Finance committee hears request to defer up to $3 million a year from lodging tax to Mobile Airport Authority

Members of the Mobile City finance committee heard a presentation and questions about a proposal to defer part of a proposed lodging-tax increase to the Mobile Airport Authority (MAA) for up to 10 years. Luckett Robinson, chairman of the Mobile Airport Authority, and Andy Wilson, the airport director, discussed why the authority says a recurring revenue stream would help lower the airport’s cost per enplanement and support the transition of commercial service to a new downtown terminal.

The committee discussion focused on why the funds are needed and how they would be used. Robinson said the authority is “asset heavy and cash poor,” describing three near-term “heavy lifts”: moving commercial service to the new downtown terminal, repurposing the Regional (Brookley) property, and addressing landside and terminal needs at the new facility. He said the recurring funds would be applied to operations and promotion that the authority believes will reduce the airport’s cost per enplanement and help attract carriers.

Why it matters: committee members framed the proposal as competitive parity with nearby airports such as Pensacola and New Orleans, which benefit from ongoing…