Currituck

Airport Board Discusses Concession Agreement

by John?H? Snowden, III
Publisher / Editor
nencnews@yahoo.com

Other Topics include Budget, Hangar Rates & Policies

The Currituck Regional Airport Advisory Board held a special meeting on Tuesday, January 27 from 4 pm to 7 pm at the Crawford Volunteer Fire Station in Sligo to discuss multiple agenda items prior to a presentation at the upcoming Board of Commissioners retreat.

Items discussed at the meeting included: a proposed concession agreement / contract covering commercial operations at the airport; the 2009-2010 Budget; Survey of local airports; Hangar Rates; a Hangar waiting list policy.

The first item up for discussion was a concession agreement governing commercial use of public property at the airport. County Attorney, Donald “Ike” McRee outlined the history of commercial operations and concession agreements at the Currituck Regional Airport. According to McRee, Kitty Hawk Kites had the first such agreement with the county. McRee related that the original agreement was enacted with a percentage of gross revenue generated at the airport by Kitty Hawk Kites being paid to the county as a type of use fee. Later, McRee added, Kitty Hawk Kites was also expected to keep the property mowed.

A concession agreement is required with anyone who operates a business at or on the airport property, McRee opined. Such agreements cover liability and negligence and may be based on a percentage of revenue, or a flat fee. McRee also stated language may be put in place to prevent conflict with General Aviation. The attorney cautioned that Kitty Hawk Kites could not be barred from operating at the Maple facility, due the county use of public grant funding in improvements at the airport.

In discussion on the item, airport board member, Ed Ish, asked if the county had looked at agreements in place at other airports. McRee replied that the county had not specifically looked at other agreements, however, they had looked at a Fixed Base Operators (FBO) agreement in place at Dare County Airport in Manteo. Ish was of the opinion that looking at agreements in place at other airports would help formulate an agreement for Currituck.

Airport Board chairman, Jim Winebarger, echoed Ish’s sentiments, stating “[looking at other agreements] would be good - especially not to reinvent the wheel”. Winebarger expressed concern that the agreement should allow for difference between business types, citing the difference between a commercial operation like Kitty Hawk Kites and other operations such as a aircraft mechanic, or someone giving flight instruction. McRee was of the opinion that a commercial entity based offsite is different than someone based on site.

Winebarger indicated that the Airport Board was taking direction on formulation of a concession agreement, based on prompting by the NC Division of Aviation and the County Board of Commissioners. McRee confirmed that was the case. Winebarger was of the opinion that the issue was not going to be worked out in 5 minutes, so the board would be best served by placing this on the back burner.
Winebarger did elaborate, stating that there are some legitimate businesses - flight training for example - which brings a lot of business to the airport, and generates property tax and fuel sales. He was of the opinion that there was “no money in flight training”. Winebarger went on to state a concern “we may have the reverse effect by requiring [someone providing flight training] to pay a concession fee.” Winebarger was worried that such a fee would drive out flight instructors.

Currently, Gary Ambrose offers flight training at Currituck Regional Airport, holding ground school classes in the conference room on site. According to County Officials Ambrose does not have a concession agreement with the County.

Airport Board member Ken Norris suggested the possibility of exclusions to the concession agreement. Attorney McRee noted for such small businesses, the county may opt for a flat fee structure. Airport manager, Wayne Leary, pointed out that the federal Aviation Administration (FAA) requires equal / non-exclusive treatment of all businesses operating at the airport. Leary added that he had spoken to other airport managers in the region and they operated on a flat fee basis.

A tiered fee structure was suggested by Airport Board member Dr. Tracy Eure. McRee pointed out the key to that was non-exclusivity. Board member David Messina caution the board to take care in drafting a concession agreement. Messina stated that the board needed to look at business that have made a go of it at the airport and succeeded as well as looking at those that have failed. “e had people at one time flying in to get their planes worked on,” said Messina referring to a successful aircraft mechanic operating out of the airport several years ago. “We want to attract businesses, not deter them,” Messina closed on a note of caution.

McRee stated that the county wanted to get Kitty Hawk Kites under a concession agreement soon. The Board agreed that the item would be tabled for further research and drafting a sample document.

Other items of interest discussed included: the 2009-2010 Budget; a Hangar Lease Agreement; Hangar Rates and Hangar waiting list policy.

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