Airport fund balance solid; board discusses lease rates and regional hangar shortage

The airport finance and leasing update covered current cash balances, projected effects from terminal work and commercial lease discussions.

Finance: the airport's financial presenter reported about $3 million in revenue for the reporting period and said the airport has roughly $28 million on hand, although staff cautioned that about $14 million of that is expected to be used for the terminal renovation once construction spending begins. "We're making money, guys. I mean, we're not in the red," the finance presenter said.

Leasing and rent: Board members reviewed a recent market analysis for a vacancy and discussed a specific building and rental rate. The market analysis returned a monthly rent estimate in the vicinity of $6,900 for a building of approximately 28,366 square feet on a 97,183-square-foot parcel; participants contrasted that with an earlier $0.25/sq ft figure that had been discussed previously. One board member said the condition of the building affects marketability and recommended revisiting investments to make the property leasable at higher market rates.

General aviation and hangar shortage: board members observed that South Texas generally lacks hangar availability and that local pilots and operators often base aircraft at neighboring airports because Laredo has little open hangar space. Participants suggested long-term leasing and hangar-development strategies (long-term ground leases, hangar construction or tenant-built options) as potential revenue-generating opportunities.

Ending: staff asked for board help in outreach to potential developers and said leasing and hangar opportunities remain high priorities as the airport's capital project spending begins.