After hangar fire, airport staff urge insurance changes and outline $2.55M in hangar repairs

Lindsey Johnson, airport superintendent, told the council a recent hangar fire prompted staff to re-evaluate insurance requirements and complete a hangar-condition assessment covering city-owned hangars.

"We currently rely on the indemnification paragraph in that rental agreement," Johnson said, explaining that aviation insurance is complex and there is no state or federal mandate that aircraft be insured, so pilots are often self-insured.

Johnson outlined four options: require aircraft insurance for all aircraft at the airport, require renter's insurance for city-owned hangars, explore city-provided hangar-keepers insurance (which staff said state code does not allow), or do nothing (rejected). She said staff will return with an updated rental agreement requiring insurance provisions for tenants.

A JGT Architects assessment identified roughly $451,000 in short-term needs (roof repairs, skylights, door work and painting) and about $2.1 million in long-term needs (roof replacement, door and floor work), with two hangars (450 and 540) accounting for just over $1 million of long-term work. Several hangars reverted to the city under older lease terms and have deferred maintenance.

Council members suggested seeking demolition bids for the most deteriorated hangars and focusing on leasing improved pads to private operators rather than investing in aging structures. Staff said they will return with a plan for hangar disposition and with updated insurance language for council review and adoption.

No policy decision was adopted at the meeting; staff will bring back recommended lease and insurance language for council consideration.