airport/documents/Mesquite Master Plan Final.pdf - The City of ...

development by the City. New hangar
and ground leases will need to be
established in such a manner that the
City will be able to amortize its
development costs over a reasonable
time period. At the current time, land
lease rates are $0.08 per square-foot per
year. This rate could be increased to
$0.20 per square-foot per year and be in
line with other airports due to utility
availability.
Should the City decide to construct Thangar
facilities, costs can generally
equal $30,000 per unit. Thus, a 20-unit
T-hangar could cost as much as
$600,000 to construct. To retire the
bond debt service for the construction of
a 20-unit facility over a 15-year period
at a six percent interest rate, individual
hangar rates would need to be at least
$200 per month. This does not include
the construction of additional taxilane
access to the hangars. T-hangar
taxilanes, however, may be funded at 90
percent by TxDOT (state or federal
grants-in-aid).
If the City does not construct the
proposed hangar facilities, the City’s
only capital cost would be 10 percent of
the taxilane construction (the
remaining 90 percent would come from
federal or state grants). The City has
been open to the development of
privately-owned hangars in the past.
Privately-owned facilities offer the City
significant savings.
Mesquite Metro Airport also has a
unique opportunity to generate greater
revenue through the development of
commercial uses on airport property.
The proposed acquisition of the 80-acre
6-14
parcel west of the airport could support
commercial business operations. These
uses can generate lease rates of up to
$0.30 per square-foot per year.
Cash flow projections indicate future
revenues should rise at a greater rate
than expenses. The analysis presents
average annual projections for each
planning horizon. As presented in
Table 6C, the City should be capable of
obtaining sufficient operating revenues
to offset expenses. Revenue and
expense projections have been made for
the end of each planning horizon. Thus,
each planning horizon considers the
facilities and services required to meet
demand requirements.
Expenses
Future expenses could vary depending
upon the City’s desire to develop,
operate, and maintain additional
hangars. Similarly, future expenses
could be higher if the City develops onairport
commercial properties. It is
likely that revenue bonds would be
necessary to fund this construction.
Also, the City could expect maintenance
costs and administrative costs
associated with operating the facilities.
As the airport continues to grow,
additional employees may ultimately be
needed. Most successful general
aviation airports have at least one fulltime
airport manager. Often, the
airport staff can include up to ten
employees. Mesquite Metro Airport’s
future staffing requirements could
reach seven employees over the long
term. Potential airport employees could