Hangar expansion taking off
Article content
A 7,200-square-foot hangar expansion is taking off at the Tillsonburg Regional Airport.
“This is a great opportunity for the airport,” said Development Commissioner Cephas Panschow during open council Monday evening.
Panschow presented report DSC 13-06, including a resolution to enter a lease agreement with Danny Richer for the construction of a 7,200-square-foot hangar on the east taxiway (south of the Canadian Harvard Aircraft Association’s eastern hangar) in the commercial aviation zone. Richer expressed interest to Airport Administrator Annette Murray in September of 2012, stated the report.
The airport’s mandate is always to be on the lookout for new tenants, said Panschow, who was pleased to see this opportunity come along.
“And we very aggressively pursued it.”
The hangar will be built in conjunction with a 20-year lease, expiring on December 31, 2033. The annual lease has been calculated at a rate of $0.2905 per square foot. The inducement of two years of free rent was included in the deal, but from year three onwards, the lease represents annual revenue of $2,091.60.
It will be the 15th hangar constructed at the airport and due to its size (the largest single tenant hangar), will increase overall space by 13%. Richer has agreed to construct taxiways and aprons at his own cost.
Richer currently subleases hangar space at the Brantford Municipal Airport, but along with his tenant, is the single, largest purchaser of fuel at Tillsonburg. It is anticipated those purchases will rise with the arrival of an anticipated five aircraft (including two jets and a helicopter), bringing the total of aircraft at the airport to around 45.
All in all, the report was a positive one, summed up Panschow.
“And certainly something good at the airport.”
Councillor Brian Stephenson inquired whether the planes would be of a business or corporate nature?
“These are private planes,” responded Panschow, noting at least one had been seen during Tillsonburg’s air show.
The report received council’s unanimous support.
“Good job,” concluded Mayor John Lessif. “Good work.”