WILLMAR -- The cost to rent ground space to build private and commercial hangars at Willmar's new airport will increase, the City Council decided with a 7-1 vote Monday night.
The new rates were recommended by the council's Public Works/Safety Committee, but won't go into effect until 2010.
City Clerk-Treasurer Kevin Halliday said staff was instructed to review the present rate of 10 cents per square foot, in use since 1979. The increase was proposed because the Federal Aviation Administration requires the city to maintain facility and service rates that will make the airport as self-sustaining as possible, he said.
The private hangar rate will rise to 15 cents per square foot per year. The rate will continue for the first 10 years. After the 10th year, the annual rate will increase every five years, rising 1 cent per square foot each five-year period, concluding with not exceeding 19 cents per square foot per year. New rates can be set after 30 years.
For commercial hangars, the rate will increase to 20 cents per square foot per year, where it will stay for the first 10 years. After 10 years, the annual rate will increase every five years, rising by 1 cent per square foot for each five-year period, concluding with not exceeding 24 cents. After 30 years, new rates can be set.
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Council member Jim Dokken opposed the increases because he said the new rates had not been discussed by the Airport Advisory Commission.
"Why can't we wait until it goes through the Airport Commission so they have a chance to have input on this?'' he asked.
Dokken said he attended the Jan. 17 Public Works Committee meeting and quoted Ted Anderson, representing the Airport Commission, as saying this was the first time that the commission had seen or heard of it. "I wrote his comments down,'' said Dokken.
Mayor Les Heitke said he discussed several airport issues with Dr. Steven Nedrelow, whose Airport Commission term ended Dec. 31 and had served as chairman. Heitke said Nedrelow commented that if the city is considering a rate increase, that a schedule be established.
"He shared with me that he understood that it's likely the rates need to be reconsidered, just like we reconsider everything in the city periodically. ... A review periodically is appropriate,'' said Heitke.
Council member Doug Reese, who heads the Public Works Committee, said he had heard similar comments, and that the city needs to lay out rental rates so that hangar owners can decide if they want to make the investment.
City Administrator Michael Schmit said the rates did go through the Airport Commission some time ago.
In an interview, Schmit said the rates were developed for the Public Works Committee after the Airport Commission had its last meeting in December.
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Schmit didn't know if the commission had acted on the rates.
Schmit said the Airport Commission does not have a quorum because the terms of three commission members expired on Dec. 31, and a fourth member resigned and moved out of Willmar.
"We just went with our proposal to the committee,'' said Schmit.
He said the city recently extended some annual leases through this summer or fall. After the new airport opens and hangar plans are in place, the city will enter into long-term leases and that's when the new rates will go into effect.
Voting in favor of the new rates were Reese, Cindy Swenson, Denis Anderson, Ron Christianson, Bruce DeBlieck, Steve Gardner and Rick Fagerlie. Dokken voted against.
