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City outlines major airport projects tied to Air National Guard and weighs reestablishing commercial flights
Summary
Klamath Falls budget presentation described large airport construction and military cooperative agreements related to an anticipated F-35 mission, ongoing FAA taxiway projects totaling millions, and staff said attracting commercial air service could cost about $1 million in start-up incentives and operational support.
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City staff told the budget committee that airport revenues are driven largely by FAA funding, rental and landing fees, and by military construction cooperative agreements tied to the Air National Guard’s presence at Klamath Falls.
“We serve as their contracting officer,” city staff said of military cooperative agreements supporting projects tied to an anticipated F-35 mission. The airport presentation identified large projects, including a multi-million-dollar taxiway project (a total project figure of $9.8 million was cited for taxiway work in the presentation) and remaining work on a grama project and terminal improvements.
On commercial air service, staff said the city has discussed start-up and operational costs internally and with local representatives. Linda (last name not provided), speaking on airport operations, said expenses to attract a commercial carrier would include revenue guarantees and marketing funds and likely operating costs such as TSA presence and additional operations staffing. “I’d anticipated more at least a million dollars to bring in an air carrier for a community of our size,” Linda said.
Why it matters: Airport projects tied to federal and military agreements are a major source of intergovernmental revenue and will drive capital investments. Reestablishing scheduled passenger service would carry recurring operational and potential subsidy costs.
What happens next: Staff will continue work on FAA-programmed projects, pursue grant programming and coordinate with representatives regarding earmarks and potential funding. Any decision to pursue commercial service will require council-level authorization and detailed feasibility and funding plans.

