Longmont council directs staff to develop Vance Brand Airport fee package

Longmont City Council voted 4-3 Tuesday to direct staff to develop a broad rates-and-charges package for Vance Brand Municipal Airport, including a possible $3 landing fee for every 1,000 pounds of aircraft weight and higher lease, hangar, tie-down and fuel-flowage charges.

The vote does not impose any fees. It directs the city manager to prepare proposals based on the airport’s rates-and-charges study, including revised ground leases, hangar and tie-down rates, fuel-flowage fees, lease templates and escalators, minimum standards, and possible development in the southwest portion of the airport. The proposed landing-fee model would apply to both based and non-based aircraft.

The July 28 council meeting video shows Councilmembers Christ, Popkin and Kalkhofer voting against the motion. Councilmember Marcians, who made the motion, said it was broad direction rather than a final fee schedule. No date was set for the package to return; council discussion indicated it could follow a broader airport-vision discussion.

What the study proposes

The city’s airport rates-and-charges study describes an airport with about 126,000 annual operations, roughly 340 based aircraft and 313 hangars in 80 buildings. It lists current average charges of about 94 cents per square foot for box and T-hangars, 35 cents for ground leases, 6 cents per gallon in fuel-flowage fees, and $40 to $45 for tie-downs.

At minimum, the study recommends raising those figures to $1 per square foot for box and T-hangars, 39 cents per square foot for ground leases, 9 cents per gallon for fuel flowage and $75 to $100 for tie-downs. It models landing fees at $1, $2 and $3 per 1,000 pounds; its recommended-fee comparison also lists a $1.99 figure.

At the $3 level, the study projects about $243,292 in annual revenue from non-based aircraft and $356,536 when based aircraft are included. Those projections account for PlanePass retaining 20% of gross receipts. The study also estimates that ground leases for a planned hangar buildout could generate about $49,000 annually for a first 140,000-square-foot phase or $98,000 for a full 280,000-square-foot buildout at the current 35-cent rate.

Potential effects

The proposals could raise costs for airport tenants and aircraft owners through higher rents and ground leases, larger tie-down and fuel-flowage charges, and a landing fee on based aircraft in addition to lease payments.

The study says many tenants oppose landing fees on based aircraft, comparing them with paying rent for an apartment and then paying another fee to enter or leave. Public commenters also warned that landing fees could shift some aircraft activity to other airports, while others called them the airport’s most flexible revenue tool and said they could improve financial sustainability.

The study recommends tying lease length to a tenant’s investment, moving existing leases to Jan. 1 annual increases, using 2% to 3% annual escalators and adding reversion clauses. Tenants told council that reversion provisions and low starting lease rates could discourage future hangar construction and private investment. The study’s projections do not establish how individual tenants’ costs or flight activity would change.

Staff must still turn the study and Tuesday’s direction into a proposed schedule. Council would later decide whether to adopt any of the rates, lease terms or landing-fee provisions.