The Yankton City Commission agreed Monday to enter a lease agreement with the University of South Dakota for hangar space at the Chan Gurney Municipal Airport.
According to a memorandum written by City Manager Doug Russell, the university has acquired a new aircraft and needs a place to store it until a suitable facility is built in Vermillion.
The 12-month lease for use of the corporate hangar at Chan Gurney will be for $750 per month.
The agreement is structured similarly to a lease with Kolberg-Pioneer, Inc., (KPI) of Yankton. The manufacturing firm also rents space in the corporate hangar.
However, its lease is $950 per month. Commissioner Dave Carda, a KPI employee, asked about the difference.
Russell said one of the reasons for the price discrepancy is that the KPI agreement includes a guarantee of 12 off-hour entrances and exits into and from the hangar.
"With this agreement, they would have none of that guaranteed," he stated. "They would either have to coordinate with our (fixed-base operator at the airport) at an agreed-upon price, or they would have to bring over their own equipment and move it out themselves."
Another reason for the higher price is that KPI agreed in 2008 to a lease above the market price to help cover utilities and construction costs for the then-new facility.