Rate Methodology
General Aviation Introduction
Under new management starting in November 2017, and while still under investigation by the Commonwealth of Virginia and the United States, the Peninsula Airport Commission via its new Executive Director began a Top Down / Bottom Up review of processes, procedures, and, especially, its finances; specifically, its facility fee and rental structure. The Commonwealth and Federal investigations were exploring numerous violations of law with regard to the collections and uses of airport revenue. The Executive Director began his Bottom Up review within days of assuming his position by meeting with staff and reviewing investigation reports, airport audits and other supporting documentation. The Commission began its Top Down review in early 2018 directing the Executive Director to report on financial discrepancies especially related to under-valued lease rates as well as creation of a “form” lease in order to ensure standardized leasing practices were maintained. Outcomes of the analysis resulted in:
- Airline rates and charges increased twice (July 2018, July 2019)
- Creation of a Standard General Aviation Lease form
- Institutionalized Mobile Home Park Management
- In the process of Institutionalizing General Aviation Management
With respect to item 4, the Executive Director’s initial reaction was that the airport was in clear violation of its Federal Grant Assurances. He ordered a self-audit of the General Aviation Hangar Management Program which was completed in November 2018. It was concluded that, at the very least, the airport was in violation of Federal Grant Assurances 5, 22 and 24. During this period the airport was already in action to create a standard “form” lease and appraise airport property to baseline its fee and rate structure.
Benchmarking Analysis of Hangar Leasing Fees
Leasing Policy Tenant Correspondence For Comment:
To view GA Leasing Policy and GA Hangar Lease Form, go to General Aviation Hangars Page.