This guide is being updated and reorganized for 2024. Please contact us if you are interested in building a hangar.
We are working on making this guide flow better.
This guide is a work in progress. Please let us assist you with building
1. Deciding on your building size and costs:
Hangar Land Lease and Impact Fees
Hangar Leases are based off of the following formula:
(((Hangar Square Footage) * Acre Sq Footage 43,560) * Current Property Value $50,000 per acre)/10 years = Hangar Lease
Here are some examples:
(((Hangar Square Footage) * Acre Sq Footage 43,560) * Current Property Value $50,000 per acre)/10 years = Hangar Lease
Here are some examples:
Hangar Width |
Hangar Depth |
Annual Land Lease |
One Time Impact Fee |
40 |
50 |
$500 |
$8,000 |
45 |
50 |
$500 |
$9,000 |
50 |
60 |
$500 |
$10,000 |
60 |
80 |
$550.96 |
$12,000 |
100 |
90 |
$1,033.06 |
$20,000 |
120 |
100 |
$1,377.41 |
$24,000 |
150 |
150 |
$2,582.64 |
$30,000 |
Minimum Annual Land Leases are $500 until 2030. Impact fees are a minimum of $5000.
Existing Hangar Widths and Values per Owners
Width |
Depth |
Estimated Costs |
Aircraft Capacity |
42* |
60 |
$70,000 |
2 |
60 |
60 |
$100,000 |
4-5 Depending on Size |
64 |
56 |
$100,000 |
1-4 |
60 |
80 |
$150,000 |
5-6 Depending on Size |
These numbers are based off of wood construction. Steel construction is substantially higher.
Recommended Builders, Manufactures, and Utilities
Builders |
Hangar Door Manufacturers |
Utilities |
Internet (Provided by Airport) |
||
Gas - CenterPoint Energy (Coming Soon) |
||
2. Figure out how to pay for the Hangar
Typically, Individuals building a hangar will build with one of the following
- Already have the money and pay upfront
- Lease Hold Improvement Loan (New)
- Home Equity Loan
- Unsecured Private Loan (Don't recommend)
German American Bank has worked with the Madison Municipal Airport to provide options for personally financing a hangar. Information on each option is listed below. For more information or to start the lending process contact German American Bank at (812) 273-4949.
A. Leasehold Improvement Loan (aka Leasehold Mortgage).
B. Home equities are another option for funding hangar builds.
C. Personal Unsecured Loans
- Already have the money and pay upfront
- Lease Hold Improvement Loan (New)
- Home Equity Loan
- Unsecured Private Loan (Don't recommend)
German American Bank has worked with the Madison Municipal Airport to provide options for personally financing a hangar. Information on each option is listed below. For more information or to start the lending process contact German American Bank at (812) 273-4949.
A. Leasehold Improvement Loan (aka Leasehold Mortgage).
- Key Points to Leasehold improvement loans:
- Rates trend lower than personal unsecured loans.
- Maximum term for the loan would not exceed 10-15 years depending on the airports land lease agreement.
- A prime candidate would have a strong credit rating 700+, good liquidity and net worth, and strong debt service or Debt to Income Ratio.
- Information lenders will likely require:
- Borrower’s name
- Loan Amount
- A completed personal financial statement
- 2 Years Federal Tax Return (including all statements and schedules)
- A copy of the building plans if available
- A copy of the airports land lease agreement
B. Home equities are another option for funding hangar builds.
- Key Points to Home Equities:
- Offers the flexibility of making interest only payments
- Home equity loans have long terms
- Interest rates are most often lower than regular personal loans
- Home equity loans are set up to be used similarly to a checking account in that you use what you need when you need it.
- Information lenders will likely require:
- Borrower’s name
- Loan Amount
- A completed personal financial statement
- 2 Years Federal Tax Return (including all statements and schedules)
- Equity available in home
- Requires an appraisal of your home
C. Personal Unsecured Loans
- Key Points to Personal Unsecured Loans:
- Often for smaller amounts this loan can be obtained a little more quickly
- Terms are usually short, no more than a few years
- Rates are higher than most other loan types.
- Information lenders will likely require:
- Borrower’s name
- Loan Amount
- A completed personal financial statement
- 2 Years Federal Tax Return (including all statements and schedules)
- Collateral to be used
3. Contact Airport DIRECTOR Brent Spry with Building Plan and Lot Location you wish to build on:
J Lots |
I Lots |
J1 - SOLD |
I1 -SOLD |
J2 - SOLD |
I2 - SOLD |
J3 - Available |
--- |
J4 - Available |
--- |
J5 - Available |
--- |
4. Establish Land Lease with Madison Municipal Airport:
Download Sample Lease
5. File with FAA:
The FAA requires an Obstacle Evaluation and Airport Airspace Analysis (OE/AAA) prior to any construction on the field. We will assist you on submitting a Notice of Proposed Construction Form 7460-1 prior to being issued a building permit from the City of Madison. This evaluation can take up to 45 days to process or longer. Once you have a building plan ready, you can fill out the information below and we will be in touch to assist you.
Hangar Info Format EXAMPLE - Hangar Lot (Example J3) - Hangar Width (60 Feet) - Hangar Depth ( 50 Feet) - Hangar Height Highest Point (28.5 Feet) - Hangar Height Corners ( 20.5 Feet) Copy and Paste this with your information when submitting WARNING: THE AIRPORT WILL ASSIST YOU IN SUBMITTING THIS FORM. ISSUES WHEN SUBMITTING CAN DELAY THE APPROVAL BY MONTHS! |
|
6. Establish address:
Hangars at the Madison Municipal Airport can have up to 3 different addresses. We have a Mailing Address, Billing Address, and e911 Address.
. |
Establish e911 Address |
Establish Physical Address |
Billing Address |
I DO want to receive mail at my hangar |
YES |
YES |
USE PHYSICAL ADDRESS OR HOME ADDRESS |
I DO NOT want to receive mail at my hangar |
YES |
NO |
USE HOME ADDRESS |
e911 Address
First we need to establish an e911 Address. The airport will assist you on this because we have to work with 911 to establish this address. The sole purpose of this address is to get emergency services to your hangar through the emergency systems. Your e911 address can also be used for your building permit and utilities.
Physical Mailing Address (THIS IS ONLY IF YOU WANT TO ACCEPT MAIL AT YOUR HANGAR)
To establish a physical address, you will need to contact Postmaster at the local post office after you have established an e911 address. You will then use your e911 number to establish an address at WEST IMS LANE.
Example: Hangar A2 has an e911 address of 3991 IMS ABC LANE. When establishing a physical address, you would request 3991 WEST IMS LANE.
MAILBOX: We recommend Gibraltar Elite Large Metal Black Mailbox Model #E1600B00
Billing Address
This is where we will send your bills. This can be a home address or a physical address at the airport if you choose to receive your mail at your hangar.
You will need to establish an address before utilities can be placed. If you wish to place a mailbox at the airport, you may do so.
First we need to establish an e911 Address. The airport will assist you on this because we have to work with 911 to establish this address. The sole purpose of this address is to get emergency services to your hangar through the emergency systems. Your e911 address can also be used for your building permit and utilities.
Physical Mailing Address (THIS IS ONLY IF YOU WANT TO ACCEPT MAIL AT YOUR HANGAR)
To establish a physical address, you will need to contact Postmaster at the local post office after you have established an e911 address. You will then use your e911 number to establish an address at WEST IMS LANE.
Example: Hangar A2 has an e911 address of 3991 IMS ABC LANE. When establishing a physical address, you would request 3991 WEST IMS LANE.
MAILBOX: We recommend Gibraltar Elite Large Metal Black Mailbox Model #E1600B00
Billing Address
This is where we will send your bills. This can be a home address or a physical address at the airport if you choose to receive your mail at your hangar.
You will need to establish an address before utilities can be placed. If you wish to place a mailbox at the airport, you may do so.
7. Once approved, Building Permits can be obtained from the City of Madison:
A Building Permit may be obtained here.
You will need the following documentation for your permit:
Building permit costs:
$50 for the first $2,000 of construction costs. There is an additional $1 added per $1,000 of construction cost. (Example: If you have $6,000 of construction costs, your permit will be $54 permit.)
You will need the following documentation for your permit:
- Approval of Construction Site from Airport
- FAA Form 7460-1 Filed and Approved
- Approved Construction Plans from a builder
- An Approved State Construction Design Release (If Class 1 Structure)
- Address
Building permit costs:
$50 for the first $2,000 of construction costs. There is an additional $1 added per $1,000 of construction cost. (Example: If you have $6,000 of construction costs, your permit will be $54 permit.)
8. Once documents and payments have been received, you will be given a Notice to Proceed from the airport:
You will need the following:
- Approval of Construction Site from Airport
- Established e911 Address
- Approved Construction Plans from a builder
- An Approved State Construction Design Review (If Class 1 Structure)
- FAA Form 7460-1 Filed and Approved
- Building Permit and Fees Paid
- Land Lease Established and Impact Fee Paid
9. File for your Property Tax Exemption:
A hangar is Property Tax Exempt in the State of Indiana. You will need to fill out an Application for Property Tax Exemption State Form 09284 (Form 136) in order to get the exemption. You can find that information at the link here.
WELCOME TO THE MADISON MUNICIPAL AIRPORT!
This guide is a work in progress. Please let us know if you have questions or concerns. As always, we value any and all feedback!