In The Black Moving Ahead
By John F. Infanger, Editorial Director
January/February 2001
GENERATING REVENUES
The agreed upon direction
for Riverside Municipal was to turn it into a 21st century
business airport that could help attract corporations
(and users) to the community. That first required sprucing
up the terminal building, which once served commuter
carriers.
Without any commercial
airlines to help pay the way, Sabatello began to look
for creative ways to generate revenue. "We realized
that aviation never pays for itself at a non-commercial
airport," says Sabatello, "so we had to develop
our niches for revenues, which is (non-aviation) leaseholds."
Sabatello is a retired
Army Major who had experience with airport development
as airfield commander of Biggs Army Air Base, which
lies adjacent to El Paso (TX) International Airport.
There, he worked with El Paso officials on determining
how the two airfields could be jointly planned so that
economic development opportunities could be capitalized
on by the public airport.
Some of the initiatives
to generate income by Sabatello's office:
• A detailed audit revealed that the airport was
owed $700,000 by FAA, which it subsequently paid.
• Airport property being used as a driving range
was turned into an 18-hole golf course by an outside
developer. "As a driving range the airport was
getting $1,200 a year," says Sabatello. "The
golf course brings us $50,000 a year."
• The Harvest Christian Fellow-ship Church, which
sits adjacent to airport property, was parking constrained.
Sabatello leased the church property which it developed
for parking and then leased it gate access. Revenues:
$23,000/year for the property; $1,000/month for gate
access.
• A marketing offer for three months free hangar
rental quickly helped fill 25 empty spaces.
• Attracting Embry-Riddle Aero-nautical University's
West Coast office from San Diego as a tenant.
NEXT UP: A MARKETING PUSH
The updated master plan
completed by Coffman Associates, Inc., was approved
by the city in 1997. It calls for some $27 million in
improvements, most of which are eligible for Airport
Improvement Program funds (see graphic). One key component
is extending the main runway (9/27) to just over 6,000
feet, with overruns creating a safety zone to 8,000
feet, according to Sabatello.
Top on the agenda for
2001 is getting the word out. "This is our marketing
year," he says.
The primary target: corporate
flight departments and an increased number of based
aircraft. In particular, Sabatello says there is potential
in the Los Angeles market some 60 miles to the west
due to congestion and increasing difficulties with neighbors
at various airports. Ideal prospects, says Sabatello,
are the corporation looking to relocate or expand, particularly
as a based customer, and aviation service businesses.
Property is available for development.
An Executive Summary of
the new master plan has been created, as have various
other brochures related to airport benefits. A coordinated
economic development program has the airport, local
development agency, and the Chamber of Commerce working
jointly to attract business.
By 2005, Sabatello expects
the runway extension and a $2.8 million (funding pending)
parallel taxiway to be completed, along with a corporate
hangar complex which should break ground this year.