HomeMy WebLinkAbout10/08/2024 03.B. Airport rates and fees 7.4..-41140k41-2",4,
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 3.B.
For Meeting of: October 8, 2024
ITEM TITLE: Airport rates and fees
SUBMITTED BY: Robert Hodgman, Director of Yakima Air Terminal
SUMMARY EXPLANATION:
In 2023 the City hired Valbridge Property Advisors to conduct an appraisal of airport properties. The
appraisal determined that airport property values were below market value. In November of 2023, City
Council received a presentation on the airports recommended approach to catch up.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY 24-25: A Resilient Yakima
RECOMMENDATION:
ATTACHMENTS:
Evaluation and Increase of Rates and Fees - city council update 20240924.pptx
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Increase in Rates and F
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Background
• In 2023 the City hired Valbridge
Property Advisors to conduct an :: ti
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appraisal of airport properties
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• The appraisal determined that airport
property values were below market x _ - mac-
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• In November 2023 city council received .4
an presentation on the airports >_;* , , :� � �
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recommended approach to `catch up' '''b 444t
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2023 Rates Appraised Rates
• Aviation Land $0.19 psf • Aviation Land $0.28 psf
• Commercial Land $0.21 psf • Commercial Land $0.32 psf
• Terminal Building • Terminal Building
• 1st floor $27.26 psf/yr • 1st floor $50-80 psf/yr
• 2nd floor $8.50 psf/yr • 2nd floor $10.00 psf/yr
• 3rd floor $5.00 psf/yr • 3rd floor $10.00 psf/yr
• Airport Restaurant (Reno's) • Airport Restaurant (Reno's)
• Set Rate per Lease $0.86 psf/yr $15.00 psf/yr
• ALS Hangar • ALS Hangar
• Set Rate per Lease $2.36 psf/yr
$12.50 psf/yr
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Issues
• Airport rates and fees need to be increased
• Some tenants may consider leaving if we
implement the rate increase all at once
• In addition, we also need to implement an annual
5% increase
• We recommend increasing rents gradually, and Pe-
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tracking the annual 5% rate increase to be -- ~ '211; •
implemented once rates have reached market Ammo „�•. !' _ ,• -Y-�
value
• Gradual rate increases may also align with -
continued economic recovery and ease the
impact on tenants
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Strategy three-year • d
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Plan of Implementation
Current FMV 3-Year Increments 3-Year Culm.5% 5%
• Increase the rates to 2023 2024 2025 2026 2027 2028
current FMV over 3 Aviation Land
years (one-third of (psi/yr) $0.19 $0.22 $0.25 $0.28 $0.32 $0.34
the gap each year) Commercial Land (psf/yr) $0.21 $0.25 $0.28 $0.32 $0.38 $0.40
Terminal Building (psf/yr)
• Year 4 will be the 1st floor $27.26 $34.84 $42.42 $50.00 $57.88 $60.78
cumulative 5%
increase that would 2nd floor $8.50 $9.00 $9.50 $10.00 $11.58 $12.16
have been in place 3rd floor $5.00 $6.67 $8.33 $10.00 $11.58 $12.16
• Year 5 and beyond
would reflect the 5%
annual increase
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Contact
Rob Hodgman
Yakima Air Terminal
Robert.Hodgman@Yakimawa.gov
509-575-6260
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Charges
• Parking violation = $20 per day
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