Friday, April 7, 2023

City Council, April 10th - Airport Mania and Parking

Last Wednesday in a work session Council continued to think about an operations fee and new revenue. (See also Salem Reporter on that work session.) On Monday, they will be thinking about the airport and its subsidies.

Gerrymandered boundaries
(Yellow highlighting added)

On the agenda are two airport items. One is a gerrymander for the Fairview Industrial Urban Renewal Area in order to extract $1.8 million in URA funds for the airport remodeling.

The other is the air carrier agreement for subsidy over two five-year periods, also with the airline still redacted from the non-disclosure agreements.

In the event the Airline fails to realize the defined minimum revenue, it will invoice the City on a monthly basis for the shortfall. The City will utilize its federal grant funds and local matching funds to support the Airline and ensure that it is at least revenue-neutral for each flight operated to and from Salem up to a total amount of $1,200,000, including $50,000 for marketing.

(The agreement in a "financial performance guarantee" section lists LA, SF, Vegas, and Phoenix as destinations, and an airline buff might be able to figure out which one it is.)

Still no GHG analysis on the airport

We will see this as foolish in the years to come. It reverses progress on climate and emissions, and the opportunity cost is so many other more valuable things we might invest in or subsidize instead.

Same bluster and hype in February 2007
Not likely to be very different this time

And in the end, we are nearly certain to have another airline abandon Salem when the subsidies run out.

Even the WSJ agrees, earlier this week

There is also a Public Hearing on removing parking mandates citywide as part of compliance with Climate Friendly and Equitable Communities. Hooray!

Oregonian front page, Thursday

Also on the agenda is a proposal to apply for a Willamette Wildlife Mitigation Program grant through Oregon Department of Fish and Wildlife and the Bonnevile Power Administration. The city would like to use it to fund purchase of about 363 acres just north of Wallace Marine Park. The area is currently dominated by gravel and sand extraction, but nearing the end of its economically viable phase.

Staff have identified several potential advantages to City ownership, including the following:

  • Restoration of riparian and wetland vegetation and creation and improvement of habitat for anadromous fish species and other wildlife across approximately 363 acres or 90 percent of the total site area;
  • Development of a secondary municipal water source on the west side of the Willamette River, utilizing existing groundwater wells and water rights located on the site; and
  • Development of an urban park on approximately 38 acres to provide for the current and future recreational needs of the Salem community.
(ballparks comment added)

With the prospect of drought, the way our industrial development keeps going out east toward the Santiam canyon and our water supply, and the known vast consumption of water by high-tech manufacturing processes, we should give more attention to our long term water supply and how we rank the priority of users. From here is it not so difficult to see a future in which industry gets the mountain water from the Santiam and residential Salemites have to make do with water from the Willamette. We should think about that in addition to the positive elements of riparian and wetland restoration and more park land.

Starting over on the final North Block parcel

Finally, the as Urban Renewal Agency the City proposes to purchase the last corner on the Boise project, formerly planned for a nursing home. The nursing home operator had purchased it for $2.7 million in 2015, and the City proposes to buy it for $3.5 million now. Presumably they'll flip it for a new redevelopment project, as they did with the lot where the Nishioka building is now and are currently doing with the UGM/Saffron site.

See recently here:

5 comments:

Anonymous said...

Meh, the Fairview URA is specifically for making an industrial area more financially viable, and this change isn't taking anything away from community improvements like Downtown or North Gateway URAs. I applaud the creative ways to get our airport up to speed by reducing General Fund impact.

Anonymous said...

Understand and agree with the point you're making re: airline service subsidy.

However the REDACTED airline was of interest to me. Assuming Eugene is our closest similar market, looking at April's schedule there is not a good match to *ALL* 4 markets listed. The documents are written in a way that doesn't say that they have to fly all 4 markets, so who knows what they'll come up with.

https://www.eugene-or.gov/DocumentCenter/View/69561/April-2023-Flight-Schedule

In order of what seems likely to me, based on EUG:

Allegiant: Vegas, LAX & Santa Ana, and AZA airport on the edge of Phoenix metro. No bay area. Probably the front runner, no regional jets but also flies a lot of markets less than daily.

Southwest: Vegas, Bay Area, and Burbank flying, no Phoenix. Also a lot of Denver flights. Also just flies 737s which aren't what I would think an airline would use in SLM.

American: My first guess when I saw PHX on the list, but that's their only flying out of EUG.

Alaska: A northwest favorite, flies to LAX, regional aircraft, but flows most traffic through SEA hub.

Avelo: Just flies to Burbank, newer budget flier with focuses on BUR and Florida.

United: SFO hub, but also a lot to DEN hub.

Delta: Nope, just flights to the SLC hub and to SEA.

Anonymous said...

Poking around on Allegiant's site a bit more it appears maybe they do seasonal flying EUG-OAK, so that would hit all 4 markets.

Salem Breakfast on Bikes said...

Maybe the interest in the Salem market is just a ploy to squeeze Eugene for further concessions!

Anonymous said...

What a funny inversion: Those aligned with supposed market-oriented Rs, Councilors Gwyn and Hoy, voted against market parking and preferred to keep government mandates. All other Councilors and Mayor Hoy supported removing parking mandates. 7-2 vote to advance to second reading.