"Uses for Fullerton airport analyzed; Last general aviation airfield in the county is losing money"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Tuesday, July 8, 2008

Uses for Fullerton airport analyzed; Last general aviation airfield in the
county is losing money. 
By BARBARA GIASONE
The Orange County (CA) Register


FULLERTON - The Fullerton Municipal Airport -- Orange County's last
general-aviation airfield -- is $3.9 million in arrears for city franchise
payments.

Founded in 1927, the city-owned airport started paying a franchise fee in
1982 after officials determined local government was financing many airport
services, including police, fire, accounting, employee recruitments and
benefits and the ordering of goods.

"The initial payments were $200,000 and kept constant until 1992, when it
was decided the fees should increase to keep up with inflation according to
the consumer price index," said Glenn Steinbrink, the city's finance
director.

For fiscal year 2008-09, which begins July 1, the payment will be $320,000,
which Steinbrink said the airport will be unable to make.

"If the airport weren't there and there was some other use, the city could
bring in property taxes and other taxes such as retail sales tax or
hotel-transient occupancy tax," Steinbrink said.

He said general aviation slowed after 9/11, and revenue for tie-downs hasn't
increased as fast as expected.

Those considerations figured into the City Council's recent request for an
in-house look at the best uses for the 86-acre site. 

Although the report won't be ready for nearly a month, city officials said
early indications show the facility could stay as is or could be used
exclusively as a heliport or for a mix of uses, possibly including building
industrial businesses on the airport's fringes.

City officials also said the chances of the airport closing are extremely
slim. 

Part of the financial problems erupted when a hangar construction project
fell two years behind, and costs increased more than expected, Steinbrink
said. 

In 2005, a $6.2 million, 15-year loan was secured at a 4.15 percent interest
rate. Payments were set at $569,000 annually.

Airport director Rod Propst figures that the loss in rent from most of the
149 new hangars over the two-year period amounted to approximately $240,000.
The project was completed in March.

Propst said every time the city and the Federal Aviation Administration sign
a contract for a federal grant, there are assurances Fullerton will continue
to operate as an airport for 20 years.

Suggestions for a heliport have been discussed for years. The Orange County
Fire Authority, California Highway Patrol, Anaheim Police Department and
television/radio personality Commander Chuck Street lease airport property
for their operations.

Propst said the Fire Authority's needs are one example of why Fullerton is a
preferred site. "It's hard to get in and out of John Wayne Airport in a
hurry," he said.

Retired pilot Stan Rhodes, 75, learned about the airport analysis Tuesday.

"I flew in and out of Fullerton for 11 years," said Rhodes. "I want it to
stay like it is; it's been here forever and has always been a good, central
location from which to fly."

Weston Sanchez, 58, of Buena Park said he didn't care if it were an airport
or heliport, "as long as no one loses his job."


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