Rochester Airport Commission Meeting - August 3, 2026
Rochester Airport Commission Meeting - August 3, 2026
The Rochester Airport Commission met on August 3, 2026, at 2:01 p.m. in the City Hall Administration Conference Room. The meeting was called to order with four members present (Mayor Norton, Mr. Reed, President Schubert, Ms. Zones) and two absent (Mr. Donbowski, Mr. Hulton). The open comment period had no speakers. The agenda was approved unanimously, and the commission proceeded through reports and new business items.
Consent Calendar
- Approved the minutes of the Airport Commission meetings on June 2, 2026, and July 7, 2026, as official records. Motion passed unanimously.
Reports
- Airport Operational and Marketing Data – June 2026: John reported that the first quarter was exceptionally strong (+15% year-over-year), but the second quarter showed a slackening reflecting national trends (conflicts in the Middle East, fuel prices, high ticket pricing). June was +1% year-over-year, with American Airlines down about 7% due to operational issues (weather in Chicago). Load factors: Delta Minneapolis 81%, American 73%. Parking and rental car activity are steadily climbing, cargo recovered slightly (annual down 2%, June up 7%). Overall traffic slightly down due to fuel prices and runway construction.
- Airport Financials – June 2026: Year-to-date the airport is positive $535,000, compared to $1.2 million last year—the difference largely due to COVID grants that ended. The $1.2 million administrative decrease is reflected in that shift.
- Marketing Update (presented by Mary after arriving late): Digital spend was reduced from $12,000 to $6,000 per month, resulting in only a 7% loss in web traffic (not one-to-one). The new “Go version” video and song by Corey launched this week and is expected to boost engagement. The Fly My Air Court tool has seen nearly 8,000 searches per month, a significant increase from a few hundred. Destination marketing is shifting to retargeting ads for other routes. Quarry project (2800 feet from runway) is off the council agenda until September 9, 2026.
Discussion Items
- Consent to Assignment of Land Lease (7A): A land lease adjacent to the airfield (no airfield access) from University of Northwestern – St. Paul to Top Flight Investments, LLC (affiliated with Superior Quality Rides, the current tenant). There were no questions, and the motion passed unanimously after correcting typographical errors in the document.
- Agreement for Operation and Management of Rochester International Airport (7B): A comprehensive 10-year operating agreement (January 1, 2026 – December 31, 2035) with two five-year renewal options. The agreement modernizes the previous document, clarifies terms (definitions, FA contract provisions, insurance requirements including cyber and pollution/environmental insurance), adds a dispute resolution process, formalizes the budget process, and includes an option for a proprietary exclusive FBO operation (allowing the city to retain fuel revenue). Financial terms remain: the city pays utilities (except natural gas) and customs (approximately $600,000 annually); the airport company pays $5,000 annually for taxes; revenue over $5,000 above expenses returns to the city for airport capital reinvestment. A commissioner requested a highlight document comparing old and new agreements for the City Council. The commission approved the agreement unanimously, sending it to the City Council for final approval.
- Capital Planning and Capital Fund Budgeting (7C) – Discussion only: Staff presented a long-term capital plan from 2026 to 2031. The current fund balance is approximately $15 million, but after committed projects (CAT II allocation $1.2M, GA ramp local share $3.75M, exit lane $225,000, ARFF truck $110,000, parking lot placeholder $5M, roads repaving $500,000, terminal upgrades $500,000, generator $1.2M, FBO prep $1.2M, and annual contributions of $500,000), the reserve is projected to fall to approximately $2 million by 2031. The parking lot project, a major upcoming capital item, will be delayed to spring 2027. Covered parking with solar panels was discussed but faces funding challenges (federal solar funding windows closed). Staff aims to make the lot retrofittable for future covers. The commission expressed appreciation for the long-term view. Additionally, United Airlines has delayed its launch to October 2027 due to a DOT capacity cap at Chicago O’Hare. A $500,000 MnDOT grant for an automated exit lane at the airport was announced.
Key Outcomes
- Consent to Assignment of Land Lease: Approved unanimously.
- Airport Operating Agreement: Approved unanimously and referred to the City Council. Staff will prepare a highlight document comparing the old and new agreements for council review.
- Capital Plan: Forwarded for future discussion; parking lot options will be presented at the next meeting.
- Adjournment: The meeting adjourned at 2:46 p.m.
Meeting Transcript
All right. So welcome everyone. We need to call the uh airport commission to order. And according to Clock Affair, it's 201. And we always start our meetings with open comment. And we have some people here. I don't know if they want to comment or just keep up the good work. There we go. Wonderful. I like those kinds of things. So doesn't look like anyone wants to speak for the allotted time. So we will move on. And do we have anyone online that we need to need to call? Do a roll call. Let's call the roll. You want to do? Okay. So we're going to follow. Mr. Donbowski is absent. Mr. Hulton is absent. Mayor Norton. Present. Mr. Reed. Uh here. President Schubert. Here. Ms. Zones. Here. Is that it? That's it. Three years ago. Or there's four. Oh, it's a both. Okay. Down here. It's officially. Yeah, so it's uh we have the agenda before us. Um anybody have any changes to the agenda? Can it stand on occasion? We'll have a change. We're good. We accept that agenda. Are we doing the order of the uh so over? Thank you. Second. All those in favor signify by saying aye.
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