During a recent government meeting, officials engaged in a detailed discussion regarding the operational and financial challenges facing the Hammond airport. A key point of contention was the current lease rates for hangars and land, which have not been updated in decades, leading to significant disparities in rental costs.

One official highlighted the appraisal practices of Baton Rouge's airport, which conducts appraisals every five years to ensure that lease rates reflect current market conditions, with increases capped at 10%. This approach aims to prevent sudden spikes in rental costs during periods of high inflation, a concern echoed by several participants in the meeting.

The discussion revealed that some leases at Hammond airport are as low as 4 cents per square foot, while others reach 21 cents, raising questions about fairness and compliance with federal regulations. Officials noted that many leases have not been adjusted for over 23 years, creating a potential discrimination issue. The need for a comprehensive market study and updated appraisals was emphasized to ensure that rates are reasonable and competitive with other regional airports.

Concerns were also raised about the airport's financial sustainability. Currently, the airport operates at a loss, with annual costs exceeding revenue. Officials argued that increasing lease rates could generate additional funds necessary for maintenance and improvements, such as repairing hangars and taxiways. However, some council members cautioned against arbitrary rate increases without thorough research to justify the new pricing.

The meeting underscored the importance of aligning airport fees with both local and national averages while ensuring compliance with Federal Aviation Administration (FAA) guidelines. The FAA has indicated that airports should strive for self-sustainability, but it does not mandate profitability. This nuance was central to the debate, as officials grappled with balancing the need for increased revenue against the risk of driving away current tenants.

As the discussion concluded, it was clear that further research and analysis would be necessary to establish fair and reasonable rates that support the airport's operational needs while maintaining its competitive edge in the region.