Monterey County Grand Jury • 2014-2015

“fly Monterey” the Monterey Regional Airport: an Analysis of Operating Expenses and Revenue Opportunities

Published: May 19, 2015 11 pages
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Findings and Recommendations 11 findings

F1
The occupancy rate for non-aviation ‘outside storage areas’ properties is 63.7%, significantly lower than other Monterey Regional Airport spaces.
Related Recommendations (1)
R1
Dedicate adequate staff to oversee the property management component of the airport’s rev- enue.
F2
Monterey Regional Airport parking rates have not been adjusted in seven years and are losing potential revenue for the airport.
Related Recommendations (1)
R2
Immediately evaluate non-aviation ‘outside storage areas’ such as the areas occupied by the current tree service tenants, to determine what can be done to encourage additional tenants.
F3
The availability of street parking in the adjacent neighborhood is causing the airport to lose parking revenue.
Related Recommendations (1)
R3
Provide regular maintenance and upgrades to the buildings that are located on the airport’s north side property, to keep them rentable and up to standards.
F4
The possibility exists to redefine the airport property as a “utility” district, potentially generat- ing new revenue streams.
Related Recommendations (1)
R4
Confirm that all airport property rates are in line with local ‘market rent’ rates.
F5
The airport’s north side property is a valuable, income-producing asset contributing to airport operations.
Related Recommendations (1)
R5
Immediately research the potential of redefining MRA as a utility district to generate new rev- enue streams.
F6
Most tenant leases are subject to CPI (Consumer Price Index) rate increases. In some cases however, tenants cannot raise their price point at the same rate and remain in business.
Related Recommendations (1)
R6
Evaluate the impact of raising parking rates.
F7
MRA pays competitive-to-high salaries for airport personnel, enabling employees to live on the Monterey Peninsula.
Related Recommendations (1)
R7
Enter into further discussions with the City of Monterey to regulate free street parking on the adjacent city streets.
F8
MRA is currently underutilized by area residents, capturing only 40% of the passengers in its service area.
Related Recommendations (1)
R8
Work with the local tourist and hospitality industry (Monterey County Convention and Visi- tors Bureau) to expand marketing of the area as a destination.
F9
Increased airline activity at the airport will increase revenue. Discussions with airlines, are currently underway.
Related Recommendations (1)
R9
Consider advertising with online commercial real estate services (such as LoopNet) as a means of attracting tenants.
F10
The Airport District is making a concerted effort to reach customers through local TV adver- tising and has begun to use social media to promote its services.
Related Recommendations (1)
R10
Expand the use of social media for marketing purposes.
F11
The cost of Board of Directors elections can potentially be reduced by privatizing the election process. 10
Related Recommendations (1)
R11
In terms of advertising, continue to emphasize the traveler’s savings on time, gas, hotels, parking, and traffic aggravation by flying from Monterey.

Additional Recommendations 3

These recommendations are not explicitly linked to specific findings.