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The Hollister Municipal Airport’s economic impact in 2024 is valued at $40.9 million, according to a recently released study.
Commissioned by the city and conducted by the firm Kimley-Horn, the study includes the impact generated by activities at the airport such as business tenants, as well as activities outside the airport such as visitor dining at a nearby restaurant, and income and wages spent by airport workers in the local economy.
“Hollister Airport is not only serving the residents of San Benito County, but also does act as part of the county’s tourism economy,” Kimley-Horn’s Patrick Heaton said.
The off-airport visitor spending accounted for $3 million, the report found.
The study was done in conjunction with similar analyses also conducted by Kimley-Horn for the Marina, Salinas and Watsonville municipal airports in an effort, according to the study, “to provide a comprehensive picture of economic activity supported by general aviation airports in the Monterey Bay Area.”
According to a presentation to the Hollister Airport Commission on May 13, the study quantifies the economic and social impacts associated with the airport in San Benito County. It also serves to trace the flow of money from visitors into the county.
The study found the airport supports 242 on-airport and 26 off-airport jobs resulting in more than $16.4 million in payroll. That translates to a total tax revenue of $5.46 million split between the federal, state, county and city governments. Of that tax revenue, $577,000 went to the city coffers and $239,000 to the county.
“It’s a great source of information and worthwhile highlighting it,” Commissioner Renee Wells said.
Heaton said the local tax revenue is a result of property and sales taxes that stem from the airport activities while the state and federal tax revenue is a result of employees paying federal and state income taxes, social security and medicare.
In addition to noting how important the airport is to safety because it houses CalFire’s Air Attack Base, he highlighted the airport’s involvement in air mobility and electric vertical takeoff and landing (eVTOL) industries, noting Wisk Aero uses the airport for testing and prototype assembly.
“That’s brought a ton of very high-paying aerospace jobs to Hollister,” Heaton said. “And is really making Hollister a part of the Monterey Bay region area that is becoming a nationwide hub for the AAM [advanced air mobility] industry.”
The Federal Aviation Administration defines advanced air mobility as a term for aircraft that are typically highly automated, electric powered and have vertical take-off and landing capability,
Local consultant Victor Gomez, who is a partner of JRVS Land Holdings, the landlord for Wisk, said the company has plans to build more hangars at the airport and that he met a potential tenant that morning.
“Just wanted to continue to encourage you to do what you’re doing and encourage economic development in and around the airport,” he said. “We want to invest as a partnership. We are committed to the city. All of us partners live in the city and invest here as well.”
In addition to Wisk, the city last year approved lease agreements with air mobility companies Joby Aviation and Alef Aeronautics.
In addition to that industry, Heaton said the airport houses more traditional services such as Vintage Wings and Wheels, a renowned maintenance and restoration operation that attracts pre-1950s aircraft from around the world.
The study also analyzed off-airport businesses and industries which rely on an airport and found 67 jobs are impacted, which translates into $6.6 million in economic activity. He said this data was not added to the overall economic impact numbers because it is unknown if such industries specifically use the Hollister airport full-time.
Another element of the study analyzed the value of the 134 aircrafts housed at the airport and concluded they have a combined value of $34.1 million.
“The Hollister airport represents a protector of some significant investment,” Heaton said. “Both businesses and private individuals choose to base their sometimes priceless aircraft at the airport using hangars and the apron, and the tie-downs, with the understanding that the airport is willing to protect and secure those aircraft.”
The study also included an analysis of the impacts to residential properties located within a mile of the airport and found properties closest to the airport had a lowest median and average values per acre compared to properties within one and five miles from the airport.
However, Heaton said the difference is related to the land use designations of the properties, noting the area is surrounded by agricultural, rural and industrial uses; whereas the properties within five miles of the airport, include most of the residential properties in the city’s central business district.
“Looking at this just on face value you may see it as negative,” Heaton said. “I personally see it as a positive because this really demonstrates that the airport has adopted appropriate land use measures around itself to make sure it is protecting not only the residents of San Benito County but the users of the airport from any land use compatibility that may threaten the viability of the airport in the future.”
Adjacent to the airport is the Amazon warehouse as well as its distribution center. Other major businesses near the airport are Corbin, Teknova and Marich Confectionery.
NASA project at airport
Relating to the Advanced Air Mobility initiative, the Hollister Airport Advisory Commission also supported future agreements with NASA and its partners to install radio frequency sensors at the airport. The agreement would be with Hidden Level, a NASA partner.
According to a commission staff report, the sensors are intended to enhance operational safety and airspace awareness during experimental flight operations and are part of its Research Center’s Air Traffic Management and Safety Project.
According to NASA’s Aviation Systems Division website, it’s conducting research and developing and testing automation solutions to come up with novel air traffic management concepts.
If an agreement is approved, the city would receive $3,600 per year.
NASA’s Josh Everett said the sensors are above ground, roughly five feet high and about 100 pounds.
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