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Council hears business plan to make Chesapeake Regional Airport more financially self-sustaining
Summary
Consultants presented an economic-impact and financial feasibility study for Chesapeake Regional Airport (CPK), estimating 194 total jobs and $21.4M in annual economic output and proposing revenue strategies including staged T-hangar rate increases, ground leases, and corporate hangars; the city manager recommended releasing remaining funds to support plan implementation and monitoring progress during the next budget cycle.
Consultants engaged by the Chesapeake Regional Airport Authority presented an economic impact and financial feasibility analysis at a city work session and asked council to support continued funding to implement short-term revenue strategies.
Preston Wilhelm, Deputy Director of Economic Development, introduced Mark Kochenour of Wolpert and Randall Wiedemann of Wiedemann & Associates. Kochenour summarized operations: the airport has roughly 123 based aircraft, an estimated 50,000 recorded operations and a full parallel taxiway, T-hangars with a waiting list, and major maintenance and fixed-based operations that attract work nationally. Using FAA data and ImPlan multipliers, the team estimated 116 direct full-time-equivalent jobs at the airport, another 78 multiplier jobs, $8.6 million in labor income and $21.4 million in annual output attributable to CPK.
Wiedemann presented the financial feasibility analysis and a baseline forecast showing a growing operating deficit if no action is taken. Recommended near-term revenue levers included staged increases in T-hangar pricing (consultants suggested a competitive target of about $4.75 a month per square foot equivalent), expanded ground leases to encourage private hangar builders, and programming additional corporate hangars on developable acreage. The consultants emphasized ground leases as a low-debt, immediate-cash option while maintaining the airport’s ability to pursue long-term capital projects when appropriate.
City Manager said the analysis answered the budget question staff had raised and recommended releasing the remainder of the fiscal-year funds earmarked for the airport planning work through June to allow implementation and monitoring. The manager cautioned council that expectations should be measured and that proof of progress would be shown in subsequent annual budget requests.
Council members asked follow-up questions about utilities and extension of water/sewer to the airport business park, access to Route 17 and Landing West, hangar demand and waiting-list data, and whether non-aviation uses could be developed on up to roughly 80 developable acres near the north ramp. Staff and consultants said utility projects are underway and that mixed aviation and non-aviation industrial land uses were plausible for parts of the airport property that lack runway access.
Next steps: council authorized release of study funds to continue through the next funding period; staff will return during future budget deliberations to report on execution and to seek further guidance.
