DATE: November 10, 2020
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Adopt a Resolution Approving the Deferment of Hanger Rent Increase and Reinstatement of the 2021 Hangar Rent Increase at Hayward Executive Airport
RECOMMENDATION
That Council adopts a resolution (Attachment II) approving the deferment of hangar rent increases from July 1, 2020, to December 31, 2020 as previously recommended by the Council Airport Committee, and directing staff to reinstate the previously approved 5% increase to standard hangar rents (and all other sized hangars by 2.5%) effective January 1, 2021.
SUMMARY
As with other sectors of the economy, the Hayward Executive Airport has been affected by the ongoing COVID-19 health pandemic, although the impact has been far less than at commercial airports. The Airport initially experienced reduced traffic volume but aircraft operations have increased throughout August and September and now approximates the number of operations from 2019 at this same point in time. In addition, other positive trends have occurred, such as increases in flights and fuel sales, as well as low hangar vacancies. After evaluating the positive data from the past two months that suggest a return to regular, pre-pandemic operational levels, Airport staff is recommending that the previously approved 5% hangar rent increase go into effect on January 1, 2021.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution