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The Economic and Fiscal Impact of the Dupage Airport and Associated Activities on the Chicago Metropolitan Area, Dupage County, and Kane County
Client: The DuPage Airport Authority
dashed line separator The DuPage Airport Authority retained Gruen Gruen + Associates (GG+A) and its subcontractor Regional Economics Applications Laboratory (REAL) to prepare an analysis of the economic and fiscal impacts of the DuPage Airport, including the Flight Center, the Prairie Landing Golf Course, and the DuPage National Technology Park.

GG+A completed an extensive literature review on the influence of airports on regional economic development as well as interviews with representatives of a diverse array of businesses and institutions operating near the DuPage Airport. In addition to conducting interviews with on-site and off-site businesses, GG+A designed, analyzed and reported on a survey of Airport tenants. The survey not only obtained inputs for the impact analysis but also useful insight for marketing hanger space and Airport services. This included information on the services and features most preferred. GG+A used the interviews, survey, and analysis of secondary data including Airport and Prairie Landing budgets and visitor information and information obtained from the developer of the DuPage National Technology Park to estimate payroll expenditures, non-payroll operating expenditures, capital expenditures, development and construction expenditures, and visitor-related expenditures.

The economic impact of the DuPage Airport and other entities at the Airport due to their purchases of goods such as supplies or equipment and services and construction activities, and labor was estimated with the Chicago Regional Economic Impact Model (“CREIM”) developed by REAL. CREIM is comprised of two major components, an input-output (“I-O”) model and an econometric module. The outputs produced with the aid of the CREIM included direct and indirect employment, income and output variables for the Chicago Metropolitan Region and DuPage County. The analysis was completed for all Airport-related activities as a whole as well as separately for the DuPage Airport, including Flight Center and on-site tenants, the Prairie Landing Golf Course and the DuPage National Technology Park. Economic impacts were estimated for 2006 and 2011 and covered operations, capital improvements, and visitor expenditures. The impacts were also presented by economic sector.

Fiscal impacts generated by the Airport and associated activities were estimated for the State as a whole, DuPage County, Kane County, the City of West Chicago and other taxing entities in DuPage and Kane counties. To identify sources of revenue, GG+A conducted an extensive set of interviews with the Airport, County, and municipal officials and analysis of municipal and county budgets as well as on-site businesses and local hotels and restaurants, and analysis of the tenant survey. Sources of revenue included property and leasehold property tax revenue, sales tax revenue, fuel sales tax revenue, food and beverage sales tax revenue, pro shop sales tax revenue, automobile rental sales tax revenue, sales tax revenue attributable to on-site businesses and visitor and employee expenditures. Hotel tax revenue, utility tax revenue, telecommunication tax revenue and business license revenue were also estimated. Fiscal impacts were also estimated by activity as well as for the Airport as a whole for 2006 and 2011.

GG+A prepared a comprehensive report as well as a press release and gave a presentation to the DuPage Airport Authority Board of Commissioners.

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