[Archive Home][Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
Mutual Help List, Hangar Construction
- From: "Christopher, Brad" <BChristopher@xxxxxxxxxxx>
- Date: Thu, 12 Mar 2015 02:42:19 +0000
- Accept-Language: en-US
- authentication-results: californiaaviation.org; dkim=none (message not signed)header.d=none;
I thought I would raise some points for you to consider. Sorry, probably more
questions than answers.
When you say "on the airport's books" what do you mean by that? Unless you're
a private agency I assume you have no tax liability for personal property or
real estate. Typically, public agencies don't maintain a balance sheet. It
doesn't sound like there is any revenue bond financing involved. Perhaps this
is an inventory of airport property and assets for insurance purposes. Maybe
state statute or county code requires that you maintain a capital or long-term
asset inventory and market value.
Regardless of the answers to the questions above, it sounds clear that your
airport will retain ownership of the land. However, you indicate that the
improvements upon the property will revert to airport ownership after 25 years.
Therefore, it sounds like the airport will own nothing except the land until
the hangar facility reverts to the airport's ownership. Until then, if I'm
reading your description correctly, you don't own the improvements, your tenant
I would suggest that you and/or your tenant seek the advice of a CPA firm about
the tax exposure. There is likely no tax exposure on your part (assuming
you’re a government agency), but if the hangar is the personal property of
your tenant then he will likely have a tax liability; assuming your state has a
Our leasing policies require that the tenant secure and maintain all liability,
property and casualty insurance on leasehold premises. Even though you may not
own the hangar at the beginning of the lease, if it is destroyed then it would
also be your loss at the end of the lease term. You should require the tenant
to insure the property and improvements for the full replacement value and name
your airport as additional insured.
Good luck with your project.
[mailto:help-owner@xxxxxxxxxxxxxxxxxxxxxx] On Behalf Of ereischman@xxxxxxxx
Sent: Wednesday, March 11, 2015 9:08 AM
Subject: CAA: Mutual Help List, Hangar Construction
We have leased acreage to a tenant who is building a hangar. The lease term is
25 years. At the end of the lease, the hangar will be property of the airport.
How/when is the hangar recorded on the airport's books. They will be paying a
monthly fee for the property.
Find past Mutual Help topics in the CAA Help Forum
Fair Use Notice
This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of political, human rights, economic, democracy and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.html. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
If you have any queries regarding this issue, please Email us at email@example.com