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Some Airport Tenants Not Billed for Property Taxes

For decades, Hopkins has been paying property taxes on behalf of its tenants. Problem is, it never recouped some of those costs from companies like UPS and FedEx. Food and retail operator HMS Host hasn't been billed for their property taxes since 1984. Instead, director Ricky Smith says, an internal review found that the airport made up for some of the difference by raising rates to airline carriers.

Ricky Smith: We've charged the airlines landing fees at a level higher than what it should've been simply because we did not bill certain tenants to pay their portion of the property tax.

Smith wouldn't say how much is owed or name who was responsible for the oversight. He said the high landing fees did impact the airport's competitiveness in attracting and expanding airline service. But the review left out $456,000 in upgrades to the airport's deicing system that Council never approved. Smith said he left that number out because the issue is now being discussed in City Council. I'm Mhari Saito, 90.3.