Hermiston Council Approves Rate Hike for Open T-Hangars at Airport

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Pilots renting open T-hangars at the Hermiston Municipal Airport will see their monthly rental rates increase by more than 50 percent following a vote by the Hermiston City Council Monday night to increase the rate from $65 to $100.

The increase was recommended by the Airport Advisory Committee (AAC) at its Dec. 1 meeting.

The increase only affects open T-Hangars in Building #1, which is a simple open shade-structure that provides some protection from the outside elements but not nearly as much as the covered hangars in Buildings #2 and #3. In August 2019, the council – again, at the recommendation of the AAC – raised hangar rental rates for all units in those buildings to $180 and $205 per month, respectively. At the time, the net annual increase in revenue was estimated to be $7,800 per year.

The last time rates were increased for Building #1 was at least 20 years ago, according to Hermiston Assistant City Manager Mark Morgan.

Building #1 has space for 10 planes and currently has seven paying tenants. Morgan said occupancy in Building #1 has remained relatively stable between seven and 10 tenants for the past several years.

This latest rate hike is estimated to bring in an extra $2,900 to $4,200 in revenue per year.

The extra revenue from the 2019 rate increases have been going into a Hangar Construction Reserve Fund for the purpose of constructing additional hangars for rent in the future. The added revenue from the latest rate hike will go into the reserve fund, as well.

Morgan said there has long been a waiting list for space in the enclosed hangars in Buildings #2 and #3.