Pitkin County Commissioners hear quarterly budget requests, airport FBO lease details

Pitkin County Commissioners heard several requests for third quarter budget supplementals, as well as a presentation on a fixed-base operator lease at the Aspen-Pitkin County Airport on Tuesday.

Connie Baker, budget director for Pitkin County, led the charge for several different groups to present their budget requests to the board of commissioners. County departments can submit these supplemental requests for various reasons, including “when a grant has become available, a new project or acquisition has been identified, the scope of an existing project has changed significantly, or when budgetary changes cross funds,” according to meeting documents.

Supplemental requests from the county’s general fund totaled a little over $1 million and included a jail line sewer repair, a sustainable aviation fuel feasibility study, and an Elk Run housing unit renovation.  

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Other requests came from the county’s public safety radio fund for a site in Redstone for $400,000, the housing fund for an Aspen Airport Business Center employee housing unit renovation for $250,000, the healthy rivers fund for a Lincoln Creek water quality project for $15,550, and the ambulance district fund for HVAC upgrades for $48,000.

The Aspen-Pitkin County Airport had several requests to make to the board from the airport fund, as well as a combined airport and general fund request. The requests include building a retaining wall at the airport for $267,000, noise monitoring with the Fly With Integrity Program for $219,033, conducting a wind study for $125,000, and conducting a geothermal heating district feasibility study for $700,000.

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Open Space and Trails also had several requests to make to the board from the open space and trails fund, including contribution to the Roaring Fork Safe Passages project for $18,000, the Deer Creek Ranch Solar System for $140,000, and the Gerbaz Bridge for $55,000.

These requests, if approved by the board, will increase the county’s 2024 budgeted expenditures by approximately $3.2 million, which will be offset by an increase in budgeted revenues of around $1.1 million. For the budget, this is a net increase of $2.1 million.

A first reading for the requests will be held tomorrow.

Airport fixed-base operator lease

After an executive session on Monday with the Pitkin County Financial Advisory Board, staff presented the Aspen-Pitkin County Airport’s 30-year fixed-base operator lease details to the board of commissioners on Tuesday.

Over two years ago, a request for fixed-base operator proposals for the airport was announced on Aug. 8, 2022. The deadline for proposals was Feb. 16, 2023. 

Seven firms submitted proposals, and Atlantic Aviation beat its rivals based on certain criteria from the county. 

“Proposals were evaluated on the following weighted criteria: Approach to FBO Services at ASE – 25%; Financial Proposal – 20%; BoCC Resolution 105-2020 Environmental Goals – 20%; Ability to Finance & Construct new FBO facilities – 15%; westside development and eastside redevelopment plans – 10%; past performance/industry experience – 10%,” meeting documents state.

Negotiations with Atlantic Aviation began on April 14, 2023. 

The existing lease, signed in 1993, was to expire on Sept. 30, 2023. In 2006, Atlantic Aviation acquired the original lease holder, Trajen Flight Support LP, and assumed the rights and responsibilities of the current fixed-base operator agreement, according to previous reporting from The Aspen Times. 

In the final year of the lease, from Oct. 2022 to Sept. 2023, the county earned $1.24 million from rent, fuel fees, and patio shelter revenues. In 2022, the county also collected $4.66 million in landing fees. 

So, a one year lease extension was approved with Atlantic Aviation, but this extension is set to expire on Sept. 30, 2024. Another extension, under the existing terms, will be sought on Sept. 25, under an emergency ordinance with Atlantic Aviation. Instead of another year, though, the extension will most likely be for 60 days.

For the new 30-year lease, estimated minimum guaranteed revenues include $14 million to about $14.63 million for the first four years and $16 million to about $23.22 million for the next 5-30 years until the lease ends. The ground rent and supplemental operating fee revenue ranges from $5 million to $15.59 million. This is a total of $19 million to $138.8 million. The proposed lease with Atlantic Aviation also includes $125 million in one time capital investments and contributions.

With these totals, along with shares of other gross revenues, like aviation fuel, hangar rentals, and service fees, Pitkin County is expected to make approximately $879 million in 30 years.

The lease, however, still needs to go through a first reading, a second reading, and public comments at regular board meetings before its approval.

Regan Mertz can be reached at 970-429-9153 or rmertz@aspentimes.com.