Under its Essential Air Service program, the U.S. Department of Transportation awarded the Cheyenne, Wyo.-based regional airline with the annual subsidy in July. The two-year appropriation to provide airline service in Cortez expires in 2016.
The city of Cortez must now adopt a new operations lease. That decision is expected tonight at the city council meeting at 7:30 p.m.
According to city officials, the new four-year lease agreement includes increased building rent and landing fees. In 2015, for example, the rent would be set at $1,992 per month. By 2018, the monthly rent would increase to $2,120. Landing fees would increase from $1.70 per 1,000 pounds in 2015 to $2 per 1,000 pounds in 2018.
The agreement also requires the airline to notify airport officials seven days before a scheduled arrival or departure times.
According to the U.S. Securities and Exchange Commission, Great Lakes Airlines receives about 55 percent of its annual total revenues from government subsidies.
Since 2010, the company has reported average annual gross profits of $33.75 million. At the end of 2013, the company’s gross profits totaled $28 million, down from $37.9 million the year before.
Retail pot also on the agenda
The city will discuss whether a ganjapreneur can open a retail marijuana store at its existing medical marijuana facility. Under the city’s new retail marijuana law, which requires a 1,500-foot buffer between retail outlets and city parks, a recreational marijuana storefront at 1104 E. Main St. would be prohibited due to current zoning restrictions
In close proximity to Parque de Vida, True Earth operated a medical marijuana dispensary at the location from October 2012 to July 2014. This summer, the ownership was transferred to Durango Organics, and the new zoning stipulations included in the retail marijuana ordinance were subsequently adopted.
The new owner is expected to request a waiver tonight on the distance requirement in order to open a retail store. No state zoning laws exist.
Fiber optics grant expected
Also, the city is expected to accept a $1 million Energy and Mineral Assistance Fund grant from the Colorado Department of Local Affairs. The money would be earmarked to expand fiber optic lines in the city’s business district.
Prior to tonight’s meeting, city leaders will be presented with 2015-16 budget proposals at a 5:30 p.m. workshop. Department heads representing the airport, IT, library, court, marketing and planning and building are slated to make 10-minute presentations.
tbaker@cortezjournal.com