Reverse Auction for City Hangar Leases?

dans2992

dans2992

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Dans2992
Has anyone seen an airport do a reverse auction for city-owned hangar leases? KHCR is doing this. Basically, they have 2 hangar leases available and everyone can offer what they would pay per month. Apparently, the two highest bidders will get the leases, with current lesees having first right of refusal.

Most city-owned hangars I've seen lease for waaay under market prices and hence have a multi-year waiting list.

Not sure how I feel about the "reverse auction" approach, but it would maximize revenue I suppose. Has anyone else seen this?
 
Seems unfair to the public. Top bidder should get it. Why would a new bidder bother if you could still lose the bid? Kinda like a auction with minimum bid amount that isn't disclosed.
 
Sounds like the airport manager doesn't know where lease rates should be.
 
My airport considered this. As an airport board member, I put the kibosh on it. Something about making the highest bidder (tax payer) pay more for something that, as a tax payer, he’s already paid for, doesn’t sit right with me.

The solution is to build more hangars. While that briefs well, it’s not that easy. But it can be done with the appropriate amount of effort. Lack of hangar space is an issue across the nation - no surprise to this crowd. But for federally funded airports, there is federal money to support the endeavor. It takes some political maneuvering, but is doable.
 
kep5niner said:
tax payer) pay more for something that, as a tax payer, he’s already paid for, doesn’t sit right with me.
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so toll roads should be free? Fees for use of high maintenance items (and an airport would have to comply with tons of regulations ) means that I, a person without access to a hangar, and subsidizing a wealthy persons toys.

you want a hangar, pay for it.
 
kep5niner said:
My airport considered this. As an airport board member, I put the kibosh on it. Something about making the highest bidder (tax payer) pay more for something that, as a tax payer, he’s already paid for, doesn’t sit right with me.

The solution is to build more hangars. While that briefs well, it’s not that easy. But it can be done with the appropriate amount of effort. Lack of hangar space is an issue across the nation - no surprise to this crowd. But for federally funded airports, there is federal money to support the endeavor. It takes some political maneuvering, but is doable.
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My airport ksua is out of land. Any land left will go to more corporate aviation hangars . That’s simply where the money is.
 
The more costly the hangar ,the more expensive the aircraft that uses it. The little guys can’t compete with coporate entities.
 
Interesting responses to this post. We complain about lack of hangars, but don't want to pay what they really cost. We want the government to run more like a business, but don't raise our rent.

To respond to kep5niner, federal grants for hangars is EXTREMELY limited. Almost never happens, as it is the lowest of low priorities in the world of airport infrastructure. Nearly all federal dollars can not be used on anything that generates revenue, with few exceptions. Depending on your state, there may be state grants available, but that too is often limited.

I've thrown the math out there in other threads, but if a person or airport were to finance a bank of 10 T-Hangars without any "free" money, you would need to charge a minimum of $850-$1,000 per month per unit. The state average here is closer to $200, so not much market to build new hangars despite long waiting lists.

The concept of bidding out the open hangars isn't entirely new. I knew of an airport that literally put them on eBay years ago. Interesting way in finding out what the market value truly is. Unfortunately it does favor the wealthier owners and leave the little guys in the dust. Now from a management standpoint, I'm against it. It would make billing a lot more difficult as no two tenants are paying the same rent. That plus my OCD would drive me crazy. We just revamped our rate structure this year to make things easier and fairer across the board.

For what its worth, if it came down to a bidding situation I wouldn't have a hangar either.
 
hangars is where deregulation needs to happen. i can build a 20x40 steel building for $10k, a few more grand for concrete.

but if it's a hangar suddenly it's a $100k project. find a local private field and build there.. grease the gears like in the old days. people now just want to fill out an online form and get what they want... that's usually not the best answer.
 
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