Spokane-based Avista Corp. is leasing land at the Spokane International Airport with the intention of constructing a new $1.6 million hangar there to house its corporate aircraft, says Anna Scarlett, Avista’s director of shared services.

“Avista leases a Cessna Citation II from PNC Aviation Finance, which is primarily used by our executives and regulatory employees when they need to visit other state agencies,” she says.

Scarlett says Avista subleases a hangar owned by Spokane International Airport and leased to Merlyn Enterprises, a Spokane-based aircraft modifications company, for secure storage and maintenance of the aircraft. 

However, both Avista’s sublease and Merlyn Enterprises lease on the hangar are set to expire in July, at which time airport management plans to reclaim the existing property and relocate private hangars to a different part of the airport.

“Our plan is to build a new Avista-owned hangar on land leased directly from Spokane International Airport,” says Scarlett. “We’ve spent the last year analyzing different options for accommodating the aircraft, and we felt this was the most cost-effective plan.”

Scarlett says the company’s current hangar space is located on the northwest corner of the airport, and the new hangar will be on the southeast corner of the airport, off of west Pilot Drive.

She says the airport in November approved Avista’s lease agreement for the new site, which specifies a 30-year term with two 10-year extension options.

She says the company will pay about $17,000 annually to lease the new space, which is significantly less than what it pays to sublease space for the aircraft.

Scarlett says the 8,200-square-foot hangar will have space for storage, flight-staff offices, and a waiting area.

She says Spokane-based Garco Construction Inc. will be the contractor for project, which is expected to begin construction this month.

“We’ve completed design and are waiting on some additional permits, but plan to break ground soon,” she says. “This will be a quick project, so we expect it should be complete by mid-2018.”

In addition to building the new hangar, Scarlett says Avista also plans to purchase the aircraft for $2.2 million, with the transaction likely taking place within the first quarter of 2018.

“The aircraft is currently owned by PNC Aviation Finance, and we have leased it since it was new in 1999,” says Scarlett. “Our 20-year lease term with PNC is ending soon, so we’ll be exercising our right to purchase the aircraft per the terms of the lease.”