For all those holding hangar site leases at the Reno Stead Airport this is to advise you that new leases or renewed leases that the airport authority (RTAA) is proposing have a 35% increase in the rate that is currently being charged. Many years ago (30+) when the first leases were due their first rate adjustment the RTAA hired an appraiser that used non-comparable property to establish a new rate above that originally offered. Of course, those original leases were taken by those individuals that started the hangar building development at Stead because the rates were reasonable for both the lessee and for the RTAA. Then after the investment had been made by the hangar owner the rate increase in the lease was excessive and would create a hardship on the hangar owners.
I and several other hangar owners formed a group of those having leases and also those who were users of the airport to attempt negotiations with the RTAA to get a more favorable method of lease rate adjustments. This group was called the “Stead Airport Users Association” and conducted meetings in one of my hangars and elected officers to conduct the meetings. I had posted all of the then existing hangars twice with a letter explaining the excessive increase that resulted from the RTAA’s appraisal. Because my hangars were the first to be threatened with this excessive increase the letters stated, “it is my turn now but yours is coming due soon.” This same situation is again rearing its ugly head and so all of the current lease holders should again gather together to lobby the RTAA either through the management personnel or through the RTAA Board of Trusties to return to the acceptable lease rate increase method that has been used during the past many years.
After organizing the group, we entered into discussions with the hierarchy of the RTAA and after many such meetings we were able to arrive at the method of lease rate adjustment that has been used during these many years. The appraisal method was ash canned and the rate increase that was accepted by both parties would be an annual minimum of 2%, a maximum of 4% or the CPI, whichever was less. This has resulted in an increase that has kept the cost of operating at Stead within reason so those flying on a close budget could continue to fly, helping to make Stead an airport that would grow in usage. And the results were exactly that. There is no reason that the lease rate should take the gigantic jump of 35% other than the RTAA has the lease holders over a barrel and the choices available as individuals are few. However, as a unified group this situation can be remedied to return to the old 2%/4% or CPI method that has been very workable in the past for all concerned. This solution would simply continue from the current lease rate, not start with a new grossly inflated starting point.
Any lease holder or renter of hangar space at Stead Airport can contact me at <email@example.com> to get involved in getting this problem changed. I mention “renters” of hangar space because this added cost of those doing business at Stead will result in that cost being past on to you through rental rate increases. The last increase of the hangar owners that rent out hangar space was a 3% payment of the gross rent receipts which was passed on to the tenants as will be the proposed lease rate increase if it is not resolved as detailed above..
Regards, Lew Gage
Regards, Lew Gage