Frederick Land Use Committee Discusses Airport Midfield Hangar Project – August 14, 2025
Land Use, Public Safety, and Community Development Committee Workshop: Frederick Municipal Airport Midfield Hangar Project – August 14, 2025
The committee held a workshop to review a proposed public-private partnership for the development of 78 new hangars (235,000 sq ft) at Frederick Municipal Airport. The project, proposed by High Flying Hangars, aims to address an 11-year wait list and generate $17.78 million in ground lease revenue over 40 years. Airport staff and the developer presented details, and councilmembers raised questions about title, longevity, bankruptcy protections, and minority/women-owned business participation. No formal vote was taken; the item was for discussion and feedback.
Discussion Items
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Project Overview: Andrew Moore, Airport Manager, explained that the airport generates 80% of its operating revenue from leasing about 250,000 sq ft of space. The midfield hangar development has been on the airport layout plan for about 20 years. After several years of development meetings, the city partnered with High Flying Hangars, which they believe has a well-developed plan, understands the market, and can complete the project.
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Developer Presentation: Kendrick Dane, Chief Legal Officer of High Flying Hangars, described the company's mission to solve the nationwide hangar shortage (60,000-unit deficit). The project at Frederick would include 78 hangars (44 in phase one) with a ground lease rate of $1/sq ft annually, escalating 3% over 40 years, generating $17.78 million in direct revenue. The developer has secured reservation agreements and significant down payments for all phase one units. They are using a local contractor, Warner Design Build. The developer also noted the economic impact: each business aircraft generates $2.5 million annually for the local community.
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Councilmember McShane's Questions:
- Title and Financing: Asked about the "title" mechanism. Dane explained that because the airport is federally obligated and cannot sell land, they worked with mortgage banking, title companies, and airport managers to enable constructive receipt of title to the improvement. Purchasers get a title to the improvement for the lease term, with a reversionary interest to the city at the end of 40 years.
- Building Lifespan: Concern about the condition after 40 years. Moore estimated 60 years of life with no major rehab. The lease obligates the developer to maintain the hangars in "first class condition."
- Bankruptcy Protection: Asked what protects the city if the company goes bankrupt. Dane proposed including provisions for subordination and attornment agreements, allowing the city to step into the developer's shoes and collect management fees from sublessees.
- MWBE: Inquired about minority and women-owned business participation. Dane stated the contractor is Warner Design Build but will check on MWBE status and report back.
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Councilmember Russell's Questions:
- Capacity: Asked how many new aircraft the project would accommodate. The developer said 78 hangars, but often multiple aircraft share one hangar, potentially doubling the based aircraft fleet (currently ~200). The project also increases capacity for large aircraft; only 8 of 105 city-owned hangars currently accommodate large aircraft. The 60x60 hangars can fit small business jets.
- Transient Use: Expressed interest in short-term or transient use. The developer indicated they hold back ~10% of units for short-term leasing and are exploring an app-based booking system. Russell supported building in vibrancy and fail-safes to avoid a dormant facility.
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Airport Vision and Future Plans: Moore and Dempsey discussed the airport's strategic direction. They are about to start a new master plan (last done in 2006). The hangar project, along with a potential South Corporate Apron expansion, represents years of work. Demand is already present; no speculative building. The project's revenue could potentially double the airport's annual margin, allowing for deferred maintenance and other projects.
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Financial Outlook: The airport generates significant revenue from leasing, and this project is expected to further strengthen its financial position.
Key Outcomes
- No formal vote or decision was taken; the workshop was for discussion and gathering input.
- The committee expressed general support for the project concept but raised specific concerns about protections, maintenance, and long-term management.
- Councilmember McShane requested additional information on MWBE participation.
- The project will proceed to further steps, likely including a formal vote at a future meeting.
Meeting Transcript
I see that. Good afternoon, everyone, and welcome to the land use public safety and community development committee meeting for August 14th. We will begin with a Pledge of Allegiance. So today we have Andrew Moore Airport Manager and Sean Dempsey Assistant Manager up here. Andrew can sorry, the mics. Okay. It's with high flying hangers. The proposed project is something that we've been working for for towards for about twenty years. It's been our on our Airport layout. It's been on our airport layout plan for quite a while for hangar development in the midfield. So as a little bit of background to help you kind of understand where we're at with the airport, we generate about eighty percent of our operating revenue off of leasing about a quarter million square feet of space. So for that reason, we've been a little hesitant to pursue any building projects. After that, we spent probably three or four years having development meetings, meeting with different people, and we eventually distilled down and came across this group who we found that was a very good partner to go forward with a project like this. And some of the reasons were that we felt like they had a very well developed plan. They understood the market and the industry of the users and those who would who would um you know want these type of hangars. Um another big part of it we found is they understand the cost to build hangars at a federally funded airport where they're leasing the ground. Um we also felt with our previous uh uh development experience um that they could be someone that could complete a project like this. So for that reason, um we're presenting to tonight. We're confident this is the best and uh best use for the land out there. Um and uh it would also best serve the current and future uses of uh Frederick Airport. So I put a lot of information in the background. I did that intentionally because this this lease that we have up here is very dense. So uh if you have any questions on that, um I can answer them now, or we have the developer who will give a presentation about the project. So you can tell me which one you want to do first. Should we hear from the developer then? Okay. Come on. Thank you. Thanks, Sean. The proposed development. All right, can you all hear me? All right. Uh Councilmember Russell, Councilmember Kazemchak, am I saying your name right, ma'am? All right, wonderful. And council member McShane, um, thank you for having me today. My name is Kendrick Dane, and I'm the chief legal officer for our family business, high flying hangars. Let's see, is this my clicker? We started our company five years ago. Um, we're all passionate aviators. Um, and when we bought a little aircraft to teach my little brother how to fly, we quickly found out that the entire nation is suffering from an aircraft hangar storage to the tune of about 60,000 units uh nationwide. Um our company was founded to plug a gap in the market that has existed for some 30 years now. Every other aviation property developer is focused on um aircraft shelter for ultra-high net worth individuals and corporate operated aircraft, uh, leaving the rest of the you know, every man flying public um with no options. Um our product caters specifically to that market segment. Um back on this first slide here. This is a picture of uh 31,000 square feet of recently completed aircraft shelter in the city of Albuquerque, New Mexico. So we are on a mission to solve the nationwide hangar shortage crisis. Um we view this project at Frederick as uh sort of a marquee for us. It is a large development of 78 hangars. Um as I understand it, you know, that should take some pressure off of this 11-year-long wait list. And as a matter of fact, as we sit here today, uh we've secured reservation agreements and significant down payments for uh buyers for the all of the phase one units uh comprising a total of 44 units in phase one.
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