As part of its long-range financial planning, a Richmond airport oversight group yesterday discussed raising the garage's daily parking rate by $2 -- from $10 to $12. The increase is needed, officials said, to generate more revenue to finance construction of a $55 million garage.
"No one ever likes to raise parking rates, but it looks like we're heading in that direction if we want enough parking," said Robert F. Norfleet Jr., chairman of the airport's finance and audit committee.
The committee discussed various options -- including phasing in the $2 increase over two years -- that will be considered at the April 24 meeting of the Capital Region Airport Commission.
If approved, it would be the airport's first parking-rate increase since 1999, officials said. The regional airport does not receive local tax revenue and must generate all of its operating income and much of its capital-improvement money.
The $2 increase could take effect July 1. Or the airport commission could approve a $1 increase for July, with another $1 increase next year.
The $6 economy-lot rate would not change. Neither would the short-term parking rate of $2 per hour in the garage.
The commission is considering the increase to cover the costs of a $55 million bond issue this fall to build a 2,600-space garage beside the north garage. That space is now used for surface parking.
Given the airport's recent record growth -- including a single-day record of 6,822 passengers boarding last Friday -- officials said the clock is ticking to meet growing demand.
The airport's 4,000 parking-garage spaces typically are at least 70 percent full, but "there are days during holidays when they are 100 percent," said Jon Mathiasen, the airport's president and chief executive.
Despite the economy lots with $6-a-day rates, business travelers remain fond of parking closer to the airport terminal.
"I very much want us to stay ahead of the parking curve," said commission Chairman Beverley "Booty" Armstrong.
The finance committee pondered whether a rate increase might drive some travelers to the economy lots, resulting in a loss of revenue. But Mathiasen said he doubts that most travelers would change their habits.
"I think it will have an impact on a very, very small percentage of people," he said. "I don't think it will affect our frequent fliers."
Parking revenue generates more than 43 percent of the airport's annual operating revenue of $36.9 million. A $2 increase would add about $1 million in revenue in fiscal 2008, which starts July 1 - enough to cover the long-term debt needed to build a garage.
Source: Chip Jones, Daily Progress
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