Fairhope, Alabama
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| August 2021 Airport Authority. |
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| Hangar construction. |
EFFECTIVE OCTOBER 1
During its August meeting, the city’s Airport Authority unanimously approved a resolution based on ones used at other airports “to add 2% surcharge/fee for goods sold and/or services rendered by airport operators.” Designated pilot license examiners were excluded because that is not considered a “commercial activity” and a fixed $200 fee was set for sales of aircraft and engines. It will not apply to fuel sales either, because of existing fees (7 cents per gallon).
The fees will take effect on October 1st; notices and forms are to be sent out to all vendors before then.
Councilman Burrell, a member of the authority, called it a “necessary fee” to help the airport become financially independent from the city. This year the city provided a $320K subsidy to the airport.
The authority’s Treasurer Amy Pearson was not yet sure how much the new fee would generate; she will submit a proposed budget for the new fiscal year at their September meeting.
NEW HANGAR CONSTRUCTION
Chairman Don Lagarde said he had received two more inquiries from private individuals interested in leasing airport land to construct their own hangars; the authority’s attorney was assigned to negotiate.
A proposal from last month by Dave Gordon (Tellus Development) to lease airport land to construct 20 additional T-hangars (for renting out), instead of the authority doing it itself, still stands, according to Lagarde; but councilman Burrell objected and wanted more time to take another look at the numbers before proceeding.
Burrell said he thought the lease might be lengthened (from 15 to 20 years) and the city could help finance for lower rates, to offset much higher construction costs now from when the project was first proposed about two years ago.
If the project is too costly, rent for the hangars could become non-competitive, according to other members.
OTHER MATTERS
* Treasurer Amy Pearson said she may have to cash in a CD early for sufficient funds to make a $250K bond principal payment due in September ($48K shortfall). (Insurance-related and other cleanup costs related to Hurricane Sally were primary causes for the deficit.)
*The authority will have to decide next month whether to renew airport consultant/manager Jason Wilson’s contract.
*Nominations were made for officers for the authority for next year, to be voted on in September. (Same ones as this year.)
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