PORT TOWNSEND — Some hangar lease holders at Jefferson County International Airport might not have to pay quite the rate increase originally proposed by the Port of Port Townsend for 2024, although they will still face a boost in their monthly rent.
Commissioners at a Oct. 24 public hearing on the draft 2024 operating and capital budget directed port staff to include a prevailing ground lease rate of 7.0 cents per square foot on next year’s airport rate card — higher than the 6.5 cents per square foot some lease holders wanted, but lower than the rate recommended by port staff of 7.3 cents per square foot (the 2022 rate plus CPI).
“Rates haven’t been adjusted in a long time and the leases don’t coincide with the rates,” said Commissioner Pete Hanke, who participated in the meeting via Zoom and is a hangar leaseholder. “We went up too fast and pulling back some is good and then we can move ahead to get to the break even point.”
The public hearing on the draft 2024 budget will continue next Wednesday, Nov. 8, when commissioners may vote to adopt it. If the budget isn’t adopted, another public hearing will be held on Nov. 21.
According to the draft budget, the airport is anticipated to lose $23,091 next year. The port’s capital improvement plan includes constructing a new airport terminal, replacing the underground fueling system and upgrading its stormwater system. Like the current taxiway connector project, the port will seek federal and other funding to underwrite these other capital projects.
The goal is to improve what the port considers an underutilized asset to attract more usage and increase revenue.
In finding a middle ground between what port staff and tenants desired, commissioners Pam Petranek and Carol Hasse said taking the steps needed to make the airport economically viable without the cost burden landing on lease holders was important.
“I understand that it would not be fair to do that only through our existing tenants,” Petranek said. “We’re investing a lot in our airport and we care about it long term. My bottom line has always been little increases — if we’re going to increase, let’s make it incremental.”
Hasse said that finding a way to remedy the disparity in lease rates that had developed over the years might also be worth pursuing.
“I think that would serve the tenants and the port staff if the leases are consistent and if they can be rewritten,” Hasse said.
The agenda packet for the Oct. 24 meeting that includes the draft 2023 budget can be found at tinyurl.com/63hs8wuf
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Reporter Paula.Hunt can be reached at Paula.Hunt@peninsuladailynews.com
