EAA CHAPTER 186
FIVE-YEAR ASSET
MANAGEMENT PLAN
2004-2009
PURPOSE: Establish a plan for the business and related social aspects of the Chapter.
The Chapter is incorporated in the Commonwealth of Virginia as an educational organization in accordance with section 501(c)3 of the Internal Revenue Service codes. To this end, the Chapter conducts activities in furtherance of educating the members and the public about aviation including the construction and maintenance of aircraft, especially homebuilt aircraft.
INCOME: The Chapter currently derives operating funds from the following resources.
Rentals—T-Hangars, Large Hangar, Project Hangar (all at HEF)
Private Donations—Saleable and useable items, cash
CFC—Cash donations through this Federal program
Merchandise—Sale of Chapter produced items
Events—Fly-ins, social activities, volunteers supporting other organizations
Investments—Certificates of Deposit, mutual funds
Membership Dues
It is envisioned the income from these sources will continue at levels that may vary from year to year. Searches for additional sources of income will be an ongoing theme of the business plan.
REAL PROPERTY:
Chapter House—Social area, project workspace
Income Properties—T-Hangars (2), large hangar (1)
CHAPTER FACILITIES:
In 1999, the Chapter purchased long-term leases on two T-hangars at the Manassas airport. One unit was converted to a social area, the other became known as the maintenance or project hangar. This purchase established a “Chapter House”. The social area was to be used as a gathering and meeting place while the project hangar was to be rented at a reasonable rate to Chapter members requiring a final assembly place for their homebuilt project. Rent from the project space was to be used to cover the costs of the two units. Subsequently, two more T‑hangar leases were purchased and kept as strictly rental entities. The combined income from the three leased areas covered all basic Chapter expenses and provided for the expansion of Chapter programs related to aviation education. As the leases on all four properties expire in 2016, it was deemed important to provide further long-range plans to ensure the financial stability of the Chapter, as well as, to provide options for future expansion with respect to a continued existence of a Chapter House on the Manassas airfield.
In early 2002, the airport approved construction of two rows of corporate-sized hangars. The Chapter decided the purchase of a 30-year lease for one unit would provide for many, if not all, the current goals of the Chapter; i.e.:
1. Additional Chapter revenue if space was leased.
2. Possible future use as Chapter House.
3. Continued Chapter presence on the airport beyond the current lease agreements.
In late 2002, the Chapter voted to seek a loan to purchase one corporate-sized hangar lease. Construction was begun in mid-2003 and completed in mid-2004.
CORPORATE HANGAR: Goal: Lease the space for three to five years. Revenue to be split between Building Fund and Chapter General Fund. At three to five years, re-evaluate use of space. Options could include:
· Occupying space as new Chapter House.
· Continuing total lease activity.
· Combine activities—part lease—part Chapter House.
· Sell remainder of lease value.
T-HANGARS: Goal: Continue leasing the two separate (non-Chapter House units). At end of the three- or five-year period, re-evaluate status. Options could include:
· Continuing lease activity.
· Sell remainder of lease value.
The current thinking embraced by the Board in 2003 was to strongly consider selling the remainder of these leases while they still had significant value and placing the proceeds in the Building Fund.
CHAPTER HOUSE COMPLEX: Goal: Maintain Chapter presence on the airport with a Chapter House. As with the T-hangars, the disposition of the Board in 2003 was to re‑evaluate the need for the facility in three to five years. Options could include:
· Do nothing and maintain both the Social Area and Project Work Space.
· Sell remainder of lease for Project Workspace.
· Sell remainder of leases for both entities.
The current thinking of the Board in 2003 was to tie the liquidation of these leases into what was decided regarding the disposition of the use of the Corporate-sized hangar. Options could include:
· Value of T-Hangars and Chapter House Complex, if sold, might be sufficient to retire the debt on the Corporate Hangar. This could facilitate converting the Corporate Hangar into a new Chapter House.
· If sold, the revenue received from the sale of the Chapter House and T-Hangars could be placed in the Building Fund.
Approved by Chapter 186 Board of Directors: April 7, 2004
April 2007
PURPOSE: To review the current leasehold assets and evaluate options for maximizing earning potential consistent with Chapter current needs and direction.
LEASEHOLDS: The Chapter currently holds long-term leases at the Manassas Regional Airport on six (6) hangar units:
Approved by the Chapter 186 Board of Directors: May 2, 2007
March 2008
PURPOSE: The Financial Review Committee met on February 23, 2008 to review the current Chapter assets and evaluate options for maximizing earning potential consistent with Chapter current needs and direction.
LEASEHOLDS: Changes recorded from the lease ending dates as shown in 2007:
Approved by the Chapter 186 Board of Directors: April 2, 2008