Small airports struggling, why not more hangars?

[brcase]

Hard to make money building and renting out hangars. The airport retains ownership of the land, the hangar builder gets a 20 year lease on a building that will be worth zero in 20 years. Developer can make more money building warehouses, or office parks. At the end of 20 years with those, the buildings may be worth zero, but he will own the land which will have gone up in value.

25 years ago that was essentially the lease agreements available at KMAN, There were 3 privately owned hangers with about 8 airplanes in them, There were about 7 city owned hangers with about 20 airplanes. Then the city changed the lease policy to a 50 year lease with the option to renew for another 50. Private hangers started being built, The city used the income from the leases to build more city hangers. I have been told that KMAN may now be the largest airport in the state based on number of airplanes based there.

Brian

 

[coloradobluesky]

One thing to remember, if the airport goes the land ownership route, and you get a warranty deed, you have to pay property taxes.

 

[denverpilot]

One thing to remember, if the airport goes the land ownership route, and you get a warranty deed, you have to pay property taxes.

Knowing the mill levy rate in Arapahoe County even with the add on rate from the City of Centennial, actual property taxes under a hangar at APA would be orders of magnitude cheaper than the current ground leases. The airport authority makes a killing off of leasing the entire east ramp.

 

[coloradobluesky]

A 50' x 50' hangar at Platte Valley has about $1750 a year in commercial property taxes. What you can do is put another airplane in there and his rent will pay your taxes, but then you have that hassle.

 

[weilke]

Heck, some places charge you property tax on a leased hangar.

 

[weilke]

25 years ago that was essentially the lease agreements available at KMAN, There were 3 privately owned hangers with about 8 airplanes in them, There were about 7 city owned hangers with about 20 airplanes. Then the city changed the lease policy to a 50 year lease with the option to renew for another 50. Private hangers started being built, The city used the income from the leases to build more city hangers. I have been told that KMAN may now be the largest airport in the state based on number of airplanes based there.

Sadly, few airport sponsors understand the amplification effect good lease terms have for an airport. More hangars, more lease payments, more fuel sales, more flowage fees. They rather slaughter the goose than keep getting the eggs.