A new leasing agreement may be implemented for hangar sites at Kyneton Airfield, increasing costs for tenants.
Debated at the July 23 Macedon Ranges council meeting, councillors passed a recommendation to seek feedback on the proposal to standardise leasing agreements at the airfield, with a proposed term of 10 years with a 10 year add-on option.
Currently, the airfield includes 34 privately-owned hangars and houses about 60 aircraft.
The ground leases are for the council-owned land component only, with the tenant responsible for the construction or installation of buildings and any maintenance.
Historically, the lease documents have varied depending on the commencement date, with the rental amounts inconsistent, according to council.
The new agreement would include a standardised lease, including like terms and the same rental rate on a dollar per square metres, regardless of previous arrangements, however not all councillors were convinced this was the right approach.
Cr Alison Joseph attempted to put forward an alternative motion that included council seeking further legal advice and looking into if the proposed rental increase was appropriate.
However, no councillor would second her motion.
Cr Janet Pearce said council had already sought legal advice on the lease.
Cr Joseph opposed the motion, highlighting the higher costs associated with the new agreement.
She also highlighted the proposed rental increase is benchmarked by other airfields who have Civil Aviation Safety Authority (CASR 1998) certification, which Kyneton Airfield is not required to have.
“I really think we have to consider if what we’re doing is fair to the hangar owners,” she said.
The community can have its say on the proposal online at yoursay.mrsc.vic.gov.au/ until August 21.
If required, a submitters delegated committee hearing will be held online on September 3 for councillors to hear submissions. If the hearing isn’t required, the lease agreement will be implemented.
