City of Hastings Provides Jet Hanger Update

Sep 26, 2024 / City of Hastings

Photo Credit: City of Hastings

In approving the 2024-2025 fiscal year budget on Sept. 16, Members of the Hastings City Council also restored funding for construction of a jet hangar that could bring in up to $150,000 in additional Federal Aviation Administration funding each year. The budget includes a reduction in the City of Hastings tax levy from .4243 to .3948 for the 2024-2025 fiscal year.

Council members voted 8-0 to amend the budget to include the $750,000 jet hangar line item. The hangar was originally removed from the capital budget as a cost-saving measure. The amendment to include funds for the hangar in the 2024-2025 budget does not authorize the spending of those funds. Authorization of that expenditure would require council approval of a construction contract.

Construction of the hangar would not be sought until a rental agreement for a jet is in place. Funds to construct the hangar would come out of the general fund cash reserve, which currently has a balance of about $20 million. Rental revenue from the new hangar could also be used to replenish the general fund cash reserve.

With a jet in residence at the airport, the City would fulfill requirements to upgrade the airport from local to regional status by the FAA, so the city would receive the additional FAA funds, in addition to rental proceeds.

Those FAA funds are only to be used for airport projects or operation. The status upgrade would give the City of Hastings priority when it comes to grant applications pertaining to the airport.

Councilman Shawn Hartmann made the motion to amend the budget, which was seconded by Steve Huntley. Hartmann said during the meeting he initiated the process to include funding for the jet hangar after an “overwhelming” amount of people who asked include the project in the budget.

Airport Manager Matt Kuhr said the airport is currently full with about 40 planes housed there. Kuhr said the airport already sees a lot of jet traffic with at least one corporate jet there each day. He said he has received interest from several different places looking to possibly house a jet in Hastings. Council members also unanimously approved the second reading of the budget, as well as suspending the rules and passing the third and final reading of the budget. Passage of the budget is an ordinance and requires three readings for approval.