The Port of Walla Walla's 2025 budget was approved with less funding for projects at the Walla Walla Regional Airport compared to last year.
In 2024, the Port budgeted a total of $60.1 million with $18.7 million going toward airport projects. In 2025, the Port approved spending a total of $42.8 million with $8.1 million for airport projects.
Budgeted projects at the airport include improvements for its Life Flight hangar, furniture for the new airport terminal offices, soil remediation at a barrel hangar, sewer line improvements and maintenance on equipment and airport buildings.
The airport's budget also allocates $2.7 million toward aviation fuel costs, pavement maintenance, navigational aid beacons and storage tank liability insurance.
Port Commissioners Kip Kelly, Amy Schwab and Ron Dunning approved the Port's 2025 budget during a December meeting.
Kelly thanked the Port staff members for all the time they put into the budget.
"Just the amount of detail that's put into these things feels greatly appreciated," he said.
The largest 2025 budget item — just over $25.7 million — is for funding the Port’s Business Park projects. That figure is more than $4 million less than what was allocated for those projects in 2024.
These projects include waterline installations at the Dodd Road Industrial Park, sewer and grading at the Burbank Business Park, waterline extensions for the Rockwool facility and other projects.
Rockwool (copy)
Rockwool, a globally leading manufacturer of insulation and other products, agreed to buy 250 acres at the Wallula Gap Business Park in 2024. This photo is another Rockwool location.
Before approving the budget, the Port added a line for tax increments and an award given to SkyNRG from Gov. Jay Inslee's strategic reserve fund.
Pat Reay, the Port's executive director, said the $50,000 tax increment is an expected new cost from developments at its Business Parks.
"We (the Port) know we're going to have to negotiate with the county assessor, which has the ability to charge back for a collection of the tax increment area," he said.
As more developments begin construction at the Port's properties, the overall value of Port-owned land increases and its owed taxes.
Schwab asked when the properties are assessed.
Reay said that because these properties will go from public ownership to private ownership, a market value is assessed on those properties.
He also said to commissioners the Port is unsure of how much revenue each development will bring, but Port staff have a rough estimate.
The Port did not budget for revenue gained through sales of Port-owned land or for acquisitions of new property, which is something Reay said was done in years past.
A potential purchase and sale agreement underway is between the Port and Advance Phase LLC. The undisclosed Fortune 500 company has until October to decide to move forward with the potential development of a $4.8 billion data center at the Wallula Gap Business Park.
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