Vacant city-owned rental property at the Eastern Oregon Regional Airport could help the airport break even, and the city plans for its new economic development director to fill those properties.

Airport Manager Larry Dalrymple said the airport needs about $175,000 to balance its budget. But the airport could bring in an additional $172,500 if it leased all the vacant sites and buildings on land it owns, which is part of a 565-acre industrial park. The airport has 35 rental properties for light industrial use at $100 a month per acre. Per city code, the airport can only rent to manufacturing and some commercial businesses on that property.

Dalrymple said some examples of these businesses are technology, recreational equipment manufacturers, restaurants and food manufacturers such as airport property tenant Hill Meat Company at N.W. 50th St. The airport has one building available for rent, and Dalrymple said the airport rents those facilities on a case-by-case basis.

(Renters) negotiate with me and I get every penny out of them that I can get, he said.

The airport has a $3.4 million budget for 2012. According to the citys proposed budget for 2012 and 2013, the airport budget for 2013 would be $3.6 million. The airport coffers have taken a hit since 9/11 prior to the 2011 attack, the airport logged 40,000 to 45,000 passengers a year; in 2011 only 7,500 flew out of Pendleton, Dalrymple said.

City Manager Robb Corbett has tasked new Economic Development Director Chris Chrisman with attracting business to the industrial park.

Chrisman starts Sept. 5, and Corbett told the East Oregonian on Aug. 22 that a large part of his job will be to make good on taxpayer investment in the industrial park land. The city in 2011 spent $500,000 for the 40 acres of land in the industrial park, and is still paying off a $1.5 million state loan for a project that built five miles of Airport Road from Interstate 84 to make the industrial park accessible to semi trucks. The city is using a 4-cent-a-gallon gas tax to repay the state loan.

I think that the economic development director will be in contact with people that the airport manager wouldnt necessarily be in contact with, Corbett said Monday. And so, in that respect, what land we have available inside the industrial park might not have previously been on anybodys radar.

The airport could also generate more money if it reassessed its lease rates, Dalrymple said. Currently all properties have a monthly rent of $100 a month per acre even though some are more valuable because theyre already have utility lines, for example.

Dalrymple said connecting SeaPort Airlines, which services the airport, with a larger carrier at Portland International Airport could also help balance the airport budget; SeaPort Airlines is set to announce the partnership Sept. 20.

But balancing its budget still leaves the airport with $2.259 million of debt to other city funds, said Finance Director Linda Carter. The airport has borrowed $252,000 from the general fund, $838,000 from the sewer fund, $634,000 from the library trust fund and $535,000 from system development charges.

The airports borrowing is capped at $2.4 million from the city.

They pay back the (2 percent) interest on a monthly basis, but they are not paying it back as much as theyre increasing the amount of the loan, Carter said. Typically their expenses are greater than their revenue and thats the situation we are in.

Carter said city council has also been brainstorming solutions for the airports budgetary woes. City council has discussed funneling property taxes from the city-owned industrial park to the airport to pay back the debt to the city, Mayor Phillip Houk said.

Contact Chris Rizer at crizer@eastoregonian.com or 541-966-0836.