City of Greenville
8:58 am
Tue January 22, 2013

Council to Consider Hangar Lease at Airport

GREENVILLE — The Greenville City Council is set to vote tonight on a proposal to lease out hangar space at Majors Field, the Greenville Municipal Airport.

The Council intends to consider an ordinance authorizing a ground lease agreement between the City of Greenville and Texsan Aviation during the regular session, starting at 6 p.m. in the Municipal Building, 2821 Washington Street. A work session is also set for 5 p.m. today.

In a memo to the Council, City Manager Steven Alexander explained that in 2001 the City of Greenville and Alpha Aviation, a sole proprietorship, entered into a 20-year land lease for the purpose of constructing and operatiing an airplane hangar.

“Under the agreement, the hangar construction becomes the property of the City at the expiration of 20 years,” Alexander said. “Brad Smith, owner of Texsan Aviation contacted the City and requested that the City enter into a new land lease that would facilitate his purchase of the hangar from Alpha Aviation.”

Alexander agreed to propose a new 20-year lease with terms similar to the previous lease with Alpha Aviation.  Under the new lease, the hangar will become the property of the City at the end of 20 years.

Under the proposed lease agreement, Texsan Aviation will lease 3,600 square feet of space at an initial term of 27 cents per square foot per annum, and the rate will increase every five years by a rate of 3 cents per square foot. Texsan Aviation will also pay property taxes on the improvements constructed on the site.

The estimated value of the aircraft storage facility is $55,000.

“A ground lease for a private aircraft storage facility follows the recommendations made in the Terminal Area Development Plan that was adopted in 2008,” Alexander said.