Chicago Executive Airport in Wheeling has inked a 40-year agreement with a company that plans to construct a new hangar as part of its services to private aircraft using the facility.
The new hangar will be one of four Atlantic Aviation leases at Chicago Executive, starting in May 2021 at total cost of $433,200 annually. Documents show Atlantic's rent will be adjusted yearly according to the Consumer Price Index through the agreement's expiration in April 2061.
"That is a typical lease duration for a large hangar and apron development," airport Executive Director Jamie Abbott said Tuesday. "Thirty to 40 years is normal for those types of facilities when a company is investing millions of dollars. The benefit of a long-term lease is that it secures revenues for the airport for a long period of time."
Similar to two other fixed-base operators at the airport -- Signature Flight Support and Hawthorne Global Aviation -- Atlantic provides terminals for passengers and crew, baggage handling, fueling, gourmet catering and other services for private airplanes.
Atlantic plans to begin construction in the spring on the fourth hangar that'll cover 28,000 square feet and include business offices, parking and an extension of the current aircraft ramp. Atlantic's campus will expand to about 13 acres on Chicago Executive's west side off Wolf Road.
Chicago Executive's director of economic development and strategic planning, George Sakas, said Atlantic, Signature and Hawthorne continue to invest "significant financial resources" in operations. Attracting new customers to the hangars and amenities should create more airport jobs and revenue for the facility co-owned by Wheeling and Prospect Heights, he said.
Maryland-based GrandView Aviation will be a new Chicago Executive Airport customer when it launches service this week from the facility as part of its expansion, Chief Operating Officer Jessica Naor said. GrandView will use Signature's hangar and services.
Naor said GrandView will use Embraer's Phenom 300 light jet, which has a flying range allowing travelers to go nonstop from Chicago Executive to almost all continental U.S. destinations. She said GrandView selected Chicago Executive in part for its easy access for travelers coming from downtown or the suburbs.
"Chicago has one of the highest concentrations of high-net-worth individuals in the country, making it an ideal locale for expansion for GrandView Aviation," Naor said.