A developer’s request for a $1 million public subsidy to build new hangars at the McCall Municipal Airport was rejected last week by the McCall City Council.
Airport Manager Emily Hart briefed the council on updated plans for a hangar development that could add 28 hangars totaling 214,000 square feet to the airport infield.
The proposal, submitted by Falvey’s Earthworks of McCall, would also build a new taxiway to serve the hangars, new infield tie-down parking, and a shared restroom for hangar owners.
That work would all be funded by Falvey’s, which would sell the hangars to recoup its investment. The hangar owners would then pay annual ground leases to the city that could net as much as $69,000 per year to start.
Falvey’s, however, wanted the city to pay for an estimated $1 million in utility infrastructure to serve the new hangars.
“If council decides not to contribute to any of the utilities cost, (Falvey’s) will pull the plug on the project, I believe,” Hart said.
Council: public benefit doesn’t warrant investment
Council members did not shut the door on contributing some amount to facilitate infield hangar development, but were firmly opposed to paying the full $1 million.
“The average resident or year-round person in the community doesn’t really see the benefit of the hangars,” council member Mike Maciaszek said.
Council member Colby Nielsen noted that building the expense into sales prices would add about $35,000 per hangar, which Hart estimated could sell for between $400,000 and $1.3 million.
Hart was skeptical the city should shoulder the entire cost burden, but said such subsidies are not uncommon at other airports.
It would take 14 to 20 years for the city to recoup the $1 million investment from additional ground lease fees paid by owners of the new hangars, depending on how quickly the 28 hangars are built, Hart said.
The council ultimately directed Hart to seek new proposals for airport infield hangars, with added clarity that all or most of the utility work is to be paid for by the developer.
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“We’re not there yet, in my mind, to give this a go,” council member Lyle Nelson said.
In 2024, the council approved an initial proposal by Falvey’s for the infield hangar development, but a contract was never finalized after the company sought changes to the plan, including the city subsidy for the utility work.
Hangar lease funding
The airport earns about $240,000 per year from ground leases paid by the owners of 83 hangars currently on the airport.
The 28 new hangars, projected to earn about $69,000 per year initially, could earn about $121,000 per year by 2040, based on market rate increases built into hangar leaseholds.
Hangar leaseholds are the airport’s main source of funding for federal grant matches, as well as general operations and maintenance, Hart said.
Weather station relocation
One obstacle to the infield hangar development is an infield weather station that must be relocated to accommodate the full 28-hangar buildout.
Relocating the weather station requires buying land to the south of the airport, but Hart doubts federal grants will be available for the acquisition due to recent changes in the FAA’s funding priorities. Buildings are not allowed within a 500-foot radius of the weather station, which would have limited Falvey’s ability to build 21 new hangars until the station could be moved.
Why does the airport need more hangars?
An airport master plan adopted by the city in 2022 estimated that at least 60 more hangars are needed at the airport. A waiting list for hangars has grown from 26 people in 2018 to 52 people currently.
Most capital projects at the airport are funded by grants from the FAA, which Hart said pushes benefiting airports to build hangars.
“They want the airport to build hangars in the infield to generate revenue,” she said. “My FAA grant assurances require me to do my best to make the airport financially self-sufficient.”
One hangar has been built at the airport since 2018. In 2006, 32 new hangars were completed along the airport’s eastern boundary with Idaho 55.
The airport currently has 83 hangars and is home to nearly 100 aircraft. The 6,108-foot-long runway sees about 46,000 take-offs and landings each year.
Services available at the airport include aircraft fueling, maintenance and repair, and backcountry flights.
Commercial operators located at the airport include McCall Aviation, Base Camp Aviation, DEW Aircraft, Gem Air, Sawtooth Flying Service and Mountain Canyon Flying Seminars.
The U.S. Forest Service operates a base at the airport that is frequently used for regional wildland firefighting operations.
