Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Assets topic
No spam. Unsubscribe anytime.
Council weighs first-refusal option on recently built hangar, opts to seek more information
Summary
Councilors discussed whether Baker City should exercise a first right of refusal to acquire Hangar D12 at the airport and directed staff to return with price and maintenance information rather than proceed immediately.
Councilors discussed whether Baker City should exercise a first right of refusal to acquire Hangar D12 at the city airport during the April 8 meeting and asked staff to return with more information rather than proceed immediately.
Staff told council the hangar was built in February 2023 and that the current lessee has asked the city to consider buying the hangar when a prospective private buyer emerged. "In accordance with the lease in section 7, it states that the lessee has the first option for sale to the city once he received an offer from a prospective buyer," the staff member said, adding that it was unclear whether a formal offer to the lessee had fully progressed before the request for the city's right of first refusal.
Staff presented financial context: the ground lease for that hangar currently generates about $430 a year, while older city hangars are leased at roughly $315 per month. The presenter said owning a newer hangar could allow the city to charge a higher rate and help the airport move toward solvency. Staff noted a $150,000 economic-development allocation from county transient lodging tax (TLT) funds had been offered to the city this year and could be one funding source for a purchase or refurbishment.
Councilors raised alternative uses for available funds, including repairing deferred maintenance on existing hangars. Councilor Bruin recommended prioritizing repair of the aging quad hangars rather than acquiring new assets. Staff said the airport commission would be asked to evaluate price, deferred maintenance inventory and whether a cost-share or refurbishment program should be prioritized.
Why it matters: the airport department operates at a deficit and new or refurbished hangars can affect long-term revenues and maintenance liabilities. No purchase vote was taken; council asked staff to gather price information and a deferred-maintenance inventory and to bring the matter back through the airport commission for recommendation.
Council members asked about lease terms for new hangars and were told that new hangars commonly come with long ground leases (20 years) because lenders and builders require security for project financing. Staff said the city has a waiting list for hangars and that some prospective tenants are building private hangars rather than waiting for city inventory.
