As elected representatives to Durango City Council, we unanimously support the property tax needed to fund construction of a new airport terminal.
Durango-La Plata County Airport, DRO, is a crucial element for the financial sustainability of our community, serving businesses, residents and tourists alike. According to a recent economic impact study, it accounts directly or indirectly for about $160 million in economic activity and 1,860 jobs in La Plata County alone, with additional positive impacts beyond the county.
Built 30 years ago, the terminal at DRO was designed to handle only half the current passenger load of nearly 200,000 passengers per year. At peak times, every functional element of the facility, including apron space for aircraft, baggage handling areas and passenger spaces, functions at Service Level “F” as measured by Federal Aviation Administration standards. The highway equivalent of this rating is a creeping rush hour traffic jam. Moreover, growth projected for La Plata County, whether it occurs in 15 years or in 30, will only exacerbate the dysfunction.
The design and $85 million price tag seek to meet only current demand but will develop the space on the east side of the runway to ensure that the facility can grow to meet future needs. The considered alternatives of simply renovating the existing terminal or building next to it would cause much greater disruption during construction, would cost as much over time to meet projected needs, would fail to provide long-term flexibility and would be unlikely to garner as much federal grant support. In addition, vacating the existing terminal on the west side of the runway will improve safety by separating commercial and general aviation and also provide space for redevelopment that would likely generate additional revenue for the airport.
DRO now is in a queue to receive FAA grant money of $35 million to $40 million, nearly half the initial project cost, to support elements of the construction. These funds may not be available in the future in the event that our county votes “no” on this initiative, as DRO competes for funding with other regional airports. The remaining costs will be funded with smaller grants and borrowing of about $40 million. Interest rates also are low now, so that the total repayment cost would likely increase substantially if the project is delayed.
Although passenger facility charges (which are set by Congress) and other revenues are insufficient to repay the borrowing costs for initial construction, they would suffice to match federal and state grants for the costs of future expansion without additional tax contributions. Consequently, taxpayers would provide only about one-third of the total cost over 30 or so years.
A property tax in La Plata County is the best way to provide revenue needed to pay the debt for construction. Under Colorado law, an airport authority that might share management responsibilities with other jurisdictions, including San Juan County, New Mexico, has no taxing authority. Businesses would pay more than 75 percent of the property taxes.
Nevertheless, because of the economic importance of DRO to the community, the La Plata Economic Development Alliance strongly supports the tax increase. For homeowners, the impact would be modest, about $50 per year on a $400,000 property. The economic impact study shows that there would be virtually no cost to low-income residents who would be least likely to use the airport. By contrast, a sales tax, to which tourists would contribute only a portion, would leave the remaining balance to local residents, including low-income families that can least afford it.
Durango City Council and La Plata County Board of County Commissioners have weighed these facts for more than 18 months and concluded that seeking taxpayer approval in November for a property tax to support financing of a new airport terminal for DRO is the wisest course of action. We urge you to vote “yes.”
Christina Rinderle is the mayor of Durango, a position rotating among members of City Council. She was re-elected to the City Council in 2013 and will serve as mayor until April 2017, when she will be succeeded by now-Mayor Pro Tem Dick White. Reach her at ChristinaRinderle@DurangoGov.org.
