16 - Hangar Leases - Amendments and EnforcementItem No. 16
TO: Mayor& City Council
FROM: John Godwin, City Manager
DATE: February 22, 2019
BACKGROUND: The airport advisory board has been discussing a number of issues over its
last several meetings in an effort to clean up and update leases and their management, and to
maximize airport use for its intended purpose. At its regular meeting of February 21, the board
made recommendations on several topics, including revised hangar lease documents, adjusted
hangar rents, a hangar use policy, and procedures to enforce leases.
STATUS OF ISSUE: In regards to the hangar lease revisions, the attached list identifies nine
new or changed provisions, eight of which were approved unanimously by the board. Most are
relatively minor cleanups, but I want to highlight a couple of them. Recommendation 4 states
that if a hangar remains empty for 180 days then the lease is forfeited; in the past tenants have
been able to do almost anything they wanted in that regard. Number 8 (approved 5-1) gives first
choice of city -owned hangars to Lamar County residents, though the board agreed that any non-
resident now renting a hangar or on the current wait list would be exempt from this provision.
In regard to lease rates, we conducted a survey of other comparable general aviation airports and
recommended increases for all but the four newly built ones that are already paying a current
higher rent, and the hangar used by our FBO. The board unanimously approved the rates for the
city -owned hangars (attached), which should make us comparable to others. Based on our long-
standing wait list and the fact that we have some current tenants that do not use or rarely use
their hangars for aeronautical purposes, we do not believe the higher market rate rents will have
any negative effect on usage.
A new hangar use policy reflects the existing requirements of the revised hangar leases but in a
shorter, nineteen item list version that is easily referenced and also would be required to be
posted in the airport terminal and in or on. each city -owned hangar by the tenant.
• Notify individuals without valid leases to remove all property from hangars within ninety
(90) days, or execute a new lease, if applicable.
• Notify individuals in violation of requirements regarding aeronautical usage and activity
that they are in default, and initiate the thirty -day (30) cure period, after which leases
shall be terminated.
• Require all tenants who have not executed and complied with the current standard city
hangar lease (as amended on March 11) to execute a new lease within thirty (30) days, or
be in default.
BUDGET: Should generate a small amount of additional revenue.
RECOMMENDATION: Approve recommended changes regarding city -owned hangar leases.
REVISIONS TO STANDARD CITY -OWNED HANGAR LEASES
1. Replace annual CPI rate increase (section 2) with a flat percentage (e.g. 1.5%).
2. Delete references to weeds, high grass, and painting (section 5).
3. Indicate specific aircraft to be stored in hangars; provide that should tenant change aircraft, he/she
must notify both city and airport manager of said change within thirty days (to be added to section
7).
4. Provide that should a hangar remain unused for a period of 180 days, that the lease shall be
declared abandoned (to be added to section 7).
5. Require tenant to purchase lock from airport manager and keep said lock on hangar at all times so
that manager can enter premises when required (to be added to section 14).
6. Clarify electric costs (section 19).
7. Require airport policies to be posted inside hangar at all times (to be added to section 24).
8. Provide that future tenants who maintain their primary residence in Lamar County shall have
priority over those from outside the county.
9. Increase existing rates.
REVISED CITY HANGAR RENTAL RATES
Hangars
Current rate
New rate
A 1, 2, 3, 4, 5, 6
108
150
B 2, 4, 6, 8, 10, 12
60
80
B 1, 3, 5, 7, 9, 11, 13
135
3.55
C 1, 2, 3, 4, 5, 6, 7
162
:M
11
151x:.
12, 3, 4, 5, 6, 7, 8, 9
135
°
110
181
181
J 1, 4
185
185
J 2, 3
195
195
HANGAR USE POLICY
1. Keep and maintain property and facilities in good condition and repair.
2. Comply with all fire, building, and property maintenance codes and zoning regulations now in force
or that may be hereafter enacted with regard to the use of the airport premises.
3. Maintain roofs and walls free from leaks and damage.
4. Maintain property clear of clutter, junk, weeds and high grass.
5. Use the hangar only for the storage of airplanes and related aeronautical equipment and other
items of personal property pertaining to that use and owned by the Lessee.
6. Identify, in writing hereon, Lessee -owned aircraft, and notify airport manager promptly of any
change in aircraft stored.
7. Lessee has no authority to issue any sublease of this hangar, or permit any storage of any other
aircraft by any other person or persons.
8. Lessee shall not cause or permit any use or activity that would create a hazardous condition for
aircraft operating at the airport, or which is determined dangerous or hazardous to airport operations,
including interference from such items as electrical or electronic equipment, creation of smoke or dust,
or glaring or misleading lights.
9. No hangar shall be used as a residence or shall be used for residential purposes.
10. Lessee may only perform repair and maintenance that does not require a licensed airframe/aircraft
power plant mechanic.
11. No commercial activity is authorized unless it is first approved by the City of Paris.
12. Lessee shall conduct its operation and maintain the leasehold in such a manner as to be free of
environmental contamination, and shall neither store fuel nor defuel any aircraft inside any hangar.
13. Lessee shall not store inoperable aircraft for which there are no immediate rehabilitation or repair
plans.
14. Lessee shall not leave hangar doors open after use.
15. Lessee shall keep hangar locked, using a lock provided by the city's airport manager.
16. Lessee shall not modify any part of the hangar without written permission of the City of Paris,
including modifying existing electrical wiring or equipment in or about the hangar.
17. Lessee shall not attach any hoist or holding mechanism to any part of the hangar structure, or pass
any such mechanism over the struts or braces therein.
18. Lessee shall not park or leave aircraft or motor vehicles on the taxiway or on the pavement
adjacent to the hangar door in a manner that would unduly interfere with or obstruct access to any
hangar, nor operate or permit the operation of motor vehicles on any unauthorized area of the ramp,
hangar, or aircraft operation locations.
19. Lessee shall at no time use or permit the use of leased premises in a manner contrary to federal,
state, or local laws, ordinances, rules, regulations, or TXDOT or FAA grant agreements.