Airport Takes On Rich Air -- Billionaires' Jets Could Make Boeing Field Soar Beyond Reach Of Small Guys

Most people know King County International Airport as Boeing Field, an airstrip three miles south of downtown for small planes, corporate jets and an assortment of cargo carriers.

But in the hangars, offices and repair shops that line the tarmac, some pilots and business owners have started calling it the "Billionaire Boys Club," a place that seems more like a toy chest for the rich and famous than a working airport for freight haulers and weekend cloud-dodgers.

As wealthy aviation buffs buy up leases and build massive hangars for their private fleets, airport officials must decide whether Boeing Field will retain its roots as a multi-purpose flight center or cater to airplane owners for whom price is no object.

"There's the possibility that the rich guys will buy out all of the little guys. That's a concern," said Cynthia Stewart, airport manager. "We don't have the space to accommodate all the demand we see coming. We will have to decide what to accept and not to accept."

In the coming months, airport officials will present a final recommendation to the Metropolitan King County Council that will address the conflicting needs of corporate-jet owners, small aviation businesses and cargo carriers. The plan is already a year behind schedule, and the airport is prohibited from signing any more long-term leases until it is approved.

Even the most jaded aviation enthusiast can't help but be impressed by the shiny, needle-nosed jets and vintage aircraft that are parked at Boeing Field.

Construction crews are busy erecting a new hangar for Microsoft co-founder and Seattle Seahawk owner Paul Allen, the largest development there in more than 15 years.

The 171,000-square-foot facility will house Allen's Boeing 757 and some of his other planes, which include a Cessna 525, a Canadair jet, a Challenger 601 jet, a McDonnell Douglas helicopter and a civilian version of the F-5 military jet. Airport officials say architects designed the building to fit a Boeing 767, a larger, two-aisle twinjet, fueling speculation that Allen will soon upgrade.

A few hundred yards away, Craig McCaw's deluxe hangar houses some of his family's air fleet: four McDonnell Douglas helicopters, a Gulfstream jet, a three-engine Dassault Breguet jet, a T-34 military-style trainer and other small aircraft.

Dubbed the "Taj McCaw" by local wags, the sparkling white and tan art-deco building stands apart from the shabby hangars and paint-chipped shacks that line much of the airfield. So do the Ferrari sports car and Mercedes Benz sedans often parked inside.

The conspicuous consumption doesn't sit well with some tenants at Boeing Field, who blame the billionaires for a 30 percent average rent increase passed down recently by King County.

The county owns 594 acres surrounding the airfield and leases the land to corporate-jet owners, cargo fleets and general-aviation businesses. Tenants can sell their leases or sublease their space.

The county formulated the new rents by looking at what other airfields charge, what comparable land in the Duwamish Corridor was fetching, and how much current airport tenants were able to sell their leases for.

About nine months ago, Allen paid $7.9 million for leases to three sites, including a 40,000-square-foot brick building that he tore down to make room for his new hangar.

Allen paid far above market value for the property, said airport officials. A spokesman for Allen said she would not comment on his personal business deals.

Even though consultants to the airport say they disregarded deals like these in their assessment of how much airport leases are worth, tenants contend they are being charged rents based partly on what the super-rich are willing to pay.

"I'm upset about being charged the same rate as Paul Allen," said Karen Walling, owner of Classic Helicopters, a charter service with about a dozen aircraft. "It's a substantial rent increase, but if you want to be on Boeing Field, you find a way to deal with it."

The rent increase is the first in six years. "You can see the attitude that all the (recent) activity sort of caused it, and it did to some degree, but not a lot," said Jack Frazelle, assistant airport manager.

Allen and the four McCaw brothers - Craig, Bruce, Keith and John - have acquired leases to about a half-dozen large pieces of property in recent years, but a spokesman for the McCaws, former owners of McCaw Cellular Communications, now AT&T Wireless, says the family isn't responsible for the sky-high rents.

McCaws sold their cellular business in 1994 to AT&T for $11.5 billion. Both Craig and Bruce McCaw are certified pilots.

"People are saying that the Billionaire Boys Club are buying up Boeing Field. That's simply not true," said McCaw spokesman Bob Ratliffe. "The McCaw family has been involved with Boeing Field since the 1960s."

Demand for space isn't just coming from Allen and the McCaws. The Nordstrom family has a hangar on Boeing Field, painted gray with blue trim, a reminder of the days when the retailers owned the Seahawks. Other corporations and executives with aircraft there include Ackerley Communications, Eagle Hardware and Jim Tweten, the owner of Magnolia Hi-Fi.

As Seattle-Tacoma International Airport becomes more crowded, space at Boeing Field will continue to be a hot commodity.

Small planes can't land at Sea-Tac because of the turbulence created by big commercial jets. Cargo carriers that land at Boeing Field such as United Parcel Service, Airborne Express and Burlington Express say they need to be close to Seattle to make their delivery schedules. Even a move to Everett's Paine Field would cost them business, they contend.

Cargo carriers currently occupy 10 acres on Boeing Field. If allowed to grow, they would take 40 acres in 2015, according to a study commissioned by the airport.

However, corporate aviation would expand from 44 acres to 51 acres during the same period. Corporate aviation is the second-largest tenant next to Boeing, which leases about 123 acres.

To resolve the competing demands for space, the airport has come up with six possible alternatives: maintain the status quo; emphasize air cargo; emphasize corporate jets and general aviation; balance small aviation, corporate jets and air cargo; reduce cargo flights to ease noise pollution; and reduce total operations by leasing land for industrial use.

Stewart said public meetings with tenants will be held before a recommendation goes to the County Council by the end of the year.

While the various sides haven't been lobbying airport officials, Stewart said she expects a furious debate over the future course of Boeing Field when a final recommendation is chosen.

"It's been very grueling," Stewart said. "But I haven't felt a squeeze play. That's still to come."