27 - Amendment to Hangar Waiting List

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Item No. 27 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Paul Strahan, Airport Manager/FBO Operator SUBJECT: Hangar Waiting List Policy Vacate Period / Hangar Lease DATE: December 12, 2022 BACKGROUND: The current airport policy regarding how long a city owned T -hangar can be vacant without housing a plane is 180 days. The T -hangar lease agreement states an occupant has 180 days to place a plane inside the hangar after renting the hangar or selling of aircraft. If a T - hangar is vacant longer than 180 days, the lease may be cancelled and the hangar is eligible to be leased to another tenant. STATUS OF ISSUE: One of the ways the airport generates revenue is selling avgas and jet fuel and when T -hangars are vacant, potential fuel sales can be lost. Cox Field also has a healthy waiting list with several people wanting to store planes in city owned T -hangars. With a finite number of T -hangars and a lack of available funding to extend the taxiway to allow for the construction of new hangars, it is vital to maintain active tenants in these hangars. Reducing the number of days that a city owned T -hangar can remain vacant may promote more active tenants and/or allow for individuals to move from the waiting list to the list of tenants. BUDGET: While this change in policy will have no direct impact on the budget, it is possible the City could realize a very moderate increase in revenue as a result of fuel sales. RECOMMENDATION: Options: 1. Approve the amendment of the airport policy to reduce the number of days a city owned T -hangar can remain vacant from 180 days to 90 days. 2. Do not make any changes to the current policy. Staff and the Airport Board recommend amending the airport policy to reduce the number of days a city owned T -hangar can remain vacant from 180 days to 90 days.