Now that the Naples Airport Authority has rejected federal and state construction grants, it finds itself on uncertain ground for financing future construction and improvement projects.
The process for approving and funding airport projects will change now that the Naples City Council has taken a more intimate role in overseeing and approving those projects. On June 19, one day after the city announced it would review every permit for buildings, new landscaping, apron improvements and other projects, the NAA failed to act on millions of dollars in Federal Aviation Administration grants.
And, because the deadline for accepting the grants was June 30, that took the airport out of the game for the FAA grants for 2025-26 and perhaps longer.
Airport Executive Director Chris Rozansky raised the city’s new approval process as the commission was poised to vote on FAA funding for the North Road Terminal apron improvements.
Rozanksky told the commissioners he was uncomfortable accepting the grants until the city provided a more detailed explanation of what the city’s approval process will look like.
“Based on city council action yesterday to adopt this resolution changing the process for approval of development at the airport, we haven’t yet really had an opportunity to digest what all that will entail,” Rozansky told the board. “There is a threshold that this project could potentially exceed which would require it to go through this new process. We don’t have any understanding of what that process might look like yet.”
NAA Chair Rita Cuddihy had an excused absence for the June 19 meeting, which meant there was no one to break tie votes. Then, through a series of tie votes – which under NAA rules means no action would be taken – the board turned down $8.3 million in FAA and FDOT grants that would have paid for milling, new overlayers of existing asphalt, relocation of taxiway connector Charlie, high mast lighting, fuel truck containment parking and safety improvements at the North Road Terminal apron.
The NAA has enough in its reserves to pay for North Road Terminal apron improvements, but the vote means a delay in fixing the apron, which is in dire need of repair.
“This pavement is some of the worst condition pavement we have on the airport,” Rozansky told the commissioners. “It’s not yet reached the point of failure, but it’s getting closer and that’s important to know.”
Commissioner Kerry C. Dustin urged the board to accept the FAA grants.
“We should submit the grant request today because that needs to be done,” Dustin said. “There should be no further delay or any more safety risks than we currently have. We also have potential risk to aircraft or persons from a safety standpoint, because this is very poor pavement.”
Dustin said bypassing the FAA grants would also damage the NAA’s relationship with the FAA.
“We also run a risk of creating ill will with the FAA – with whom we are trying to cultivate a good working relationship – by signaling we’re going to become one of their bad actors,” he said.
Delaying projects also makes them more expensive, Rozansky said.
“The problem often becomes cost escalation with contractors and things like that,” he said. “There would be a long lead time before any work would begin that would allow contractors to go through submittal procurement, permitting all those front-end activities.”
Commissioner John Crees said the NAA has $20 million in reserves to pay for the apron improvements, but the airport will have to develop a budget to reflect the new reality, NAA spokesman Dave Breitenstein told The Naples Press.
“The NAA has money in reserves to cover those costs this year,” Breitenstein said. “However, we have many important safety projects coming up in the next five years, including the replacement of the airfield lighting that was damaged by Hurricane Ian and the rehabilitation of both runways.”
The commissioners – also through subsequent tie votes – failed to accept a $135,626 FDOT grant for taxiway light replacement and a $250,000 FDOT grant for security enhancements. The airport also has money in reserves to pay for those projects. Nevertheless, Dustin did not like losing the grants.
“Proceeding without grants is like starving yourself so you can lose weight,” he said. “At some point you actually die, because this airport cannot survive without grants.”
Breitenstein said the time will tell whether the airport will accept any more FAA grants.
“The deadline for FY25 FAA grant applications has passed, so the NAA cannot apply for an FAA grant this year,” he said. “We will be seeking direction from the board on whether we can apply for grants in the future.”
The city council has repeatedly criticized the NAA for accepting FAA grants, which it believes makes the airport beholden to conditions attached to those grants. Naples Mayor Teresa Heitmann has repeatedly stated that the city would like to have more local control over the airport.