The current terminal building, which was opened in 1965, has served the region well for several decades. In 2005, the MBS International Airport Commission engaged a team of airport consultants to evaluate the long-term viability of the terminal. This was followed by another assessment in 2006, which confirmed the earlier findings. Both teams of experts reported that a major renovation of the existing terminal or construction of a new terminal would be required to bring MBS in line with current and future aviation requirements. Doing nothing was not an option. The steady demand for air service in our region requires that MBS improve its terminal facilities.

Both consulting teams demonstrated that the new terminal building would be the more cost-effective option, and would give MBS the opportunity to invest in a long-term versus short-term solution. The new terminal building is expected to meet the needs of our region for 40 to 50 years. With the cost of a new terminal estimated at $48 million, and a renovation at $43 million, the long-term advantages of investing in a new facility were clear. Also, the construction of the new terminal building will not interfere with passenger service, whereas a renovation would.

Reynolds, Smith and Hills Inc. (RS&H), the consulting, design and architectural firm that has developed the terminal design, did so based on an in-depth review of the distinctive characteristics and values of our region. As a result, the new terminal building captures the innovative spirit our communities share, as well as the history, values and diversity that are unique to this area.

From a functional standpoint, the new terminal is designed to maintain the ease and convenience that passengers appreciate about MBS International Airport, with structural elements that will make it easy to adapt and expand the airport to meet future needs.

Funding from the Federal Aviation Administration (FAA) will make up about 70 percent of the total cost of the new terminal project. These dollars are federal funds generated by user fees. They do not come from the general fund and can only be used for aviation projects like the MBS terminal. Passenger facility charges generated through use of the current MBS facility will make up about 7 percent of the funds needed for the new terminal building. The state of Michigan, which handles the distribution of the FAA funds to state airports, provides matching funds that will cover 2.5 percent of the total project. The remaining 20 percent or $10 million are funds pledged by MBS International Airport itself. Through fiscal responsibility and effective management, we have extended the useful life of our current terminal building, set aside surplus revenues and remained debt-free. Our goal is to get the same lasting value from the new terminal building.

There are no current local tax dollars utilized in funding or maintaining MBS International Airport. The airport commission does not intend to fund any part of the new MBS terminal building with local tax dollars.

The entire design of the new terminal building is based on maximizing the conservation of energy and reducing the carbon footprint of the building. However, because obtaining LEED certification adds an approximate 25-percent premium to the overall cost of a facility, MBS International Airport has chosen to work with RS&H to incorporate elements of LEED™ 1 design throughout the terminal, including use of locally produced materials whenever possible, but not to pursue formal certification.

¹LEED™ is a trademark of the U.S. Green Building Council (USGBC)

We are committed to using local materials and suppliers wherever possible, provided they meet the design and building specifications, quality standards, and federal building requirements. We have already contracted with American Excavating for the utility work, and will be evaluating other local suppliers throughout the design and construction process.

As we strive to revitalize the economy of the Great Lakes Bay Region, the new terminal building will be a sign of our commitment to growth and improved quality of life, and a source of pride for everyone who lives and works here. Visitors to our area will be welcomed into a modern, attractive facility, creating a positive first impression of our region for customers, prospective investors, potential employees, and vacationers. There is a strong commitment on the part of area corporations and businesses, chambers of commerce, economic development groups and community leaders to maintain a vibrant MBS International Airport as our portal to the world for business and leisure travelers.

A study done in 2005 by The Boyd Group/ASRC Inc. of Evergreen, Colorado, estimated the economic benefit of MBS International Airport to Midland, Bay and Saginaw counties at more than $100 million annually, with the direct impact of jobs and property-related revenues of more than $50 million annually. The vast majority of business people surveyed stated that they could not be located in the region or would not be as profitable in the absence of MBS International Airport. In addition, the report calculated the savings in time and cost to local users of MBS versus other airports at more than $7 million annually.

MBS operates largely from revenues it generates from tenants; namely, the air carriers, car rental agencies, food service providers and other tenants. There is no local tax subsidy for MBS.

The new terminal building will be much more attractive and efficient for air carriers and other tenants of the airport, including car rental companies and concessions, which will give MBS an advantage in attracting and retaining the airport services our region needs and wants. However, the number and costs of flights from MBS will not be directly affected by the new terminal building. Both flights and fares are set by the airlines based on the size of the market served and other factors. The more people who choose to fly from MBS, the more likely that the number of flights will go up and the cost of tickets will go down. Similar to shopping center owners, the airport cannot and does not set the price of tickets, food or merchandise available at the airport.

A key objective of the new terminal project is to improve airport services overall. As a part of this effort, we will be reviewing all aspects of our concession program, including the incorporation of concession services on the gate side of the terminal to serve departing passengers who have already been cleared through security.

The ease and comfort that we enjoy at MBS International Airport are design requirements for the new terminal building. Convenient parking, easy access to the terminal and other comfort features will continue to be a part of the MBS experience.

The MBS International Airport Commission has not yet discussed this matter.

Yes. Passengers will continue to utilize the current terminal until the day they begin using the new one. There will be no interruption of service to our region.

As the new terminal building takes shape, we’ll continuing working hard to improve our service to the region. The airport manager and commissioners will continue to work with air carriers to obtain competitive fares and service upgrades. We’ll be taking a more positive, proactive approach to our marketing and communications, to encourage travelers throughout the region to “fly MBS,” to stimulate increased demand and make our local airport stronger. We are planning some significant upgrades to our web site to make it more valuable to our customers. We also will make some overdue improvements to the current terminal building to enhance the travel experience of both residents and visitors. In short, we’re doing all we can to make MBS the airport of choice for our region, today and tomorrow.