The Airport District's Business Park currently accommodates just one business, but that could change soon.

Three business owners have shown interest in relocating to Southwest Oregon Regional Airport property, and Coos County Airport District board members have made it clear they don’t want to miss out on the opportunities.

After hearing a report from South Coast Development Council Executive Director Ron Opitz on the prospective businesses — one from the South Coast — board members agreed there is a need to develop leasing guidelines, but they shouldn’t wait if someone’s ready to move.

“We do need some long-term guidance, but, gosh! I wouldn’t want to lose a prospect,” board member Clair Jones said.

The Airport District’s Business Park, on approximately 50 acres of land at the end of Colorado Avenue, now accommodates one business, United Parcel Service. Without divulging names, Opitz talked about an area business owner who is contemplating constructing a 15,000-square-foot building on airport property. The construction estimate is $70 a square foot.

“He’ll be ready two, three, six months from now,” board member John Briggs said. “Sounds like he wants to move.”

Jones suggested they meet with the prospective client soon.

“We wouldn’t want to lose him,” he said. “Time is of the essence and he’s ready.”

Opitz said a Eugene business owner also has expressed interest in building at the site.

“He wants multiple units,” Opitz said. “This one could be bigger, depending upon what kind of interest peaks. They would be 1,000- to 3,000-square-foot businesses. There’s no limit.”

A third party, a California couple, is eyeing the location for their business, Opitz added.

“We continue to have opportunities,” he said. “We’re looking for people who are interested in making long-term relationships with the airport.”

Opitz said he has been studying Bay Area properties with Marineau & Associates Appraisers and comparable building sites don’t exist.

“We have no such thing,” Opitz said. “We can’t market those.”

Lehman asked if the airport is a good deal for clients, as far as leasing fees.

“We’re really competitive,” Opitz said. “We’re in an enviable position. Other places cannot be tax free, as it is here.”

LeTellier explained that the Airport Business Park is located in the Bay Area Enterprise Zone.

Qualifying businesses within the zone are exempt from local property taxes for at least three, and in some cases up to five years and more, according to the Coos, Curry and Douglas Business Development Corporation Web site.

The Airport Business Park is also customs tax free, LeTellier said.

“You could literally set up a manufacturing plant, import parts and sell (the finished product) overseas duty free,” LeTellier said.

And there is another benefit to leasing land, rather than owning it, according to LeTellier.

“Their corporation can focus their funds on their business, not on their infrastructure,” he said.

Board members agreed they need to set guidelines to determine details and answer questions, like: who will do the construction — the business owner or the airport How much will be charged for leasing the land And, should the appearance of the buildings be uniform or should they be built to suit the client

“Do we want it to be strictly financial, a business to contribute to the area or a business that complements the airport” Lehman asked.

LeTellier said board members need to hold workshops so they can set standards for leasing.

Board members acquiesced, but said they shouldn’t wait for the outcome before working with parties who are interested now.

Of the approximate 1,000 acres of land owned by the airport, about 10 percent is leaseable.

“I would say probably over 100 acres of land is dedicated to non-aeronautical uses,” LeTellier said.

Currently, there are a dozen or so businesses and organizations leasing existing buildings, and more than 20 land leases on property adjacent to the airport, outside the Airport Business Park developing at the end of Colorado Avenue. The district is receiving approximately $9,300 a month from its property leases and $6,800 for building leases.

Except for the American Legion, which is leasing a building annually for 27 cents a square foot, the average annual cost for building leases is about $3 a square foot. Some examples are: Ocean Air Aviation, $3.16 a square foot; and Aslin Industries, $2.67 a square foot.

Property leases average 20 cents a square foot per year.

Properties used for aviation purposes are on a different standard, LeTellier added.

“We routinely look at other like costs in the region,” he said.

According to LeTellier, in order to receive a Federal Aviation Administration operating certificate, buildings have to be leased close to the fair market value.

“The goal now is to get 10 percent of market value,” LeTellier said. “For land, we like to get 8 to 12 percent of the appraised value of land annually.”

Opitz said he is only looking at established businesses that will contribute to the county’s economic stability.

“We need good, solid businesses,” Opitz said. “Something that’s going to last and grow.”