Joe's open hangar

Maybe, but be careful. One thing you need to be aware of is the airport’s grant assurances and how those may work in your situation. “Grant Assurance 38” states that when an airport owner and an aircraft owner agree that a hangar is to be built at the aircraft owner’s expense, the airport is to give the aircraft owner a long-term lease. The intent is to allow the aircraft owner an opportunity to recoup his investment in building the hangar.

But you did not build the hangar. And because you did not build the hangar, “Grant Assurance 38” does not require the airport to give you a long-term lease when Joe’s lease expires. Sure, if the airport allows you to assume the lease, you’ll likely enjoy the hangar for the next five years. Maybe the airport will grant you a new lease, although the term of the lease may be month-to-month, yearly, or something else. Whatever it is, it is unlikely to be the type of long-term lease the airport gave Joe. You may end up paying Joe six figures for something you use for only a few years, a situation you would surely be unhappy with.

There are a few things you can do to protect yourself here. One, make sure you carefully review Joe’s ground lease. For another, talk to the airport about lease terms. If they are unwilling to give you a lease term longer than a year, perhaps walking away is the best idea. Joe’s ground lease will eventually expire, and he may be leaving his hangar for the airport to lease. If that happens, you might get your hands on the hangar without writing a check to Joe (but expect to pay more for the lease). In any case, a conversation between you, Joe, and the airport about what the future will hold, and what commitments can be made, is a necessity.

aopa.org/pps