PORT TOWNSEND — Tenants at Jefferson County International Airport and Port of Port Townsend moorage facilities expressed their objections to proposed rate increases at a commissioners’ meeting last week.
Criticism expressed Wednesday was aimed at a 4.6 percent consumer price index (CPI) adjustment to leases in the 2024 draft budget commissioners are in the process of reviewing. Tenants said that not only is the increase too high, fluctuations in the CPI, which is calculated by the Bureau of Labor Statistics, create uncertainty in expenses and budgeting.
Port tenants said it is reasonable to expect they would have to pay more each year, but generally said they feel the 4.6 percent CPI adjustment is excessive.
They want stable and predictable increases, said Elizabeth Becker, who, with her husband, Jack, have moored their boat in Port Townsend for more than 20 years.
“A lot of us are kind of getting to the point of about aging out, especially having these little wooden boats, and I would really like to see a younger generation be able to have the joy that boating here has brought us,” Becker said. “With the current economy, having some predictable increases would really help and encourage that generation to take part.”
The port is not proposing raising last year’s prevailing rate, as opposed to CPI, of 8 cents per square foot for 2024, which would apply to new lease holders and tenants whose leases are on a cycle for a market rate adjustment in 2024.
Eric Taylor, a pilot and hangar owner, said leases averaged 5.9 cents per square foot, which is in line with other airports in the area. A bump in the rate up to 8 cents would make it more expensive than comparable facilities, he said.
“I don’t think anybody can say we’re not paying our way,” Taylor said of hangar owners. “A moorage tenant, if he gets unhappy with the rate, he can untie his lines and sail away. We can’t do that with the hangar. We’re pretty much at the port’s mercy, and we’re counting on the port to treat us fairly and reasonably.”
Gary Lanthrum said the proposed rate increases would mean a 38 percent jump in what his group currently pays, and did not take into account the fact that tenants own and construct the hangars.
“That just seems completely out of line with all other costs,” Lanthrum said.
“It’s the only place where the tenants have made significant financial investments in the infrastructure,” Lanthrum said.
Commissioners said they had received many emails and had many conversations with tenants who were concerned about rate increases.
“If we’ve got lease amounts that range from 8 cents a square foot to 5.5 or 5.9 a square foot, that doesn’t seem fair,” Commissioner Carol Hass said.
A significant problem in addressing rates, port staff explained, is the language and terms in lease agreements vary depending on when they were executed. That has created a widening gap between the tenants who paid the least and those who paid the most.
“In the past, adjustments hadn’t been applied equally, which has led to the current situation,” said Deputy Director Eric Toews.
While there would always be differences between rates, Toews told commissioners, the port is working to narrow the disparities that existed by imposing consistency and standardization in the leases.
Having predictable and incremental rate raises is important for the port’s many business, moorage and airport tenants, said Pam Petranek, the only commissioner running for re-election this year.
Petranek said the port should examine the draft budget for ways it could offset not placing an undue burden on tenants.
“Are we doing the right projects?” Petranek said. “Are there areas in our budget that could be looked at where we could save and areas where we can make revenue besides just through rates?”
Commissioners asked staff to prepare a list of hangar sites at the airport, tenants and the rates. A special commission meeting and budget hearing will be held Oct. 24.
Commissioners will vote on the final budget at their Nov. 8 meeting.
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Reporter Paula Hunt can be reached at paula.hunt@peninsuladailynews.com.
