Draft EUG Master Plan Update, February 2010

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CHAPTER 5 FINANCIAL FEASIBILITY ANALYSIS Miscellaneous Terminal Facility Revenue 4.7 This revenue category includes rent receipts for the gift shop as well as advertising space in the Airport’s terminal building and revenue from services made available to passengers in the terminal including automatic teller machines and baggage cart rentals. Revenues from these sources have increased from $205,324 in FY 2003 to $266,457 in FY 2009. As shown on Table 5-5, it is anticipated that these revenue streams will increase from a proposed level of $266,457 in FY 2009 to $350,639 in FY 2016 assuming continuation of a 4 percent annual growth rate in this category of revenue. Public Parking Facility Revenue 4.8 Public parking facility revenues represent the Airport’s share of fees collected for all public parking facilities. Under a contractual agreement with Standard Parking Company, the Airport pays a certain percentage of total parking revenue to this private concessionaire for management of its public parking operations. This concession agreement is scheduled to expire in June 2010 and the Airport currently pays 8.74 percent of total parking revenue to Standard Parking Company under this agreement. Airport parking revenues from this contractual arrangement increased from $1,579,986 in FY 2003 to an expected level of $2,525,206 in FY 2009; translating to a compound annual growth rate of 8 percent during this period. It should be noted that between FY 2003 and FY 2009, the Airport constructed an additional 300 stalls. Future projections of public parking revenue are based on projections of passenger activity. As shown in Table 5-5, public parking revenue is projected to increase from an expected level of $2,525,206 in FY 2009 to $3,796,976 in FY 2016. Other Revenue 4.9 The other revenue category is comprised mostly of revenues collected from the rental of Airport owned lands to area farmers and building office space to businesses. This category of revenue increased from $236,831 in FY 2003 to $362,856 in FY 2009. Future levels of other revenue were projected individually based on various factors including Airport expansion plans, tenant lease agreements, and projected changes in passenger activity levels at the Airport. This source of revenue is projected to reach $423,876 in FY 2016. Summary of Airport Revenue 4.10 As shown in Table 5-5, total revenues at Eugene Airport are projected to increase from $7,296,261 in FY 2009 to $9,636,043 in FY 2016; representing a compounded annual growth rate of approximately 4.0 percent. These projections were developed by examining several key business factors that have an impact on major elements of Airport revenue; therefore, actual levels of future revenue may differ from these projections. Examples of some factors that could impact future levels of Airport revenue include changes in the level of passenger activity at the Airport and the entry of another airline. Additional revenue opportunities, generated through the lease of land not needed for aviation purposes, are presented in Section 8.3. 5-21 Eugene Airport Master Plan Update (February 2010)