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Airport considers revenue options

Brian Walker; Staff Writer | Hagadone News Network | UPDATED 7 years, 7 months AGO
by Brian Walker; Staff Writer
| April 25, 2018 1:00 AM

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Kjergaard

COEUR d'ALENE — Coeur d'Alene Airport stakeholders are navigating a crosswind of sorts to help chart the course for the facility's future.

Kootenai County's Airport Advisory Board is expected to make a recommendation to county commissioners after its May 9 meeting on whether the county should become the airport's sole fixed-base operator (FBO) — an airplane gas station and hangar — or leave such operations in the private sector.

There are now two FBOs — Resort Aviation Jet Center and Southfield Aviation.

The back-and-forth discussion whether the county should attempt to purchase those operations and become the FBO comes amid a national trend of similar-sized airports to do so, interest from seven other FBOs to become the third company at the site, efforts to maximize the facility's economic development potential and other factors, said Airport Director Steven Kjergaard.

"We could control our front door to the community," he said, referring to the branding advantage and adding that he believes the idea should be explored. "It would give us the most flexibility and ability to move forward with a revenue stream that we don't have today. Nothing is getting cheaper and easier."

Kjergaard said the airport has been a break-even operation in recent years, but the county becoming the FBO could fulfill officials' interest in increasing economic development opportunities at the airport.

He said the airport in Jackson Hole, Wyo., is headed in that direction and expects to pay off a $25 million purchase in less than seven years.

Kjergaard said that as the owners of the two current FBOs at the Coeur d'Alene Airport edge toward retirement, the idea of a government-managed FBO should at least be explored. Costs haven't been determined.

Joe Rossetti, ground operations and sales manager at Resort Aviation, said his company hasn't been approached about a possible deal.

The idea of moving toward a government-managed FBO comes with some concerns.

Marc Eberlein, the commission's liaison to the airport, said he believes government shouldn't get involved in such a business, that it should be left to private enterprise. He also believes funding would be a hurdle, especially when voters have turned down large facility proposals such as a new jail in recent years.

"What is the political feasibility of it?" Eberlein said. "I think it's zero."

Tim Komberec, president of Empire Airlines and an advisory board member, said he has concerns about the county moving in that direction as well.

"There are airports around the country that entities have to (become the FBO) because there is not enough demand to support a private operator," he wrote to the advisory board. "I would support that if that was our situation, but that doesn't apply here. I have owned and operated FBOs and bought services from many and I believe this belongs in the hands of private enterprise."

Several advisory board members said they’re on the fence and would like to see a comprehensive business plan before moving ahead.

Board member John Adams said that if the county moves in the FBO direction, now is the time to do it given the situations of the existing FBOs. He said commissioners are also continually seeking ways for the airport to become profitable, so this should be explored with a business plan.

Kjergaard said that if the county were to become the FBO, the airport would be taken off the property tax rolls. County residents pay about $2.50 per $100,000 of property tax value each year toward the airport.

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