Aviation: Minnesota Department of Transportation

Airport Development - Funding & Grant Programs

State of Minnesota Programs
Federal Aviation Administration Programs

State of Minnesota Programs

The airport municipality is responsible for project design and construction management. Many project-related costs, including consultant services, are eligible for state and/or federal aid as described below.

Airport Construction Grant Program The State Construction Grant Program funds most capital improvements at state system airports based on a determination that the improvement is a justifiable benefit to the air-traveling public. Airports that are in the National Plan of Integrated Airport Systems (NPIAS) are eligible for federal funding. State funding participation at NPIAS airports is 70% of eligible costs. State funding at non-NPIAS airports is 80% of eligible costs. Projects that have revenue-generating potential are funded at 50%. Grants are issued for planning, land acquisition, and for improvements such as rehabilitating, constructing or extending runways, taxiways, aprons, hangar areas, vehicle parking areas, entrance roads, terminal buildings, arrival/departure buildings, maintenance buildings, utilities, drainage facilities, aviation fuel facilities, and airfield lighting systems. This program also funds airport maintenance equipment at a 2/3 state 1/3 local participation rate.

Two diagrams depicting a fictitious airport have been created to help spell out eligibility. The Airport Overview Diagram displays the airport at a glance and the types of projects which could be eligible for funding. The Building Area Overview zooms into the airport to show the eligibility of projects like hangars, aprons, fuel systems, and other airport buildings.

Airport Maintenance and Operation Program The State Airport Maintenance and Operation Grant Program provides 2/3 State reimbursement to the state system airports for their documented, routine maintenance expenses up to a certain ceiling amount that is categorized by airport infrastructure. The day-to-day labor, material, equipment, and utility expenses of maintaining airport pavements, airport grounds, lighting systems, buildings, and maintenance equipment are eligible costs. Maintenance and operation forms.

Hangar Loan Revolving Account Program The State Hangar Loan Revolving Account Program provides an 80% interest-free loan to state system airports for building new hangars. The loans are paid back in equal monthly installments over 10 years. Payment receipts, as they become available, are then loaned out again to other airports needing hangars.

Eligibility for State of Minnesota Programs To be eligible for state grants-in-aid, the airport must meet four criteria set forth in Minnesota Statute, Chapter 360.

The airport must be owned by a municipality. Municipalities include cities, counties, and townships in Minnesota, acting individually or jointly.

The airport must be licensed for public use. The Commissioner of Transportation is responsible for licensing public airports in accordance with rules promulgated by MnDOT and administered through the Office of Aeronautics.

The airport must be in the State Airport System. This System is designated by the Commissioner of Transportation and approved by the Governor. Revisions occur periodically. Minnesota Statute, Chapter 360, allows for up to 195 airports to be in the State Airport System.

The airport must be zoned or in the process of zoning. Municipalities are given the power to create, adopt, and enforce airport zoning. The Commissioner of Transportation is responsible for approving airport zoning ordinances prior to adoption in accordance with zoning criteria set forth in rules promulgated by MnDOT and administered through the Office of Aeronautics.

Contacts: Check our Technical Assistance page for the engineering representative in your region.

Federal Aviation Administration (FAA) Programs

Airport Improvement Program
The FAA administers an Airport Improvement Program (AIP) that provides grant-in-aid funding for planning, land acquisition, and capital improvement projects at Airports included in the National Plan of Integrated Airport Systems (NPIAS) airports.

Eligibility
To be eligible for federal grants-in-aid, an airport must be in the National Plan of Integrated Airport Systems (NPIAS). To qualify, an airport must be more than 30 minutes' driving time from the nearest existing NPIAS airport and must have a minimum of 10 based aircraft. Currently, there are 97 airports in Minnesota in the NPIAS. Minnesota Statute, Chapter 360.0161 requires municipalities to apply for federal financial airport assistance through MnDOT. The Office of Aeronautics is the designated State agent for providing this coordination.

Cost/Price Analyses for Contracts
Beginning in 2012, these will now be required as part of the grant application package for AIP grants, and includes engineering contracts.

You may find the program guidance letter on this topic PGL 12-03 (Change to Order 5100-38C, Paragraph 906, Price or Cost Analysis) at:
https://www.faa.gov/airports/aip/guidance_letters/

Guidance on the negotiation process may be found at:
https://www.faa.gov/airports/resources/advisory_circulars/

Aeronautics & Aviation

Airport Development - Funding & Grant Programs