[JYO] Commission Questions Airport Expansion Financing

from Leesburg Today -

Ed

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Commission Questions Airport Expansion Financing
Andrew D. Parker

Jan 29, 2004 -- Members of the Leesburg Airport Commission reacted critically to news that only about half the costs of the $3 million expansion to Leesburg Executive Airport will be recovered through leases generated by the additional space.

Interim Director Cindi Martin told the commission last week that in order to fully recover costs of the expansion, lease rates would have to be set at about $48 per square foot. Under the best circumstances, the town will only recover about half the costs, according to Martin, with the other half being picked up by Leesburg taxpayers.

“That’s not good. That’s bad,” said Vice Chairman Sidney L. Lissner. The airport commission voted unanimously, with two members absent, to set the lease rates for six spaces inside the terminal expansion at $24.82 per square foot, comparable to lease rates determined by other airports in similar markets.

Although the commission voted unanimously to set the lease rates, members said they would like to improve the airport’s finances and run it like a business. There are currently several outstanding bonds for capital projects undertaken recently at the airport, including the terminal expansion, that will not expire until 2021, according to Martin.

“My goal is to put this airport in the black,” Lissner said, adding that the airport’s budget is “way under water.” Lissner said he would do everything he could to eliminate “red ink.” Veteran commission member Stanley Caulkins commented that the numbers are “a lot higher than they’re supposed to be.”

Lissner criticized a recent Virginia Department of Aviation report that estimates the airport generates $40.58 million for the local economy. He said that “very soft numbers” were used in the report and information from the entire region—including Virginia, Washington, DC, Maryland and West Virginia—was used to compile the economic impact of the airport.

“Of course it’s an economic engine, but no one knows the economic impact on Leesburg [alone]. There are no numbers. No one knows,” Lissner said.

The commission also moved last week to reclassify space in the terminal expansion previously earmarked for a small sandwich shop to allow it to be used for offices, such as for another flight school. Av-Ed Flight School, Aviation Adventures and Blue Sky Aviation currently operate out of the airport.

“I don’t see how anybody would be able to operate a restaurant,” in the space, said Chairman Stephen Axeman, adding it was “a neat idea but I don’t see it being viable.” The restaurant or sandwich shop would have to invest money to finish out the small space, including adding a kitchen and other equipment.

The commission decided to wait to set lease rates at airport pad sites until its next meeting Feb. 17. Martin is estimating that the terminal will be occupied by April 1.

Meanwhile, a security subcommittee of the commission will discuss proposals to require prop locks and ID badges at the airport at a meeting Feb. 11. Security issues have drawn varied responses from local pilots, with some warning that too much security could drive away smaller users.


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