Who’s working for airport users?
I would like to add my voice to those of Mr. Richlife and Mr.
Meyer and respond to the Jan. 4 article titled
”
Whose airport is it anyway.
”
While it is true that the city holds title to the Hollister
airport, the acquisition cost was nil, as it was transferred from
the federal government to the City by quitclaim deed during the
late 1940s.
Who’s working for airport users?
I would like to add my voice to those of Mr. Richlife and Mr. Meyer and respond to the Jan. 4 article titled “Whose airport is it anyway.”
While it is true that the city holds title to the Hollister airport, the acquisition cost was nil, as it was transferred from the federal government to the City by quitclaim deed during the late 1940s.
In return, the city took on the role of airport sponsor, providing management and other support services and receiving reimbursement from income generated at the airport.
The Hollister Airport is one of approximately 3,500 U.S. airports that are part of the National Plan of Integrated Airport Systems (NPIAS). These are airports deemed significant to national air transportation and are thus eligible for grants. Because of this, and consistent with a national commitment to encourage and develop civil aeronautics, the federal government has granted many millions of dollars to the Hollister airport for the purposes of maintaining and improving the airport runways, taxiways, aviation signage and other related services. Sources for this funding include aviation fuel taxes.
Nearly 3,000 of the NPIAS airports are like Hollister’s – no scheduled air service, no control tower. These all are called “general aviation” (not “hobby”) airports. At these airports business and recreational aircraft owners and pilots can park and maintain their aircraft, conduct flight operations for business or pleasure, and obtain or maintain piloting skills. (Most U.S. and many foreign airline pilots first learned to fly at a general aviation airport, including Hollister.)
So, my response to Mayor Emerson is, while the airport belongs to Hollister in name, in fact it continues to exist as an airport because of fuel-tax-paying business and recreational fliers. We who are based here think of it as “our” airport, just as Hollister residents think of Hollister as “their city.”
Mr. Gere and Mayor Emerson find fault with aircraft owners living outside San Benito County and think that somehow they deserve to be looked at differently. As Mr. Meyer noted, in addition to rent, every tenant, local or otherwise, pays an annual “possessory interest” tax (in lieu of real property tax – currently $240 per 1000 square foot hanger), and an annual 1 percent personal property tax on the value of their aircraft. While these taxes are paid to San Benito County, a portion is returned to the city – not the airport.
As to hangar rents, Airport Manager Gere and others seem to believe 29 cents per square foot is somehow subsidizing or giving a break to aircraft owners. He likes to cite the San Martin South County hangar rate of 47 cents as justification. However, South County has only 80 percent occupancy, while Hollister enjoys 100 percent occupancy. And other nearby airport hangar rates are all lower than Hollister. For example, Watsonville airport’s rate is 23 cents per square foot.
Like any business, the airport is subject to the forces of supply and demand. Any significant hangar rent increase would likely help fill South County hangars and leave vacancies at Hollister.
With regard to long-term support for airport maintenance, it is my opinion that hangar rents fully provide their share of required funds for debt service, current airport grounds and hangar maintenance, overhead, and a bit of reserve.
The problem of maintenance costs being greater than revenues results from low rents for the old World War II buildings left by the U.S. Navy. As Mr. Meyer noted, the recent Elks Lodge roof replacement cost nearly $200,000, yet their 50-year lease for their RV Park, parking lot, and large building contributes less than $6,000 per year to the airport enterprise fund.
Another expense resulted when a World War II airport building was destroyed by fire, and the city chose to litigate with the insurance company. Lawyer fees well in excess of $100,000 were charged to the airport. Attempting to create reserve funds for such open-ended expenses is simply not practical.
Lastly, the article refers to Mr. Gere as “the man charged with transitioning the airport from its financial slumber to an economic powerhouse.” Well, I don’t recall that being part of the job description of the Hollister airport manager. If in fact City Manager Quilter has given him that task, then I would request that Mr. Quilter transfer Mr. Gere to the city’s redevelopment agency. The airport and its users need to have a manager who will take care of the airport and be an advocate for its users. Unfortunately, and as Mr. Richlife’s letter attests, Mr. Gere has done neither ever since he arrived on the scene three years ago.
Deane Judd is a Hollister resident and pilot
