Port of Walla Walla Approves Minimum Rental Rate Increase for Airport Properties

Dec. 7—The Port of Walla Walla is raising the minimum rental rates for some tenants who rent space at the Walla Walla Regional Airport.

At a Port Commission meeting on Tuesday, Nov. 26, as part of an annual review, commissioners discussed whether they need to increase the minimum rates and charges of various Port-owned properties in 2025.

Pat Reay, the Port's executive director, said the review is a requirement of the Federal Aviation Administration, and the airport needs to charge market rate for leases, buildings and utilities.

After the discussion, Port Commissioners Kip Kelly, Amy Schwab and Ron Dunning voted unanimously to increase minimum rates.

The new rates include a 3% increase for buildings and standard land leases and a 5% hike for storage rooms, garages, motor pool spaces and conference room rentals.

The rate increase also impacts utilities with a 10% increase on water, sewer and stormwater fees. T-hangars and other community spaces will also see a 10% increase, which also includes large properties.

Port official said a 30-day notice will be sent to impacted tenants.

Jennifer Skoglund, the Port's airport manager, said the increase in costs of utilities and rent is part of a broader trend.

"We're not shy when we say, we know your costs are going up at other competing airports with their infrastructure improvements and such and ... rates over on the west side are increasing substantially," Skoglund said during the meeting.

For example, the rate increase on Port-owned land for up to one acre will go up from 28.2 cents a square foot in 2024 to 29 cents a square foot in 2025. A leased property of a quarter acre would increase its rent from $256 per month to $263 in total.

Lease rates are determined by the size of the lot. The Port also discussed changing the rate and requirements for businesses looking to develop at "extra-large" properties, meaning the leased property is at least 5 acres. The rate for extra-large properties is 7 cents a square foot, for large properties the rate is 14 cents per square foot.

To qualify for an extra-large property, a business must be willing to develop a $500,000 private investment, originally the Port set the requirement at $250,000. This private investment must exceed $500,000 within three years from the day the lease was signed and if not, the lease rate will be set to a large size property.

Reay said, "Somebody could ask for five acres all they want. But that doesn't mean we have to grant (it). My recommendation will be at least we double that to start with ... (to) a half a million."

Not all airport hangars owned by the Port will see a 10% rate increase; three large hangars will see a 5% increase. The airport hangars with smaller rate increases currently have long-term leases and have built-in gradual rate increases.

These long-term leases include tenants such as Gorge Aviation Services, who provide maintenance, flight schools and pilot services.

An example of a hangar that will see a 10% increase are the North T-Hangars. In 2024, the hangars charged $175 per month and in 2025 the same hangars are expected to charge $197 per month.

Skoglund said the Port's staff spent time looking at rates charged by various airports in Washington and Oregon so they could compare what Walla Walla charges.

The study shows Felts Field Airport in Spokane charges the highest rate for its T-hangars at $500 per month, and the Eastern Oregon Regional Airport in Pendelton charges the least at $150.

"We have known for some time that Walla Walla (rates) have been low, and I think we're making some improvements, especially hopefully this next year, with some other programs coming into place where we need to increase rates and some of what the uses can be," she said.

The Port did not increase airline fees for Alaska Airlines and its services, Skoglund said. Currently, passenger airlines pay 85 cents per 1,000 pounds to the Port.

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