DULUTH — A proposed airport hangar could lure military contracts here and have a "substantial" economic impact for the region, its backer says — but it's more pitch than plan at this point.
"The question is, where will the money come from," said Don Monaco, the owner of Duluth-based aircraft services provider Monaco Air.
He's seeking taxpayer support for a project he says could bring 1,300 visitors a year who would then spend millions, largely in the hospitality industry.
"I can't justify building a $4 million hangar," Monaco told the Duluth Economic Development Authority commission last week. "I know demand is there. Unfortunately there is risk."
Monaco estimates that yearly revenue wouldn't be enough to cover financing. Under his proposal, the city would bond for and own the hangar for 10 years before transferring it to Monaco, who would pay for ongoing maintenance.
Though some years would underperform others, he warned, the overall benefit could make up for the investment.
Duluth's interim planning and development director, Adam Fulton, said his staff was gathering information about the proposal.
"We are enthusiastic about the growth over the past decade in Duluth's aviation sector, and broadly supportive of new aviation-related initiatives," he said. "However, this proposal is new to us and remains something we are evaluating and learning more about."
