TRAVERSE CITY -- Airport business might be a bit slow, and the economy might be rough, but that didn't stop a board that oversees Cherry Capital Airport from rewarding its top two managers with raises that totalled more than $25,000.
The biggest bump -- $19,319, or a 17 percent raise -- went to airport director Steve Cassens, whose salary increased to $135,000 a year. Assistant airport director Kevin Klein received a $5,665 increase to $70,935.
"I thought the board was very fair at evaluating where I should be, and it's taken a while to get up to a level that I feel fairly compensated me," Cassens said. "There were a number of years ... where people in the field at smaller airports were making more money with better benefits."
Cherry Capital is the fifth largest airport in the state, based on the number of commercial airline passengers. It directly employs 26 people and has an annual operational budget of $4.5 million, plus $3.7 million in airport improvement projects.
The airport is publicly owned and has been self-sufficient since 1998; it does not receive any local tax dollars for operations. It generates revenue from rental and leasing of airport land and terminal space, landing fees, concessions, fuel sales, parking and car rental fees.
Cherry Capital Airport's commission reviewed salaries at four similarly sized airports before granting the raises, said commission chairman and Grand Traverse County Commissioner Larry Inman.
"We determined Steve was on the low end and we needed to give him a $20,000 increase to get him up to the level of his peers," Inman said.
Airport commission members are appointed by the county boards of Grand Traverse and Leelanau counties. Airport commission members include: Inman, Stephen Beeker, Lee Foerster, Jim Minster, David Rapson, Jon Schmidtke and Bob Weaver.
The airport director in Flint, which has twice the commercial traffic as Cherry Capital, makes $184,000 annually. Lansing is 18 percent larger than Cherry Capital and pays its director $138,000 a year. Directors at the smaller Kalamazoo and Midland-Bay City-Saginaw airports make $89,000 and $94,000, respectively.
Airport directors in those four communities receive lifetime health insurance coverage, a benefit the airport commission does not provide Cassens, Inman said.
"We felt we needed to get him up to $135,000 so he can build up a medical savings account to help cover his health insurance when he retires," Inman said.
Cassens, 59, said he's not planning to retire soon.
"I really enjoy doing this, I have a good time doing it and it's what I've always wanted to do," Cassens said.
Inman said the commission also considered Cassens' 30 years as airport director, the airport's strong financial health, and his oversight of $60 million worth of construction, including a new passenger terminal that was built debt-free.
"We probably have one of the best financially run airports in the state of Michigan, and we've won a lot of national awards for airport operations and safety," Inman said.
Grand Traverse County has an annual combined budget of $144 million and more departments than the airport has employees. County Administrator Dennis Aloia is paid $6,000 per year less than Cassens.
The airport's budget may be lower than the county's, but running an airport has many facets that create a "pretty big operation," Inman said.
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