Giving hanger to airport?

[flykelley]

Hi All
I have a friend who has moved to Boyne City Michigan and he is looking for a hanger to rent. He talked to the airport manager who told him in Boyne City you build the hanger to their spec's and have the use of it for 25 years free of charge. After 25 years the city owns it and can rent it back to you for the going rate. If you want to get rid of it before the 25 years you can sell the remaining years. Has anyone ever heard of this type of deal before. Any thoughts on this.

Regards Mike

 

[jesse]

Hi All
I have a friend who has moved to Boyne City Michigan and he is looking for a hanger to rent. He talked to the airport manager who told him in Boyne City you build the hanger to their spec's and have the use of it for 25 years free of charge. After 25 years the city owns it and can rent it back to you for the going rate. If you want to get rid of it before the 25 years you can sell the remaining years. Has anyone ever heard of this type of deal before. Any thoughts on this.

Regards Mike

That is pretty common.

 

[Missa]

Ray community does that too

 

[wsuffa]

That's a pretty common arrangement. At some airports, the "right to lease" extends beyond the time period... so there is still value at the end. And, at many airports, there is a separate ground lease payment that you pay starting at the inception of the contract with the city to construct (much the same way as some homes are built on a ground lease).

You probably make your money back in 25 years. At some airports, the term is much less - like 5-10 years - and the result is that the person who builds the hangar never recoups his money.

 

[Steve]

We're trying to set up something like that here M11. Since I'm building a hangar soon (several owners on the field doing the same), and I'm on the airport board, I hope to make it a bit longer before ownership transfers (35-45 years) to the county. We'll see how the politics plays out.

 

[Baron 55]

At our airport, you can never own the land but can build and keep ownership of the hangar for 30 yr. As others have said, this appears to be common. Someone recently told me that large corporate-owned hangars can be kept longer, though I don't know.

 

[Dean]

At our airport, you can never own the land but can build and keep ownership of the hangar for 30 yr. As others have said, this appears to be common. Someone recently told me that large corporate-owned hangars can be kept longer, though I don't know.

The only private owned hangar here is a corporate hangar. The city owns the ground and the corp has the building for 99 yrs, then it goes to the city. At some smaller airports around here its 30 yrs for private hangars.

 

[ScottM]

A previous user of the hangar I am in installed walls, ceiling, extra fast turn on flourecent lighting. When he vacated he got nothing from the airport. The hangar has been pased down to me with each occupant paying the previous user a portion of what the cost for the original work was. I paid the previous person $600 and that got me to be able to move in to one of the better hangars. This past summer I paved the whole inside and it cost me $1100. I too will just have to pass it on and not get anything from the airport.