Tuesday, September 16, 2014

New airport hangar building on hold: Norfolk Regional (KOFK), Nebraska

Take-off is being delayed for a proposed $1 million hangar building and taxiway at the Norfolk Regional Airport.

The Norfolk City Council last month passed a resolution acknowledging that a future property tax increase of about $60,000 annually for 10 years would be needed for the project. That’s because rent from aircraft owners wouldn’t cover all of the debt service on the loan.

Since then, the Norfolk Airport Authority has reconsidered its plan.

“We had push-back on this on the tax increase. The decision was made faster than we probably should have done,’’ Dan Geary, airport authority chairman, told the council on Monday.

Questions were asked that didn’t get very good answers, Geary said, so the airport authority last week decided to delay the project for more study.

A bid opening had been planned in the spring for the eight-bay hangar.

Geary said the additional study would take about six months, which is also when a Federal Aviation Administration grant approved for the project is to expire.

“We’ll do an in-depth study of the rent we’re charging,’’ he said, adding later, “We’re not going to build the hangar for a while.’’

The airport authority will further track any vacancy and turnover that occurs, as well as who is inquiring about renting the 35 existing hangars, which are full.

Geary said accounting will be changed so that hangar expenses are separated from the general fund. The hangars generate about $70,000 in income, he said, which is money the airport doesn’t have to get from the city.

City Attorney Clint Schukei said a new resolution, rescinding the language about the future property tax increase, would be brought to the council at its next meeting.

The airport authority learned last month that its application for loans and a Federal Aviation Administration grant had been approved.

The $267,471 grant is to pay for the taxiway. Local share amounts to $29,719.

Also part of the project is a $491,699 no-interest loan from the Nebraska Department of Aeronautics to build the hangar. The local share is $210,842.

- Source:  http://norfolkdailynews.com

No comments:

Post a Comment