Proposal to Sell Airport Won’t Fly
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* In these past months, Orange County bankruptcy events have forced Orange Countians to face reality in fiscal matters and county governance. However, the concept of realism seems to have not yet impacted the Orange County Transportation Authority (OCTA) regarding the purchase of the John Wayne Airport (JWA).
Supervisor Marian Bergeson, alone, of the 10 OCTA commissioners understands the reality of JWA. Recently at an OCTA meeting she asked, “How would acquiring JWA help the bankrupt county?”
Often mentioned is that the annual revenue of JWA is $68 million. Not mentioned is that the $68 million is gross revenue! The net revenue (after $20-million interest on bonded indebtedness and $40-plus-million operating expenses and some reserves) is $7 million. Therefore, the $350-million presumed market value of JWA is an asset which pays a 2% annual return.
If OCTA needs to hire a consulting firm for $50,000 to make this calculation to determine the feasibility of purchasing JWA, perhaps we need to replace nine of the 10 OCTA commissioners!
DOYLE SELDON
CHARLES MCLAUGHLIN
Laguna Hills
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