Interim aviation director urges lease, parking and rate changes to reduce airport subsidy

An interim director's assessment presented to the Waco City Council on March 18 identified lease practices, below-market rates and free parking as primary contributors to the airport’s annual need for a city subsidy and outlined options to make the airport more financially self-sustaining.

Michael Riesman, interim director of aviation, told the council the airport currently records about 74 based aircraft and about 100,000 annual aircraft operations. American Airlines is the airport’s sole scheduled carrier, operating six daily flights; in calendar year 2024 the airport recorded 56,537 enplanements. "The airport is capable of both self sustainability as well as being an economic generator for the community," Riesman said.

Riesman said a detailed analysis of airport leases showed many commercial tenants use significant apron and staging space that is not included in their leasehold footprint; city staff currently collect about $250,000 a year in rent on buildings but estimated that collecting rent on the additional exclusive-use areas could raise annual rent collections to more than $650,000. He also said many leases include infrequent CPI adjustments that allow rents to fall behind fair market rates over time; some nonprofit tenants pay nominal rent for large acreage leaseholds.

Parking is the airport’s largest uncollected revenue source, Riesman said: the facility has just over 500 public spaces and an average of about 250–300 vehicles parked on any given day, and seasonal demand sometimes overflows paved lots. Riesman said a conservative example — charging $5 per day — would generate roughly $450,000 of gross annual revenue from parking; higher daily rates or weekly caps could increase that total.

Riesman reviewed runway, pavement and facility conditions (primary runway 7,100 feet; secondary runway 5,100 feet), noted some pavement areas in poor or serious condition (with projects planned or underway), and described the airport’s significant aeronautical businesses — including Blackhawk Aerospace, Sentex Aerospace and RAM Aircraft — that have national or global reach.

Council members asked about comparable airports and about the feasibility of renegotiating leases; Riesman and staff recommended an independent rates-and-charges and fair-market-value study to inform lease changes and advised that any policy changes would prompt pushback and require time to implement. City Manager Bridal Ford asked staff to prepare a written parking-rate analysis and peer comparisons for council review; he said he would deliver that paper for council feedback in the coming weeks.

Council action: None taken. Council requested staff follow up with a written analysis of parking and comparative rates and asked staff to consider a consultant-led rates and charges study to evaluate fair-market rents, apron charges and parking policies.