CITY NOW EXPECTED TO PITCH IN STIMULUS MONEY TO HELP LURE AIR SERVICE TO LINCOLN

LINCOLN - The mayor’s office is reconsidering whether to earmark a portion of its $46 million in federal stimulus money to the Lincoln Airport to help lure new air service to the city.

Last month, Mayor Leirion Gaylor Baird said the city would not earmark additional federal stimulus money over the $1.5 million the Lancaster County board committed to the Lincoln Airport Authority to use as incentives to encourage more airline service.

City Council members have contacted the mayor’s office encouraging the mayor to change her mind — and had planned to introduce a resolution encouraging the mayor’s office to contribute money to the airport authority.

“Council members have communicated with the mayor's office that they are very interested in having American Rescue dollars allocated to the airport,” said Chief of Staff Jennifer Brinkman. “And we appreciate their point of view and work in partnership with them to allocate city resources.”

There are about 140 airports in cities about Lincoln’s size competing for air service, and Lincoln has the disadvantage of being just an hour away from Omaha’s larger airport.

Federal Aviation Administration restrictions prohibit airlines from using any airport-generated revenue for minimum revenue guarantees, and the state’s constitution prohibits the airport authority from levying property taxes for them. Airports in other states don’t face the same taxing prohibition, Cusick said.

The guarantees are a one-year agreement that typically ranges from $500,000 to $2 million depending on the airline and the route, he said.

The Lincoln Airport got a $750,000 grant that it used — with private matching funds — to offer minimum revenue guarantees for Delta’s Atlanta flights, which stopped during the pandemic.

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