The verdict is in: Relocating Naples Airport is not financially feasible without significant monetary commitments from the City of Naples, Collier County or other sources. Therefore, according to Naples Airport Authority commissioners, the door to relocating the airport is now closed.

During its June 19 meeting, the NAA revealed the results of its months-long task, which was performed by NAA staff and four consultancy firms. The “Airport Exploratory Study — Financial Feasibility Analysis” included key assumptions for a hypothetical airport that would start launching aircraft in 2040, 15 years from now. 

The existing Naples Airport would close later the same year. Construction costs were adjusted to 2040 costs based on historical inflation numbers. The study analyzed two different financial scenarios: one for an airport serving general aviation only, and another that could also provide GA and commercial airline service. 

Key findings: 

• The cost of buying the land and building a general aviation airport (no commercial air service) would cost from $1.1 billion to $1.6 billion. The cost of buying land and building a commercial airport would be $1.3 billion to $2.1 billion. 

• The NAA only has enough capacity to fund $1.1 billion to $2.1 billion estimated capital investment for a new airport, but money could come from three sources: NAA reserves; debt or bond issuance; federal and state grants, tax money from Naples residents or county residents, and “other funding sources.” 

• If the NAA limits its capital spending for the next 15 years, the authority could have $200 million in reserves by 2040. 

Here’s where Public Resources Advisory Group stepped in, according to the study. The company analyzed the possible ways the city or county could raise money through municipal debt instruments and determined the NAA could raise between $108 million and $169 million in debt — depending on whether it builds a general aviation facility or a combination GA/commercial one. 

Then there are Federal Aviation Administration Airport Improvement Plan grants, but consultants determined that the AIP grants could not be applied to the cost of relocating the airport.

Carroll and Carroll Real Estate Appraisals & Consultants valued the leased 640 acres of Naples Airport at between $300 million and $440 million. Adjusted for inflation, the value of the land might range between $435 million and $637 million in 2040. The authority used a midpoint value of $536 million and applied it to the cost of the new airport.

Once the money from the various funding streams is put in a single pot, the study showed that the authority would still need another $180 million to $751 million for a new general aviation airport and another $395 million to $1.2 billion for a combination general aviation and commercial airport.

“Based on these assumptions, relocating the airport is not financially feasible without significant financial commitments from the City of Naples, Collier County or other sources,” the study concluded.

But the funding gap could be even much wider, the NAA found. The study does not include other costs, such as the expense of closing, demolishing and remediating the current airport site. Nor did it include buying out airport tenant leases at 2040 rates and the cost to establish new flight procedures — not to mention new water lines, sewer lines, electric lines, internet and other infrastructure. 

NAA commissioner Terry Cavanaugh called the NAA’s obligation to study the feasibility of moving the airport complete. He noted Collier County’s strong opposition to moving the airport, as well as that of airport tenants who like the airport’s convenient location. 

“This was a useful exercise; it informed me, it helped me understand the totality, the immensity of the issue, both operational and financially,” Cavanaugh told his fellow commissioners. “It clearly spelled out how cost-effective and how important our well-run airport is to us today. The airport has no assets to utilize for financing a new airport, not enough debt capacity and doesn’t have enough cash flow.”

He directed airport Executive Director Chris Rozansky to write a letter to the city and county stating that the question of moving the airport was closed.

“Here’s our work and here’s the conclusion we came up with,” Cavanaugh suggested the letter might convey.

Commissioner Bob Burns voted no, saying a third party could pay more for the land in the future. 

“What would the FAA say if we abandon the entire feasibility of relocating the airport?” Burns said. “Did we complete our assignment?”

The motion passed, 3-1, shelving the idea of moving the airport. NAA Chair Rita Cuddihy had an excused absence so she was not there to vote. 

“We have a current facility that is well run, state-of-the-art, with a 40-plus year lease ahead of us,” Cavanaugh said. “We have a still comfortable time horizon and an aviation community that is well-satisfied with the assets we oversee and govern.”