The Santa Maria Public Airport District Board of Directors has increased hangar rents by 50% to address maintenance issues.
“Our focus is on three different areas," said Martin Pehl, Santa Maria Airport General Manager. "One thing we want to focus on is air service development and second is deferred maintenance that needs to be addressed. A runway was last overlaid in the early 90s.”
During a tour of the airport, we came across pieces of asphalt scattered along the runway.
Pehl says the airport district has been able to offer rent prices well below market rates for years.
“Well, essentially because we received tax revenue from property owners who reside within the special district," Pehl said. "It allowed the opportunity to subsidize the rents and not charge market rates."
Pehl says the increased rent will enable the airport to work on projects benefiting taxpayers.
“The district is not in a position to subsidize people's hobby. It's a hard decision, but it has to be made,” he said.
Jordan Hahn is an airplane enthusiast renting space for his private plane and aerial firefighting business.
“It's something that's really going to be tough to bear and to be able to keep this passion alive and moving forward," he said.
Hahn says his business hangar will go from $900 a month to $1,350, and the cost for his personal hangar will increase from $270 to $400. He’s now considering payroll changes and looking at other hangars.
“We're not going to be able to afford it," Hahn said.
Feeling blindsided by the change, Hahn has started an airport tenants association to examine the board’s spending and decisions.
“The primary focus being to increase dialogue and interaction between the airport management and the tenants themselves," Hahn said. "Also part of that is to hold the airport accountable.”
Esmeralda Mendoza, CEO of the Santa Maria Museum of Flight, rents two hangars. Although surprised by the change, she understands the need.
“If they are making strides to make the airport more self-sufficient and offer better services, I think it's great," Mendoza said.
I asked how her nonprofit will manage the increased rent.
"When I took over back in 2019, the museum was nearly bankrupt," Mendoza said. "It was in physical and financial disarray and so in my tenure here, I've really worked to set aside a rainy day fund.”
The newly-organized tenant’s association will meet monthly and attend every board meeting.
The increase is scheduled to kick in on July 1.