Lebannon Airport Board Recommends Hangar Rent Increase

Jul. 3—The Lebanon Airport Commission voted Thursday to recommend a monthly hangar rental rate increase for consideration by the city council later this month. The first phase of rate increases would be 10% for most of the hangars.

Lebanon Airport Commission Chairman Ralph Mallicoat supported the increase, saying that the 10% uptick "is a good average right now."

Mallicoat said they didn't want to raise the rates too fast, but added that there is not shortage of demand for hangar rentals at the airport. Commissioner J.D. Lowery offered validation for this stance saying, "If we scare off a renter or two, we still have a long waiting list."

Right now, the waiting list goes back more than five years and includes over 130 names.

According to Mallicoat, in years past the increases had been about 5%. Mallicoat said that with the 10% increase, the airport is slowly catching up with hangar markets at comparable airports in Middle Tennessee. The airports often turned to when establishing these market comparables are Gallatin and Columbia.

The hangars at Lebanon's airport are leased out by the city on two-year contracts. Lebanon Commissioner of Public Works Jeff Baines said by having the flexibility to revisit contracts bi-annually, the city can account for market volatility. Baines said four years is just too long. "Who knows where the market will be that far off?" he said.

The price increase just concerns the hangars in Row A and B. These rows represent some of the older hangars at the airfield, dating back to the early 1990s. For Row A, the monthly rental on a T-hangar had been $200. For a Row B hangar, that rate was more — $245 per month. Row B hangars are slightly newer and larger, accounting for the difference.

If the city council agrees with the airport commission to lock in these 10% rate increases, the new monthly rate for a hangar in Row A will be $220, and in Row B it will be $269.50.

Next year, the commission will explore the degree to which it wishes to increase rates in other hangars of the airport, like Row E, where the current monthly rate is $360.

Justifying the rate increase, Baines said that renters would understand. "They realize we have to be fair, because it generates revenue for the airport. Everything out there costs money to maintain. This is where a lot of that comes from."

The additional hangar revenue will help with paying for planned expansion to the parking lot at the airport.

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