Private Owned Hangers

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bcocheran
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Private Owned Hangers

Post by bcocheran »

Hello everyone, I am working with our City on opening up some of the land at the airport to allow privately owned hangers.

If you have the time, I would appreciate any feedback/information you have regarding privately owned hangers.

1. Do you own your own hanger or know a field that allows privately owned hangers?
2. Does the hanger ever revert to the city/county?
3. What kind of lease structure do your airport (city/county) offer?
4. What City, State, and airport are you at (or know of that offers owners the opportunity to build/own hangers)?
5. Can you provide contract information for airport manager?

Thank you for any information you can provide!
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rwtucker
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Re: Private Owned Hangers

Post by rwtucker »

Hi Brad,

I own hangars at a few municipal locations. In all cases that I am familiar with, you own the hangar but lease the land. Technically, the land the hangar sits on can be repurposed by the city or county by following whatever procedure they have established for such changes. In such a case, they would still not own the hangar but, if you wanted to exercise your ownership, you would have to disassemble your hangar and remove it! However, unless you live in a contested area, such as a densely populated city in California, the chance of this happening is slim. Most ground leases are written for 20 years renewing indefinitely, but not certainly.

In my experience, a more practical concern is protecting the hangar leases and property taxes (you will have both) from being raised excessively in relation to other property. This happens a lot when a strapped city council sees a cash cow that won't cost them votes with the general public. The city's obligation for maintenance is another important area for attention as are reasonable building restrictions (e.g., adding an office or private room inside your hangar). Some cities have found a way to prevent pilots from modifying their own hangars internally, even though the city has no real interest in the issue.

My guess is that AOPA possesses sample ordinances, etc. and a checklist of topics that would help you and the city set the system up properly. My guidance would be to secure experienced counsel via them.

I can send you copies of my agreements if that would help. None of them are ideal.
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Rich
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Re: Private Owned Hangers

Post by Rich »

I don't know a lot of detail, but it appears that ALL hangars on my home field (S39) are privately owned. In some cases they are clearly businesses. In my case I lease a hangar from a married couple that own two buildings of T-hangars for a quite reasonable price. Altogether I would think that they gross several thousand dollars per month from these.

There are also routinely hangars for sale, for like $50K. One thing that makes this sort of safe is the airport is a couple of miles out of town in a commercial area, surrounded by a couple of data centers (facebook, google, a mystery new one proposed) and LOTS of open land all around.
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Charles
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Re: Private Owned Hangers

Post by Charles »

Similar to what Robert describes, I own a hangar on leased airport land. We (group of hangar owners) negotiated a deal with the airport that in return for redoing the asphalt around the hangars, our leases would be extended until 2043 at pre-determined lease rates. Peace of mind and smooth taxiing.

City taxes apply at the commercial (i.e. non-residential) rate. That expense is actually 60% higher than the land lease around here.

In theory, when the lease expires, the hangar reverts back to the airport. The guy I bought it from assured me it could be disassembled without damaging anything but I don't think that's a real concern.

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bcocheran
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Re: Private Owned Hangers

Post by bcocheran »

Thanks for all the replies! This helps much! If you are or were able to share a copy of your contract, that would be great! brad@stickandrudder.com Thanks again!
Brad Cocheran (KELK)
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Chris B
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Re: Private Owned Hangers

Post by Chris B »

Rich wrote:There are also routinely hangars for sale, for like $50K.
Last year a modest private box hangar changed hands at KPAO for low seven figures. :shock:

Chris
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Tom Davis
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Re: Private Owned Hangers

Post by Tom Davis »

You probably need to see a lawyer about these leases. First, they are long term, so you are going to have to live with your deal for a long time. Second, when dealing with any government entity, there are a lot of extra holes you can step into. Third, both real estate law and municipal law are highly specific to the state you live in. Finally, it should not be too expensive to get good legal advice. Ask what it will cost up front. You may not get a specific answer, but you are likely to get a reasonably narrow range of where the final cost is likely to fall.

If you are going to put some significant money into a hanger (and from where I sit, it costs a significant amount of money to put up a pole shed), you should seriously consider getting title insurance.

In the interest of full disclosure, I am a lawyer, but I live in rural North Carolina and will not be likely to get any of this the work that I am advising you to get done.
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Re: Private Owned Hangers

Post by Charles »

I second that. One risk we have here is that the airport, although city-owned, is managed by a non-profit corporation with which we signed our lease. Now there are rumours that the corporation may be dissolved and that the city would take over management. We needed a legal device to ensure our lease would remain in full force in that eventuality.

It helps to have a wife who happens to be a lawyer with an interest in those things...
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Re: Private Owned Hangers

Post by dwurfel »

I built a T-Hangar about a 4 years ago in Mesquite, NV (67L). I had to have the city council approve the building of the hangar. The hangar materials came on a flat bed truck. The hangar had pretty simple instructions to put up. Unfortunately Mesquite is in Clark County, NV so I had to use a licensed, bonded, approved contractor to put it up. I could have done so myself with a friend but they would not let me. In any case, it is a great hangar with the desert heat out here and glad I built it. I pay a monthly lease rate but do not have a contract. I can move it whenever I want.
The hangar has definitely increased in value and could sell for 30% more than I paid for it. One watch out is make sure the door goes up and down correctly to your satisfaction.
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Re: Private Owned Hangers

Post by rwtucker »

David,

I've been into 67L a few times. Great view! My wife and I have contemplated Mesquite or St. George as a place to escape occasionally mid-winter. How was the city of Mesquite to work with in terms of getting your hangar up and supporting operations? Are they providing water, electricity, rest room facilities, etc.? Where do you see the airport going in terms of development in the next few years?
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