|From November's Work Session|
The amendment adds 70 acres of developable vacant land and the terminal at the Salem Airport. During the last year, the City has been negotiating with an aviation business interested in locating on approximately ten acres of the 70 acres. Incorporating this parcel into the URA boundary and constructing needed taxiway connections would facilitate development of this parcel....Yes, but is it consistent with any climate goals we might have?
With the construction of needed infrastructure and development on the vacant land, the Airport has the potential to generate more than $1,000,000 in new lease revenue. This is double what the Airport currently receives in lease revenue. The Airport is funded by revenues generated at the Airport. The Airport receives no operating assistance from the City’s General Fund.
Airport infrastructure projects totaling $2,000,000 include a taxiway connection, new hangars, and reconstructing the older section of the terminal building. The estimated cost for a taxiway connection to the vacant 10-acre site at the north of the Airport is $450,000 and could result in $148,100 in annual lease revenue. The Airport’s capital improvement plan includes four flex-space hangars at the south end of the Airport for a variety of industrial tenants. The estimated cost is $1,000,000. Assuming the Airport maintained ownership of the hangars and full occupancy, $275,000 in revenue per year could be generated for the Airport. The remaining $550,000 would help fund reconstruction of the older section of the terminal building.
Implementation of infrastructure improvements at the Airport is consistent with the primary goal in the Fairview URA Plan to create new job opportunities by eliminating conditions inhibiting private development. Objective 5 of the Plan states that the Agency may provide loans, grants, or other assistance to developers for rehabilitation or development of properties that meet the conditions of the Plan.