Little River Airport Advisory Committee Interim Hangar Report number 3 20 September, 2000 SUMMARY Information: - information is provided about the CalTrans low interest loan program Recommendations: - Area C as a location for new hangars - Estimated cost per hangar is $30,000, estimated $225/month rent - Establish an escrow account and solicit $450 deposits to remain on waiting list (CalTrans requires this) - Have Dave Thorpe collect deposits Requests: - We request permission to contact PG&E and Pac Bell for utility estimates - We request permission to advertise once the escrow account is set up to let all pilots know about the waiting list We propose to report again in December. LOCATION Can we agree on location "C" as the site for additional hangars? In informal meetings with DOT, I believe they concur that extending the existing row of hangars is the best alternative. COST ESTIMATE We have researched the costs of hangar construction at Ukiah and Willits, where blocks of hangars have been or are being built, and we have also obtained the construction cost figures for two of the individual private hangars at Little River. Private T-hangar (Port-a-Port Exec 1) built in 1986 .... $20,900 Including full concrete slab and ramp. The basic hangar cost $12,749 and the balance was concrete work for the slab and ramp. Private box hangar 43x36x11' built in 1999 ............. $34,067 This includes full concrete slab and ramp The basic hangar cost $16,049 with the balance of the cost being structural analysis, erection and concrete costs. The City of Willits built a block of ten hangars, 42.5x36x12.5' in 1990. Electricity was provided, no water and no telephone. $160,000 for 10 hangars or .......... $16,000 each The hangars have concrete slab floors and ramps. The City of Ukiah has a quote of $86,639 for 10 hangars, NOT including slab, assembly or delivery. CalTrans says that they expect a block of 10 hangars to cost about $220,000 to build, or .................... $22,000 each including design and taxiway costs We believe that the per-hangar cost of a block of hangars will be lower than the cost of individually constructed hangars. Considering that we may have higher costs for utilities than Willits and that the salt air on the coast recommends extra cost for durable hangars, we suggest an initial estimated total cost per hangar of $30,000. UTILITY HOOKUP COSTS The committee would like to know if we can be authorized to solicit cost estimates from PG&E and Pacific Bell for the utility hookups to Area C. DOT asked Tim Scully to report on the feasibility of bringing power directly from Airport Roard to Area C instead of trenching from the airport office. The distance from the end of the existing row of hangars to Airport Road is about 1050 feet. The FAR 77 height limit at the back of the hangar row is 35 feet and it is over 40 feet on the far side of the drainage ditch. This suggests that telephone poles could be used to get power from Airport Road to the back of the hangar line, avoiding the extra costs of a long underground power line. The same poles could also be used for telephone wire. CALTRANS LOAN APPLICATION PROCESS We were asked to research CalTrans' low interest loan program for hangar construction. The loans are made at an interest rate determined by the most recent bond sale at the time the loan is approved. The term can be for up to 17 years. CalTrans wants the hangar waiting list validated by collecting a deposit equal to two month's hangar rent. We estimate the monthly hangar rent at approximately $225, so it will be necessary to solicit $450 deposits from pilots to prove the seriousness of their intentions to CalTrans. We suggest that DOT establish an escrow account and that Dave Thorpe, the airport supervisor, should collect the deposits. If this is done, we would like permission to advertise in the local newspaper, to let pilots know how they can get on this waiting list. Two documents from CalTrans detailing their loan process are appended: ---------------------------------------------------------------------------- Process to Apply for Airport Loans This describes the application process for loans from the Local Airport Loan Account. The Loan Account is a revolving fund that relies upon the payment of interest and principal on outstanding loans to fund new requests. The process is: 1. Sponsor Submits Application. Sponsors may apply at any time. a. Matching loans for local match to FAA grants. Use form DOA-0019 and enclose: o Local governmental approval (resolution or minute order). o Environmental documentation. Include a copy of the EIF, Negative Declaration, or Notice of Exemption. The sposnor must file a Notice of Determination with the Aeronautics Program before the Program can approve the loan. o Copy of FAA grant award or pre-application. (Loan Agreement cannot be finalized until the FAA grant is awarded.) b. Revenue-Generating loans. Use form DOA-0020 and enclose: o Local governmental approval (resolution or minute order). o Environmental documentation. (Same as for "matching" loans.) o Documentation of the project's engineering and economic/financial feasibility. (Use of the Program's Checklist for Economic Feasibility is one method to demonstrate economic feasibility.) o FAA approval (ALP and/or Form 7460-1 "Notice of Proposed Construction or Alteration). o Sketch/drawing showing the project's location on the airport. 2. Internal Review. The Aeronautics Program reviews the application internally to see if the project is feasible and if funds are available in the Loan Account. FAA may be contacted to confirm the award of AIP grants. If the application is acceptable, the term of the loan is set at the close of the internal review. At this point, the Program can provide a tentative approval subject to the public hearing and approval of the Loan Agreement by the State's Department of General Services. 3. Public Hearing. The Aeronautics Program conducts a public hearing on the loan. Typically, hearings are held every two months but they can occur more or less frequently depending on loan activity. Airport staff do not have to attend the public hearing. 4. Loan Agreement. Once funds become available and the sponsor is ready to proceed with the project, the Program prepares a Loan Agreement and sends it to the sponsor. The interest rate is set at this time and is equal to the interest rate for the most recent sale of State bonds. 5. Acceptance by the Sponsor. The local governing body must accept the loan via resolution or minute order (if acceptance was not delegated to a staff person in the initial resolution). The airport returns the approved Loan Agreement to the Aeronautics Program. 6. Department of General Services (DGS). The Manager of the Aeronautics Program signs the Loan Agreement and forwards it to DGS, acting as the State's attorney for airport loans. 7. Payment. Once the Loan Agreement is signed and returned from DGS, the Program requests payment to the airport from the State Controller via the Department's accounting office. 8. Repayment. The first payment on the loan is due one year from the date of the State Controller's warrant. The Department will invoice the airport for all payments. May 1999 ------------------------------------------------------------------------------ Department of Transportation Aeronautics Program Checklist for Economic Feasibility Revenue-Generating Loans Public Entity ______________________ Airport_______________________ A. Hangar Loan --------------------------------------------------------- Type & Number of Requested hangars_________________________________ (T-hangar, corporate, etc.) Existing Hangars _____ Rental Rate(s) _____ Based Aircraft_____ Waiting List for Hangars? Yes-No (circle one) Number on waiting list ______ Deposit to be on waiting list $______ Estimated Costs: Hangar Construction $_______ Site Prep $________ Other Construction/Preparation Costs $_______ Total Cost $_______ Proposed Monthly Rental Rate, per Hangar $________ Proposed Future Increases in Rental Rate _________ (for example, 3% per year) B. Other Revenue-Generating Loan ------------------------------------------- Project Description_______________________________________________________ (for fueling facilities include types of fuel to be sold) Estimated Cost of Project $_____ Projected Monthly Net Income from Project $______ (or, differential income if this project affects an existing operation, e.g. the project replaces an existing fueling facility) Projected Future Increases in Monthly Net Income $_______ Check here if additional sheets are attached.__ The Department may request more information beyond this checklist. Documents to be submitted with loan application (form DOA-0020): local approval, layout sketch of project, and CEQA compliance. 09/14/98 --------------------------------------------------------------------------- Little River Airport Advisory Committee Hangar Report number 3 Page 4