Monday, November 30, 2015

Glendale Municipal Airport (KGEU) rates, fees to rise in 2016



If you or your group plans to have a banner message towed by an airplane out of Glendale Municipal Airport, it’s likely going to cost more, assuming the company passes on to customers the fees charged at the airport.

The City Council this month approved increases in rates and charges at the airport, including open tie-downs, vehicle gate-access cards, transient overnight fees and banner towing.

The hikes, the first since 2003, will take effect January 1st.

“The adjustments are considered to be reasonable and are at market value with like fees at other Valley airports,” stated Public Works Director Jack Friedline in a message to council urging approval of the increases.

“Airport staff conducted a survey over the past year and did a comparative analysis of local airports’ rates and charges. The results of the survey indicated certain fees at Glendale Airport were below the market rate averages of similar Valley airports,” Friedline’s report stated.

Changes in rates for airports are nothing new. Facilities across the Valley typically survey charges at other locations and adjust their fees accordingly, the DPW director noted.

Glendale’s rates were reviewed by the Airport Advisory Commission in June, and the panel recommended changes. Airport tenants were notified of the proposals and invited to comment, but no input was received during a 60-day comment period, according to public works officials.

The approved changes include:

• Increasing the current $20 per month open-tie down rate by $5 per month in the years 2016, 2017, 2018 and 2019 — reaching $40 in the final year. Friedline said adjusting the rate annually would lessen the impact on tenants.

• The vehicle-access card will go from $10 to $15 with a $15 reactivation fee.

• Terminal leases for office aviation will go from $19.99 a square foot per year to a variable and negotiable level.

• Land leases now between 10 cents to 26 cents per square foot will become variable and negotiable.

• Transient aircraft overnight daily fees will rise as follows: From $3.75 to $5 for a single-engine plane; $5.25 to $9 for a twin-engine; and from $11.25 to $34 for a jet.

• Banner tows will climb from $10 per tow to $50 a day.

Friedline said the change in lease terms will create flexibility for new development.

The estimated increase in aircraft tie-down revenues the first year is $6,060, based on the average of 101 current tie-down rentals. The cumulative revenue over the first four-year period, based on the incremental increases is estimated at $60,600. The department said revenue from new leases is unknown; however, the changes are coming at a time when officials expect more interest in airport development.

The 477-acre airport serves both general aviation and corporate jet traffic and is a general aviation “reliever” facility for Sky Harbor International Airport in downtown Phoenix. It features a two-story, 18,000 square-foot terminal and a Federal Aviation Administration-controlled tower.

Friedline stated the proposed rates and charges will add to the airport’s self-sustainability by increasing revenues and enabling staff to better maintain and operate the public facility.

Source:  http://www.yourwestvalley.com

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