The lease agreement and terms mean nothing should SkyWest file BK. The court is free to modify the terms and could even cancel the lease.

A lease of government property by a private company is not tax exempt. Much of the property around the airport is owned by the city and the leases are on the tax rolls as “O” parcels.

EDITOR NOTE–Joe, there is absolutely NO TAX on government-owned property period! In the case of existing private businesses at the airport–such as United air freight, Fed-X, UPS, Jackson Aviation–each of those structures was built and is owned by the private commercial businesses. They pay taxes on the structures, but not on the underlying public land. In the case of SkyWest, the city will actually build and own the building. It would be great if the building was either taxed or paid fees in lieu of taxes.

Conversely, if a U.S. Post Office leases space in a PRIVATE building the structure is taxed just as it would be with a private tenant. Ownership determines taxability, not occupants.

Would be interesting to see how the facility is financed. If the city uses tax exempt bonds, then usually only about 10% of the building can be used for private uses.

Like it or not, this is how the big boys play, and if Boise does not play the game we loose. It is hard to fault Boise, for doing something every other city is doing. I have two concerns:

1) As stated by others the facility is financed with the lease revenue to service the debt, yet such debt and lease agreements are easily modified or discharged in bankruptcy court, so a close credit evaluation of SkyWest should occur. One one hand the industry is fickle with many mergers, consolidations and bankruptcies. On the other hand SkyWest has entered into new purchasing contracts for 200 more aircraft in the next 5 years, a sign Skywest sees growth and success. Would hope that the Skywest parent company is liable to the lease, not some locally created new LLC division of SkyWest or smaller subsidiary of SKywest which would make bankruptcy even more easy.

2) These incentives always seem to go to big business, yet the local governments seems to persecute locally owned small businesses. I have developed and owned 5 small business at various times, and government was always a hindrance, viewed my business as small potatoes and offered nothing to me but fees and obstacles, yet when an out of state big boy knocks on the door, they roll out the red carpet and public checkbook, and fast track all the approval processes, waive fees and taxes and entitlements. Try to start a new local small business and ask the City and ACHD to provide tax incentives, waive fees and fast track approvals, see how quickly they laugh at you.

Horizon Air is slowly being shrunk into nothing as the more employee-cost-efficient… and better managed non-union Sky West (and other puddle-jumpers are expanded.)

But what’s with the tax free part? And do the dopes at the city understand they are not really gaining anything as Horizon’s existing maintenance facility in Boise shrinks. And do they realize that the same handful of major airline executives are controlling both Horizon and Sky West? Maybe they do and don’t want to tell us that part?

Also wondering if they will be doing engine runs on our airport? And if so, will the city require Sky West to build a Hush-House so those within 5 miles of the airport don’t have to listen to jet engines running at full throttle all night long?? May brand new homes within city limits and within 2-3 miles of this facility. Planning?? So many people work for the city with the title “planner”, but seem to be yes men/women.

BTW: While on an airport story: Perhaps it’s time for another F-35 noise and pollution story… lest we forget the same Mayor who hates lawnmowers due to noise and emissions… is perfectly OK with 75 F-35s in Boise.