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September 26, 2003
 

County Executive in Secret Negotiations
To Sell Boeing Field to Port of Seattle

The King County Executive is seriously considering sale of Boeing Field to the Port of Seattle, according to reliable sources & County documents made available to Truth in Aviation. County & Port staff have been negotiating for the last several months.

Although Robert Burke, the Airport Director, is meeting weekly with Port staff to work out details of a transfer, Executive staff have stoutly denied to County Council members and the public that there is any interest in sale or other transfer of the South Seattle facility. As recently as August 1, a Boeing Field staff member involved in Airport planning wrote in a letter to Beacon Hill activist Bill Mallow that "speculation about any 'sale' to the Port or any outcome is very premature".

Members of the Council plead ignorance. Councilmember Dwight Pelz (D-7) whose district is heavily hit by Boeing Field traffic, wrote in mid-Summer to a constituent, saying that "I have heard this rumor but it is not substantiated. It makes no sense to me". Councilmember Rob McKenna (R-6), asked in late June if he’d heard the report about a sale, said no, he hadn't, and seemed genuinely surprised. He said because BFI was a source of revenue for the county, a sale didn't seem likely to him.

It's 'sensitive', so please don't tell!
However, e-mails sent by County staffer Cal Hoggard make it clear that sale is very much on the agenda. On 6 June of this year, Mr Hoggard e-mailed to an employee of the City of Austin, Texas, to inquire about that city's experience in disposing of a local airport. Mr Hoggard's message reads, in part, "A question of whether it would be advisable to sell BFI to the Port of Seattle must be dispensed with. My questions go to whether the experience the City of Austin has had with RMMA [local airport at Austin] could be useful in our contest... As you can imagine, this is a sensitive subject so I would appreciate it if you could keep the fact that we are evaluating this confidential."

In another e-mail, this time to a staffer with the City of New York, sent on 7 July, Mr Hoggard commented, "... We are exploring the feasibility of a lease, sale or swap with the Port for Boeing Field ... We would also hope that the Port could operate the two airfields together in a fashion that would bring benefits to the region that might otherwise be missed with the separate operations."

A similar message was sent by Mr Hoggard to a recipient in Denver, Colorado, on 14 May.

Mr Hoggard was formerly an assistant to Mr Sims. He is now "Special Projects Manager" in the Deputy Director's Office, County Department of Transportation. The Airport is under that Department.

Cash Cow for Port, To Cover More Runway Bonds?
Boeing Field is a potential source of new revenue for a cash-strapped Port of Seattle. 

Any new revenue source would allow the "gnomes of Sea-Tac" to issue even more revenue bonds, the only remaining untapped source of third-runway construction money, now that the Port has decided to maximize its real-estate tax on King County property.

A quick study done by the Seattle Council on Airport Affairs in February 2002 showed that Boeing Field could produce a good deal more revenue than at present. 

For example, BFI does not charge landing fees to many users--aircraft classified as "general aviation" pay no fees. This category is not just small, single-engine "hobby" aircraft--the largest corporate jets are included as well. The County is short of money, but doesn’t charge millionaires for use of its airport.

The rate structure for aircraft that DO pay landing fees has not been reviewed since the early 1970s. SCAA research revealed that the County charged $0.35 per 1000 pounds landing weight for cargo and passenger revenue aircraft, resulting in annual revenues between $200,000 and $300,000 in recent years. Sea-Tac Airport, in contrast, at the same time was charging $1.50 per 1000 pounds, for ALL landings. Thus, if the Port takes control of BFI, it could easily raise fees to the point where it pockets another $1 million to $1.5 million per year, just on fees on planes that do pay landing fees now. Fees for general aviation would be extra.

Boeing Field is far below market for fueling fees, which are charged to those who buy aviation fuel on site: the present 5 cents per gallon could easily be raised to more realistic levels, given that this is essentially a monopoly situation.

County staff have identified increases in fueling fees & increases in space rental as the two big items for future revenue growth. Mr Hoggard wrote in a memo to a Boeing Field staff member on 30 June,"The greatest potential revenue is space rent and fuel flowage." Why would the County be interested in identifying ways to increase revenues & at the same time consider transferring the airport to the Port of Seattle?


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Original Documents
Boeing Field Masterplan
[Presentation]

     
  Update:
The
Seattle Times and the Seattle Daily Journal of Commerce [subscription only] confirmed our report of the negotiations and reported on it in their Sept. 29th editions.