- September 20, 2024
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In an effort to start chipping away at the Ormond Beach Municipal Airport's almost $1 million debt, a proposal to implement a landing fee was introduced to the City Commission on Wednesday, Sept. 18. But, as the local aviation community pushed back on the proposal and officials discovered it had not been reviewed by the city's Aviation Advisory Board, the proposal was tabled.
The Ormond Beach airport has accumulated a total debt to the city's general fund of $999,852, and it doesn't generate enough revenue through its existing tenants to be self-sustaining. City Economic Development Director Brian Rademacher said the landing fee — $3 per arrival — was proposed by staff following the commission's direction to reduce the airport's fund debt. The city calculated the fees would generate $236,000 in net income and it had brought before the board a contract with Vector Airport Systems, LLC for their collection.
"The landing fee revenue will be used to cover our share of state and federal grants for capital improvements projects as we try to maintain this airport for the users of it," Rademacher said.
Aircraft based at the airport, he added, would be exempt from the landing fee as they already pay their share of airport expenses in hangar rents and property taxes.
A total of 18 people, the majority of whom were against the fees, spoke at the commission meeting.
Several of the residents cautioned the city against implementing the fees as they would lead to unintended consequences, such as a reduction of airport operations, which could impact the city's grants from the Florida Department of Transportation and the Federal Aviation Administration.
Hangar owner Douglas Shinn said he spoke to other pilots who use the airport to conduct business outside of airport property, and that the landing fee would dissuade them from utilizing it in the future, leading to a decrease in air traffic.
"This decrease will dissuade business, instead of increasing business," Shinn said. "With that being said, I think it's a mistake to try and impose landing fees. There are too many questions at this point unanswered. I think there's better ways to increase the revenue at the airport."
Ormond Beach pilot Daryl Hickman, who runs the Cub Flying flight school out of the airport, said pilots around the state are calling for a boycott of all airports that implement landing fees — that will impact his business, if the commission approves them. Hickman said more than 95% of his clients are non-residents, including people who come from out of state and out of the U.S.
"They eat in Ormond Beach," Hickman said. "They stay in Ormond Beach. Their families stay here. They rent hotel rooms, and they patronize our restaurants. They will not come if you do this."
Rather than implementing landing fees, Ormond Beach resident and pilot Samantha Boyer said the city should instead focus on attracting businesses to the airport park and finding a use for the Riverbend golf course property, which has been vacant since December 2020. The golf course property was previously leased at $100,000 a year.
"Promoting events, educational facilities, air shows, car shows — that would encourage people to come and spend money in our city on our airport property," Boyer said.
Others speakers said that the landing fees would result in flight schools reducing their touch-and-go exercises because of the increased operational costs, meaning students will receive less training.
"This proposal is not ready for primetime, and may never be," citizen Robert Jex said. "It will not improve pilot production in an industry that desperately needs more pilots. It will not improve revenues at the airport in the long term. In the short-term, it will — until people get the word that Ormond Beach is charging a landing fee ... for each and every landing."
Patrick Murphy, vice president of Sunrise Aviation, another flight school based in the airport, said his position on the matter was neutral: He understood that the city needs to find a way for the airport to pay back its debt, but also, flying and flight training is expensive.
"For us, I think the only effect is really, since we are the fueler at the airport, this may discourage people to come in and buy fuel, but I think that's really the only negative thing," Murphy said.
Ormond Beach resident Sean Daly was in favor of implementing the landing fee, saying that the city has a responsibility to be fiscally responsible for its citizens, and pointed out that the airport hasn't been self-sustaining for over a decade.
"A million dollars of taxpayer money has been spent on someplace that's used by very few people," Daly said.
In 2015, the airport had a debt of $177,000. Here we are nine years later, City Commissioner Travis Sargent said, at $1 million debt.
He asked staff if the landing fee proposal was brought before the Aviation Advisory Board, and Airport Director Steven Lichliter said the intention was to bring it before the advisory board this fall.
"I think it's important that we would have them advise us before we are making a decision on something," Sargent said. "That's why we have an Aviation Advisory Board."
He's not opposed to charging a landing fee, but said he wants to look at all the options before making a decision. Sargent also the said that the board — which meets as needed — should have regularly scheduled meetings because of the airport fund's debt. He made a motion to table the item, which was later unanimously approved.
City Commissioner Susan Persis said she has a lot of questions about the fee and was glad the item was being tabled.
"This is a huge decision," Persis said. "So I think we need lots more time to learn about this issue, even more so than what's in our agenda. It just doesn't answer all my questions."
Commissioner Harold Briley said he agreed that the Aviation Advisory Board needed to review the proposal first, but that he agreed that the airport shouldn't be supported by taxpayer dollars.
"The airport's been running a deficit for many many years, and I don't think necessarily the city should keep subsidizing the airport on the backs of the taxpayers," Briley said.
