Tenants at Van Nuys Airport (VNY) in Southern California are upset that their rental rates keep increasing while the California economy continues to deteriorate, airport businesses close or move away and operations at the airport decline. In a letter to Gina Marie Lindsey, executive director of airport owner Los Angeles World Airports (Lawa) and board of airport commission president Alan Rothenberg, the Van Nuys Airport Association asked for help.
The letter focused on an issue that continually bedevils Van Nuys Airport tenants, especially master tenants that sublease property to airport businesses. The issue is that Van Nuys adjusts rental rates every five years and, the letter noted, the 2010 appraisal shows that fair market value of Van Nuys land has increased. The airport, the letter added, “has also taken steps to impose a mandatory airport deficit recovery payment at VNY, a rent adjustment requiring tenants to compensate for airport operating losses. The current budget projects a $2.3 million shortfall at VNY this fiscal year.”
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