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Airport hangar rental rate hikes debated PDF Print E-mail
By News Staff   
Saturday, May 10, 2008

GUSTINE – A proposal by city staff to significantly hike airport hangar rental rates could trigger an exodus of pilots to other airports, according to the chairman of the Gustine Airport Commission, which is proposing a lesser rate increase.

Ultimately, the City Council will have the final say on which of the two proposals is enacted, if either.

In the meantime, new rentals of hangars are on hold even though the city has a waiting list of pilots lined up for the space.

City Manager Margaret Silveira said city staff is proposing a flat rate of 19 cents per square foot, with rent concessions then factored in based on the condition of the hangars.

Airport Commission chairman Ron York, using his own hangar as an example, said the city’s rate would more than double his monthly hangar fee from $140 to $285.

“It is an excessive amount of money for what is out there,” York stated. “We have been told by several different pilots that they would move for the difference. That is too big a jump for everybody.”

Hangar rental rates currently vary by size and condition of the units. Most of the hangar rents fall within a three-tier schedule of seven, nine and 11 cents per square foot, according to Airport Commission member Steve Gulko. A small number of newer hangars rent for as much as 16 cents per square foot

The commission is proposing an across-the-board rent of 11 cents per square foot.

While most hangars now rent for $100 to $150 a month, Gulko said, the city’s proposed rate would push the monthly rent to more than $250 in most cases.

“It is a considerable jump,” Gulko stated.

Both the city and commission proposals call for the elimination of a $50 monthly maintenance fee charges in addition to the rent, according to Gulko.

Silveira said the city wants to establish a uniform rental rate which is comparable with other airports.

“If we compare them with most other hangar rents, we are low,” she said of the current structure.

Increased revenues, Silveira said, could help fund projects at the airport.

“There are projects that the airport wants to do, and funding is limited,” she explained, adding that the city requires the airport to be self-sufficient, operating on funds from fuel sales and hangar rentals.

York, however, said that the city’s proposed fee would be excessive compared to other airports.

“What I’m paying right now is more than adequate,” he stated. “We would be paying more than at other airports that have more conveniences and newer hangars. There is nothing out there now except a nice fuel depot. There is nothing to support raising the rent to the rate proposed.”

Gulko contends that the city’s comparison study included major airports with more amenities - not similar operations like the Mariposa airport.

Silveira conceded that the pilots make some good points in their arguments.

“They did their research and we did ours,” the city manager said. “At the next commission meeting we will discuss the issue, and we may take two different sets of research to the council for consideration.”

York cautioned that viability of the airport depends on having a strong pilot base – which translates not only into rental fees but fuel sales.

“It is important to keep people there,” he said. “People have said that they won’t pay the proposed prices for that they have at the airport. A good majority of tenants said that. I know for a fact that it would make Gustine airport a ghost town.”

 
 
Thursday, August 7, 2008

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