County increases hangar rental fee hike to five-year phase-in

Airport hangar users will have a five-year, rather than three-year phase in of increases hangar rental costs, county commissioners said.

Following an appraisal by Miami based Slack, Johnston and Magenheimer, commissioners learned that the county was charging “below market rates” for hangar rentals. In turn, Airports Director Bruce Pelly told commissioners that the Aviation and Airports Advisory Board approved proposed rate increases, to be phased in over a three-year period.

“But are we pricing (users)out of the airport?” Commissioner Karen Marcus asked Pelly.

“We’re compelled by the federal government to get fair market value,” Pelly replied – noting that at North County Airport there was a waiting list of 56 individuals or firms wanting to rent hangar space.

Commissioner Robert Kanjian said his concern was that both the price hike, and only a three-year phase in period would not only reduce the waiting list, but would also cause existing hanger renters to go elsewhere.

He reasoned that what this meant in the real world was that those who might leave would include, first and foremost, business users. In turn, he said, the county would not only lose rental fees, but also business related tax revenues – to be replaced primarily by wealthier, but only private use hangar rental users.

Commissioners eventually increased the phase in period from three to five years “as long as the county doesn’t get stuck with the bill,” Commissioner Burt Aaronson said. Aaronson in turn received assurance from Pelly that rental fees were assessed and collected monthly.

Liability Ins.

In other airport news, the county will pay $327,285 to purchase one year’s worth of airport liability insurance from the county’s contracted broker, Arthur J. Gallagher and Co.

The plan covers Palm Beach County International Airport (PBIA) together with the county’s three general aviation facilities, said commissioners. The policy price represents a represents a one percent decrease over the current premium of $329,917.

Fuel Service

Also in airport news, commissioners have approved amendments to agreements with Aircraft Service International, Inc., (ASII), extending two agreement terms for an additional five years each to June 30, 2016.

Commissioners had previously (2006) extended the agreements to provide ASII with time to amortize its cost of bringing its fuel storage facilities into compliance with Florida Department of Environmental Protection requirements. Added costs prompted the second extension requests, commissioners said.

ASII’s overall investment in the renovated fuel service facilities will be $2.9 million, said commissioners.

Building Leases

Commissioners also extended lease agreements with the United States Postal Service (USPS) and United Parcel Service (UPS). The USPS agreement extends the air freight building lease to Sept. 4, 2008, and for which the USPS will pay $161,000.

The UPS agreement is for a five-year term to Sept. 30, 2012, and will cost UPS $69,000 annually; the agreement also contains two, one-year lease renewal options, commissioners said.

John Johnston can be reached at 561-549-0833, or at jjohnston@bocanews.com