Management Audit of the Airports Division: Section 7c

Management Audit of the Airports Division

Airport Division Audit
12/11/99

Insert C:

The County is not well positioned to enhance its revenues from the Palo Alto Airport. The agreement with the City of Palo Alto, which expires in approximately 17 years, restricts non-aviation development, caps the number of tie-downs allowed, and requires City approval and conditions on any development. County financing of new hangar construction is not a prudent option either as the agreement allows the City to take possession of all airport assets at the end of the 17-year term. This means that if the County financed construction of new hangars, the City would have the right to take possession of them and their revenue after the County incurred the costs of constructing them.

Table of Contents Introduction Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 7c Section 8 Appendix Letter
		Management Audit of the Airports Division Airport Division Audit 12/11/99 Insert C: The County is not well positioned to enhance its revenues from the Palo Alto Airport. The agreement with the City of Palo Alto, which expires in approximately 17 years, restricts non-aviation development, caps the number of tie-downs allowed, and requires City approval and conditions on any development. County financing of new hangar construction is not a prudent option either as the agreement allows the City to take possession of all airport assets at the end of the 17-year term. This means that if the County financed construction of new hangars, the City would have the right to take possession of them and their revenue after the County incurred the costs of constructing them. Last updated on 3/26/02