City officials expect to have hangars at Washington Regional Airport fully occupied by the end of April.
Some pilots are already moving into the new T-hangar which was recently completed, according to Brian Boehmer, assistant city administrator.
With the new hangar the airport now has a total of 36 hangars for rent. The new hangar includes 10 units for smaller planes and two units for larger aircraft.
During their meeting Monday night, city council members approved a new schedule of rental fees for the old and new units.
“The rates were established based on present market conditions and demand,” Boehmer said in a letter to the council.
“Rates may be subject to change in the future pending recommendations and approval by the mayor and city council. In addition, Mark Piontek (city counselor) has reviewed the existing lease agreements and new agreements will be issued to all tenants. Lease terms are year to year and month to month,” Boehmer stated in the letter.
Rental fees for existing hangar space will increase from $140 per month to $150. The new monthly fee for large hangars will be $235, an increase of $15.
Based on full occupancy, revenue from renting older hangars will increase from $44,160 per year to $47,280 with the new rates.
The new T-hangar is expected to generate annual revenue of $27,660 bringing total income from all hangars to $74,940, an increase of $37,780 under the new rates.
Washington Aviation Inc., which operates the airport, receives 10 percent of the total for collecting hangar fees.
Monthly rates for units in the new T-hangar are $260 and $285 for the two larger units and the smaller units range from $190 to $170 a month.
Boehmer said the different prices for new hangars are based mainly on the size of the various units.
The new units fetch a higher rent because each unit has four walls for added privacy and security, he noted.
Pilots currently renting hangar space were given the first chance to move to one of the new units, Boehmer said.
The city has had a waiting list for some time of pilots wanting to rent hangar space at the airport in Warren County.
Total cost for the new hangar, originally estimated at $1.2 million, is $947,502.
The general contractor, R.V. Wagner Inc., was awarded the construction contract on a $799,000 bid. Other costs associated with the project include $51,411.89 in design services and $97,090.51 for construction services.
The city was awarded federal and state grants to cover more than 80 percent of the project cost.
Boehmer said the city’s final out-of-pocket costs comes to about $180,000. The city should recover that amount in about four years, based on revenue from renting units, he said.
“This has been one of the more profitable investments the city has made on a public project,” Boehmer remarked.
He said the next step will be to work on upgrading the airport master plan for future improvements since most of the projects outlined in the 1999 plan have been completed.
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