For Collier County’s airports, it could be time to pay the piper.
Decades after the county began loaning its three airports money to help them attract business, commissioners are looking to see some return on their investment.
Specifically, Commission Vice Chairman Tom Henning has asked that the Collier County Airport Authority submit a plan to reduce or eliminate the county’s annual fund transfer to the airports, which funds their budgets, and to pay back the county loan.
Henning said he doesn’t have a timetable for when the loan should be paid back or the annual fund transfer should be eliminated, but said he would like recommendations to be looked at.
“If we’re not going to address it now, when are we going to address it? If we keep shoving it off, we’re going to have scenarios like we’ve had from 2003 to the present,” Henning said, referring to the loan — which includes the county’s annual fund transfers — growing from $9 million in 2003 to $21.6 million in 2013.
In the mid-1990s, commissioners, the Economic Development Council and the airport authority entered into an agreement to develop the county’s three airports. The county loaned the airport authority $1.33 million for projects at the three airports, which was matched with $4.26 million in state and federal grants.
Some of the money went to build things like a new terminal at the Immokalee airport; put in new sewer and water lines and aircraft hangers; and hire an airport manager for the Marco Island airport.
Airport Authority Executive Director Chris Curry said the authority asked the county for a loan in order to “get the airports going.”
“The (repay) agreement, which was signed in 1995, was that if the airports as a whole were profitable, the airport authority would pay back the money,” he said.
That’s what makes Henning’s request odd, Curry said. The airports as a whole are not profitable, although the Marco Island airport does make a profit. Curry said that is the way most local airports across the county operate - at a loss.
But, while the airports might be operating at a loss, Curry said they bring in $35 million in economic benefits to the community. This includes attracting people who eat at local restaurants and stay in local hotels.
“They are getting a good return on their investment,” he said, pointing out that $35 million in economic benefits is more than the $21 million the airport owes.
Curry added that the airport authority has taken less money from the general fund in recent years, both because of cuts to their budget and also because of found efficiencies.
The airport authority board has several recommendations, which Curry will make to the commissioners at their Tuesday meeting.
The airport authority has implemented several strategies to drive revenue in recent years, Curry said. These include instituting landing fees for the Marco Island airport for planes weighing more than 12,500 pounds; reviewing its pricing and charging fair market value; increasing revenue through increased operations on the airport and through rental cars; and building new facilities to attract businesses.
The board is also considering future airport revenue drivers. Among them, the board has suggested pursuing oil, gas and mineral rights leasing on the airport properties; using the airports at Marco Island and Everglades City as sea plane bases; constructing new hangars; and improving customer service.
Curry said he believes the numbers are moving in the right direction for the county’s airports. They rely on less money from the general fund than they did a few years ago, take in more revenue and have made strides in a down economy, he said.
Source: http://www.naplesnews.com
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