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Aircraft Hangar Development Guide PDF
Aircraft Hangar Development Guide PDF
APPENDIX III 38
MANY PILOTS WHO own or plan to own an air- not apply to your airport, and your locale may
craft want a hangar to protect their valuable not face the same planning complexities as other
investments in personal transportation from the parts of the United States. Regardless, this com-
elements. But there seem to be many more gener- prehensive guide covers many of the details you
al aviation (GA) aircraft than available hangars. need to knowfrom start to finishabout a
Perhaps your name is on one or more hangar hangar development project.
waiting lists.
Checklists at the end of each section make it
Building hangars can attract new businesses and easy to determine if you are ready to move to
generate additional revenue for the airport. In fact, the next phase of the project. The guide also
a well-executed and successful hangar project can includes references to publications by the
be the key to a financially-secure GA airport. Aircraft Owners and Pilots Association (AOPA)
and the Federal Aviation Administration (FAA) to
The purpose of Aircraft Hangar Development provide you with additional information about
Guide is to help you and your airport owner suc- building hangars.
cessfully plan, design, and complete a new hangar
development project at your airport. In an ideal THE BASIC PROCESS for planning and executing
setting, a hangar project would be straightfor- a successful hangar project has five steps. Take a
ward: Project scoping, financial justification, pre- look at the following flow chart and outline to see
liminary design and budgeting, funding, how the details of each step fit together.
approvals, construction, and moving in all would
fall into place as projected. Unfortunately, the Each of these five steps is equally important, but
ideal hangar project rarely exists. You could face the success of a hangar project largely depends
hurdles such as confusing regulations or funding upon how well the first three steps are executed.
difficulties. This guideand your persistence will Many projects fail because the implementation
help you deal with the challenges of building team neglects the first three planning steps and
hangars at your airport. spends its efforts executing the project (choos-
ing a contractor, setting a completion date,
This guide has been tailored to meet the needs of selecting the type of hangar doors). Prematurely
a typical GA airport. Some specific elements may jumping into project execution guarantees a
STEP ONE: STEP TWO: STEP THREE: STEP FOUR: STEP FIVE:
Where are Where do we How do we Project Project
we now? want to be? get there? Execution Evaluation
S T E P F I V E : P R O J E C T E VA L U AT I O N
Evaluate the project financial performance
Prepare a project summary for airport owner
Conduct a user survey
costlier, more difficult, time-consuming effort detailed in the initial phases of planning. So, much
that is likely to fail. It is important to evaluate of your effort during the first two steps will be
the project at the end because this will uncover spent building a compelling business case (See
the strengths and weakness in the process that Appendix III Is Your Business Case Compelling?).
can be improved upon during future projects. It At times it might feel as if you are not making
also can serve to promote the successful opera- progress, but the reality is just the opposite. Think
tion of the new hangars. of it as going slow to go fast. This approach can
produce a high degree of acceptance, support, and
IT IS CRITICAL that each party involved in the commitment from all interested parties and lead to
project understands and agrees with the elements a cost efficient and timely project.
In this first step, you will assess the current state Need or demand most certainly will be related to the cost
of your airport, how well it operates, and the of the hangar rental unit. It is wise to include an estimate
viability of a hangar project. This includes quan- of the rental cost on any existing or new waiting list or
tifying the demand and need for hangars, assess- survey. Although basic hangar construction costs are
ing the environment within which the project available industry-wide and the hangar manufacturers
will be executed, and obtaining support from key will help, this first pricing estimate will require sharp esti-
decision makers. It also means becoming familiar mates on site and land work.
with the FAA requirements and regulations that
govern airport development.
One effective method to gauge the commitment
Before you begin, identify the key players who can of those on your airports hangar waiting list is
assist you with the work. The team could include to require a cash deposit from each individual to
airport owner representatives, engineering consult- hold his or her spot on the list. It is incumbent
ants, and airport supporters. on whoever manages the waiting list to do so
fairly and equitablynever allow back room deals
Determine the need to influence priority on the list.
Start by studying your airport hangar waiting list. The type of hangar depends on the demand of
If your airport does not have one, generate one to your tenants and what is most appropriate at
learn if there is a demand for hangars. Determine your airport. For example, nested T-hangars
the level of commitment from those on the list most often are attractive to potential renters
do they intend to occupy a hangar once one is because they provide the greatest degree of
built? In some cases, people have their names on weather protection and security, whereas
multiple lists at neighboring airports, or they do shade hangars have a structurally supported
not currently own an aircraft. In other cases, the roof but open sides (no walls). Portable
waiting lists are not well managed, are out of hangars are less expensive to build, but they
date, or do not reflect the realistic demand for are less durable and generate less revenue.
hangars. In any case, the waiting list and pilot Box hangars usually are attractive to owners
demand for new hangars should be verified. A of larger aircraft. These hangars can be quite
direct mail solicitation or survey to pilots within expensive to build, but they also generate sig-
the airports service area should be considered. nificant revenue.
A n a l y z e t h e a i r p o r t e n v i ro n m e n t
Analyzing the environment within which you a good neighbor, youll be miles ahead. You
will be executing your project is a vitally impor- might think you know what level of community
tant element that often is overlooked. Airport support currently exists at your airport, but just
supporters often presume that if the demand for because you havent received a series of com-
hangars is strong, then all a person must do is plaints from neighbors doesnt mean that you
obtain the funding needed to complete the proj- have support. Check with local community lead-
ect. But before you seek funding, it is critical to ers, newspaper editors, and business groups to
research all of the elements in the airport envi- learn what they think about the airport. AOPAs
ronment. These elements include airport owner Airports: A Valuable Community Resource (http://
support, community support, airport master plan, www.aopa.org/members/files/airport/) provides
zoning and land use, environmental issues, air- strategies that you can use to improve communi-
port community design standards, airport tenant ty support.
support, availability of project funding, and the
current airport financial situation. Airport master plan: Every airport should
have an up-to-date master plana document
Airport owner support: If you dont have solid approved by the FAA that describes the fully
owner support for your airport, you will be fight- built-out capacity of the airport and the plans
ing an uphill battle the entire way. Whether the for achieving it. It also includes an FAA
airport is privately owned or city, county, or even approved airport layout diagram that illustrates
state owned, youll need a lot of help and support current and future development plans. It is
to successfully execute the hangar project. critical that your hangar project is depicted on
Identify the key decision makers early, because this diagram early in the planning phase
you will need their support to get favorable deci- because FAA grant funding, as it may apply to
sions on funding applications, permits, and con- your project, will be based on the airport lay-
tractor bid and award. You will need support out plan.
from the airport manager, airport commission,
city or county council, planning department, and Zoning and land use: The airport probably has
senior city or county staff members. some requirements that govern how land can be
used or developed. For example, there may be
Community support: A lack of community sup- certain areas on airport property limited to com-
port for your airport will make your hangar proj- mercial development, designated for aircraft
ect much more difficult. If your airport has been storage, or a combination of the two. Some land
Revenues Costs/Expenses
Tiedown rent Personal property tax Salaries and wages Hazardous waste disposal
Hangar rent Airline ticket tax Debt service (loan pay- Utilities
Ground leases (for commercial service ments) Owner overhead charges
On-airport business leases airports only) Fuel purchases Insurance and risk
Fuel sales Interest Maintenance and repair management
Office supplies Depreciation charges
Revenues: For most GA airports, fuel sales and rent generate the Expenses: Debt service is typically the largest expense for
largest portion of revenues. But personal property tax also generates airports that have continuous development. However, salaries,
revenue. This is handled differently across the United States depending overhead charges, and fuel purchases might be the biggest
on city, county, and state law. However, it typically is paid by aircraft own- expenses at airports where development has been spotty.
ers based on the assessed value of their aircraft. In some cases, a por-
tion of the total payments can be returned to the airport. The airport
owner and the tax agency can agree upon a funding arrangement. For
example, a county might levy the tax and agree to return a portion of it to
the airport.
In Step Two of the process, you will learn the There are a number of reasonable approaches to
scope of this hangar project by exploring getting new hangars built at an airport. Each has
alternative approaches and estimating the pros and cons (see comparison charts below), so
financial impact of each. Once you have cho- you will need to analyze the options to determine
sen the best approach, you will analyze its which is best. There are three typical approaches.
strengths, weaknesses, opportunities, and First, a private company can own the hangars on
threats. You also will analyze boundary condi- leased airport property. Second, the airport owner
tions, conduct a stakeholder analysis, identify can build the hangars and rent them to airport
key decision makers, and create a compelling tenants. Third, the land can be leased to a private
business plan for your approach. developer who will build and rent the hangars to
airport tenants.
P R I VAT E D E V E L O P M E N T A I R P O RT O W N E R D E V E L O P M E N T
No up-front owner investment required Good demand
No owner management needed Highest revenue flow to airport
No occupancy risk Built to airport owner specs
One entity to deal with Greatest control to ensure compliance with airport rules
P R I VAT E D E V E L O P M E N T A I R P O RT O W N E R D E V E L O P M E N T
Lower revenue because open land is leased,
limiting control of future rent increases Airport owner management oversight needed
Management of hangar waiting list can be
problematic Potentially highest capital cost
TYPICAL BOUNDARY
CONDITIONS: you will need approvals, and whether this will
change at various points during the project.
FAA and state will provide funding
Architectural designs will require review C o n d u c t s t a ke h o l d e r a n a l y s i s
and approval
City/county council must endorse project plan and A stakeholder is any person or group who has
contract awards an interest in or will be impacted by the hangar
Lease agreements must be renegotiated with project. Once you have identified the stakehold-
some current airport tenants ers, determine their level of support. This will
Neighbors must be included in help you manage the level of acceptance and
communication process commitment for your projectstrong allies can
Hangar design is restricted by airport influence those who show little support.
layout plan
No additional airport staff can be added Use the SWOT analysis to create strategies to
to administer project increase the level of commitment from key
Owner will not provide any supplemental funding stakeholders. Ask yourself: What would our
(i.e., hangar project must be self-supporting) stakeholders say about the project if it was a
success from their perspective? or What are
their views of the airport operation today? With
With the boundary conditions identified, you these answers, you can develop strategies to get
might find more issues that need to be con- the needed support.
sidered as you put together the business plan
and deal with stakeholders during project exe- Keep in mind that the stakeholder analysis likely
cution. It is key to determine who will be the will change over time as issues are addressed or
decision maker, from whom or what group new stakeholders are identified.
Use the Stakeholder Analysis data to boost support for the project and minimize opposition.
S e v e n key p r i n c i p l e s o f p ro j e c t
management
All of the project pre-planning and preparation to If the developer will lease airport property, con-
this point begins to pay off. During the project sider the appropriate term of the lease. (Typical
execution phase you will complete the project leases run 25 to 30 years; however, in some
design and funding, solicit bids, award the con- cases, the lease term may be tied to the level of
struction contract, build the hangars, and move capital development proposed.) Establish what
in tenants. In this phase, it also is important to will happen to the hangars after the lease expires:
implement the seven principles of project man- Will the lease be eligible for extensions in time?
agement discussed in Step Three (page 14). There How many extensions? Or will the hangars revert
will be changes that must be incorporated into to the airport owner at the end of the lease term?
the project plan (change in funding sources, reg- The final terms of any lease should hinge on the
ulations, stakeholders, size of project scope), and length of the lease term as well as the level of
using these principles can ensure the best possi- investment involved. Also include a clause in the
ble outcome. lease that allows the airport owner to be involved
in the hangar project to help ensure that building
P ro j e c t d e s i g n a n d f u n d i n g codes, permits, inspection requirements, and the
like are met.
You should have already decided whether to
have the hangar project done privately by a You will need to assist the developer through-
developer or publicly by the airport owner. out the project by obtaining any required per-
Depending on which option you selected you mits, integrating the project into existing air-
will have varying levels of involvement. Some port infrastructure, obtaining funding and proj-
of the responsibilities of each option are detailed ect management for non-developer portions of
in this section. the project, and monitoring the progress of
construction. You will also be responsible for
P r i v a t e l y b u i l t a n d m a n a g e d : The pri- resolving any issues that may arise between the
vate ownership and management option requires developer and airport owner representative.
a land lease or purchase agreement between the Participating in the final inspection and accept-
airport owner and private developer. The airport ance of hangars and ensuring compliance of the
owner will likely prepare these documents but lease agreements will also be a priority.
AGENDA
e rates, etc.
Labor provisions, prevailing wag
Project scope review
quality assurance
Construction observation and
Project management
Sponsor/owner engineer
FAA project engineer
entative
Engineering consultant repres
Airport manager
rials testing
Construction observation/mate
Project administration
nce testing
Materials testing, quality assura
Resident job site engineer
staff, FAA, airport users
Coordination with airport, city
n
Construction activity coordinatio
Weekly progress meeting
er
Notams issued by airport manag
sonnel identified
Construction contractor key per
Administration
pleted
Contract award signatures com
work, material orders, etc.
Notice to proceed, first day of
tations reviewed
Project schedule and time limi
al
Change orders, review, approv
Progress payments
Request and documentation
Schedule of values (unit prices)
Documentation of progress r finance department)
ually established by owner/sponso
Retention escrow account (us
Construction operations
construction, operations
Airport access, security during
ons during construction
Limitations on contractor operati
ning signs, night obstruction lighting
Public safety: barricades, war ction
property at conclusion of constru
Protection and restoration of
General limitations
cess to certain areas)
Specific project limitations (ac
tions to airport manager
Pavement closures and notifica
Review your project cost economics to make sure Be certain that the developer does not allow
the hangar rents will cover your costs. Also renters to engage in activities that do not comply
check that the airport owners accounting with airport zoning and building codes (i.e., run-
department is ready to receive monthly pay- ning a business in a noncommercial zone or per-
ments from the tenants. mitting nonaviation activity prohibited by airport
operating standards).
Notify the tenants on the list by mail or phone
that they can move into the hangars. Remind
them of the monthly rent and include any other
fees that they will incur upon move in such as CHECKLIST
damage deposits. When the tenants are ready to
move in have the rental or lease agreement ready Obtain project design and funding
for them to review and sign and obtain the appro-
Bid and award construction contract
priate insurance documentation from each tenant
to protect the airport owner. After the tenants Construct hangars
have moved in check to ensure that any punch Complete hangar project and move in tenants
list items are completed. This could include utili-
ties, paint touch ups, or door adjustments.
P ro j e c t e c o n o m i c s D e b r i e f p ro j e c t p a r t i c i p a n t s
When the income stream starts flowing from the An effective method for evaluating the project
new hangars, closely review the monthly revenue is to go back to your stakeholder analysis and
and expense reports produced by the airport conduct interviews with these individuals again.
owner. Check your original estimates (produced Now that the project is complete ask for their
during the first three steps of the guide) and con- thoughts and suggestions about how to improve
firm that the hangars are generating sufficient the process. Discuss the project approval
revenue to cover all of your expenses, including process, the impact on schedule and cost, the
any new principle and interest payments. Dont impact on current airport businesses, tenants,
forget to include additional fuel sales revenue in and staff, and the level of satisfaction from key
the review. decision makers. You also should obtain input
and reactions from the airport design engineer-
Ideally you would be generating sufficient rev- ing consultant, airport owner engineering staff,
enue to cover all of the operating expenses and construction contractor, resident engineer, and
financing costs, with enough to set some aside in airport owner representative.
Many airport tenants (business owners and Tabulate the numerical results and consolidate
users) initially might not be included in the the written comments. Then combine your stake-
stakeholder debriefing but their input is no holder and tenant survey results to create a brief
less important. An effective way to obtain report for your key decision makers and airport
their input is to conduct a short opinion sur- tenants. (A Microsoft PowerPoint presentation is
vey. Limit the survey to 10 or fewer ques- a simple and effective reporting method.) Because
tions and use a simple scale (e.g., rank the your decision makers and tenants took time to be
level of satisfaction from 1-10). The easiest interviewed or to complete an opinion survey,
way to distribute the questionnaire is to mail you owe them an opportunity to see the results.
a copy to all airport users who appear on the An airport users meeting can be an effective
venue for such a presentation. Sharing the results
with the stakeholders and tenants fosters open
S a m p l e o p i n i o n s u r v ey q u e s t i o n s communication and relationship building.
Did the construction phase of the project impact your Provide copies of the final project report to
use of the airport? the group responsible for airport management
(1-10 scale, 1 being strongly disagree, 10 being oversight, whether it is an individual, airport
strongly agree) committee, or local government commission.
They should have copies available for whoev-
How did the project impact your er becomes involved in the next airport
use of the airport? development project. Your report and shared
(Ask for a written response or provide a list of experiences should enable the next project
examples with boxes to check.) team to complete their project more efficient-
ly than if they were to start from scratch as
This hangar project will benefit the airport. you probably did.
(1-10 scale)
Explain why or why not.
CHECKLIST
Waiting list was well administered.
Track financial performance of airport, including
(1-10 scale)
new hangar operation
Explain why or why not and provide some
suggestions for future projects. Adjust rental rates as appropriate
Debrief project participants
Tenant communication was sufficient. Conduct airport tenant opinion survey
(1-10 scale) Provide final project report to airport owner
Explain why or why not. decision makers
REVENUE YR 0 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10
Fuel 480 530 547 563 580 597 615 634 653 672 691
Hangar rent 450 549 565 582 600 618 636 655 675 695 715
Other rent 110 113 116 119 122 126 130 134 138 142 146
Property tax 45 50 51 53 54 56 58 59 61 63 65
Other 60 62 64 66 68 70 72 74 76 79 82
SUBTOTAL 1145 1329 1345 1386 1428 1472 1517 1563 1611 1660 1709
EXPENSES
Salaries/benefits 32 33 34 35 36 37 38 39 40 42 43
Fuel purchase 370 398 409 422 435 447 461 475 489 504 519
Utilities 57 71 73 75 78 80 82 85 87 90 93
Other exp 162 167 172 177 182 188 193 199 205 211 217
Overhead 86 89 91 94 97 100 103 106 109 113 117
Other exp 11 11 12 12 12 13 13 14 14 15 16
SUBTOTAL 718 769 791 805 840 865 890 918 944 965 1005
OTHER
Loan principle 82 84 86 88 90 92 94 96 98 100 102
Loan interest 355 353 351 349 347 345 343 341 339 337 335
New loan principle 20 21 22 23 24 25 26 27 28 29
New loan interest 86 85 84 83 82 81 80 79 78 77
SUBTOTAL 437 543 543 543 543 543 543 543 543 543 543
PART ONE:
Description of the project What is the current situation?
Describe what will be targeted in the project.
What is currently going well that can be built on?
What has been done to confirm the need for new hangars?
Who authorized/initiated the project?
PART TWO:
Description of the project importance Why are the hangars needed?
What is the motivation of airport users for new hangars?
Do they perceive:
An opportunity a situation leading to future success?
A need a current shortage of hangar space?
A discomfort an existing problem requiring a solution?
Pain a severe problem requiring immediate response?
What situation demonstrated the current need?
PART THREE:
Description of benefits of the new hangars How will stakeholders benefit in the short run?
How will stakeholders benefit in the long run?
How will the airport, local community and owner benefit in the
short/long run?
What are the consequences of not doing the project?
What resources will be available to complete the project?
PART FOUR:
Description of the costs associated with What will it cost in terms of money, time, and effort?
the project How will stakeholders be impacted by these costs?
What is the cost/benefit analysis (project proforma)?
PART FIVE:
Measures for success How will success be measured? What is the monitoring system?
What does success look like?
How will stakeholders recognize success?
PART ONE:
What does the project look like? Is the project going to impact my business or daily work?
PART TWO:
Why is this project important? Whats in it for me?
Who cares?
So what?
Is it going to negatively impact me?
PART THREE:
Is it good for business? How will the project help my business?
How will the project make my job easier/harder?
How will the project make me look good/bad?
PART FOUR:
What will this cost me? How will the project impact my budget, people, and time?
What do I have to give up if the project goes forward?
What additional workload will I have?
PART FIVE:
When will this be successful? How do I know Im done with this and can go back to my real work?
How will I know there is a positive impact on my business?