County reviews updated Allegiant operating agreement, staff projects revenue boost

Airport director Mark Sprague told the board the airport has seen rapid growth and needs a simpler, more predictable fee structure. "Passenger traffic has increased over 67% in the last 5 years," Sprague said, and staff propose consolidating six revenue structures into three and adding a per-turn facility fee intended to align costs with passenger use.

Sprague said the new agreement would set five-year rates and provide predictable planning for Allegiant, while projecting a rate increase of about 40% starting in fiscal year 2027. He described the forecasted first-year revenue as "approximately $1.02 $1,200,000 additional revenue in the first year over the current agreement," with an annual incremental increase of roughly $174,000 thereafter (about 3% per year). Commissioners asked for the underlying consultant pro forma and financial breakdown used to reach the 40% figure. "I'd really like to see the pro forma from the consultant that you referenced," Commissioner Nowicki said, requesting the supporting analysis before a final contract is brought forward.

Commissioners also clarified that Allegiant's exclusivity in the new agreement covers office space, not common-use gates or ticket counters, and asked about cost-per-enplanement comparisons. Sprague said the airport's CPE under the new structure would rise from about $2.35 to $3.11, which he characterized as still competitive for the market. Sprague said the signed contract is in current review and staff plan to bring the agreement to the board in September.