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Airport reports healthy fund balance; board discusses rent and hangar development opportunities
Summary
Staff reported roughly $3 million in income for the current period and a fund balance of about $28 million (noting about $14 million is reserved for terminal renovation). The board discussed lease pricing for a specific building and broader opportunities for hangar and lease development; staff said hangar demand in the region is high.
Airport finance staff (Juelva Navides) reported to the Laredo Airport Advisory Board on March 1 that the airport is running a positive operating position for the period, with about $3,000,000 in income and an approximate fund balance of $28,000,000. Staff cautioned that roughly $14,000,000 of the balance is earmarked for the terminal renovation and that expenditures will increase as construction activity accelerates.
The board discussed a previously proposed low rent (25¢ per square foot) for a city property and reviewed a market analysis prepared for the lease. Staff said the market analysis recommended a monthly rent in the $5,000–$7,000 range for a building with approximately 28,366 square feet of building area on about 97,183 square feet of land; earlier proposed low rents were not supported by the market analysis because of the property condition and market comparables.
Board members also discussed broader development opportunities including hangar construction and leasable space. Staff said the region has essentially no available hangar space and that leasing or building hangars could generate sustained revenue; the board asked staff for clear inventories of available real estate and development priorities to share with potential developers.
No new lease terms were adopted at the meeting; staff said it will follow up with written details and any recommended changes to rental pricing and development strategy.
