Airport commission approves 3.5% hangar rent increase after split votes

The Airport Commission voted to raise hangar and commercial lease rental rates by 3.5% annually, approving a compromise after an initial tie on a 3% motion and follow-up votes on 4% options. The decision came at the April 20 commission meeting during a detailed budget review.

Chad, the airport staff presenter, told commissioners the airport has used annual increases to keep pace with rising costs and avoid larger, sudden jumps: “Many years we did 4% to keep up with additional costs — electricians, maintenance and salary increases — and it’s helped keep us afloat.” Commissioners worried about tenant pushback and the effect on hangar occupants who often operate on slim margins; one commissioner noted a J‑unit tenant would pay roughly $60 more per year under 4% compared with 3%.

The commission debated staying “industry normal” at 3% versus keeping ahead of inflation at 4%. After a tied roll call on a 3% motion and a subsequent motion for 4%, members settled on a 3.5% increase, which passed by roll call. Commissioners asked staff to bring back options to soften the impact on tenants, such as tenant-based fuel discounts or temporary rate freezes during major tenant construction.

The increase takes effect per the commission’s standard schedule for annual adjustments; staff said commercial leases with fixed terms (for example, MTSU’s master lease) remain governed by their existing contract terms. The commission expects the modest higher rate to yield several thousand dollars more in aggregate revenue while staff monitor any tenant departures. The commission will review tenant-impact proposals at a future meeting.