Aberdeen council hears plan to redirect federal airport funds into rentable hangars
May 05, 2026 | City of Aberdeen, Brown County, South Dakota
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City of Aberdeen officials heard a last-minute presentation about a proposed change to the airport capital improvement program that would use a federal COVID-era funding bucket to build rentable hangars at Aberdeen Regional Airport. The council did not take formal action at the meeting.
Rich Bridal of the city’s transportation department and Brooke, an engineer with Helms and Associates, said the funding — described as a BIL/AIG federal bucket — can be used for revenue-generating projects. The consultants proposed constructing a block of three hangars, with the possibility of adding a fourth if costs permit. The total project cost is estimated at about $2,300,000, with the city's share roughly $200,000.
"This will be revenue generating," Bridal said, adding the consultant's estimate of rental income was about $400 per hangar per month. Brooke provided the financial math and federal funding detail, explaining the opportunity arose after questions from FAA staff during a recent presentation.
Council members and staff discussed market demand and placement. Bridal said calls about hangar availability "about once a quarter," and that the proposed hangars would be located in the private hangar area behind the fixed-base operators. He said the work would require FAA consent and that the city plans to submit a modified CIP for FAA approval that would then be reflected in a local resolution amending the capital improvement program.
Staff also noted timing consequences for other capital projects: the snow removal equipment building construction would be pushed to 2028 and the Station 3 fire station remodel to 2031 under the new schedule. Bridal and Brooke said that if costs come in favorably and a fourth hangar can be added, the return on the city's investment could shorten from the projected 10 to 15 years.
No resolution or vote was taken at the meeting. Staff indicated a formal resolution to amend the CIP will be prepared for a future meeting after the city submits the modified plan to the FAA and receives any required approvals.
Rich Bridal of the city’s transportation department and Brooke, an engineer with Helms and Associates, said the funding — described as a BIL/AIG federal bucket — can be used for revenue-generating projects. The consultants proposed constructing a block of three hangars, with the possibility of adding a fourth if costs permit. The total project cost is estimated at about $2,300,000, with the city's share roughly $200,000.
"This will be revenue generating," Bridal said, adding the consultant's estimate of rental income was about $400 per hangar per month. Brooke provided the financial math and federal funding detail, explaining the opportunity arose after questions from FAA staff during a recent presentation.
Council members and staff discussed market demand and placement. Bridal said calls about hangar availability "about once a quarter," and that the proposed hangars would be located in the private hangar area behind the fixed-base operators. He said the work would require FAA consent and that the city plans to submit a modified CIP for FAA approval that would then be reflected in a local resolution amending the capital improvement program.
Staff also noted timing consequences for other capital projects: the snow removal equipment building construction would be pushed to 2028 and the Station 3 fire station remodel to 2031 under the new schedule. Bridal and Brooke said that if costs come in favorably and a fourth hangar can be added, the return on the city's investment could shorten from the projected 10 to 15 years.
No resolution or vote was taken at the meeting. Staff indicated a formal resolution to amend the CIP will be prepared for a future meeting after the city submits the modified plan to the FAA and receives any required approvals.
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