Pitkin County Commissioners hear details on proposed airport ballot question

With initial meetings underway for the Aspen/Pitkin County Airport redesign, Pitkin County Commissioners are faced with the reality of raising an estimated $575 million for the project — a number they acknowledge has a chance of increasing over time. 

Much of that funding is expected to come from federal grants, particularly for the airfield. However, the Board of County Commissioners is seeking to ask voters in November to authorize Pitkin County to take up to $340 million in airport revenue bonds. 

Those bonds would be repaid entirely through airport revenue generated from fees — not through increases on taxes in Pitkin County — and would be paid off over a 30-year period.

“I just want to start off by saying that nothing that we’re talking about today is not repaid by tax dollars,” said Pitkin County Manager Jon Peacock. “It’s all repaid by fees that are generated through the airport and revenues that are generated on the airport — this is not a tax-related question.”

The fees that Pitkin County staff identified as avenues for the generation of revenue include parking fees, rental car fees, concession fees, airline rates, and the fixed-base operator (FBO) lease with Atlantic Aviation. County staff and commissioners discussed possible increases to parking fees, concession fees, and airline rates. 

The FBO lease also brings in a substantial amount of revenue.

Commissioners were sensitive to the idea that increasing parking rates on Pitkin County residents may be unpopular and sought ideas for how fees could be increased in ways that would impact valley residents and regulars less. 

“You just mentioned airport rental fees and other charges, passenger facility charges, things that people will notice fairly quickly,” said Commissioner Greg Poschman. “What are we talking about, doing something that will shock people? Are we talking about gradual increases?”

“With the rental cars, you’ve got great latitude to increase, maybe double, what you’re charging right now and still be within industry norms,” said Brad Jacobsen, who is on the project team for the airport modernization project and is a managing partner of Jacobsen Daniels. “But that’s a policy that this board would determine is appropriate. I am assuming you would look and evaluate fees based on their merits and who they’re going to impact. Rental car fees are paid by people who do not live and vote in this area; parking fees are paid by people who live and vote in this area. You can treat those differently.”

Commissioners consistently sought clarity on whether the $340 million figure would be enough.

Peacock emphasized on the fact that the bond amount is structured “conservatively,” meaning with the worst-case scenario in mind. Pitkin County is hoping that it will not need the full amount for the construction but is seeking to avoid potential delays that would be brought about if the airport modernization project ran out of money before completion. 

“We don’t want to be in a position of stopping the project because we think that would be really detrimental to the community in order to go to another vote to fill in the gap,” said Peacock. “That’s why we’ve been conservative.”

Pitkin County would only take on the debt that is required to finish the airport — meaning if the project used less than the proposed $340 million in bonds, Pitkin County would not use those funds.

The second reading on the resolution will take place at the next BOCC regular session on Wednesday, Aug. 27.