Continuing Discussion of KLHM Hangar Leases

by Scott Thompson

An item of interest to airport users and, in particular, those users who own or rent hangars is a discussion underway by the Airport Committee. The Airport Committee is an advisory committee to the City Council, and consists of representatives of the city, airport users, and the community. The members of the committee are committee chair Richard Pearl, City Councilmember Stan Nader, City Councilmember Paul Joiner, Robert Butera, Jeff Hanner, Brian Leibundguth, and Byron Maynard. City staff liaison is Public Services Director Jennifer Hanson.

The committee normally holds meetings on the third Wednesday of each month, but has held special meetings in both August and September to continue the hangar lease agenda. The next meeting is scheduled for Wednesday, September 21, at 10:00 a.m. in the Lincoln City Hall first floor meeting room.

Notes from past meetings and agendas for future meetings can be found online at the City of Lincoln website under the City Hall listing for the Airport Committee.

The committee has had discussions on a number of significant items, but one that may impact many of those that use the Lincoln Airport is the development of a new hangar policy with regard to ground leases and added fees. Change is in the air based on the probable termination of
the city arrangement with the major hangar leaseholder (Nunno) and its effect on sublessees.

Of interest are the list of six options developed by the committee as seen here at the city website.

The notes from the August 21 meeting suggests the direction the committee is leaning in the development of the hangar policy, Specifically, the notes seems to favor adoption of of Option 2, basically let the “Lease Expire and Exercise Reversion on Only Those Hangars Owned By Nunno.” The “…policy is to include following provisions:

  • forgo renewing non-subordinated ground leases when they expire;
  • enter into new ground leases with existing hanger owners/tenants;
  • all new ground leases on existing hangers to be based on market rate;
  • requirement to improvement hanger aesthetics;
  • inclusion of a common area maintenance fee;
  • revert only those hangers owned by the signatory of the primary non-subordinated ground lease—all other owners retain property.”

The committee also discussed possible resolutions to porta-a-hanger owners who are no longer honoring their leases with Nunno due to possible expiration of their ground lease with City. Options included 1) City requiring owners to have their accounts paid in full with Nunno before entering into new ground lease with City or risk legal action(s); 2) Include language in new ground lease requiring outstanding balances paid in full.

Bear in mind that these are discussions only and there remain questions as to what can actually be implemented. There are many more steps required before a new policy can be approved by the city and put into place with airport users, but this discussion is actively underway. Importantly,
the airport committee has direct input from the Lincoln Regional Aviation Association (LRAA), and representatives of our chapter are also attending the meetings to ensure that a clear voice of the users is being presented.

The meetings are open to all, with public input welcome under the conditions specified in the meeting agendas.

City of Lincoln website with Airport Committee meeting information.