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Council approves Hangar 99 lease with Plain Place Aviation; lessee to fund utility extension capped at $200,000
Summary
Council authorized a ground lease with Plain Place Aviation for Hangar 99; the lessee will invest about $1.2M in improvements, the lease generates roughly $143,000 annually, and the city’s participation in a required utility extension is capped at $200,000.
Council approved reauthorizing a master tenant ground lease with Plain Place Aviation LLC for Hangar 99 at Cleburne Municipal Airport.
Staff recapped that Hangar 99 is the airport’s largest hangar, vacant since July 2024, and that Plain Place Aviation was selected through an earlier request for expressions of interest. The lease requires approximately $1.2 million of mandatory improvements by the lessee, establishes a 30‑year primary term with two five‑year renewal options, and is expected to generate about $143,000 per year in rent. Because the hangar requires fire suppression service, the lease is structured as a public‑private partnership for a utility extension; the lessee will pay engineering and contractor costs for roughly 575 feet of extension and the city’s participation is capped at $200,000, with the city taking ownership of utilities upon acceptance.
The Airport Advisory Board recommended the agreement by a 5‑0 vote; council approved the authorization on the agenda motion. Staff said the arrangement requires no General Fund subsidy and that lease considerations are structured to permit investment recovery by the lessee during an initial consideration period.
