In 2013, the Airports Division created and began a business retention and attraction program to strengthen and grow the Buchanan Field and Byron Airports. Airports staff convened an Economic Development Incentive Program (EDIP) process, which included a diverse working group representing leasehold tenants, businesses, flight clubs, County hangar and tie-down tenants, and the Aviation Advisory Committee, to help staff develop a program that would best help us to retain and attract new aviation tenants. EDIP participants identified 48 total desired projects and programs to meet the attraction and retention goals. The EDIP process was completed in late 2015 and included a top 3 projects/programs prioritization list for both airports, Buchanan Field and Byron Airport. The Aviation Advisory Committee discussed this matter at their February, March, April, May and July 2015 meetings.
One of the top priority items identified was to examine, and if deemed necessary adjust, the aviation use rents to make the airports more financially competitive. Airports staff conducted a market rate rent comparison and found that, in general, aviation rents at our airports are at the high end for the regional market, which could negatively affect the Airports’ ability to attract new and retain existing tenants.
The County hangar tenants, which represent a majority of the tenancy, were scheduled to get a CPI rent increase on April 1, 2016. As such, to better attract and retain aviation tenants, a three-year CPI waiver starting April 1, 2016, and ending March 31, 2019, was being considered for aviation use tenants in order to make the aviation use rental rates more comparable to other regional general aviation airports. The Aviation Advisory Committee discussed this item at its January 14, 2016 meeting.
On February 9, 2016, the Board of Supervisors approved a three-year CPI waiver starting April 1, 2016, and ending March 31, 2016 for aviation use tenants. The CPI waiver is a crucial component in the County’s economic retention and development program for the airports.
Staff will continue to work with the EDIP stakeholders as they develop a new Rates and Charges schedule for the Buchanan Field and Byron Airports. The Rates and Charges schedule will be vetted through the public process in advance of scheduling this item before the full Board of Supervisors for their review and approval. |