City officials expecting lower rates to attract more plans to airport
During its meeting Monday, Washington’s City Council approved a revised lease agreement related to T-hangars at Washington-Warren Airport.
The council also discontinued the quantitative discount for people renting multiple hangars. The revised lease reflects the lower T-hangar rental rates for fiscal year 2018-2019, which begins July 1.
On Sept. 22, 2014, the council approved a quantitative discount for a person renting multiple T-hangars, with a 15-percent discount for renting a second hangar and a 25-percent discount for renting a third hangar. “The current tenants receiving this discount will still recognized a lower annual rental fee with the FY 18-19 lower T-hangar annual rental fees,” wrote Adam Waters, the city’s interim public-works director, in a memorandum to the mayor and council members.
During a budget work session earlier this year, the council unanimously voted to decrease rental fees for T-hangars at the airport in hopes of attracting more planes to the city-owned airport.
“As you recall during out budget sessions, we changed our rental rate for T-hangars. All this does is to adjust the current lease language to reflect that new rental rate. In the old lease, we had a discount rate for leasing of a second or third hangar. With the new rate, the new rate would be less than the old rate with a discount if you had multiple hangars. We just removed the discount for the second or third hangar,” Councilman Doug Mercer said.
The increase in revenue from hangar rentals likely would offset the revenue lost by decreasing the rental fees, city officials indicated. About three or four new tenants would provide the revenue needed to accomplish that, according to calculations by the city’s finance department.
Under the revised lease agreement, a person renting a T-hangar with electricity would pay $180 a month. A person renting a T-hangar with electricity would pay $195 a month. Renters would be billed quarterly.
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