Sussex council approves T-hangar construction

Sussex County Council has given the go-ahead to build a new T-hangar at Delaware Coastal Airport for an estimated cost of $600,000. The hangar was damaged in a storm and was demolished to make way for a larger building with nine units.

On the recommendation of airport manager Jim Hickin, council unanimously approved monthly rents of $390 per month for standard size and $440 per month for larger size units. Council also approved a change to monthly contracts.

But it took some debate to reach that point.

When told that the return on investment would be 20 years, Councilman George Cole, R-Ocean View, said that term length does not make good business sense. “I don't know if these hangars are an economic benefit to the taxpayers of Sussex County,” he said. “Business people don't look for a 20-year return.”

He asked Hickin if rents could be increased to get a 15-year return on investment. “Would they walk away?” he asked.

“Absolutely,” Hickin replied. “In the $500 range, they would go somewhere else.”

“Are the taxpayers losing money in this?” asked Councilman Rob Arlett, R-Frankford.

“No,” Hickin answered.

“This makes sense. It's a good deal,” Arlett said.

The airport has a waiting list of 25 pilots to lease hangar space. The new hangars will have a building life of 40 to 50 years, said county engineer Hans Medlarz.

Sussex County will continue to pay the electric bill for the units. Medlarz said after a year, staff will do an analysis of how much money has been paid to see if adjustments are required.

“We can come back at any time and raise rates. That's the beauty of month-to-month contracts,” Hickin said.