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Originally Posted by Standpoor
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Why should OIA pay almost $400 million to build a parking garage/depot that will directly compete with their current parking garages and directly benefit a business that will directly compete with the airlines that pay OIA landing fees.
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Because its OIA's garage and the whole system complements OIA's airlines. It's a major coup to have tourist fly into OIA and still have direct access to South Florida.
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Building a parking garage that is no where near the terminal does not make much sense on its own. Do they need more parking space? Does it make sense to build a garage a mile away from the terminal instead of a more centrally located position? It will only make sense if the parking fees are greater than the construction bonds, plus any loss in landing fees/current parking fees, plus any operating expense of moving passengers from the new garage to the terminal. In the end, they might come to a deal that is beneficial to both parties but it seems that they are farther apart then what FEC wanted to be. Also, in the end it is still a subsidy. It does not matter if it is mutually beneficial. If FEC wants to use OIA's borrowing power and wants them to pay for their parking, then that is a subsidy.
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It's a part of OIA's expansion plans and that's where OIA wants it. If you check out a google earth aerial, you'll see they've already been setting up infrastructure for this future airport terminal. Also, I'll have to go back and verify but I don't believe OIA's airport terminal was included in the original HSR capital costs either.
There are multiple parties that benefit from this so it makes sense that the costs should be shared on the airport's side. It's hard for me to classify this situation as a "subsidy" when its mutually beneficial. Without FECI involved, the taxpayer would be funding all of this (FECI's rail and OIA's desired infrastructure development) or it simply wouldn't happen.