Notice of Public Informational Meeting on Land Lease Rates for Anchorage and Fairbanks International Airports– September 30th, 7-9:00pm, Coast Intl Inn and at the Noel Wien Library, 1215 Cowles Street, Fairbanks from 7:00 – 9:00pm.

This is an information meeting only.  NO rate increase has been proposed at this time.  The state is looking for feedback on appraisals, determination of fair market value and the current state of the economy.  How your business has been affected.  If a rate increase is proposed, we will have the opportunity through another public notice to comment.

BASIC INFORMATION AND FACTS

The lease rates at Lake Hood are not cost based.  In other words, leaseholders are not charged what it costs to run Lake Hood.

 

The number used for Lake Hood expenses (4M) is a number used by the airport for the FAA for grants and other funding resources.  There has never been a study to determine what the actual cost of operating Lake Hood.  If there were a reason or effort to privatize, these would be drivers to do an analysis.

WE KNOW THAT LAKE HOOD DOES NOT BRING IN ENOUGH REVENUE TO SUPPORT ITSELF BASED ON EXISTING LEASE RATES.  Merrill Field (if you use this airport as a comparable) is currently .18cents.

 

• Remember to factor in the administrative costs (not just the Lake Hood office and staff) but all admin costs associated with writing grants and administering capital/FAA projects. 

 

Lease rates for Lake Hood and the East Ramp are tied in to the International Airport System. 

• This means that UPS, FedEx, Alaska Airlines, rental car agencies and all other tenants on the International Airport side pay the same rate.

 

• The lease rates on the International Airport side are at 20-25% of the fair market value.  This means that AIAS is well below what leaseholders might be paying somewhere else.  The lease rates (as far as we can determine for Lake Hood) are about 50% of fair market value.

A boundary between Lake Hood and the International Airport is used for federal grants and the general aviation master plan processes.  Can the same boundary be used for determining a rate structure for Lake Hood? 

Lease holders at Lake Hood also pay a “real property tax” to the City of Anchorage.  A state statute allows them to do this. What services do we receive for these taxes paid?