Q: Why did we pay $31 million tax dollars for upgrades to the airport, when Bandon Dunes Golf Resort gets subsidies for every plane that flies into Coos Bay airport? Before Bandon Dunes, three private jets a year, after Bandon Dunes, 5,000 jets a year and maybe 7,000. That’s big money.

A: Coos County Airport District Executive Director Gary LeTellier said that’s right: Costs for upgrades to Southwest Oregon Regional Airport in North Bend reached approximately $31 million in the past year. But all of the work was paid for with federal and state grants, he said.

Federal grants are not funded through federal withholding taxes, but with passenger ticket charges, fuel sales taxes and cargo waybill taxes, according to LeTellier.

Fiscal year 2007-08 projects

* The new terminal and parking lot, which cost about $20 million, were funded half by Oregon Lottery funds and half through a series of federal entitlement grants.

* Another upgrade this year is a $3 million air traffic control tower that is under construction. The tower was funded through a Federal Aviation Administration grant and an anticipated Oregon Transportation Commission Connect Oregon II grant for $600,000. The Transportation Commission is expected to approve the grant on June 19 or 20.

* Other improvements at the airport this year have been the approximately $8 million in runway and taxi-related projects. According to LeTellier, 95 percent of these projects were funded through an FAA discretionary grant, with the remaining 5 percent paid with passenger ticket charges.

That’s not to suggest the airport does not spend some money obtained through property taxes; it does, LeTellier said. According to the proposed budget for the fiscal year starting July 1, 2008, $884,000 is earmarked to come from property taxes.

“That goes for salaries and upkeep of the airport,” LeTellier said.

In the next fiscal year, the $884,000 will carry about 4 percent of the estimated $20.5 million budget.

“The rest of it comes from other sources,” he said.

LeTellier agreed that the number of airplanes landing at the airport has increased significantly in recent years, to more than 5,000 per year, largely due to increased traffic from Bandon Dunes Golf Resort.

But there are no subsidies paid for aircraft that land at the airport, he said.

In fact, there is a charge for each landing.

Every aircraft that lands at the airport is charged $2 per 1,000 pounds certified gross landing weight, he said. The larger airplanes weigh approximately 2,000 pounds, while smaller ones are about 1,250 pounds.

“The formula they use is to take the maximum weight of what that aircraft can carry,” LeTellier said.

The airport also adds an additional fee totaling 7 cents per gallon for fuel pumped.

In next year’s proposed budget, it is estimated that the landing charges will bring in about $85,000, fuel charges could total as much as $72,000, plus passenger airlines are expected to bring in an additional $146,280 in landing fees.

There is a financial incentive that Bandon Dunes does qualify for.

Companies that provide new jobs in the area qualify for the enterprise zone program, according to Enterprise Zone Manager Eileen Ophus, with CCD Business Development.

Bandon Dunes is located in the Coquille Valley Enterprise Zone, she said. That means the business qualifies for property tax abatement for three years on specific investments that create employment.

“They qualify with a couple of their new buildings,” Ophus said.

After the three-year period, the taxes are then paid, she said.

— By Staff Writer Jo Rafferty

(I Want to Know is a regular feature of The World, offering readers a chance to anonymously ask questions and have reporters pursue answers. Those interested can send questions to The World newspaper, P.O. Box 1840, Coos Bay Ore. 97420; or by sending e-mail to news@theworldlink.com.)