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Hangar Lease Key Points

• 40 Year Lease renewable up to an additional 40 years! That's 80 years total!
• The lease is transferable! If you decide to sell the hangar, the lease transfers to the next owner!
• Property Tax Exempt
• Sub Lease at your discretion

What is permitted?

• Storage of active aircraft.
• Shelter for maintenance, repair, or refurbishment of aircraft, but not the indefinite storage of non-operational aircraft.
• Construction of amateur-built or kit-built aircraft provided that activities are conducted safely;
• Storage of aircraft handling equipment, e.g., tow bar, glider tow equipment, workbenches, and tools and materials used to service, maintain, repair or outfit aircraft; items related to ancillary or incidental uses that do not affect the hangars' primary use.
• Storage of materials related to an aeronautical activity, e.g., balloon and skydiving equipment, office equipment, teaching tools, and materials related to ancillary or incidental uses that do not affect the hangars' primary use; V' Storage of non-aeronautical items that do not interfere with the primary aeronautical purpose of the hangar (for example, televisions, furniture).
• A vehicle parked at the hangar while the aircraft usually stored in that hangar is flying, subject to local airport rules and regulations.

What is not permitted?

• Use as a residence.
• Operation of a non-aeronautical business, e.g., limo service, car and motorcycle storage, storage of inventory, non-aeronautical business office.
• Activities which impede the movement of the aircraft in and out of the hangar or other aeronautical contents of the hangar.
• Activities which displace the aeronautical contents of the hangar or impede access to aircraft or other aeronautical contents of the hangar.
• Storage of household items that could be stored in commercial storage facilities.
• Long-term storage of derelict aircraft and parts.
• Storage of items or activities prohibited by local or state law.
• Fuel, and other dangerous and Hazmat materials.
• Storage of inventory or equipment supporting a municipal agency function unrelated to the aeronautical use.

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Still interested in building? Follow these steps!

1. Figure out 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 $22,000 per acre)/10 years = Hangar Lease

​Here are some examples:

Hangar Width	Hangar Depth	Annual Land Lease	One Time Impact Fee
40	50	$220	$6,000
45	50	$220	$6,750
50	60	$220	$7,500
60	80	$242.42	$9,000
80	80	$323.23	$12,000

Minimum Annual Land Leases are $220 until 2020. Impact fees are a minimum of $5000.

Existing Hangar Widths and Values per Owners

Width	Depth	Estimated Costs	Aircraft Capacity
42*	60	$50K	2
60	60	$70k	4-5 Depending on Size
64	56	$75k	1-4

These numbers are based off of wood construction. Steel construction is substantially higher.

Recommended Builders, Manufactures, and Utilities

Builders	Hangar Door Manufacturers	Utilities
Gosman Inc	Schweiss	Internet - In Progress
Graber Post Buildings, Inc.	Diamond Doors	Electric - Duke Energy
Mid-States Construction	Powerlift Doors	Gas - Vectren Energy
T-Hangars - FulFab	Higher Power Doors	Water/Sewage - City of Madison

2. Contact Airport Manager Brent Spry with Building Plan and Lot Location you wish to build on:

J Lots	I Lots
J1 - SOLD	I1 -SOLD
J2 - Pending Sale	I2 - Available
J3 - Available	I3 - Available
J4 - Available	---

3. Once the site has been approved, Building Permits will need to be obtained for the City of Madison:

A Building Permit may be obtained here.

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.)

4. Establish Land Lease with Madison Municipal Airport:

Download Sample Lease (Coming Soon)

5. File with FAA:

The FAA requires an Obstacle Evaluation and Airport Airspace Analysis (OE/AAA) prior to any construction on the field. You will need to submit a Notice of Proposed Construction From 7460-1 found here, prior to being issued a building permit from the City of Madison. This evaluation can take up to 45 days to process. We highly recommend utilizing Mary Kerstein, CHA Project Engineer, to assist with this process. Mary can be contacted at here.

6. 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
• FAA Form 7460-1 Filed and Approved
• Building Permit and Fees
• Land Lease Established and Impact Fee Paid

7. Establish address:

To establish an address, you will need to contact Postmaster at the local post office. Your Lot # is your Hangar number but the physical mailing address will be at XXXX West IMS Lane. 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. We recommend a standard size black mailbox. 

8. 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.

​These exemptions are under State Code IC 8-22-1-4.5 & IC 8-22-3-28.

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!