Example hangar lease agreements?

[Tony Cox]

Our local airport manager (61B, Boulder City, NV) is keen
to "rationalize" the various hangar leases that have sprung up
over the years. The existing agreements are, I'll agree with him,
quite a mess -- some permit "commercial" hangar use, most have
a different term, and at least one prevents the owner from keeping
an aircraft "that disrupts the tranquility of the airport"(!)

The local pilots see this as a win-win situation. We'll end up with
longer leases and the airport will have a consistent framework for
existing management and future expansion.

So, a couple of questions. Has anyone been through a similar
consolidation process? Our airport is managed by the city, is
enthusiastic to maintain and develop the airport, currently leases
about 80 hangars of varying sizes, typically with a 30-year lease
after which the hangars revert to the city.

Are there any pitfalls which people have come across? Taxation
issues associated with a designation of "commercial"? There's been
a suggestion that "commercial" activities in hangars triggers the
"Americans with disabilities" act, requiring handicapped parking
and disabled-accessible toilets. Any truth to this?

Oh, and does anyone have any example hangar lease agreements
which they are particularly fond or proud of which we might be
able to use as a template?

Tony

[Paul kgyy]

More and more airports are adding to their leases a requirement that
the airplane insurance include the airport as Named Insured. This
dilutes your insurance coverage and should be avoided if possible.

Given the general shortage of hangars, problems occur when people use
them to store things instead of airplanes.

[Tony Cox]

"Paul kgyy" > wrote in message
oups.com...
> More and more airports are adding to their leases a requirement that
> the airplane insurance include the airport as Named Insured. This
> dilutes your insurance coverage and should be avoided if possible.

Do you mean on the aircraft policy? We also have insurance on
the hangars themselves, paid through the association which covers
(in our case, a total of 18) all hangar owners, which provides general
liability insurance for the airport. Not sure if the AP is a named insured
on this policy, but I suspect it is.

> Given the general shortage of hangars, problems occur when people use
> them to store things instead of airplanes.

We certainly have those problems now, although it isn't clear if it is
because of lax lease agreements or lax enforcement. Near Lake Mead,
it turns out that hangars are cheaper than boat storage facilities....

[Darrel Toepfer]

Tony Cox wrote:

> We certainly have those problems now, although it isn't clear if it is
> because of lax lease agreements or lax enforcement. Near Lake Mead,
> it turns out that hangars are cheaper than boat storage facilities....

Define "cheaper"...

[Doug]

Does the lessee get first right of refusal on renewal of the lease at
the end of the term?
That issue is win/win for both parties and should be obtainable.

[Tony Cox]

"Doug" > wrote in message
ups.com...
> Does the lessee get first right of refusal on renewal of the lease at
> the end of the term?
> That issue is win/win for both parties and should be obtainable.

Good point. There's no language in my lease which says that, although
it might be in other leases.

[Tony Cox]

"Darrel Toepfer" > wrote in message
.. .
> Tony Cox wrote:
>
> > We certainly have those problems now, although it isn't clear if it is
> > because of lax lease agreements or lax enforcement. Near Lake Mead,
> > it turns out that hangars are cheaper than boat storage facilities....
>
> Define "cheaper"...

1600 sq ft hangars with 25 year remaining lease are
trading at around $80K & rent at around $650/month.
Not sure how boat storage measures up, but some
people have managed to squeeze 6 in a hangar, so presumably
it's more economical.

[Darrel Toepfer]

Tony Cox wrote:

> 1600 sq ft hangars with 25 year remaining lease are
> trading at around $80K & rent at around $650/month.
> Not sure how boat storage measures up, but some
> people have managed to squeeze 6 in a hangar, so presumably
> it's more economical.

We used to pay 10th that (2 years ago) now its just over half of your
"cheap"... 4 can fit and have, I think the sqft might be higher though...