Downtown airport's future up in the air
Economy, competition driving owners to sell facility

By BOB MOOK
BobMook@coloradoan.com

News - Tuesday, September 14, 2004


 

 


Every day, Sharone Mekelburg, manager of the Fort Collins Downtown Airport, answers dozens of calls from people who confuse the privately owned site with the government-owned Fort Collins-Loveland Airport.

It's a prickly subject for Mekelburg, who might lose her job sometime in the next three years due in large part to the competition.

Between the two airports, the Fort Collins-Loveland Airport, which is jointly owned by the two cities, has a clear advantage in Northern Colorado.

For starters, Fort Collins and Loveland each contribute $60,000 for capital improvements every year.

 

 

 

The airport recently qualified for $1 million in funding from the Federal Aviation Administration. Usage of Fort Collins-Loveland Airport, located just west of Interstate 25 near Loveland, skyrocketed after Allegiant Air started offering direct flights from the airport to Las Vegas last year.

Meanwhile, Northern Colorado's "other" airport, tucked away north of East Mulberry Street, has struggled financially amid rising costs and a waning interest in aviation in the post-9/11 economy.

"We are just breaking even," Mekelburg said. "It's a struggle every day."

 

 

 

 

 

 

 

 

 

 

 

 

 

Photo
V. Richard Haro/The Coloradoan

CHANGES IN STORE: Airplane mechanics Jacob Johnson, foreground, and Anthony Schafer work on engines at Bob Gates Aircraft Maintenance at the Fort Collins Downtown Airport.


Photo
V. Richard Haro/The Coloradoan

Airport manager Sharone Mekelburg does some paperwork. If the airport closes, Mekelburg says she'll miss the pilots most. 'It's like a community of sailors,' she says.

 

 


In the late '70s and early '80s, the airport was home to a carrier that provided commuter service to Denver's Stapleton International Airport. But its fortunes have changed over the years.

Currently, the state's largest privately owned airport generates revenue from plane owners who rent about 30 hangars on the site.

In addition to making money from fuel sales, the airport collects commercial use fees from companies that provide maintenance and instructional service, as well as other hangar rentals.

But for several years, the airport's expenses have nearly outnumbered it revenues.

Fort Collins Downtown Airport isn't used by corporate jets because unlike Fort Collins-Loveland Airport, its runway isn't long enough or wide enough to accommodate them. And there's no room or money for expansion.

After nearly 40 years in operation, the airport's owners are trying to sell the facility in hopes of finally getting a return on their investment.

Clair McMillen, who owns 60 percent of the airport, has almost single-handedly kept the facility running in recent years.

McMillen, who also owns the Best Western Kiva Inn at 1638 E. Mulberry St., purchased shares from unhappy investors and put his own money into making improvements on the airport.

An airplane owner himself, McMillen said he bought the shares with the intention of sustaining the airport. But as the cost of fuel and upkeep continue to surge, so do property taxes on the facility. McMillen said owners paid about $30,000 in property taxes last year.

"That's more than what (Denver International Airport) and Fort Collins-Loveland Airport paid," he said.

Five investors, including McMillen; Loren Maxey, founder of the Maxey Cos.; and three local businessmen, own the bulk of the airport. Each of the remaining 25 investors owns less than a $650 stake on the facility, McMillen said.

The board of the Community Airpark Association, a group of about 30 investors who own shares in the facility, recently made a deal with Denver developer Lloyd Goff, who wants to convert the 135-acre site for possible commercial and residential use.

If Goff gets a plan approved by the city of Fort Collins and Larimer County, the developer would have the option to buy the land.

That would mean the airport would cease operations and businesses surrounding the facility -- including two flight schools -- would likely close down, as well.

Goff, who has been associated with various residential projects in Denver, Hawaii and New Mexico, expects the process of getting approval for a plan to take about three years.

While the area is not designated for residential use under Fort Collins' City Plan, Goff said he might be able to build a case for an exception if he presents plans to improve roads, access, flood-plain diversion and landscaping.

Goff said the site could be a logical place for the city of Fort Collins to grow.

The site, which is in unincorporated Larimer County, falls under the city's growth management area, meaning the city could annex it for future development.

But Pete Wray, senior planner for Fort Collins Advance Planning, said Goff has a lot of work in front of him.

Whether or not Goff's ambitions see the light of day, the prospect of the airport closing could have a huge effect on Fort Collins' tiny aviation industry.

Gerald Gates, owner of the Pilot Center at 200 Racquette Drive, has said his flight school, which employs 15 full-time and part-time workers, would have to go out of business or relocate if the airport closes.

The airport, which employs five full-time workers, is primarily used by a small group of local pilots who own aircraft. With patio furniture and a neatly manicured lawn near the tarmac, the airport has the ambiance of a small country club.

Mekelburg said the airport's small but loyal client base enjoys the intimacy and location of the airport.

Airplanes may be perceived as a hobby for the rich, but it's less expensive than owning a horse, said Ted Will, a retired professor from the Colorado State University's College of Business, who often flies a plane from the airport.

If the downtown airport closes, the Fort Collins-Loveland Airport is poised to absorb the additional traffic, said Dave Gordon, director of the airport.

"We hope to get a lion's share of the aircraft here," he said.

While the staffing of the airport won't need to change, Gordon said more hangars will need to be built.

Currently, 245 planes are based at Fort Collins-Loveland Airport. Gordon estimates about 50 more would move to the airport if the downtown airport closes.

Mekelburg, who has managed the airport for 13 years, said she'll probably "go back to real estate" if the airport closes.

But she makes no secret about the fact that she enjoys her job, despite long hours and a modest salary.

"Most people are happy to be here and not at the office," she said.

But most of all, Mekelburg said she'll miss the pilots.

"It's like a community of sailors," she said. "It doesn't matter how big your yacht is, they all look out for each other."