[JYO] Leesburg Terminal Attracting Tenants

http://www.washingtonpost.com/ac2/wp-dyn/A990-2004Jul21?language=printer

Leesburg Terminal Attracting Tenants 
Facility Nearly Full Despite Higher Rent 

By Lila Arzua
Washington Post Staff Writer
Thursday, July 22, 2004; Page LZ03 


The new terminal at Leesburg Executive Airport has been open less than a month, 
but officials say occupancy and revenue already are surpassing expectations.

American Helicopter Inc. has applied to move into the last available space in 
the 18,339-foot Stanley F. Caulkins Terminal. That would bring to more than 
$194,000 the total annual rent paid by the terminal's five tenants, said 
Stephen Axeman, chairman of the Leesburg Airport Commission. Earlier estimates 
projected $139,000 in annual rent at full capacity, Axeman said.

The terminal, which had a ceremonial opening in May but did not officially open 
its doors to new tenants until this month, has 5,554 square feet of leasable 
space for flight schools, aircraft sales companies and fuel suppliers. The base 
rent is $25.04 per square foot per year, but many tenants have bid 
substantially higher -- as much as $58 per square foot per year -- to get the 
space they want.

American Helicopter Inc.'s proposal to lease the remaining 825 square feet 
received the airport commission's unanimous recommendation Tuesday and is 
expected to go before the Leesburg Town Council within two months. Although the 
exact leasing terms have not been finalized, the rent is expected to be 
slightly higher than the base figure.

The helicopter flight school operates five helicopters from Manassas Regional 
Airport and said it would like to bring one helicopter and a full-time 
instructor to work in Leesburg. It would be the first helicopter flight school 
at the airport.

Two medical-transport helicopter services, MedSTAR Transport, which is 
affiliated with Washington Hospital Center, and Inova Fairfax Hospital's 
AirCare, recently began working out of the airport.

"Airplanes and helicopters generally get along very well," said Kevin Rychlik, 
president of American Helicopters. The airport said, however, that it doesn't 
have enough room for helicopter hovering and some other types of training and 
that that would have to take place at other airports.

Rychlik said the new terminal was a key factor in bringing his business to 
Leesburg. 

"We really like Leesburg, and we really like the airport," Rychlik said. "The 
growth potential for any aviation business here is great." 

In February, several existing tenants went before the Leesburg Town Council to 
complain that rent at the new terminal would be substantially higher than at 
the old terminal, where it was $17.48 per square foot per year and, unlike the 
new price, included janitorial services and utilities. Some warned that 
excessive rates could leave the new terminal empty.

Airport commission members countered that raising rents was the only way to pay 
for the $4 million terminal. The airport is more than $4.5 million in debt, and 
the Town of Leesburg provides an annual subsidy to the facility, which was 
$432,000 this fiscal year.

Supporters say the airport is a vital economic engine that brings $41 million a 
year to the local economy. 

"It's wonderful to see that we're starting to pretty much break even," Axeman 
said. "Personally, I'm looking forward to the terminal being filled up." 

Tuesday's meeting was the first time the airport commission had met at the new 
terminal. Other commission business included a discussion of how to get rid of 
the fuselage of a twin-engine commuter turbo prop lying at the south end of the 
airport near Sycolin Road. The fuselage has been there about a year, ever since 
Loudoun County gave it to the airport to train prospective pilots. The airport, 
however, was not able to find a place for the fuselage, and many describe it as 
an eyesore. Axeman said he hoped the Smithsonian Institution would be 
interested in acquiring it.

"We'd like to have it used for some sort of educational purpose," he said. "If 
they want to take it, we'll dump it on them."



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