Fairhope, Alabama
SPECIAL AIRPORT BUDGET MEETING
During a special budget meeting last week, the Fairhope Airport Authority approved ground leases for two more private hangars on the east side near where one is already under construction, subject to approval by the Authority's attorney.
Authority chairman Lagarde estimated new revenue from the two new ground leases would amount to about $40K per year.
He said he also received more inquires from investors about constructing several smaller 'T-hangars' to be leased out as well on the southwest side of the airport.
There is a currently great demand for hangar space, he said.
LINE OF CREDIT DISCUSSED
Also, the Authority began considering obtaining a short-term line of credit from Trustmark Bank ($500K to $750K?) to deal with emergencies like those associated with hurricane Sally last year, or other un-budgeted expenses.
To lower interest rate, the city could back the loan or airport property used as collateral, according to the bank's representative Lee Webb.
NEW REVENUE ESTIMATES
Chairman Lagarde and Webb estimated the new 2% tax (surcharge) on businesses at the airport may "conservatively" generate $200K yearly. The new tax takes effect at the beginning of the fiscal year, Oct.1.
LAND STILL FOR SALE
107 acres of airport commercial land on the west side is for sale.
With the new revenue sources, the Authority hopes to significantly reduce its financial dependence on the city, when the new fiscal year begins on October 1st (currently $320K).
Comments
Let's not, but say we did.
Mostly I am concerned that the city would need to come up with a lot of money to make it happen. If not then it would be great.
Relocating an active school
Financing a new campus which must be completed before school can move.
Labor shortages and costs
Material shortages and costs
COVID issues
Nothing insurmountable but it’s not like selling and buying a house. Perhaps a staggered move would be a bit easier.
Let it be.