Monterey Regional Airport looks to expand non-aviation revenues to remain viable.

When Monterey Regional Airport General Manager Thomas Greer delivered a presentation about “non-aviation property development” at the airport board meeting June 17, the concept he unveiled took many by surprise: the demolition of two former naval buildings on Airport Road for conversion into light industrial storage facilities.

“If it does go forward, it could be problematic,” says Monterey City Manager Mike McCarthy, who learned of the idea from a city planner in attendance. “If you live in a neighborhood, you don’t want big semi trucks driving through it.”

The proposal came to light just a few weeks after the Monterey County Civil Grand Jury released a report on the airport June 1. The report’s first two recommendations were to “dedicate adequate staff to oversee the property management component of the airport’s revenue” and “immediately evaluate non-aviation ‘outside storage areas’… to determine what can be done to encourage additional tenants.”

“This was just an initial presentation,” Greer says, adding that his staff will maintain open lines of communication with the city and nearby residents to ensure they’re on board with a proposal before it goes forward.

Greer, who’s been general manager at the airport since 2003 and is retiring at the end of this month, says he’s wanted to do both things for the last five years. But he says several factors – like litigation, the business climate and developing a new airport master plan – have precluded progress until now.

“We recognize that as we go forward, we have to create some additional revenue,” Greer says.

The board took no immediate action on the proposal, which has yet to go through any environmental review process. But Greer says the response from the board was generally positive.

While the airport receives some federal grants for capital improvements, revenue from aviation and non-aviation activities must cover its operating costs.

The general consensus, and one held by the civil grand jury, is that non-aviation revenues must increase for the airport to remain sustainable.

“In 2002, we had 30 flights a day,” Greer says. “Now we’re down to about 11.”

The biggest opportunity to create revenue, Greer says, is in rehabilitating old naval buildings the airport owns on the northern side of its property. The area, only accessible via Monterey’s Casanova Oak Knoll neighborhood, is already home to a large storage facility and several light industrial businesses.

“[The city has] spent millions of dollars improving traffic calming in our neighborhood,” says Richard Ruccello, president of the Casanova Oak Knolls Neighborhood Association. “The grand jury didn’t say anything about traffic.”

Airport board member Mary Ann Leffel is aware of the neighborhood traffic concerns. She suggests the property might be better suited for a use that brings in fewer trucks and more jobs.

“I don’t want to inappropriately use that land, because it’s going to be 50 years until we’ll be able to do anything with it again,” she says.