SUBJECT:
Title
Erie Municipal Airport Update
Department
DEPARTMENT: Public Works
Economic Development
Finance
Presenter
PRESENTER(S): David Pasic, Public Works Director
Julian Jacquin, Director of Economic Development & TOEURA
end
Lockie Woods, URA Development & Accounting Analyst
Time
TIME ESTIMATE: 90 minutes
end
For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
The airport fee proposal developed by the Airport Economic Development Advisory Board (AEDAB) increases operating revenue by aligning fees and rents with market rates and the cost of service. The proposal reduces the annual operating shortfall in the Airport Fund and decreases reliance on General Fund subsidy.
The new aircraft hangar RFP supports long term revenue generation through ground lease payments and hangar lease income. Market studies confirm strong and sustained demand for additional hangar capacity at Erie Municipal Airport. New hangars create predictable, recurring revenue dedicated to airport operations.
Together, the fee proposal and hangar development strategy increase Airport Fund revenues, reduce General Fund support, and advance compliance with Town Municipal Code requirements for the Airport Fund to operate as self-supporting.
Policy
POLICY ISSUES:
Town Council oversight is required to ensure Erie Municipal Airport operations remain consistent with Town Municipal Code, which requires the Airport Fund to operate as self-supporting without ongoing General Fund subsidy. Council direction on airport fees, leases, and operating agreements directly affects the airport’s financial performance, service levels, and long-term viability, and will guide implementation of actions intended to reduce subsidies and strengthen the Airport Fund. Council direction also informs the Town’s participation in regional aviation policy discussions through the NW Mayors and Commissioners Coalition (NWMCC).
Recommendation
STAFF RECOMMENDATION:
Receive the update and provide direction on next steps related to airport fees, hangar development, the unleaded fuel transition, and the FBO agreement.
Body
SUMMARY/KEY POINTS
• This item provides an update on Erie Municipal Airport initiatives discussed at the Aug. 5, 2025 Town Council Study Session, with a focus on financial sustainability.
• Updates include AEDAB-led airport fee proposal, AEDAB support for a new hangar RFP to address high demand and generate new revenue, the unleaded fuel transition plan, and the status of the FBO, Land Lease, and purchase agreement with Vector Air.
• Since the last Council discussion, staff and AEDAB have issued the hangar RFP, advanced Airport Fund financial analysis, and identified near term actions to reduce the General Fund subsidy.
• The NWMCC is considering adding Aviation to its Policy Agenda and will meet with the FAA during the NWMCC’s April trip to DC. Additional context is provided in the presentation and NWMCC letter attached to this agenda item.
BACKGROUND OF SUBJECT MATTER:
While not subject to TABOR, the Erie Municipal Airport is required to be self-supporting under Town Municipal Code. The Airport Fund is required to function without ongoing subsidy from other Town funds and maintain a fiscal balance where revenues exceed expenditures. After approval of the new Airport Management Agreement with Vector Air in 2023, operating costs now exceed revenues, requiring General Fund support to sustain airport operations.
On Aug. 5, 2025, Town Council held a Study Session to review airport finances, governance, and long-term strategy. Key themes included reducing General Fund subsidy, aligning airport rates with market conditions, expanding revenue-generating facilities, and clarifying the Town’s relationship with its fixed base operator (FBO). Council also discussed the advisory role of the Airport Economic Development Advisory Board (AEDAB) in advancing these efforts.
Since that Study Session, AEDAB has worked with staff to develop a proposed fee and rent schedule intended to increase operating revenue and move the Airport Fund toward fiscal balance. The proposal reflects market comparisons, cost recovery needs, operational considerations, and FAA constraints.
Staff and AEDAB have also advanced a Request for Proposals (RFP) for new aircraft hangars under long-term ground leases. Market studies prepared by BA Group document unmet demand for hangar space at Erie Municipal Airport. Staff issued the RFP on Jan. 9, 2026, and received four qualified responses by the Feb. 6 deadline. Staff will evaluate proposals, interview finalists, and return to Council in Executive Session with a recommended partner.
Staff also continued planning for the transition to unleaded aviation fuel in response to federal guidance and industry direction. The transition plan focuses on maintaining safe operations while minimizing impacts to tenants, users, and airport revenues.
Additionally, staff are progressing discussions related to the FBO, land lease, and purchase agreements with Vector Air. Following the separation of airport management and FBO functions in 2023, the current agreement aligns potential airside improvements with the level of private investment. Future actions will remain consistent with adopted plans and prior Council direction.
Finally, during the February 12 meeting of the NW Mayors and Commissioners Coalition (NWMCC) Aviation Update, Superior Mayor Lacis advocated for including aviation in the NWMCC policy agenda. He noted that RMMA responded to the NWMCC’s November letter by saying they asked the FAA what they could do and there has been response from FAA as of this date. Lacis says aviation is the single most frequent issue that constituents reach out to him on and saying “we can’t do anything” is non-responsive to the safety, noise, pollution and other issues constituents raise. He suggested working as a coalition will increase leverage and enable needed changes from FAA. Boulder County Commissioner Levy voiced concern that doing so might stretch resources too thin. NWMCC’s DC lobbyist, Chris Andresen said they would use the same strategy as other transportation issues and he thinks it could be effective. Other NWMCC attendees expressed support for a collective approach that would enable the NWMCC to go to the FAA and ask them for action. Attendees also asked Andresen to schedule a meeting with the FAA during the April DC trip and any participants who want to meet with the FAA can do so. Additional detail on this discussion is included in the presentation and NWMCC letter attached to this agenda item.
This update provides Town Council with a status report on actions taken since August 2025 and outlines the path forward to strengthen airport operations, improve financial performance, coordinate with regional partners on aviation issues, and position the Erie Municipal Airport for long-term viability.
priorities
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attachments
ATTACHMENT(S):
1. Presentation
2. NW Mayors and Commissioners Coalition Letter