HUTCHINSON, Kan. — The Hutchinson City Council wants additional input from airport tenants and advisory committee members before moving forward with proposed commercial lease rate increases at Hutchinson Regional Airport.
Airport Director Alek Stang presented recommendations Tuesday intended to establish consistent pricing for hangar space, offices, land leases and other airport facilities.
The Airport Advisory Committee recommended a base rate of $2.40 per square foot annually for commercial hangar space and $12 per square foot annually for office space.
Other proposed rates include 20 cents per square foot for exclusive-use ramp space, 18.5 cents for exclusive-use vehicle parking and 10 cents for land leases.
The committee also recommended increasing the fuel flowage fee from 5 cents to 8 cents per gallon.
Stang said existing commercial hangar leases currently range from approximately $1 to $2.15 per square foot annually.
The proposed schedule is intended to establish a consistent starting point for future lease negotiations, rather than automatically applying identical rates to every tenant.
"These are just base rates. This is to just to start the the process," Stang said.
He explained that adjustments could be made based on facility conditions, maintenance responsibilities and improvements made by tenants.
Concerns about hangar conditions
Councilmember Stacy Goss questioned whether the proposed increases adequately account for deteriorating conditions at some airport facilities.
Goss read correspondence from tenants describing leaking roofs, deteriorating hangar doors, inadequate heating and drainage issues.
She also shared concerns raised by Airport Advisory Committee Chairman Jerome Kahn, who questioned whether the proposed adjustments sufficiently reflect the condition of the buildings and improvements funded by tenants.
Goss said the city should consider those factors before requiring tenants to pay higher rates.
"If the city's going to be the landlord, we should be a good landlord at the very least," Goss said.
Councilmember Darrin Truan acknowledged the maintenance concerns and said the airport has historically faced budget limitations that have made improvements difficult.
"I do think that we need a set rate schedule for new tenants coming in," Truan said.
However, he said existing tenants should be treated fairly when negotiating lease renewals.
Truan suggested gradually adjusting rates and developing an inventory of repairs needed at city-owned airport facilities.
He also said council members should receive additional public input before a final decision is made.
Stang said federal aviation grant requirements obligate the airport to establish fair and reasonable rates without unjustly discriminating among tenants.
Interim City Attorney Jay Hinkel explained that those requirements limit the city's ability to offer preferential rates simply because a tenant has occupied a facility for an extended period.
However, differences in facility condition, maintenance obligations and tenant improvements can be considered when determining fair market value.
Study session proposed
Council members expressed support for holding a joint study session involving the City Council, Airport Advisory Committee, airport staff and tenants.
Mayor Scott Meggers suggested the meeting could be held at the airport to allow council members to inspect facilities firsthand.
"Maybe if we get achieved with a study session, to where kind of all those parties are involved," Meggers said.
Goss supported the idea of meeting at the airport.
"And I would really like the tenants to be at the table, as well as the the board, your advisory board," Goss said.
According to the city's agenda materials, the airport reported approximately $231,545 in operating revenue in 2025 against an operating budget of approximately $475,682.
Officials said the proposed rate structure could help improve cost recovery over time but would not necessarily eliminate the airport's operating gap.
No formal action was taken on the rates Tuesday.
Stang is expected to work on scheduling an additional discussion, potentially in late November or early December.