Winnebago County Aviation Business Park - Executive Summary

A Win – Win for the Entire County!

Background 

Winnebago County has weathered the recent economic downturn remarkably well. The diversity of our employer base is a one of the primary reasons why. We have a strong foundation but we know, now more than ever, that we cannot stand still - we must take action to build for the future. That’s what economic development is all about.

The world of economic development is a competitive one as states and locals jockey to bring in new and growing businesses. To be successful we must stand out. Many in the County have long believed that we have all of the components to transform Wittman Regional Airport into the global hub for general aviation year round: EAA world headquarters and AirVenture fly in, excellent airport facilities, an existing aviation cluster, supply chain and highly skilled labor in the field. 

To advance aviation related economic development on and around the airport, Chamco (the Oshkosh Industrial Development Corporation) formed the Chamco Aviation Committee over a year ago. Chamco is simply the catalyst organization for many others who have a passion for seeing Winnebago County become the home of a thriving general aviation business cluster. Partners in the effort include:

• Wittman Regional Airport and Winnebago County
• EAA
• City of Oshkosh
• Oshkosh Area Community Foundation
• University of Wisconsin Oshkosh
• Fox Valley Technical College
• Oshkosh Chamber of Commerce
• Oshkosh Area Economic Development Corporation (OAEDC)
• AeroInnovate
• Sonex Aircraft

To attract aviation related business to the airport we need an attractive location for them.  Often these businesses want access or proximity to an airport.  An aviation business park is an ideal solution. First, we need land.  The airport currently has less than 7 total acres available for development. Fortunately, there are currently two properties (totaling about 195 acres) for sale adjacent to the southeastern end of Wittman Regional Airport (see attached map).  The Chamco Board of Directors, the Oshkosh Area Chamber of Commerce Board of Directors, the Oshkosh Area Economic Development Corporation Board of Directors and the Airport Committee of the Winnebago County Board each has recommended purchase of the land for development as an Aviation Business Park.

An Aviation Business Park: What Does it Mean  

The goals of the park are: 1) to assure development of land adjacent to the airport is consistent with airport and County objectives and 2) to drive economic growth. The University of Wisconsin Extension estimated that an Aviation Business Park could create up to 1000 direct jobs, an additional 600 jobs through enhanced economic effect and $343M in additional annual economic activity in the county.   

This is an Historic Opportunity and Partnership

The cost of the land is approximately $3M.  However, the County is likely to be reimbursed for up to 90% of the cost of the land from the Bureau of Aeronautics (the airport has been very successful in the past with obtaining BOA reimbursement).

The County has partners.  The City of Oshkosh and Chamco have proposed to help develop the Aviation Business Park using the model used to develop the Oshkosh Industrial Parks. The City will establish a TIF district to put in the necessary infrastructure such as roads, utilities and stormwater management facilities.   Chamco will market the park to prospective businesses.  It may take some time to fill the park, but we know how to do it.  Twenty years ago the Southwest Industrial Park in Oshkosh was farmland and today it is 800 acres; 90% full; home to Bemis, 4imprint, Miles Kimball and many others; employing 3500 people and having an assessed value of over $100M. 

The Approval Process 

The Winnebago County Board will vote on whether to purchase the two parcels of land on April 19^th. Once we have an affirmative vote, the County will work to finalize the purchase of the land (likely contingent on the City putting in the infrastructure).  The airport has already petitioned the Bureau of Aeronautics for reimbursement of up to 90% of the purchase cost.  Once the County has voted to purchase the land, City of Oshkosh Common Council will consider a proposal to establish a TIF district to develop the infrastructure of the park.

What can you do?

Contact your Winnebago County Board Supervisor! Whatever means - email, phone, face to face conversation – but let your Supervisor know this is a great opportunity and you support his/her YES vote. Explain how this is a WIN-WIN-WIN.

• We are well positioned to attract aviation related business.  We need land on the airport to do that.  An aviation business park is a great solution.
• Land is available now adjacent to the airport and there are willing sellers.
• The County is not in this alone. The City of Oshkosh is stepping up with a proposed TIF district to fund the needed infrastructure.  Chamco will be there to help market and develop the park.
• There is a strong likelihood that up to 90% of the investment will be reimbursed by the Bureau of Aeronautics.

All economic indicators point to recovery – we need to be ready with the tools to grow the economic base of our County!

Airport Land Acquisition Frequently Asked Questions

Why do we need to buy land?

To ensure development adjacent to Wittman Regional Airport is consistent with County objectives and to drive economic growth through establishment of an Aviation Business Park to attract aviation related business to the County.

How much land is available at the airport now? 

The Airport has approximately 7 acres on three separate parcels available for development. These are very small parcels each are development challenged in some way through the presence of wetlands insufficient lot size or irregular lot shape.

Where is the money coming from to purchase this land?  Do we have the money to spend?

The $3.2M purchase price will be financed through bonding.  The Airport has petitioned for reimbursement from the Wisconsin Bureau of Aeronautics (BOA) and the FAA.  In the past, the Airport has been very successful at getting reimbursement for the County of up to 90% of the land cost.  Funds from the BOA are generated from aviation fuel and airline fees, not tax dollars. 

It also costs money to get the land ready for development.  How will we pay for that?  

In an historic partnership with the County, the City of Oshkosh has proposed that it put in the necessary infrastructure to get the land development ready including water, sewer, roads and stormwater management at an approximate cost of $6M.  The land will be placed in a TIF district to allow the City to recoup its costs over time as development occurs on the land.

How will it affect the taxpayers?

It will benefit taxpayers to have more businesses start, locate and expand in Oshkosh through more jobs and associated economic impact.  The University of Wisconsin-Extension analyzed the potential economic impact and prepared a study which projects in the best case scenario, the park could create 1619 jobs, generate $138M in total income, $343M in increased sales and $8.4M in local government revenue.

If we expand the tax base we are able to collect revenue without increasing tax rates.  There will also be revenue from leasing the land to businesses in the park.

When will the County break even on its investment?

It depends.  It is likely the County will be reimbursed 90% of its investment by the Bureau of Aeronautics but this often takes time.  Once the County has been reimbursed it has only 10% of the land cost to recoup, or approximately $320,000 (plus some odd interest from the bonding, depending on the timing of BOA reimbursement).  This would be directly recouped through lease revenue and indirectly through more jobs, money cycling through the economy and expanded tax base.   

What is Chamco, the Chamco Aviation Development Committee and how do they relate to this effort?

Chamco, the Oshkosh Industrial Development Corporation, has been serving the economic development needs of industrial businesses in the Oshkosh area for over fifty years and is the City of Oshkosh’s agent for the marketing and sale of land in the City’s four industrial parks.  Chamco formed the Aviation Development Committee in late 2009 to champion aviation related economic development in the County.  There are a number of participants from different groups who are all passionate about aviation related development and believe it is a major untapped source of potential growth for our County.  One of the Committee’s major initiatives is to advance the development of an aviation business park on the airport. 

What is AeroInnovate and how does it relate to this effort?

AeroInnovate is an initiative started by the University of Wisconsin-Oshkosh to bring together entrepreneurs and innovators in aviation.  For the past two years they have held an event at EAA AirVenture Oshkosh which has been well attended and has gained increasing support from EAA.  AeroInnovate has shown there are opportunities available to us to locate aviation related business here if we have land on the airport.  AeroInnovate is the originator of the vision of Winnebago County as home of general aviation innovation in the country.

What kind of opportunities have we lost because we have no land?

It is difficult to quantify.  We often do not know what we have missed out on because we haven’t solicited prospects due to lack of land to offer them.  But, as an example, during the last two years of the AeroInnovate conference at AirVenture, several innovators and entrepreneurs in aviation have expressed an interest in locating a manufacturing facility in Oshkosh if we had land available on or near the airport.

How long will it take before the park is full with taxpaying businesses?

It depends.  The Southwest Industrial Park in Oshkosh was established in 1978.  It is now nearly 800 acres and 90% full with 3500 employees and over $100M in tax base, but it was a gradual process to get there.  This aviation park would be smaller, at 200 acres but will still take time to fill.  Under perfect conditions and with some luck, it could be full in 10 years, but realistically more like 15 to 20.  Everyone will need to be patient as we undertake efforts to transform the County into the home of general aviation innovation.  

What kinds of businesses are we trying to attract?

Smaller sport aircraft manufacturers are a logical choice, but just as important are the businesses which supply aircraft components and the other industrial businesses which support aviation. 

How will you market this park?

Chamco is experienced in retention, recruitment and expansion of business and will provide marketing services as well as site selection and development assistance and expertise in financial resources for potential prospects.  We will use AeroInnovate for leads.  We will advertise in trade publications.  We will have a website.  We will begin dialogue with EAA and the State of Wisconsin on how they might be able to assist us with marketing efforts.

Why the County?  Why not the City of Oshkosh or a private developer?

In order for the land to have airport access, the FAA strongly recommends the land be owned by the County.  Furthermore, County ownership ensures that development adjacent to the airport is consistent with airport objectives.  Finally, the County is not going this alone: it has partners in the City of Oshkosh and Chamco to advance this project.  It is through this partnership that this project can be a reality for the benefit of the entire County.

In this economy, is this really the right thing to do?

Economic indicators are up, signaling improvement in the economy.  Now is the time to make investments to have the tools available to grow when the economy is fully recovered.  Land prices are low now and there are willing sellers, which may not be true in the future.  This project has momentum now because of all of the people who are passionate about it and engaged in advancing aviation related development in the County.  Now is the time.