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.

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

Recommended Builders, Manufactures, and Utilities

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

J Lots
I Lots
J1 - SOLD
I1 - Available
J2 -Available
I2 - Available
J3 - Available
I3 - Available
J4 - Available
I4 - 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.

4. Establish Land Lease with Madison Municipal Airport:

Download Sample Lease (Coming Soon)

5. File with FAA:

You will need to file a Notice of Proposed Construction with the FAA prior to building. That is FAA Form 7460-1 which can be found 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
  • Building Permit and Fees
  • Land Lease Established and Impact Fee Paid
  • FAA Form 7460-1 Filed and Approved

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!

    Questions or Concerns? Contact us!

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