct a third pazallel runway without approval of the City. It is
further agreed that this right of enforcement shall include that right to seek specific
enforcement and injunctive relief. Said tlaird party beneficiary rights shall cease upon the
expiration of this agreement or its termination pursuant to paragraph III. 1. of this
Agreement. �
5. This Agreement constitutes the entire understanding of the parties here±o and shall
not be subject to any alteration, supplement or repeal except as agreed to in writing. This
Agreement shall be bindang upon the parties and their successors and assigns.
6. This Agreement shall be binding upon and inure to the benefit of any other
affected city which, by formal action, approves its terms and notifies the Commission of
�' � said approval, �rovided that such affected city gives such notice to the Commission on or
'-' before July l, 199'7. Nothing in this Agreement shall prevent the Commission and
affected cities other than the City from reaching a separate agreement with separate
terms.
Dated: December 23 , 1996
Dated: December � 3 �1996
METROPOLITAN ATRPORTS COMI��IISSION
��
/ 1.��
By: � � Zr ✓!�,� - Z�
r
CITY OF MENDOTA HEIGHTS
By; �'`-� � G�.�.►�,.,� �'
Its Mayor
OTC2: 201362 v06 12/12/96
12/17/D6 16:02 $`34i 3D4 i�6i
03l13�1996 17:42 61Z72�6310
1�1y�► F C1�jt1i1
�
JanuBry 27, 19�6
NZGEL FINN'EY
t+.t�TROPaLiTAN A:CR�ORTS COI�dISSION
604 0 2 8TFi 1�vFPJ�G'7E SOUTFi
lSINNEAPOLI6 i 1�!J 55454 �
Deaz Mr. Finne�r:
ACL 630 SYS MCNT
MAG AVSAT
REC�iuED
FEB z o �ggs
DEPUTY EXEC. DIR.
�j002/002
P ��E 02
rNo�a s F�ak
Mavor
PaTRiG•a AwqpK
SHAWN HUNTER
souDR.,� �. Mnsin,
THEODi:�t�S WRCt�+vEt7
Ccuncl atcm�m�
THOMa 5 HE06ES
C�N Adrun�strorer
E.J. Y��NUVERBEKE
c�ry cte� �
in action tak��n at its m�eting of January 3.6, the Eagan c:.ty
Council vo�ed '�o su,pport e modification of the off-peak corric.tor
p=acedur�s far the north parallel runvay, shifting tha off-p��►ak
headinq from R05 deq=ees to lI0 QegTees. Upvfl ravieW of �::he
hf�atoty arld b�ckgro�und informatien re�atZve, to thia i�sue� i:he
COuiiGi2. dstet'l�tinerl that such a cor.rection vould of.fset the f:�.ve
d�g=�es o� magtnetic shift which has accurred �ince the corric:loz
,proc�.dures weras implemQntQd. Any considsration of a modifiaat:',on
in 2xcess of ta.his sheuld be subject ta a complete lnvir.anmeni:al
reviez,r xith opportv.r�itica �or pu�lic Rducation and input.
2he Courecil ap��oses a shiYt eP.fiYteen deqrees �rom l05 degr�es to
ru.nwalr cQntarla.iss, h•Causo m leEEer chango would psovidc a3 m��ch
bene�it an th��e Ttox'th side of the corridor vithout redirect:.ng
aircraft as Far ta the south and because viela�,iO3'is ei exist:.ny
carridor pr. �r..��c�uras already ereata a grea�er r�oise nuisance in
neighboriY�od� a�outh vt the cvrsido= than te the nort2�. '1'his is
dQmori�trated b� the 3aonthly 1�NGH6 rcparts of ecrridor comp2iai�c�
v211Ch routlnel�► snow less than one percent excursions on the no� �th
and more than �.en pe�-cent excursions on the sauth.
zn taking thls action, the City af Eagan c�ishes to be respor►sive to
the n.eeds af its neighbor, but xe cannot juatify Suppvrting a
cria�ge which will unnecessarily �scacerbate the iatpscts on <:�ur
citiaen�. Fl�ase share ttais l�tter with the Fede=al Avfat:.an
Administrati.on and othar apprapriatte partiee.
5inaerely�
�4� �.�c�
��---
Thofias L. Heciq�s
City Administr�tor
MUNiotrAt C6NTER 7xE IONE OQK iRGC 141AtNTEP'�HCE F1iCI�fTY
JE�O �ItQT KNo6 ��VAU tNE SYM60t OF r'!'r,CNGrH �ND GROwTtt �N O�R COn�MUNr�Y 3SQ1 COA CNMkt�t POINt
EaCaN, MINNESOTA 551i2�1847 �ar.aN, ��INNFSQiA 55�2?
PHONE: (6S2) 68) •4600 rkOuE= (a i2) ss �• e�oo
FAX; (612) 681•a612 EQUQ! Opport�nitylAffirmetivR pctlon Fmpt�yPr rqx; (6�z) bel-�3bo
iDD: Ce127 a5a.r�+s�e tDD; caiT: a;,a.aSsS
I'• II
- . . . .. . �
MUNICID,RIL CGNTGR
8B9D 1`Il.OT KNOB ROAD
Ef.GAN, INlNN'cSorA 53122-1897
PNIJNt: (011) 6�u I-40UU
FAX: (612) 681-4b12
TNF l.QNE OAK TR£E '
TN6 SYMHOI OF S7RENC7Fi AND GROWTH IN OUtt COMMUNITY
Eoual Ooo�rtunifi,�eftirmn+i�a a.-+i.,.. c.....,�,,,,,,.
MAiNTENi��HGE FAGIUiT
3501 COA(:�HMAN POINT
GAGAN, MI �NESOiA 55122
PHONG: (bl �) eai-�3oo
,
C
C .,
�12/17/96 16:03 $84i 294 ?45i �GL-530 SYS MGNT
s
-����.z�y lG, 1�96
�'���T�� D�v�s� AGL 53a.�,
r L�EF�.�ia hVi�,T.�CN A.L�;tINiSTiZ'�TION
2 3 C 0 �'�'� ST J� :'O�T
DES P�.�IN.cS, �L b0018
t�e�.� i:�S. n�.Vl'.a-'�
�j001/001
THC}MAS i:GAN
MCyot
PA7RICIA .�WADA
SHAWN H.JNTER
SATtDRA �•,. MASIN
THEODOR e WACHTER
Councii ME rbers
THOMAS I•EDGES
Gliy Admtn tttOtor
E. J. VAfV aVFRBEKE
City Clerk
E�c�os�.� �lea�e :in3 a cogy af t;�e City of caga;�Ts position with
respect ta t:�e corridor crossing pra�e�ure bein3.cansidered at
Minncapolis-Sfi. Pau1 Internationzl Air�ort. I�un�erstand that you
�w c cocrdin�t:.z� t:�e revi ��r of t�is propasal .
�s �ou can se��, th� City is supportive of an adjustment o� tl�e
non-SlitlLlt��eau5 �,�part�.re he�ding for the north parallel to take
in�� accou�� tze eifec�s o; :�agnetic shir� over �.he pa�4 twenty
y�ad 5. ita arE, na't sLpportive o� z dra�natic shi�� wY�.ich t�Tou.ld sh ift
`.:�osc: ir��ac�cs from t_}e 7orth side of the corridor to tne south.
��.l:i�.e the D*t�, c; angc-s ir�p.�ici � in �he p=acedur� �:ay not t� igce r a
�na:�c:atory� EZS, �,�e deznar.�, an� �ar any modificat�on af procedure
»Tn.ic'z �.Tould k�laca tn,e ncr.-simultaneous h�ading fror:i the na rt'�
rur�way scu4:�. r�� 110 �eg� zes .
fi�e C:�.�y i�a� taken �ris �ositian because tI��e in�ac�s of MSP �re
airead� subs��.ntially greatei on t:�e soutli side of the corri3or
�har_ they are on th� nart� and because �io progr2ss has be�n madE. to
l.ir::�t �xc��sic�:�s �ron the corridor on the south side. an a monthly
b���s, t�e exwursians e:�cee� t�n percent of a�.l so:�theast traffic
an3 �w�r,ty pe�_cE�t oL all tra�Fic fram the so�th parallel.
P1e354 lev ��e know iz you hava any que�tions concarning �he Ciiy's
����s:;.t:�o:�. 1h�anY, yau for your atL�ntian ta this natter_
311:.�t�.�C�.ee�!
tl
on Ho2',ans�e;.rz
I�ss.;.s ��� � �a Lne Ciz : Admi:�iszrator
�nc.
MUNtG1PAL CENiER
3830 P�I.C1' KNO$ ROAO
EA�AN. MINNESOTA 55122-1897
PHONE: (612} 681-4600
FA%; (612) 687-d612
iDD: (672) d54$5°5
m
iHE LdNE OAK TREE
TNE SYMBOL OF STRENGTH AND GROWTN 11J OUR CbMMUN(TY
Equai opportunity/Afflrmctive actlon Empioyer
MAINtEN�,NCE FACILi17
35D1 CQRC NMAN POINT
EAGAN. MII�INESOTA 55122
PKONE: (61;::) 681-4300
FAX: {612) E.11�4360
TDO: (612} � �-8�35
• � � ',
C
'�"""""""""„�"' � a�„e"o,"„""""""' a"' a e e""e' ��""„a„
DECEMBER 1996
i . '
N�a��; a�i� a►i rr o.
ISSUE 36
QUARTERLY PROJECT STATUS
(end of December 1996)
NUMBER OF HOUSES & DUPLEXES
PROJECT STEPS 0 50 100 150 200 250 30D 350
Comnieted Acwisi8ons �� �J4919�` �P�
Completed Relxations � ' �
Vacated Properties
Houses Moved
Houses Demoiished
An open house sponsored by MAC and
WDSCO is scheduled for January 9, 1997 at
the Ric�f'ield City Hall. The open house
will be held from 3:30 p.m to 6:30 p.m in
the councils chambers. All tenar�ts and
owners of properties located along 66th
Street South are encowaged to attend.
WDSCO will provide a"one on one"
overview of the acquisition and relocation
process for landlords and business owners.
�'� 'I�e=� will a1s� � an � av��-,%Y �f the
�� relocation process for the tenants residing in
these buildings, and WDSCO staff will be
available for quesixons.
� � , � �
`• • �
���
�_
Auction 7 �.TTpdate:
As ot` Wednesday, December 18, 1996 there
have bcen two homes moved from the
project that were purchased at the October
24, 1996wauction. Another four homes are
being prepared to be moved. Due to the bad
weather, many oithe house movers have nat
been able to schedule any work They are
hoping to get back on schedule some time
after the holidays. The deadline of February
21, 1997 is fast approaching so we anticipate
considerable acctisvity in the near futw-e.
Under winter conditions W.D. Schock
requires all home buyers to have houses
removetl and basements filled by the
deadline date; however, the final grading and
seeding will not be completeci until spring.
This requires some fill to be stored on the
site until the ground thaws and grading can
be completed.
4f the twenty-seven homes auctioned in
()ctober, twenty-five ha.ve closed. The two
that did not close will be prepared for
demolition this spring. There are currently
four homes being considered for round 5 of
demoli±iQn.
Auction 8 Update:
At this time, twenty-seven homes are ready
for Auction 8. Tl�is auction is scheduled for
late March or early April depending on the
number of homes vacated over the winter
moriths. Due to the quality and number of
homes available, we are anticipating this to
be our best auction to date. The majority of
the homes are two or three bedroom
ramblers with several nice split level homes
also available to be sold.
Reminder of Dumpster �Iours•
The first and third Saturdays of every month
fr�m 9:00 a.m. to 11:00 a.m.
Every Tuesday from 11:00 a.m. to 1:00 p.m,
Every Thursday from 3:00 p.m. to 5:00 p.m.
Please call Scott with WDSCO at 7248898
to schedule dumpster appointments.
The Part 150 Buyout Update is a newsletter by the Metrapolitan Airports Cornmission and W.D.
Schock Company, Inc., containing infonnation on the MSP Land Acquisition and Relocation
Projects.
i
' ' I � // / /I�
This D�ecember 1996 issue of the Buyout Update is a retrospective report of the progress ma1
within each area of the Acquisition/Relocation process for the year 1996.
The year began with the January 1996 issue of the Buyout Update reporting 46% completion
of a11 Phase III acquisitions and 23% completion of all Phase IlI relocations. The chart below
(Year End-Status Report) reports the current status from initial corrtact through vacating of the
properries. The year end status report also will give you the complete acquisition and �relocation
statistics far Phases I, II, and III, Phase IV, by p�ority block, and all Phases combinc�l. The
bar chart on the front page shows the major performance categories, with 320 acquisitions
completed. At this time, 94% of the homes in New Ford Toum/Rich Acres have been acquired
and 89% of the homeowners have moved into their new homes.
���.. � � i. � � . �,�,� . ♦
.. �, � ,�.�,
/ _`� ,
��
.(,��. `..i�.�r�.� r�....1�• 1 �/, h1 1� 1 ...
RiONE I INRULL I 6QMR0 I flEPORTS' CERtiFiEDBY I FtOUSMO5IWY I OFfERS
�Y1Hi'ACT RRFRVIFlN �1Pt1CFCff RFT.CNFH At�nnnlen MUOleten . �ne
�: �w:i• : �t.t �� . . .�.,. . ���'������—��i��'��������
_: �. ..�� . ., .�� �.:. �, a. �MMW��YIiY��O�� '�" 0� ^L.al""�'.��
7DB8COYPLEf�. • 1 1 ] 7 • 1� H � �
' , �t � � . � . . .. .
,.. �.� ... ... .. ..` . .e , .....
��'°F��ir. �..�.i i .. .. ' .. . . , F � .
- .. .. . . . .:+...Tl�-�. ..
h1f�7��"r HiLIL 1 UfH`r � MF ' 'Mhd <:� -.— .�'-= _ .—�—,
rr.�. Sl.dllR.i� �1V1£tit\ i� 11\l_.. ,� ,�, 3 pn����t•,. � s nz! �� T o.0
i p(ha�y �
,��, .� ------..._..---
�� 5844 28TH AVEN[J� SOUTH . ,a, � s o - �� `$' � e_ �'" ,
MINNEAPOLIS, NIN 55417 Q qs��l . 3 2° n.�.s �'-----
(612)'724-8898 0 3 s �,�,Po,.�s,,� �s 4 � � ----�`"-
($00)260-7062
� 'Q � 1 18-4'1�. F_,?
_ �'7 :I t..�.h S G- ..
Tom Lawell
1101 Victoria Curve
Mendota Hghts, MN 55118
�
. . ._. .. _-----.
I,i�i��l�l����ll���lll��l��l��l���ll�li��i„�III������Ii���lll
� � ' 12i11i96
• a..
.. •.� -�� �s , ct
, '��' � �'•.
. t,e::>,
.Y; ��
• k'. �.. .t•�.
12:32
3M DLD6 42—01J-06 -► 612 452 8940
� Minmesota saict �no'� to a nev� a�rpo�c,1
. _ _ . ,;,. ..-,._��i�:,« • _ , . _ .�
\ /� :.:lf�•y�:�:t:�
'� �
- ' 8r Torry Keee �edy and �M�c'e
Stc�r Tribune Staff Wrirers
� fcer successfully oppdsing a
' new, bigger and moce cosdy air-
; � por[ for Minneapolis-St. PauE,
Northwcsr Airlines is gulding che
� construccion af a new �7�6 mil-
�: lion airpart terniinal in Der�oit.
. • Detroit ivietropolitanAirport's $2.61�illion
�` expansion ptan — one of the biggest in the
.'. United States -- wll! deliver more capaclty
�, for passenger ttaf�c and internationa! cacgo
��� e� than the Twin Cicies has now ar wi!] have for
-„ •, years to came. •
;, ��.,'.� ' The moderntzation wil! cement Detrait as
.. Nonhwest's chief gateway to China, Tapan
'�; ��:. and other Pacifc Rim countries, putcing
"•�•.'.'�: Michigan in a premler pasitian to exploit
�-��� •� ragid gains in commerce between the
�:�,. :: United States and the warld's fastest grow-
ing economies as it enters the 2lst century.
''. Meanwhile, the Twin Cities will enter the
.� next m{Ilennium with a comparatively
,.' smaller airpor� positioned for slower grow�h.
' Both will coaiinue to be dominated by
� Norchwest. Minneapolis-Sc. Paul plans $i.i
'' billion in improvemencs over the next 13
� years, but Deuoit Metro will grow at a faster
;, �,' rate and have a clear edge in capaciry.
` � Northwest's reason for emphasizing
�: Detroit is sirnple: The Detroit metropolitan
area is the nation's eighth-laagesE and
,,, it shares che Eastern time zone with many
� densely populated cicies. •
' Turn to NWA on A24 far: '
. — Haw airlines seruing Detroit and Mfn-
' neapolu-St. Paul compare.
( ) � � Aiso oR A25:
- � — The Metropolitan Airports Can:►nission's
, role. �
' Also on A26:
-- NWA's Denuer operation repottedly is
a-� under lnvestigacion 6y the FAA.
•� , o �,
k.>
��').,�j,`�t.L�:S?:3:��.(:,-aCl�3;J��`,'�i��r(".�'�.�`';`IU;tY�,+}.�C;7��Yy.,?�:'`,.t l'<•'�`n:,��, k�J.!��
: jr . .4'. •
Expanding��t a differen$ pace` � °���
The Mevopolitart Airports Commission pfa�s to spe�d about $11 bli-
tfon to Improve the Twin Cftles' a(rport over the next 13.years. )n
DeVoi� the prime elements of the $1.6 billion expansion shouid be
operaiionai nearty a decade snoner, in 20Q2.
MINt�.YA�'Ot.ISS� PAUL OR IVIFiR09'
INTER[dl�'lONAL AIRP'ORT
.. ... ... ........................ CurreRt ....:....................................
a I'tV1fA dnity departursa: 350 > NWA deiy depertirms 380
> MNA % ot toted traftio: 76% > NWA % d t4tgl tratficc 72%
� AtrpoR aoreage: 3200 > Ah�ort �reage: 6,700 .
b Totet Patee: 67 > Tvtai �ete� 93 •
r krter�ttlart�ak �t�a: s(c) � brterrsatfoned gatea: 6.
> NWA a�pM emplaye�es 9,181(a) > NWA atrpOrt empbreea; 3,112 (e}
?. Ca�go tcro: 365,000 (b) > Cago torts; 2e3,563 (b)
� Ruoweya; 2 pa�a((el, i cross*rind � Rurt�arara: 3 parallei, 2 cross�+ind •
Mr Y ;
r NWA �ost pe� anptnneme�tt > NWA �nst Per a�pi�nertE
$275 (1994�. 53.10 (5995} 55.75 (1994), NA (1995} �
.............................. .. .:.. projected ....................................................
> E�cpartslon expen�twe:
Si1 billion by 2010
> Totai gatea: 77 by 2008.10 new
r qtternatlor�ai gate9; 6 (c)
> Runwt�ys Add nortfi•south
runway by 2003
> Expa�nio� exp�en�ura
51.6 bi8ion br 2001 � •
> Totai gste9e 95 by 2001' (7d newy
> �bes: � .
io new by 2001(c}
s R�nwarya: Add 4th parei@I runway by
2oos '
(a) As of 12/31/95 (D)1995 (c) Swing gstes far clornest;c, Internallonal use �. ;
NVYA tntematlonal ...aind lrrternattonal ,
fligFtts... � passengers
Weeky as af iq'3�96 Carried in 1995, in mlllbns .
. Mim08poRs.
. . .. ,SL Pa�i •
- �h.: •,�, F�
. ' ``+� �,{, .
. petrort TZ ' �' . .. . ' � . , DeGolt.2l8.!" • '��� �
'°,:,',',: "•.c�;.� • , ` w`',�� .
...v.�r •+,_�:�.m�s
Swtce: NoRhwest A�Iines,Deuoii MeVo Aiport. MeVopoi'rtan A'rpons Commesbn
(
C�
� 12i11i96 12:33
PAGE A24 • STAR TRIBUNE *
r
3M D�DG 42–QW-06 i 612 452 8940 N0.410 D03
1.[� .E�Y.L�i.��3"1t.1 : 4(7i�tirC.'� I°IEYV
� �� .�x�r�nsion o�' �e�rait's air�or�
� raises questio�s �n �'win �'i�ies
And if Northwest prospers from
its investtnent in Detrait, Minnesota
benefets because its Iar�est service
employer is strengthened. .
Northwest's warldwide flying
network scill revolves around Min-
nesora, wtiere 18,004 employees,
mare than a third of its workers, are
based. Its heatlquarters are in
Eagan.
Notthwest Senior Vice President
Richard Anderson said critics in
Minnesota overiook thc airtine's
�onEinuing investment ar Muine-
apolis-St. Faul International, where
Northwest controls about 16 percent
of the passenger traifc wiih its ap-
proximately 350 daiiy fligl�cs.
"The long-term plans at both of
those airports will, at the end of ti�e
day, result in comparable facilities
frasn a cagacity standpoint," Ander-
san said.
However, the slow•growth pos-
ture in Minnesota — a result of
legisiative action carlier this ye.ar —
perpetaates thrce air transportation
concerns cited in a September Citi-•
zens League report on state eco-
nomic problems. The concerns of
the Ieague, a 44-year•o)d nonparti-
san public affairs think tank anci
advocacy,group, are shared by some
legislators, a former chairman of the
Metropolican Airports Cornmission
(MAC}, a forrner scate economist
and some members of the Twin Cit-
ies Airport Task Force. Most of the
parties think the airport issue de-
serves further deUate.
> International traffic. The Citt-
zens League report said internation-
al air access is wlzat confers compet-
itive advantage to cities today, not
domestic air service. The report also
said incernational trade appears to
be growing mare slowly in the Twin
Cities than in other tnajor metropol-
itan areas. As Nortliwest's second-
largest hub, Menneapolis•St. Paul is
in direct cornpetition with Detroit
for International hub service, and
Detrait is becoming a surprisingty
stron� competltor, the report said.
Northwest icself has descr�bed the
expanding Detroit airport as its
"most important irtcernational
launching pad in North America."
Minneapolis businessrnan Hugh
Schilling, formsr MAC chatrman,
said the combination of airport de-
cisions in the nvin Cities and De-
crolt will leave Minneapolis-St, Paul
cated that a new air�sort woutd func-
tion more smoothly, but it would
not del[ver the economlc benefits
that watild Justify its $4.7 billian
cost. There also was the trouble-
some question of wherc to build a
new airport.
Last December, about a year be-
fore tl�e duat-track review process
was due to expire, Gov. Arne Carl-
son and state Sen. Ted Mondale,
DPL-St. Louis Park, called for an end
to tlie debate. The Legislature fol-
lowed suit by prohibi�ing construc-
tion of a new airporc. Expanding the
existing airpart would be iess costly
and still handle projected passenger
trafiic through 2020, proponents of
the legislative action said. '
Not duly considered?
The decision has caused cwo
state legislators, Sei�. iane Ranurn
and Rep. Jean Wagenius, to com-
plain t12at a new airport was not
duly considered — espec�ally in light
of Detroit's enthusiasm over its
blassoming air transportation facili-
ties. Detroit Metro Airporc Director
�iober[ Braun has said that fhe air-
part praject has cl�e potential to be
as significant f�r the devetapment of
Detroit's econvmy in the nexc cen•
tur; as che auto industry has been in
this centurp. And Michigan Gov.
john Engler has said, "The afrpart is
the most importlnt economic devel-
npment project in chis state."
Ranuni and Wagenius, DFLers
who represent noise-batrered soueh
Minneapolis, have been calling Min-
nesota's airport decislon inEo Ques-
tion. They are liopeEul �he afrpon
issue will resurface as pari of a
movement tv create a stateviride
economic development strategy. "In
chaF cantekt we wIli be talking about
state transporta�ion infras�ruccure,
both air and'ground," Ranum said.
Wiibur Maki, a farmer Minnesota
state economist, said physical con-
straints on airline capacity and high
air fares at the Twin Gities airport
are a chreat to Minnesota's econom-
ic future.
Maki predicts tliat fast-growing
businasses will move eisewhere
rather than waic for condicions to
change if business travel is re-
strained in Minnesota — either by
an airport growing slnwer than de-
mand or by high pr�ces that discour-
a.ge travel .
.. _ _ .�,. � _ _.._,..__ _,.. .,,,,.... �� �.,.
MAC Executive Directo� leff Ka;��ie! says tha�
edded a! Minneapolis-St. Pau{ Internationa! A
stralnts at Detrolt Metropolitan Airport.
�.. =��`. � ; ,x;-•".. �,��;=;:
12i11i96 12:34 3M
�.,,.. •. ,_-• - - ----... . .
.off the forefront of wnr d travel."
> High fares. A U.S. Department
of Transportation report said this
year that Northwsst tast year ex-
tracted ati estimated �492 miltion
from Twin Cities passengers, over
and above what comparable trips
would ha've fctched at airpons v►nth
more robust competition. Cambin-
ing Northwest with the 10 other na-
tional comtnercial airlines at Minne-
apolis•Sc. Yaul, the fare pzernium
was ne�rly $7U0 million, according
co the report. Gloria Carlson, a
member of the Twin Cities Airport
Task Farce, a citizens group inter-
ested in attracting more lacal aicline
co�npetitian, has said chat high busi-
ness travel fares in cIze Twin Cities
couId damperi che state economy by
ciiscoura�ing compa�iies from tocat-
ing iiere. She is the chief travel plan-
ner for St. Paul-based H.B. Fuller
Co., which operates in 31 countries.
The Gitizens League reporr said the
ptanned slow-growth expansion at
Minneapolis•St. Paul "is the one
most preferable to a dominant carri-
er seeking �o maintain its fortress
position."
D Limited cargo service. Mi-
chael Nolian, a member of the Air-
port Task Farce, said che. limited
international cargo lift out of the
Twin Citfes aiready is an issue with
local businesses. As much as tw�-
thirds of the area's internatianal air
freighc must firsc be �rucked to Chi-
cago 0'Hare or to ocher airports
before it is airlifted overse�s, said
Nollan, air freight manager at 3M
Co. 1'he number of international
passenger flights iargely governs
cargo capacity because mosc over-
seas air freight is sbipped in the
carrying bins of passenger jets. The
Citizens League report said air-cargn
service is especially important for
some of the region's key ekporting
industries, sueh as medical tech-
nology.
The idea of a new, much ]arger
airport — while championed� by
pubIIe afficials in Detroit as an eco-
nomic development tool — drew
heavy oppvsition in Minnesota from
many quarters, including Northwest
and its largest labor union. Norch-
tivest said it wouid rnove some non-
airport }obs out of staEe if a new
airport were iiuilt. That's because
many non-airport jebs iiaw are
housed in airport facilities that
Northwest couldn't afford to repli-
cate, Northwest was adamant tl�at a
new airport wasn't needed: The
company argued that a megabucks
airport actuallj� wou3d dampen the
Minnesota ecanomy, not enhance it.
The issue came to a head early
this year atter the Dual-Track Air-
port Planning Study set in motion
by the Minnesota Legislature indi-
EI�Z�
42–01J-06 -► 612 452 0940
..� � ..... _. .
'It will be our loss, not theirs," he
said,
However, Tum Stinson, the cur-
rent stace economist, said Minneso-
ta's airporc deeision was carrect be-
cause there was no evidence that
the benefits of a new airport would
greatly exceed the cosc.
"That's the hurdle thac you have
ta clear in ftguring aut wfiat.to do,"
he said.
The contrast in development be-
tween Detroir and the Twin Ciiies
has created some bi[terness in Min•
nesota, where public money has
been used to aid Northwest a��d pre-
serve the Twin Gities as a majar
Northwest liub.
"They waiteci for what they want-
ed from Minn`esota and then said
'full speed ahead' in Detivit," said
Minneapolis City Council Member
Do�e Mead, wha represents the i l th
Ward, which is near the airpart. "'We
bailed them out, and what did we
gec for it? A worid-class airport in
Detroic?"
Attnounced May 2O
Northwest and Detroii Merro
owner Wayne Councy jubilantly an-
nounced their plans May 20. The
Minnesota Legis2ature in early April
had voted convincingly to ban con-
struction of a new airporc in Dakota
County.
"Detroit has become North�ntest
Airlines' most important interna-
tional launching pad in North Amer-
ica,'' Nortbwest ExecutiVe Vice Pres-
ldent Donald WashUurn annoui�ced
in the Mator Clty. "When our cus-
totners of the fucure come to the
United States from Europe� Iapan,
Chins�. Mexico and Ganada, most
will arrive ii� Detroit."
As the doininant tenant at both
aitports, Nortliwest will pay for
much of the growth via airpart land-
ing fees, lease rates and ocher
charges.
In Detroit, where NUrthwest op-
erates put of a patchw�rk of crowd-
ed, iaeffcietlt facilities, the airline
launches abocit 380 daily flights and
controls about 72 percent of cne
airport's passenger traffic. Detroit
Metro spakesman Mike Conway
said the Detroit expansion is long
overdue. Passenger traftic at che air-
port already is beyond levels pro-
jecEed for the year 2000.
"We've been prodding Northwest
since '87, 'Let's go,' " Conway said.
The Detroit Metro expansion is to
be subsidized with �276 million in
federal maney and a�65 million
grant from the state of I�4ichigan ta
update N�rthwest's maintenance
and cargo faciIities.
Doug Rothwell, chief executive af
the Michigan )obs Comm'sssion, said
the scate is granting money to the
N0. 410 D04
Ric4serd Mderaay
t�aRhwest senior vice president
`t�he long-term p�iins
at both of t��ose airparts
witl, at the end of the
day, result in c�ompara-
' ble facilities from a
capacity standpvan� . . .
I think the jT'wirt Citiesj
community ls going to
be very saiisfced with
what the service pat-
terns out of Mtnneapolis
look like in a year."
.�Iow carriers load factors cor
.........................................................................................
NoNtwest says one reason its fares fram Minr
t�ose f�r camparable fiights from other U.S, citi
af avai{abie seats filled on takeofi. The carrier �
high cost of maintaining a hub with frequent fli�
ers. (People flying in apd out of Minnesota last �
lion more than they wou�d have on compa�able
research by the U.S. Department of Transportai
Suc load factor figures show Northwest is flyin�
most of its r'tva(s with hubs in other cit�es.
Load factors for selected alrAn
iiV-80UND FLtGHTS i OtTi
NOR?FMtEbT AlRtl
Minneapolis�St.Paul682 ; Min
Detroit 64.0 ; Deb
Memphis 65.3 ; Me�
AA+�RICAN NR!!r
Chfcago 65.7 ; ChK
Dallas-Fort Worth 63.9 ? Oall
UFIIiID AT
� Chicago 661 � Chk
Denver i0.0 ; Der
USAIit Ai
Pittsburgh 61.2 ; Piifi
Gharlotte 64,5 : Chf
D�Li'A A7
Sa)t Lake Ciry 66.1 ; Sal
AMERICA WESt
Phoenix 68.4 � Phc
SQIITHWF.ST E
Phoenix 62.9. . Pt�
Sou�ce; U.S. Departmene c
,
C'
ld func-
t would
aeneflts
bilitoa
rouble-
build a
�ear be-
�IOCBSS
.e Carl-
�ndale,
an end
ue foI-
nsuuc-
ing the
; costly
:senger
ents of
d two
tanum
com•
as-- ,�
rr,
�er Ics
faciii-
rector
�e air-
itobe
�ent of
t cen-
een in
Gov.
port is
devel-
�FLers
south
; Min-
ques-
irpprt
of a
?wide
y "In
3bout
:ture,
_iid.
esota
con-
'. high
rport
nom-
,�5.__, �
rhere
ns to
s re-
er by
1 C��-
:�ur-
12i11i96 12:36 3M HLDG 42-8W-06 � 612 452 8940
• • �,
o' `�' ����� � � SUNDAY, pECEMBER 8• 199
..
project because di�'ect fntecnIIt�`oTt�af
air service is often' a"very, very
important" consideration for c�vm=1
panies tooking for new business lo-•
cations. • •••_:�_::
Northwest, acc[ng as general con=`
tractor responsIbte for any c'ost
overruns, wilt arrange and supervig�l
conseruction of the $78G millit�n{
mici�ield cerrninal. .;•cit,
' The company isn't a cliret�t�
� source of capitaI for the project, bUII
the expansion wili make Detsaf�
Metro a mare expenslve place f��
Northwest ta operate. NorthwesP"�
'costs per passenger already a�+e�
higher in Detroic than at Minneapa={
lis-St. Paul. r.�.��
When the new terminal is co��;
pleted, Northwest wIil control aIt of'
its 64 domestic gates. Ten interna1�
tional gates at the new terminal wlll �
be shared• by aiI airtines, though
Northwest and iss partner, KLM•
Rc�yal Dutch Airlines, doniinate in-�
temacional traffic at Detrait.
Northwest's dorriestic competi-
tors in Decroit will aperate from 21
e�tisting gates spared from demo-'•
li[ion. �, � �: ;
Detroit Metro spokesman Md�C�i
Coi�way said the new termir�ai�
agreement with Northwest will ts9g-
ger $814 million ui additioiYglr .
spending by 2401 to buiid a fouiF�r.# `
paralleI runway, access roads a�c��
o[her facilities, �,I,��'
Former MAC Chairman Schiill�� :
who was fired hy Gov. Arne Carlson �
in 1993 after advocacing consrri�c• �{
tIon of a big new airport in Dako+if i:.
County, said Nor[hwest's expanslo�x�
in Detroit is something of a betray�l,.
"We batled them out. What di'd•�
they daT 'Fhey said, `You'11 be ouir
nice Iittle place up in the midclte o:f
nowhere, and we'!1 control you,"'
said Schilling, who was chairma:n
when the MAC provided a$3I5 mi'1-
tion loan co Northwest in 199i. •
Carlsan deciineci to be inte�Y-
viewed about t12e decision not ;to
huiid a new airport. ' •
SchItling, who has an extensi�ve'
record of civic invo2vement in t�is
Twin Cities> said the p[an ta expaz���
the current airport stowly could ta�:
sult in [he Twin Cities becornin�+.:
more of a spoke — not a hub —�in�%
Northwest's international ro r�e�
structure. Sc;hilling is the longti�i�
chairman and CE{J of MInneapoTs-
based Horton .Inc., a SuccessRk!"�
component m�inufacturer for �h�`�
worldwide automotive industry at�# f
Indusuiai machinery markets. '�:ri:%
Called SAUr �n'anA�
�_��;..
�er by
in cte-
ccour-
�s," he
n� "~ -
ct be-
? Ehat
Nould
:have
� do,"
nt be-
Cities
, Min-
y has
d pre-
major
want-
i said
" said
�mber
e l lth
c, "We
.id we
ort in
Metro
;ly an-
). The
p __ ��
:1 �,
)akoEa
;hwesc
terna•
Atner-
? Pres-
unced
�r cus-
to the
iagan,
, most
�t both
ay for
•t Iand-
other
est op-
crowd-
airline
its and
of the
Detroit
:onway
is long
the air-
ds pco-
rt� �t
s� � �
o� is to
llion in
million
�igan to
enance
12i11i96 12:3? 3M H�DG 42-0�-06 � 612 452 0940
added at Mlnneapolls�S� Paui internaUona� arpo�c oecauso ur vnN�.y �..��r
sVatnts at DetruR Metrepotitan AirpurL
Northwest senior vice president
"�he long-ter�n plans
at both of those airport�
wilt, at thQ end of. the
duy, result in compara-
� ble facilities, from a
capacity standpoint. . . .
I think the !7'win. C�ties]
community is going to
be very sat�sfied with
what the seruice pat-
terns out o,f Minneapotis
Zook tike in r� year."
State senator
anum is hopeful that
the airport e.zpansion .
issue will resurf'ace as
part of a growing move-
ment to create a
statewide econamic
development strategy.
"�n that context we will
be talking about stnte
transportation infra-
struciure, both air and
ground"
How iarTiers' load, far.tors eompare
. ..............................................
..............................................................................................................
Northwest says one reason its fares from Minneapolis-St Paul are higher tlian
those for comparable f►ights from other U.S. cities is load factor — the percantage
of available seats fiiled on takeoff. The carrier said a lower load factor is part of the
high oost ot maintaining a hub with frequent flights fflr iast•m�nute business travel-
ers. (People flying in and out of Minnesota last year paid $450 million to $70Q mil-
iion more than they wou�d fiave on comparabie flights from most other U.S. citles,
research by the U.S. Department of Ttansportation and the Star Tribune has shown.)
But load factor f'�gures show ivorthwest is fiying with no more empty seats than
rttost of its rivais with hubs in other cities. �
Load iectora fat selected ai�1(nes in #hetr huD cttiea:
IN-60uNQ Fl.IGHIS ; OUT•BOUNO FUGHTS
PIORiHWEST %1lRUNES Ai'
Minneapolis•SL Paul 65.2 ; MinneaDalis-St Pau3 64.8
. DeVoit 64.0 ; Oetroit 63.9
Mernph(s 85.3 '_. Memphis. 6d.6
ql�ERlCAA1ltiRlit�S AT
Chicego 65.T : Chicago 65.4
Daliasfort Worth G3.9 : DallasFort Worth 8d.1 ,
UMfFD AT
Ch�ago 661 : Chicago 66.9
Denver ?O.fl ; Denve� 70.3
us� a�r .
pittsburgh 612 ; P'tttsburgh 6L1
Charlotte 64.5 ; Charlotte &4.1
Op.TA A7
Satt (.ake City 86.1 : Saft Lake City 65.7
6�fERlC+A 1�ST AT �
Phoenix 68.a ; Phoenix b9.1
Cailed sour grapes .. .
Andersan af Northwest said
Schiliing's criticisms are sour••
grapes. ' �'
"Hugh SchiIIing was an inepr �
commissionerwho got fiied and de-
served t� be flred," Anderson said.
"Fortunateiy, he's no longer th�e•.
head of that commission."
' While Detroit undeniably Is set tt�
be Narthwest's primary internatian-'•
al gateway of the future, Andersan
said the Twin Cicies atso will s�e�'
increases In nonstop internatian�l�'
flights. It wasn't until this summer,�!
when the MAC extended one of Lt� �
runways and opened the main Linci✓
bergh terminal ta internatioha�r
flights, that Northwest could seii-
ously market the Twin Cities as �ci'�
international hub, Andersan said. � �����
Since then, the company h�s�J
been adding international flightsa��
Minneapolis-St. Paul. The Twin Cii���
ies aicport is Norchwesc's principattJ
hub for greatly expanded flights �!
Canada, and by next summer ch�<�
airline will add i l weekly nonsfap _
flights tv Japan from Minneapoits�•3
St. Paul — a rare iourism and ecot'
nomic development cool for a noti-�
coastal, second-tier U.S. ciry. � • �
MAC Executive Director leff Ha•
rniel said the added internationat:
business is linked to capacity con�.
straints in Detroit, where Northwest:�� •
and KLM are launching 77 nonstop.�;
flights a week to China, Iapan, Socitli-'
Kotea, EuroQe and Mexico. At Min-
neapolis-St. Paul, Northwesc ai3c!•�
KLM operate 26 weekiv flights �tci�;
Europe, 3apan and Mexlco_ •��`�i
"They filled that pot ug (in D�ai�
troitl," Hamiei said. "They've gaa�
more water to pour in the poc,�suii
now they're coming back to Minr►e#`f
agotis." .�;;'a�
Narthwest Executive Vice Prest'.t��
dent Michae2 Levine has sald that:��i�1�
may shift some Canadian flights:•id�
Detroit when Detroit Metro is ex-
panded. But Levine said the ]aparr�'
flights will remain in the Twin Cities •
as Iong as they do well. ��
"I think the (Twln CitlesJ cam-
munity is going co be very�satisfi�d
with what the service patterns out of •
Minneapolis look like in a year,"• .
Anderson said. ' � �
Since 1992, Northwest has added�'
nonstop domesttc flights to 18 new'�
destinations from Minneapolis-5t. '
Paul, Anderson said. In the sa�ri���
period, Northwest has added 11 nvw�!"
nonstop domestic destinattons�to�'�
Detroit. � ii=!'
Levine said financial results w�tt�<<
dictate Northwest's internatios�'al
routes. ,•'-��•'
"The fact Is, we are going to op�r��
1�tte in a way that makes money tb'r.��
Northwest Airlines because thaf's
the way we make jobs and that's �h��l
12i1ii96 12:30 3M B�DG 42-8W-06 � 612 452 8940
N{���lUm �4
� liQlders," Levine said.
-cy,'It's trae that for now [North-
west) h�s invested more in Decroit,"
h$said.
�'" '�Torchwest has a brief history in
..,��roIt, acquiring the hub in 1986 as
g�zi af its buyout of rival Republic
Airlines. In 1992, Nortliwes[ firsE fo- •
q��ed an Detroit as its prime inter-
i�.�tio�zaI hub when it dropped its
s+@rn►ice between Tokya and Minne-
a,�lis-St. Paul. Northwest also has
uimved Tokya service fram New York
Gity to Detroit. Froni January 1990
tq; pecember l995, Nortllwest ex-
parided Its employmenc ac Detroit
M�tro by 43 percent. At Minneapo-
lis•St. Pauf, the number of North-
west jabs grew 14 percent during the
same period.
: Bob Stassen, marketing director
for the MAC, said the airports com-
mission is striving to make Mi�ine-
apolis•St. Paul International Airport
one of rhe best "second-tier" air-
p;o,r[s ui tlie cotuttry. The airport can
bsing ecoaomic benefits to the Twin
Cities by catering to certain niches
ii�:v�ays such as serving as an iinport
' ce�ter far perishahle goods.
•;�pn the issue of iugh air fares in
iltct,Twin Cities, there is widespread
��lief thac nothing will,changc with-
da�znore cornpeticion. Oi�e of those
jevers is �im Craun, director of
` .,�,�.tion and internatianal econorn-
i�at the U.S. Transportation De-
p�r;ment. Ne has said the central
i�a;ct'ier eo more conipetitian at Min-
ne�polis-St. Paul is a iack of gates.
,,North�yest's Anderson, however,
said it's faulty to think a new a[rport
could lead to more airiine c,ompeti-
tion when there are gates at the
eurrent airport to accoinmodate
ne..w entrants. Hamiel also said there
is room for new entran�s at the cur-
rent airport. For one thing, is gates
now leased on a m�nth-to-cnonth
basis by Northwest could quickly be
leased to rivai carriers if they were
flnancially able to meet lease terms,
N,�miel said. Same of the would-be
14�+t; fare competitors ha��e excluded
th.�mselves from the market because
t��y do»'t wan� to take on IVorth-
W�ist, he said. '
� ` er, not tower fares
-atlnderson said the high cos� af a
r�j�ic airport would have led to high-
e�r�.ir fares in the Twin Cities, not
lm�ver fares. Norchwesc, which has
���allenged tlie veracity of air fare
( hparisons between Minneapolis-
���c'� Paul aiid other markets, said
rnpre campetiti�n daesn't guarantee
lvwer iares. Fare premiums are
coinmon at ail hub airports where
one airline is dominant. The upside
for a hub airport and surrolinding
rnmmtinirt� ic mnro crrvira iTfll'A
�
■ � �,
Metropolitan
�lirports
Commission
. ................................................
> Chartered: in 1943. to
guard pub�ic interest in
air vansportation
> Status:lndependent,
„�, butchair,
;� +'': board posi�
`t 3j .iions
-;,t4 appolnted by
•' "�� the governor,
D Members:l5. Eight
represent localities or
regions; the rest are at-
large.
> Term6: Staggered four-
year terms mean some
new directors are
chosen each year,
� Employees:400, '
mosty poGce. firefight-
ers and airpoR mainte•
nance personnel,
> eud�et �150 miliion
> Additionai authoriry:
io is5ue about $55
milNon in bonds. Five �
' years ago it issued
bonds to make a $315
m11Hon loan to Nortfi-
wesi Airlines.
� �ger�e� c��nies �lle�atior
' 8y Mike Meyere and Tony Kennedy � �
, Staff Writers
Officials of the Metropolitan Airpons
Cammissipn (MAC} say they heartily
favor Minn�sota fliers getting more air-
Iine choices and lower air fares a� Min-
neapoiis-St. Faul International Airport.
' The poiicy of MAC is to increase
cvmpetitioii.' M.tIC Chairman Pierson
Grieve said.
But the MAC's stated potecy has been
next to invisible in practice. ln fact, the
agency's efforts ca recruit eompetitian
appear lethazgic in comparison with
chose of airpprt autharities in many
other cicies across the cauntry. From
Tennessee to Texas ta Iowa, airport
commissions woo newcomer airlines
wich free cansulting services, teinporary
advertising subsidies and introductions
to lacal travet buyers —�all stracegies
untested by the MAC.
The age�icy, said a former MAG
chairman, a state ecanomisc, <� MAC
board rnember and critics at tiie state
•Capitol, does. little or nothing to chal-
Ienge Northwest Airline's domuial�ce of
Minneapolis•St. Paul Interiiatioi�al Air-
port and the hundreds vf m�llions of
dollazs i� higher air fares it reaps
tl�rough that tnazket power.
"We have a governnien�-
sanctioned monopoly," said
i�A�'i's 1996 budget wiibur ,t�2atci> a former 1�sinneso-
Sources of operating ';
and construction funds
Aalic�e rates, charges 2Z.896
Operadng and ConsVucti�n ��
fund ir�terest 8.8% �
NWA loan
repaynr�errt 3�2�f6 ,
Stete af'd 3.29b� �,.,��;� ���}�g,,.._
�, ,,.�;� _ �.�.; � „
,�. 4 � �,...x���. ��. .
b;�3���'��l,,r, ; ` �;5�fi3{a,��.''�;,�+i�
r�{, ux'';rvFa',, ' � _ ^ a,;::;,,�i�r�t': �;�v
>..��};,��«i,� � :r, . ra.,�. t
r.��: � �
Vl1'Li:
— �b�ir�.,r,�;A'i'�i ' 1 1�r ��i�"Ki�
.J��%;� s4..�(�#�`� � J���.,�/ ��''','
,�'M1"'�!Y,I f � '
r11Vk,fj��'NA�t i4Y.�4`.a�� A1�
_ w����t4CfY�1�i,,'4�.� :` ,�(1.,�tA�3,���i�:
� �'*s^,�:c� y � �.�r�» �di�� r
' �ayHrs d�r y�{: c
„�v��1.. ,r�`� .;ar`, 4�u' ;�,'n,
. � .. - ',�;, :� .
... �. .
Exetvtfve Director
> �effrey Hamief
Ch�lrman
D Plerson (Sandy)
Grieve
ta state cconomise whu has
spenc ycars studying transparca-
tion issues as a companent of
ecanomic development. MAC
officials, Maki said, "have two
faces — one towards the indus-
iry and one towards che public
that they ostensibly are to serve
— aiid they dnn't matcil."
Said Hugh Schilling, a fotiner
MAC chairman who was fired
by the �erson wiio appoinred
': him> Gav. .Arne Carlson: "The
'tentacles of Northwest ga out in
�inany different directions, start•
ing fram the governor on
down."
Schilling, who was chairman
of the MAC from 1991 until
Carlson fired him Iit i993 Eer
advocating that a new airport
be buiIt in Dakota Cowity, said
favoring anything against tlie
interests
of Northwest is risky, and lhereforc is a
course the MAC rarely takes, The com-
pany, which •has iFs he�►dquar�ers in
Eagan, is the largest servlce employer in
Mfnnesota, ��ith about 18,000 employ-
PPC �r, rhP �rate. about half of �tl�em
Hugt� Sc�
Twtn Ctti
M(chaei
dettt %t
operatla
"build as n
One of
MACs b;
strategy w
wtq enter
that do w
trafFic.
But 10�1
footha]d i�
C
. . .. . . . � •-
12i11i96 12:39
one sirjine is dornfnanc: The upside
for a hub airport and surrounding
Commu�iry is more service, more
jo0s, rnore visitors, Anderson said.
Detrait is a bus[er hub for North-
west, but tlie, company has mauy
rr^�e sirpon employees at Miniie-
t :s-St. Paul because it is a base
fo,��cieet maintenance and other net-
wq�rk duty. Northwest had 9,181 air-
pttu employees at Minneapolis-St.
Paul as of Dec. 31. At Detrait Metro,
No.r•thwest employed 3.1i2 workers
a�f Dec. 31, th� company said.
-;�lortiiwest's Anderson said
th�e's no evidence to suppopt che
theory that airline tickec pricing in
tLt�, Twin Cities is hartnfu! to the
e�onamy. On the contrary, tie said,
tho;Twin Cities economy is one of
tl��:; strongese in the natlon, and
;�rthwest's payroll is a significant
pi�ce of it. '
�Davld Littman, seniar economist
fo% Cocnerica Bank in Detroit, said
the•,iletroit Metro expansion is "a
coincidence to the econorny,"
which'has been on a roll the past
four years. But he said the develop=
ment oi Detroit as an internauona!
freight liub wiil bring new busuiess
activity.
Sli�iiar in scate
• �lorthwest's current cargo ogera-
tiflns in Detroit are similar in scale
t��-�rgo operations in the Twin Cit-
t( )ut opgortunities far interna-
ti�tal air shipment in Detroit are
,goe,a.ter be�ause Detroit has inore
irtternatlonai passenger ffights.
Nr.�,thwest t�as its vwn tteet of atl-
cargo alrcraft, but most of those
p12�tes are deployeci in traditional
fr�ight hubs such as Los �Angetes,
Chicago, Houston and Anchorage.
-A�derson said carga improve-
ments on tap at Detroit Metro are
n�esied ta carrect deficiencies there.
Nollzn, the transportation execu-
tive;at 3M, said the MAC has taken
steps to lure .'more internattonal
flights, which Im�roves carga pros=
pects in the Twin Cities. But more
improvemencs are needeci ta rnarket
the, airport to competitors of North-
wes.t; he said. �
,;�TolIan said ihe Twin Cities Air-
ptltt�. Task Force, an independent
nort�rafit group, is doing some re-
cr�taiting wark'of its own by compil-
ing data on che pent-up demand for
mi�Ye internatianal air carga service.
t�`&f Detroit is going to be che gate•
�vay, then we're going to be fighting
furcgwl�alever scraps are left," he
5�--.,
�,, � Researeh � librurians Linda
Scr,jt�tmann a�td Raberta Hovde
cwa�ributed to this repar�
3M B�DG
t�
i�
;:�
�:.
,.�.
:��
-`i
�?s
�:�
;k
42—OW-06 � 612 452
v� w �. w.�
s� Pierson (Sandy)
Grieve
Vke q�atrrftan ... . .--
> Steve Cramer
Commis$br�ers
> Ca�l M, 0'Aquila '
> pr, }ohn Dowd�e
> Edward Fiore
D Afton Gasper
> John Hlmie•
> QarcyLHitesman
> bhn N.Kahler
� Oanle! T. bhnson
> Oick long
� Thomas Merickel
D Louis 1A. Millet Jr.
D Paui R RahkamR
> Georgiann Stenerson
8940 N0.418 D00
_�agan, is the largest service employer in
; Minnesota, with about 18,000 employ
; ees in the state, abouc half of •them
= warkin� at Minneagolis-St. Paul lnter-
; nationai Airport.
: Schilling said the MAC's relationship
; with Northwest has traditi�naily been
"too cozy." For example, Carlson re-
� moved Wayne Popham as MAC chair-
€ man after Northwest complained chat
� his law ftrm was representing rival
American Airllnes in a court case
: against the hometown caraier.
Transportatian consulcant Leo K�rcz,
; a former Pillsbury Co. transportation
€ manager, said Northwest has "buffa-
� loed" potiticians into thinkin� the com-
= pany would leave the state if it doesn't
� get wttat it wants.
' "They want it their way and th�y
� want it their way 100 percent of the
; time, and nlost of the tin�e zhey get it,"
; said Kurtz, a member of the Twin Citics
; Airpor� Task Force, •
�� , `Arms�eng#h relationship'
;.. MA.0 officials deny being captives of
• � Northwest.
' "There's this perception out there
� that whaTever Northwest wants, MAC
;,gets." said Teff Hamiel, executive d'uec-.
; tor of the MAC. "I would argue the
� relati�nship we had with Northwest Air-
: lines, except in the last six montlis, has
s been one that has been e�;treniely un-
comfartable, confrontational, arguumen-
tative and one that was filled with a
great deal of frustration and ai�t.iery."
Richard Anderson, a Northwest seii-
ior vice president, describes tlie airline's
dealings with the MAC as no differei�t
than ics deatin�;s with airport comcnis-
sions in ot�her cities. "The relatianship
is �n o�en reiationship but an arms-
length retationship," Andersan said.
"We don't always agree an all issues."
MAC officiais �ite examples c�f put-
ting public interest ahead of ti�e inter-
ests of Nortliwest Airlines, They note
that the MAC favored Air Cenada as the
gateway airline between Canada and
the Twin Cities. Tliey nole the MAC
fought and won a fight H�tth Northwest
in a dispute 3nvolving rent on an airport
building. They npte �he MAC originally
didn't favor making a loan to Northwest
in 1991.
But on the biggest MAC decision in a
generation, to adopt a sIow-etpansIon
policy for the existing airport instead ot
building a new airport, Northwest won
big. Tl�e airline opposed building a new
�airport, whicl� would have cost it mE!-
lions, aud the MRC ended up opposing
the airport, too.
`gulid as needed'
� Afcer spending more chan six years
and $IO miliion studying the neeci for
investment in airport faciIitSes, MAC
and state officials chose a policy of
uaffic.
Buc low
fooihold in
in Detroit,
and passer.
than in the
The low
tered the T�
gled withflu
In inten
executive c
said they at
petition in
ket, as a ge
with specifi:
seem oppo
airpon a�'ic.
If new c<
ihe MAC is
professitina
term subsic
penses. Gr�
niust avoid �
one airline
serving d�e 7
The MAC
wanting to c
St. Paui Inte
a disadvant�
land"uig time
"If Vang�
ta corne in
time, right ii
bank, they`r
iz," Hamiei s
to them?"
Carriers s
ed, he said,
investments
leases at the .
Sald H:�n
bounce th�i
small carrie�
wl�o wan[s a
�•iamiel al
lincs aren't f
make gate co
Disadvant
Hamiel ar.
.agree that c
landing time
advantage. T
leave �5 mir.
time does nc
on a campeti
The MAC •
west to push
to accommo
tors, becaus�
riers are ser
quateiy and �
Patrick 0':
•who served E
more than i
down in 1ui�
lines wantec
(Minneapoli
couldn't Jet �.
c#on't have th
Hamiel d
C���
12i11i96 12:40 3M HLD� 42-8W-06 i 612 452 8940
� � ■ ai v.s.d .�. . �►0 0 vravovms�r s-ae zos .. • oa ��_-,� .
. ,, � . . > ,.� j �: � �' � � :� �
• •
By Mike Meyers and Tony Kennedy
Staff Writers
Officials of the Metrogoli�ai2 Airports
Commission (MAC) say they hearcliy
favor Muuiesota IIiers getting more a3r-
line choices and Iower air fares at Min-
neapolis-St. PaulInternationalAirport.
"The policy af h�1AC is to increase
corcnpetition," MAC Chairman Pierson
Jrieve said,
But the MAC's stated policy has been
zext to invisible in practtce. In facE, tlie
3gettcy's efforts to recruit competition
3ppear lethargic in comparison with
;hose of air�ort auth+�rities in many
�cher cicies across the country. From
Isanessee to Texas ta Iowa, airport
:ornmissians woo uewcomer airlines
Nith f.ree consulcing services, temporary•
idvertising subsidies and introdtcctions
:o locai travel buyers — all strategies
�ntested by the NFAC.
7'he a�ency, said a former MAC
:h�°-man, a state econamist, a MAC
�i )member and cricics at the state
�apirol, does, littie or noihing to chal-
enge Northwesc AIrline's dominance of
Kinneapolis-St. PaulInternationalAir-
�ort and cEie hundreds of millions af
�ottars in IYigher air fares it reaps
:hrough t.ha� market power,
"We have a governmenc-
sanctioned monopoly." satd
;$ Witbur Maki, a forrner Minneso-
1 ta siate economist who has
i spent years studying transporta•
tion issues as a component of
• economic development. MAC
• offciais, Maki said, "have two
faces -- one towards the indus-
'�� try and orie towards the pubiic
that they ostensibly are to serve
— and they don't match."
Said Hiigh Schilling, a former
MAC chairmaii who was �red
` by the person who ap�ointed
. him, Gav, Arne Carlsan: "The
= tent�cles of Northwest go out in
�,; many different directions, start-
ing from the �overnor on
���� ao��.l,
Schilling, who was chairman
af the MAC from 199I until
,'" Carlson fired him in 1993 For
�� � advpcating that a new airport
'�0"� be builc in Dakota Councy, sa�ci
favoring any[hing against the
intereses
�f Nort}�west is risky, and therefore is a
:ourse the MAC rarely takes. The com-
�anv, which • has Its headquarters in
_ • . � . . ..-.._,. _„_t_ . .
. Star Trmune Pnoto tiy c:nery� t+. meyer
Hugh Schltling, forme� MAC chairman, said the combinatIon of airport dectsions tn tite
Twi� C�iies and Detroit wili feave Minneapolts-St.Paul "vff the fore�tont af worid traval."
MRchael Levine, executive viGe presl-
dent fa marketing and internat(onal
vperatfons at Northwest. '
"build as needed" for additional gates.
One of ihe assurnptions behind the
y1AC's 6aseline go-slow expansion
strate�y tvas that few lo�v-cost carriers
wilt enter the market at3d chat those
ciYac do will fail ro attrac:� significan[
"..rn_
MAC repeatedly has recruited South-
west �nd that the MAC could flnd room
for Southwest if the airline chose to
enter this market. �-Iamiel cieclined to
specify how the accommodation would
be matle_ �
The MAC has a$SUO,Q00 budget to
promote air service to Minneapotis,
MAC �l[ficials say. Five years ago, the
agency had no promotions budget. The
MAC does ncx disclose the details of the
promoti�ns budget.
Yet, listening co Roberc Stassen, Mt1C
assistanc execucive director, describe
how the money is spent leaves the im-
pression �hat the butk of the promo•
tions budget is dev�ted co wooing trav
elers — not new airlines — to come to
Minnesota.
Since Northwest carries the inost
passengers to and from Minnesota,
Narthwest has the most to lose from
new campetitors and. the most to gain
fram generic appeals'for tourists to visit
die state. �
Nine of ld low-cost airlines cantact-
ed by the Scar Tribune say the MRC
never has tried to persuade them to
start operations in Minnesota.
Alrs� r_n��rtptl hv MAC
C.
C; .
12i11�96 12:41
>f Norchwest is risky, and therefore is a
:ourse the MAC rarety takes. The cvm-
,eczy, which , has its headquarters in
;agan, is the iargest service employer in
+iinnesota, with about 18,00� emploY•
�es in the state, about half of � them
vork'ng at Minneapolis•St. Paul Inter-
►ai J Airpott.
Scnilling said the MAC's relacionship
�ith Norihwest has tradicionally beei�
too cozy," For example. Carlson re-
zoved Wayne Pvpharn as MAC chair-
�an aher Northwest complalued that
is Iaw Crm was representing rival
.merican Airlines in a court case
gainst the hometo�n carrier.
Transportation cansul[ant Lea Kurtz,
former Pillsbury Co• transportacion
zanager, said Northwest has "buFfa-
�ed" politiclans inta thinking the com-
any would leave the state if It doesn t
et what tt wants.
"They want i[ cheir way and they
rant it their way 140 percent of the
:me, and most of ihe time they �et it,"
aid Kurt7, a member of the Twin Cities
.irpon Task Force.
�rins-leng#h reiatlon�hip'
MAC officials deny being capiives of
Iorthwest.
"There's this perception out [here
nat whatever Northwest wants, MAC
ets," said Jeff Hamiel. executive direc-
�r of the MAC. "I would argue the
�lationship we had with Northwesi Air-
ne��- except in the last six rnonths> has
e( ,'ne that has bcen extrernely un-
om�orcabte, confrontational, argumen-
�tive and �ne that was filled with a
reat dea[ of fnistration and anxiety."
Rict�ard t'uiderson, a Nonhwest sen�
�r vice president, describes the airline's
�ealii�gs with the MAC as na different
ian its deaIings with airport commis-
ions in ocher cities. "The relationship
s an open relationship but an arms•
angth reiationship," A��derson said.
We don't always agree on all issues."
MAC officials cice examples of put•
ing public interest ahead of the inter•
sts of N�rthwest Airlines. They note
hat tlie M�1C favored Air Canada as the
ateway airline between Canada and
he Twin Cities. They note the MAC
�ught and won � fight wich Narthwesc
a a dispute involving rent vn an airport
�uilciing. They note the MAC originally
�idn't favor making a loan ta Northwesc
a 1991,
But on the biggest IviAC decision in a
eneration, to adapc a slow•expansion
�olicy far the existing airport instead of
�uilding a new airpor�, Norchwest won
�ig. The airline opposed building a new
�irport, which would have cost it mil-
io-' '1nd the MAC ended up opposing
hi: port, too.
Build as needec�
After spending more than six years
,nd �ld million studying the neeci for
nvestment in airport Facilities, MAC
.nd state afficials chose a policy of
�
HLDG 42-81J-06 -► 612 452 8940
Sitclte� WS� til�tl t�w ivw-�u�� �ui�iLi�
will enter che market and thac those
that do will fail [o attract sign�ificanc
traffic. ,
But !ow•cost carriers hav� gained a
foochold in other huh cities — notably,
in Detr�it, where Northwest has a hub
and passengers are paying lower fares
than in rhe Twin Cities, on average.
The low-cost carriers thac have en-
tered the Twin Cities market have strug-
gled without much aid froin the MAC.
In in[erviews, �he MACs chalrman,
execcttive diieccor and chief pl�nner
said chey are willing to help faster com-
petition in the Twin Cisies airline mar-
ket, as a generat rule. Buc, ti,ihen faced
w�th specifics, the same MAC executives
seem opposed to mariv ideas tried by
airport officials in other cities.
If new carriers do want ta come in,
the MAC is against asstscing them wlth
professianal market research or short-
term subsidies to deEray start-up ex-
penses. Grieve said airp�rt afficials
must avoid offering financial bene�its to
one airiine that aren't avaiiable ca �11
serving the TwIn Cities. .
The MAC ac�nowledges that airlines
wanting to operate out of Minneapolis-
5t. Pattl Internatlonal Aitport remaiu at
a disadvantage in choasing takeoff and
landing times. � '
'`If Vanguarci or some airiine wants
co come in and say they want prirne
timc, right iit the middle of Northwest's
Uank, they're probably no� going to gec
it," Hamiet said. "tNhy shouid we give it
to them?"
Carriers sucli as Northwest and Unit-
ed> he said, have made maJor financial
inv�stments and have signed lang-term
leases at the �irp�rt.
Said Hamiel: "We're not going to
bounce them out to accommodate a
small carrier with a couple of airplan�s
who wants a prime=time operalion."
Hamiel also said many fow-fare air-
lines �ren't f#nancially strong enough to
make gatetocnmitments.
Dissdvantage dispu#ed
Hamiel and other MAC officiats don't
agree that constrai�its an takeoff anci
landing times put newcomers a� a dis-
advantage. They say asking an airline to
leave 45 rninutes before nr after prime
tirne daes not impose that big a burden
on a competitor. . �
The MAC�satd it wauldn't aslc North-
west to push back a few flights in order
to accommodate prime-time competi-
tors, because Northwest and ocher car-
riers are serving the Twin Citles ade-
quately and got there fust.
Patrick O'Neil1, a business consultant
•who served as a MAC commissioner for
more than [!ve years befare s�eppirsg
down in June, said, "If 5outhwest Air-
lines wanted to come into that airport
[Minueapalis-S[. Paul) today, we
couldn't Eet chem. It's pathetic. We just
�ton't have the room."
Hamiel disagreed. saying that the
N0. 410
ttc�ca u<w �i^_� u iv �.....a.,u..... ....... .•.
start operations in Minnesata.
Not courted by MAC
MAC officials boast that Twin Cities
landing fees are atnong [he lowest in
the natian, a golicy that they believe
should encourage low-cost carriers to
enter the market, •
But the chiaf beneficiary of Iow land•
ing fees is Northwest Alrlines, which
cIaimeci i 6�ercent of the traffic in 1995.
� By keeping Ianding fees tow, the
MAC has chosen to have airlines pay a
sinatier share of airpon operating costs
than they woutd if fees were higher.
Conversely, tliat choice keeps che
price of parking, food and•recail goods
at the alrport — alt paid by passengers
— higher [han they wouid b� if airlines
paid hIgher ianding fees.
MAC Commis'sioner Al�on Gasper
said the agency is militan[.about keep•
ing airport costs low for Northwest�and
other airline tenancs but less interested
in contzolling parking and cancessions
costs borae by.uavelers.
"i've aIways had some concern with
the balance," Gasper said. "If you are
going to be the wortd's cheapest' air-
pon, then be cheap for everybod.y."
Maki said the baiance of power at
the airport will not change unless the
financing af the MAC is changed. Abouc
$24 niilIion of the MAC's �8T.3 miIiion
annual operating.budget comes Erom
charges iinposed on Northwest.
Ch�irges on other airlines and parking
anc� concession revenues make up the
rest of �he agency's operacing budgec.
Maki said thc •state should consider
using public money to pay .for some
MAC enterprises — most notably, re-
crttiting carriers to entez the mazket.
Northwest objects forcefully to con-
tributing to airline recruiting efforts.
Michael Levi�ie, executive vice presi•
dent for marketing and tnternational
operations ac Northwest Airtines, said
his company never would tell the MAC
Ttzat it couldn't accammodate a com-
petiEor. But if tl�e MAG wants to bulid
gates for a competicor, don't use North-
west's money to pav for it, he said_
"If it's my money, I object to it,"
Levine said. "If it's Sharan Sayles Bel-
ton's money or whatever the name of
the mayor of St. Paul's money — hey,
free countty." •
Gasper, che MAC cammissioner, said
the MAC harbors a fear that the Twin
Cities wil! fall inro dire economic straits
If the airport tases its status as a Narth-
west hub.
C�asper said he's not convinced the
fear is justified. Gasper, who has been
oucspoken about jet notse in neIghbor-
hoods, favored �onstruction of a new
airport.
"In one sense we are lucky (to be a
hub for a major airline], but we pay an
awful lot far it," he said. �
r ,
�
12i11i96 12:43
,
r
�
�'
3M HLDG 42-8�-06 i 612 452 8940
��
�. .� ' ' � ...,,,....> �'"` �':
. � 7 ,�i ; i. n..r��"' ^.
. �i . � i. .� � ,�P'' 1.
• . ��b � • � ....�....�..,�..,.ti.. . r •
' r'+�� Z�
�C,r�...�..»
��\,. •�
,:,,�;•�;�'••t! .
i
A
3 ,Q
� �
Q'
��� �
��� �
rn
oo
AQ �
s� O
�
3�
� �
er � �. � p o� p��qQ
"�"��M d»•�C
� ��O K N ��d�'s'l
� �y'�7t9 � r,�.� � �
��Y�'�� RZ y
8. „�d�.R�� �
9 •���Aa�a�-
� � ����Q^.� _ �
a ao' S����r�
S�o'e' �
� ^'. 8 � n �' �'� �. �
�'Oo�� w� �.'.0
`17�'�, yo�r'�l�4
�a$« SgAa��
�iO� ��l. N
�� °' ; . a�
�` ` 5 °o�� o _
� ~O O � F. S4 �
a��������.7 �
��.���°��3��'°
0
ao
c�aw an ��4° c�a A
e �y O.� � ar A
�•�� � fe �' cy �A�+7�
`�GO��L� ��'90C�
� � O
:� ;�� �'`N'o��,
�'�_m � '�
0
a,�`rw�. 5'��a�`,
�
d �'� �o c�.= �'�
�., � O tD �
�° 2t � � °'m �s3
� � Q �-.G a.a•��,c�,.
y i . � C � � � N
y F-� j e� � o� O�
�+ �j � .� O. �f • C
s� ad
� E v a.=�'o �co
v�w c o n�' 's�
� �� � �.�,'Ai
0
�°'w G'oesm�9
m a � G
��o �OO.s.'�.B
6 p Qr� n p�
a°� ec3o�a�a�
d o �n �'� A�9 �o
�vyv�,wW�'9�''r�'��o�o�
i y^4 `a �9�p y�C � A��'
��4�,�^�, N^�
a � �.� b � �.
p��g
�'-Eo 'a�oo
� � et O 'TJ �
.�".°6'"°?� �`��°�e
s .. ��
D��� d m � $�2 a
�
o `a° c�� �'- 3� c
�`s�o�ca�? �c'-{Y'
, � r
N
�
K
a
�
�
�
�
m
C
z
m
�
D11
__.
C
�
.�:,�: . •:;:
��.�,-r � .�;�:
�CO�i�ct -
, . .� :
� : oi'-:�te��,st
� . -* .:��
, 1.� ,
� �1t�.1�.Cil
r.b �, .
; �. .3T -
By Sue Hegarty '
Staff Writen � .. '
'."�`. �Th`ere's�: a �fine `�ine 'b�etwe�n '- ` '
what constitutes a legal conflict
of iritere'st�:and,what is merely a
political viewpoint, said Eagan
: Mayor .7bm• Egan; a practicing �
i � lawyer.,'. . . I
Egan's comments .Jan: 28
were.in response to accusations �
�, by Councilmember Sandra �
Masin that Councilmember Bea �
;. � Blomquist.had crossed over the . i
: :. line. : .. . ' . :.' . �
�' I,ast month, the council was ,
.::preparing to.vote bn�whether to �
' begin mecliation talks with the �
; Metropolitan Airport Commis-
; sion�about a contract that would
. prohibit construction of a third �
narallel runway at the � Min-
j �apolis/St. Paul International �
�rport prior to 2020. Blomquist, �
°� a chemist for Northwest Airlines
(NWA), supported mediation but ,
, voiced the opinion that a third
parallel runway may not be a
bad thing for Eagan's economy.
She also suggested that the
council modify its legislative
stance thai the state support
land . preservation in Dakota
County in case a larger airport is
needed in the future.
� Masin has supported land
preservation; Blomquist does
not. The council reversed an ear-
lier. decisian and withdrew sup-
port for landbanking by a major-
ity. vote. '
� At the following� meeting,
Masin asked the council to strike
Blomquist's comments from the ,
•: minutes of the previous meeting
and said Blomquist should have
abstainecl from voting.
Blorriquist disagreed.
City.Attorney James Sheldon
iirafted a. memo out�ining the
= .statute: which states that the
'; �`-Yiere fact that a councilmember
�� ;employed by :a' firni'having a
; ': contract `•with the city .does �not
; CONFLiCT: To Page 15A
�, �`�,.
t
. � ' � � .+. . 4 {� . . . , ' ,
.,.. _ t.iY�.,,... _�- ---- --- � ____.,......J. cucii � g�iiar, �.. i,_ .
Coi�l�.ct: Eagan city attorney drafts �em.o
From Page lA
constitute a conflict of interest. The coun-
cilmember must receive a direct or indi-
r.ect financial benefit from the contract. -
. Masin said that since Blomquist re-
ceives a paycheck firom the airline, `she
gains financially,; so iherefore _there is. a
conflict. . • -
Other council members ' argued in '
Blomquist's fayor. Ted Wachter said his :
wife i,s a former NWA employee and re-
ceives retirement pay from. the airline.
Pat AWada also has a relative.who works
for the airline. : = � '• � �
"We're.all impacted because we all live
in Eagan," Wachter. said. � - . .
�
A resident who attended the special
council meeting Jan. 28 said he didn't
like what he had heard. and read about
Masin's'request to strike the minutes..
"Public record was . attempted to be
pushed under the carpet," said Zbm Ped-
ersen, an Eagan resident •and NWA� em=:
ployee since 1966. ."Most�of the state is��
involved with Northwest Airlincs. Every=
one has some tie. That's not the issue."_ ,.
The mayor said residents need to
know that NWA is not �being`targeted.
Rather, "the key element is that if aziy:
one of us appears to be•championin,g :a
cause, then it's up to �the electoral process .
to change things. if they don't agree.,"
Egan said. : "
C,
�