Aircraft Hangar Development Guide

The following guide is intended to help prospective hangar developers understand the major steps involved in planning, designing, permitting, financing, and constructing an aircraft hangar at Southwest Oregon Regional Airport (KOTH). It provides a general overview of the process, key requirements, and factors that should be considered when developing a project.

Because every project is unique, applicants should work closely with the Coos County Airport District (CCAD), their design professionals, and applicable regulatory agencies throughout the development process.

Project Timeline

Under normal circumstances, a new hangar project can take approximately 6–8 months from initial planning through completion of construction. The actual schedule will depend on the complexity of the project, design and permitting requirements, FAA review, availability of contractors and materials, utility requirements, and other factors.

Applicants are encouraged to begin the planning and approval process as early as possible and to allow additional time for unforeseen delays.

Getting Started at Southwest Oregon Regional Airport

To begin the hangar development process, contact the CCAD Airport Administration at 541-756-8531. Airport staff can discuss available development areas, the general approval process, applicable airport requirements, and potential locations for your proposed hangar.

Before proceeding with detailed design or construction, the proposed site should be reviewed and coordinated with Airport Administration.

Site Selection, Design Concept & Survey

Meet with the Airport Manager to discuss the proposed location, size, configuration, and intended use of the hangar. The proposed development should be compatible with airport operations, aircraft access requirements, applicable setbacks, and future airport development plans.

A professional site survey will be required and should be prepared by a registered land surveyor. The survey establishes the property and development boundaries, existing conditions, elevations, utilities, and other information needed for design and regulatory review.

For ground-lease purposes, hangar development sites are generally based on the outside footprint of the proposed hangar. The minimum hangar footprint is currently 2,500 square feet, which would accommodate a 40-foot by 40-foot hangar with a 5-foot buffer on all sides. Larger aircraft or hangars may require additional site area.

Aircraft Apron & Taxiway Access

The hangar must have an appropriate aircraft apron and access connection between the hangar and the designated taxiway or taxilane. 

The hangar developer is responsible for the design, permitting, construction, and cost of the required apron and access improvements, unless otherwise agreed to in writing with CCAD. Square footage on apron designated as private use would also be factored into the ground lease rate.

Apron design should account for the aircraft that will use the facility, including aircraft wingspan, tail height, turning radius, maneuvering requirements, pavement strength, drainage, and clearance from adjacent facilities.

Utilities — Electrical, Water & Sewer

Depending on the location and intended use of the hangar, new or upgraded electrical, water, sewer, communications, stormwater, or other utility infrastructure may be required.

The developer is generally responsible for the cost of extending and connecting utilities necessary to serve the proposed facility, including any required infrastructure improvements, permits, connection fees, and related site work.

Utility requirements should be identified early in the design process so they can be incorporated into the project budget and construction plans.

Ground Lease

Before construction can begin, the developer will need to enter into a ground lease with the Coos County Airport District (CCAD).

Meet with Airport Administration to discuss:

• Available development areas
• Proposed lease area
• Lease term and renewal options
• Ground lease rates and adjustments
• Hangar ownership and maintenance responsibilities
• Construction requirements
• Insurance requirements
• Assignment and transfer provisions
• Lease expiration and reversion requirements

A ground lease is required because the hangar site is located on airport property.

Ground Lease Rate

Current ground lease rates start at $0.10 per square foot per year, subject to change and the specific terms of the applicable lease.

The annual ground rent is generally calculated by multiplying the applicable lease rate by the total leased area.

Example:

A 2,500-square-foot lease area at $0.10 per square foot would result in an initial annual ground rent of:

2,500 sq. ft. × $0.10 = $250 per year

Ground lease rates may be adjusted periodically by CCAD in accordance with the terms of the lease. Adjustments may be based on the Consumer Price Index for All Urban Consumers (CPI-U/CPI-W), or another mutually agreed-upon adjustment methodology, as specified in the applicable lease.

Developers should confirm the current rate and adjustment provisions with Airport Administration before preparing a project budget.

FAA Airspace Review & Building Height

New construction at a public-use airport is subject to FAA review to ensure that proposed structures will not adversely affect navigable airspace or airport operations.

The applicant will generally be required to submit FAA Form 7460-1, Notice of Proposed Construction or Alteration, for the proposed hangar and associated improvements. The submission typically includes information prepared by the project engineer and surveyor, including the proposed structure's location and elevation.

The FAA evaluates the proposed development in relation to applicable airport airspace and obstruction standards, including the imaginary surfaces associated with 14 CFR Part 77.

Because FAA review can take time, applicants should submit Form 7460-1 early in the development process. Allowing approximately 60 days for FAA review is recommended, although actual processing times may vary.

Construction should not begin until all required FAA determinations and Airport approvals have been obtained. The FAA determination should be provided to Airport Administration as part of the project approval process.

Environmental Review

Depending on the location and scope of the proposed development, environmental review may be required.

Certain airport development actions may qualify for a Categorical Exclusion (CATEX) when they meet applicable FAA criteria and are not expected to individually or cumulatively result in significant environmental impacts.

The appropriate environmental review will be determined as part of the airport and FAA approval process. Applicants should allow adequate time for environmental review and should not assume that construction can begin until all required approvals have been completed.

Local Building & Development Approvals

In addition to airport and FAA requirements, the project may require approval from the applicable local jurisdiction and other agencies.

Depending on the project, requirements may include:

• Building permits
• Electrical permits
• Plumbing permits
• Mechanical permits
• Fire/life-safety review
• Stormwater or drainage approvals
• Utility approvals
• Accessibility requirements
• Other applicable local, state, or federal permits

The developer and project design team are responsible for determining which permits and approvals apply to the proposed project.

CCAD Board of Commissioners Approval

Once the applicable ground lease and supporting documentation have been prepared, the lease will be presented to the Coos County Airport District Board of Commissioners for consideration and approval in accordance with CCAD procedures.

Following approval, the ground lease can be executed by the appropriate parties.

Developers should not assume that a lease is effective until all required approvals and signatures have been completed.

Construction Planning

Once the site, lease, FAA requirements, permits, and design have been approved, the developer can proceed with construction.

The construction team should coordinate closely with Airport Administration throughout the project. Airport operations must remain safe and uninterrupted during construction.

Before construction begins, the developer should have:

• Final construction plans
• Required permits and approvals
• Executed ground lease
• FAA airspace determination
• Environmental approvals, if applicable
• Utility approvals
• Contractor and construction schedule
• Airport-approved construction access and staging plan
• Required insurance and documentation

Hangar Ownership at Lease Expiration

Ground leases typically contain a reversion provision. Under this provision, ownership of the privately financed hangar may revert to CCAD at the end of the applicable lease term, subject to the specific terms and conditions of the executed lease.

Prospective developers should carefully review the lease, including the term, renewal options, financial obligations, maintenance requirements, and reversion provisions before making a significant investment in the facility.

Purchasing an Existing Hangar

If you are considering purchasing an existing privately owned hangar at the airport, contact Airport Administration before completing the transaction.

The current hangar owner must notify the CCAD in writing of their intent to sell the hangar and request assignment of the existing ground lease to the prospective buyer.

The transfer of the lease and change in ownership are subject to CCAD approval and the requirements of the existing lease. Prospective buyers should review the existing lease carefully before purchasing the hangar to understand its remaining term, renewal options, rent, maintenance responsibilities, insurance requirements, and other obligations.

A purchase agreement for the hangar does not, by itself, transfer the ground lease or authorize the new owner to occupy the property.

Selling an Existing Hangar

If you wish to sell a privately owned hangar, contact Airport Administration before entering into a final transaction.

The sale generally requires the existing ground lease to be assigned to the new hangar owner, subject to the terms of the lease and approval by CCAD.

The seller should coordinate with Airport Administration early in the process to ensure that all required documents, approvals, and lease-assignment requirements are completed.

Important Reminder

This guide is intended as a general planning resource and is not a complete list of all requirements applicable to a hangar development. Requirements may vary depending on the location, size, design, intended use, utilities, aircraft type, and other characteristics of the proposed project.

Applicants should not begin construction, order major materials, or make significant financial commitments until they have confirmed the applicable requirements and obtained the necessary approvals.

For additional information or to discuss a potential hangar development, please contact:

Coos County Airport District — Airport Administration
Southwest Oregon Regional Airport (KOTH)
541-756-8531

Airport staff will be happy to help you understand the development process and identify the next steps for your proposed hangar project.