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Airport Commission to Talk Hanger Upgrade Takeovers

It's been a part of the leases at the Chico Municipal Airport since the 80's, but now the city wants to actually enforce the takeover of renter investments to rented hangers.

Posted: Apr 24, 2018 3:46 AM
Updated: Apr 24, 2018 7:38 AM

Chico, Calif.-- The Chico Airport Commission will discuss the latest plan for taking over tenant improvements when hanger leases end.

Coming up with a consistent plan of operation has become a big priority as the city moves forward with efforts to bring commercial flights back into Chico.

More than 100 hangers are the property of the city of Chico but they're rented out by different companies and private owners, and many of the costly features inside have been paid for by the tenants.

In the past, the renters had no problem investing hundreds of thousands of dollars in these relatively permanent upgrades based on the understanding that the city would let them take their own purchases with them if they were to leave.

But airport manager Sherry Miller says for more than 30 years, the leases have been clear that any improvements made to these hangers become the property of the city after a certain amount of time and it's really hurting the taxpayers and taking from the general fund when this stipulation is overlooked.

"We're not looking at cancelling anyone's lease, it's just what happens at the end of a lease - it's normal and customary, we're one of the few airports in california that doesn't have the improvement turnover at the end of a lease period, it's normal and customary at the end of a lease period," said Miller.

Miller says the Federal Aviation Administration guidelines say that the airports needed to be self-sufficient, and this is a way to do so that the tenants already agreed to when they signed on.

However, many renters are not happy and they disagree that this move can be attributed to the FAA.

Tonight the airport commission wants to discuss updating language of the leases moving forward, revisiting lengths and costs to make sure there is both clarity and FAA compliance.

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