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EUGENE <br />AIRPORT <br />City of Eugene <br />Mahlon Sweet Field <br />28855 Lockheed Drive <br />Eugene, Oregon 97402-9500 <br />541/682.5430 <br />Fax 541/682.6838 <br />www.eugencairport.com <br />November 29, 2010 <br />Mr. Joseph H onyea <br />PO Box <br />Spri leld, OR 97477 <br />Dear Mr. Gonyea <br />I am in receipt of your letter dated November 24, 2010, regarding the increase in land lease rates at the <br />Eugene Airport. Since the Eugene Airport accepts federal grant funding for capital improvement <br />projects at the airport, our Grant Assurances require the airport to be as self-sustaining as possible. To <br />comply with this directive, the airport charges fair-market-value for land lease of airport owned land. <br />Fair Market Value was obtained by hiring an independent appraiser to conduct an Airport Ground Lease <br />Rate Analysis. This analysis was conducted by Duncan & Brown in August. The analysis shows fair <br />market value for the property is $0.32 to $0.34 per square foot per year. <br />The airport is aware of the economic conditions that currently exist and as a result of two formal written <br />comments received during the Administrative Order for the rate increase, the airport decided to phase <br />the increase over a two year period. Instead of implementing a $0.02 increase per square foot, effective <br />January 2011, the rates will increase $0.01 per square foot and effective January 2012 the additional <br />$0.01 per square foot increase will occur to put our lease rates at fair-market-value. <br />Thank you for your comments and I hope this clarifies why the increase was implemented. <br />Sincerely, <br />Timothy Doll, A.A.E. <br />Airport Director <br />Cc: Jon Ruiz, Eugene City Manager <br />.Aurt Corey, Public Works Director <br />This paper is made of 100% post-consumer recycled fiber. <br />