February 16, 2023 at 7:25 p.m.
Hangar rent rate increase is OK’d
Hangar rent rate increase is OK’d
Hangar rent is going up.
Portland Board of Aviation again on Wednesday approved a $10 per month increase for hangar rent at Portland Municipal Airport. The move came after several months of objections from some tenants who argued that the board did not follow Federal Aviation Administration procedures for making the increase.
Josh Johnson and John Lyons, both of whom rent hangars at the airport, again addressed the board regarding increasing hangar rent. (The board initially voted to increase the rent late last year but have delayed the increase following questions about procedure originally raised by Lyons, former president of the aviation board.)
Johnson argued that the $10 increase doesn’t come close to bringing income to a level that would match the cost of maintenance and hangar upgrades. He suggested instead that the board consider only basic maintenance for existing hangars, unless upgrades are specifically requested by the renter, and placing a financial focus on adding new hangars at the facility. (Some of the existing hangars date back to the 1940s.)
“I don’t see this whole thing being very well thought out,” he said, adding that he does not need the concrete floor that is planned for the hangar he currently rents.
Lyons focused his questions on whether the FAA procedures have been followed regarding a potential rent increase.
City attorney Wes Schemenaur said after talking to city officials — he typically is not in attendance at aviation board meetings — he is comfortable that the process has been handled appropriately.
Lyons also asked about whether rental rates would be different for hangars that have had upgrades such as new doors or concrete floors. Board president Faron Parr responded that such changes have been discussed but that the $10 across the board increase was the first step.
“I don’t think any of us were trying to create World War III over a $10 increase on hangar rent,” Parr added.
Board members John Ferguson, Caleb Lutes and Parr ultimately voted to increase monthly rent to $85 from the current $75, with a $5 discount for those who pay a year in advance. The change will go into effect March 1.
Jason Clearwaters of engineering firm Butler, Fairman and Seufert also addressed the board regarding options for connecting the planned new Sonrise Aviation hangar to the taxiway at the facility. The firm is looking to construct a new 80-by-80-foot hangar with plans to begin construction this spring.
The board and Clearwaters had previously discussed using funds from the 2021 federal infrastructure bill to extend a taxiway to the new hangar, but Clearwaters said Wednesday that may be cost prohibitive.
“You don’t get any economy of scale,” he said of the about 200 feet of pavement that would be needed. “It’s going to be pretty expensive.”
He also said such a project going through the FAA funding process could likely not be completed in 2023.
“So we could end up with a hangar to nowhere,” he added.
He suggested instead shifting the site of the proposed hangar slightly to the east and south, making it possible to connect it directly to “parallel taxiway alpha.” That would allow the connection to be completed as part of the hangar construction, rather than as a separate FAA-funded project.
Clearwaters said he will continue to discuss the options with Sonrise owner Hal Tavzel and the board.
In other business, the board:
•Approved several FAA grant pay requests, including $4,359.76 for the first phase of the runway extension project, $63,612.20 for the second phase of the extension project and a total of $4,990.59 (90% from the FAA with 5% each from Indiana Department of Transportation and the city) for a wildlife hazard assessment and part of the design of an apron expansion. Also approved a letter to be sent to the FAA indicating the airport’s $150,000 in “non-primary entitlement funds” this year will be used for apron expansion design and a $2,000 increase for travel Butler, Fairman and Seufert travel expenses related to design of the apron expansion.
•Discussed a request from Diana Michael to purchase or farm land on the west end of the airport property. Clearwaters indicated that the FAA would not allow the sale of the land but that farming is a possibility. The board asked him to consult FAA guidelines regarding how much of the land could be utilized while still maintaining the necessary safety area at the end of the runway.
•Heard Matt Simmons report on behalf of airport manager Hal Tavzel that: all hangars at the airport are currently being rented with three individuals on a waiting list if space becomes available; the facility is waiting for FAA approval to utilize a remote connection to its automated weather observing system; and Jay County High School graduate Sam Dunlavy recently earned his private pilot’s license at the airport.
•Paid claims totaling $3,810.99.
Portland Board of Aviation again on Wednesday approved a $10 per month increase for hangar rent at Portland Municipal Airport. The move came after several months of objections from some tenants who argued that the board did not follow Federal Aviation Administration procedures for making the increase.
Josh Johnson and John Lyons, both of whom rent hangars at the airport, again addressed the board regarding increasing hangar rent. (The board initially voted to increase the rent late last year but have delayed the increase following questions about procedure originally raised by Lyons, former president of the aviation board.)
Johnson argued that the $10 increase doesn’t come close to bringing income to a level that would match the cost of maintenance and hangar upgrades. He suggested instead that the board consider only basic maintenance for existing hangars, unless upgrades are specifically requested by the renter, and placing a financial focus on adding new hangars at the facility. (Some of the existing hangars date back to the 1940s.)
“I don’t see this whole thing being very well thought out,” he said, adding that he does not need the concrete floor that is planned for the hangar he currently rents.
Lyons focused his questions on whether the FAA procedures have been followed regarding a potential rent increase.
City attorney Wes Schemenaur said after talking to city officials — he typically is not in attendance at aviation board meetings — he is comfortable that the process has been handled appropriately.
Lyons also asked about whether rental rates would be different for hangars that have had upgrades such as new doors or concrete floors. Board president Faron Parr responded that such changes have been discussed but that the $10 across the board increase was the first step.
“I don’t think any of us were trying to create World War III over a $10 increase on hangar rent,” Parr added.
Board members John Ferguson, Caleb Lutes and Parr ultimately voted to increase monthly rent to $85 from the current $75, with a $5 discount for those who pay a year in advance. The change will go into effect March 1.
Jason Clearwaters of engineering firm Butler, Fairman and Seufert also addressed the board regarding options for connecting the planned new Sonrise Aviation hangar to the taxiway at the facility. The firm is looking to construct a new 80-by-80-foot hangar with plans to begin construction this spring.
The board and Clearwaters had previously discussed using funds from the 2021 federal infrastructure bill to extend a taxiway to the new hangar, but Clearwaters said Wednesday that may be cost prohibitive.
“You don’t get any economy of scale,” he said of the about 200 feet of pavement that would be needed. “It’s going to be pretty expensive.”
He also said such a project going through the FAA funding process could likely not be completed in 2023.
“So we could end up with a hangar to nowhere,” he added.
He suggested instead shifting the site of the proposed hangar slightly to the east and south, making it possible to connect it directly to “parallel taxiway alpha.” That would allow the connection to be completed as part of the hangar construction, rather than as a separate FAA-funded project.
Clearwaters said he will continue to discuss the options with Sonrise owner Hal Tavzel and the board.
In other business, the board:
•Approved several FAA grant pay requests, including $4,359.76 for the first phase of the runway extension project, $63,612.20 for the second phase of the extension project and a total of $4,990.59 (90% from the FAA with 5% each from Indiana Department of Transportation and the city) for a wildlife hazard assessment and part of the design of an apron expansion. Also approved a letter to be sent to the FAA indicating the airport’s $150,000 in “non-primary entitlement funds” this year will be used for apron expansion design and a $2,000 increase for travel Butler, Fairman and Seufert travel expenses related to design of the apron expansion.
•Discussed a request from Diana Michael to purchase or farm land on the west end of the airport property. Clearwaters indicated that the FAA would not allow the sale of the land but that farming is a possibility. The board asked him to consult FAA guidelines regarding how much of the land could be utilized while still maintaining the necessary safety area at the end of the runway.
•Heard Matt Simmons report on behalf of airport manager Hal Tavzel that: all hangars at the airport are currently being rented with three individuals on a waiting list if space becomes available; the facility is waiting for FAA approval to utilize a remote connection to its automated weather observing system; and Jay County High School graduate Sam Dunlavy recently earned his private pilot’s license at the airport.
•Paid claims totaling $3,810.99.
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