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Airport board debates hangar lease reform; directs staff to produce redline of lease with new rate
Summary
Board discussion focused on proposed changes to hangar lease calculations and fees, including a staff recommendation to move to a state-average rate of $0.43 per square foot for hangar footprint (with cost-of-living annual adjustments) and a direction to staff to return a redlined lease for formal action at the next meeting.
The Cache County Airport Authority spent substantial time reviewing proposed revisions to its standard land-lease template for hangars, focusing on how to charge for hangar footprint and adjacent land. The discussion included competing proposals to charge only for hangar footprint versus charging a lower footprint rate plus a land fee surrounding hangars.
Board member Jeanne (first name in transcript) proposed adopting the Utah state average of $0.43 per square foot charged to hangars and applying that to the hangar footprint only, with annual cost-of-living adjustments. The proposal drew a second, and board members debated fairness to older, smaller hangar owners who occupy large lots. Several board members suggested special treatment for existing older hangars while requiring more efficient, denser layouts for new development.
Board members and the airport engineer discussed master-plan considerations, how taxiway width and aircraft group classifications affect where large and small hangars should be sited, and whether to adopt a uniform rate across the field or maintain a differential for flight-line spaces that receive additional airport services (snow removal, direct taxi access). One board member said the flight-line historically was charged more to compensate for additional services.
On insurance and lease security, board members discussed requiring lessees to name the airport as an additional insured under a general liability policy; board members asked staff to research typical local insurance costs so lessees understand the requirement.
Following discussion, the board directed staff to prepare a redlined lease showing the proposed changes (including the $0.43-per-square-foot footprint option and accompanying language for annual adjustments) and bring the document back as an action item at the next meeting. Staff was also asked to publish the proposed redline publicly before the next meeting and to include a financial analyst presentation on the budget at that meeting.
Key clarifications from the meeting - Current baseline rate discussed in the meeting: $0.22 per square foot (current charge under older lease language). - Proposed footprint-only rate under discussion: $0.43 per square foot, with annual cost-of-living adjustment. - Board instructed staff to prepare a redline of lease language and make it available to the public before the next meeting; no final lease adoption occurred at this meeting.
Next steps Staff will prepare and publish a redlined lease version, provide a financial briefing at the next meeting, and place the lease on the next agenda as an action item so the full board can vote.
