Sky Harbour is a hangar development company with their corporate headquarters located in New York, New York. The company has extensive experience in developing commercial real estate and has evolved to the aviation industry with the construction of aviation hangars. Sky Harbour is currently in negotiations for the development of general aviation hangars at other airports - including Miami-Opa Locka Executive Airport, Easton Airport, Leesburg Airport, Deer Valley Airport - and are interested in building hangars at Sugar Land Regional Airport (SLRA). The hangars that are being proposed will fit small to large corporate aircraft, i.e., King Air 350, Sovereign, and Gulfstream 650. The additional fuel revenue brought in by Sky Harbour could be used to develop additional hangars and infrastructure.
Sugar Land Regional Airport sold a record 3.2 million gallons last year, and the community corporate hangars at SLRA are 100% occupied. Inquiries are regularly made regarding hangar space at Sugar Land Regional Airport, and companies are increasingly recognizing SLRA’s position as the luxury gateway to the entire Houston region - meaning the Airport is seen as an increasingly important component to economic development in Sugar Land and throughout the Houston area. With that said, the lease with Sky Harbour will help alleviate customers’ immediate need for large hangars at Sugar Land Regional Airport and further position SLRA as the premier corporate airport in the region.
The terms of the agreement are as follows:
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Monthly/Annual Rate – years 1-5
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$7,414 per month/$88,968 annually
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Term
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30 years with automatic rate increases every five years. (Rate increases shown in Exhibit D.)
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Lease Site(s)
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Sites 5 and 6 – 4.085 acres (177,920 square feet)
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Rent Commencement
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8 months after effective date or upon receipt of certificate of occupancy, whichever is earlier
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Construction Start Date
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180 days after the effective date or 60 days after receiving all permitting documents and construction must be completed within 360 days from the start of construction
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Below are two options that Sky Harbour has proposed for Sugar Land Regional Airport:
Option 1 includes four exclusive-use premium box hangars. Consisting of 40,000 square feet of aircraft storage, 10,000 square feet of office space, parking, and airside and landside hangar access.
Option 2 provides two larger hangars that will fit a Gulfstream 650 and five smaller box hangars that will fit smaller business jets.
Sky Harbour has suggested exclusive-use premium box hangars; however, the Airport will have the approval authority on the final design concept.
The lease and its terms were reviewed with the City Council Finance/Audit Committee at their September 9, 2018 and January 17, 2019 meetings. The Committee is supportive of the lease.
The Aviation Department recommends the City Council approve the 30-year land lease with Sky Harbour. With the completion of the hangars, Sky Harbour will bring in new based customers that will increase lease revenue and additional fuel revenue to Sugar Land Regional Airport.