[GAO/RCED-97-179R Compliance With Federal Grant Requirements]

KEY EVENTS IN THE DEVELOPMENT AND CONSTRUCTION OF THE NEW NORTHWEST ARKANSAS AIRPORT

[Date and key event]

1950 - 1990
Local consideration was given to a new airport for Northwest Arkansas, but no actions were taken or agreements reached due to local concerns.

September 1990
Representative Hammerschmidt convened a field hearing concerning the need for a new regional airport.

December 1990
Local communities voted to create the Northwest Arkansas Regional Airport (NWARA) Authority to explore the feasibility of a new airport.

January 1991
The NWARA Authority selected a team to study the feasibility/site selection of a new airport in northwest Arkansas. Initially, the airport was envisioned as a cargo airport with dual 12,500-foot runways.

March 1991
FAA provided a $601,538 grant for a feasibility study of NWARA.

August 1991
The study team issued its feasibility report on the NWARA. The report did not reject the idea of a cargo airport; it projected 16 flights per day for this activity. The report cited the potential for a new commercial service airport to serve northwest Arkansas.

February 1992
A new master plan was completed for Drake Field; the plan acknowledged limitations for expansion.

June 1992
The city of Fayetteville passed a resolution acknowledging that (1) the region needed new airport facilities at Drake Field or a new airport; (2) a new airport may replace Drake Field; and (3) the city would not stand in the way of airlines who want to transfer operations to a new airport.

November 1992
Seven local communities that were part of the NWARA Authority held a referendum to determine if any of the entities wanted to withdraw from the authority; 74 percent of voters rejected the referendum, thereby electing to remain in the authority.

May 1993
A master plan for NWARA was completed and accepted by FAA. The basic cost of the airport was projected to be about $145 million.

September 1993
FAA provided an AIP grant of $656,904 for the environmental impact study (EIS) at NWARA.

June 1994
The NWARA Authority began circulating a proposed cooperative agreement among the seven communities comprising the authority that would have designated NWARA as the exclusive commercial service airport for northwest Arkansas. The initiative was never executed due to concerns over its legality.

June 1994
FAA completed its EIS affirming that the project was consistent with existing national environmental policies and objectives.

July 1994
The NWARA Authority submitted a request to FAA for AIP funds (preapplication) for a new airport. The airport, as planned, would include an 8,800-foot runway, an instrument landing system, a terminal building, and an airport access road. Advantages given for the new airport included a longer runway suitable for jet aircraft operations, a precision approach, obstruction-free terrain, avoidance of ground fog conditions, and expansion capability.

July 1994
The Senate Appropriations Committee expressed support (Report 103-310) for a $54 million multiyear letter of intent for NWARA

August 1994
FAA issued an affirmative Record of Decision on the EIS for NWARA, which made the airport eligible for AIP grants for land acquisition and construction.

September 1994
FAA awarded an AIP grant for $9,019,075 for land acquisition at NWARA.

October 1994
The city of Fayetteville passed a second airport-related resolution reiterating its earlier June 1992 position on a new airport; it also stated its intent to retain control of Drake Field and reaffirmed that it would not be a party to the cooperative agreement being circulated by the NWARA Authority.

June 1995
FAA awarded $4,430,804 in AIP funds for site preparation at the NWARA.

August 1995
The Senate Appropriations Committee (Report 104-126) reaffirmed its support of a letter of intent for NWARA and encouraged FAA to enter into such an agreement.

August 1995
FAA awarded $7,440,196 in AIP funds for site preparation at NWARA.

September 1995
After learning that FAA would not be able to fund the new airport sufficiently with AIP funds and fearing that costs per enplaned passenger would be too high, the NWARA Authority scaled back the size and cost of the airport, dropping the total cost from $144 million to about $107 million. The authority also produced an alternative financial feasibility study to accompany the scaled back airport design.

February 1996
FAA awarded a $10 million AIP grant for site grading and drainage at the NWARA.

March 1996
Construction began at NWARA; the contract for grading and drainage was awarded for about $6.5 million less than anticipated.

July 1996
The Senate Appropriations Committee (Report 104-325) endorsed expeditious consideration of a multiyear letter of intent for NWARA.

November 1996
The NWARA Authority made a final request for a letter of intent for NWARA.

February 1997
FAA approved a letter of intent to fund the NWARA for $29.5 million beginning in fiscal year 1998 and ending in fiscal year 2002. In approving a letter of intent, FAA officials believed they were preventing increases in construction costs. According to FAA officials, remaining construction costs eligible for federal funding exceeded what could be provided in a single-year federal grant. The airport authority estimated that bidding construction of the runway, taxiway, and apron as one package would save about $24 million over a three-phased construction approach. Issuing a letter of intent would allow the airport authority to go forward with construction through a single package while retaining eligibility for federal funding on a reimbursable basis.