The Gliding Club of Victoria is upset at Benalla Council lifting hangar rental rates at its airfield from 75 cents per sq m to $5 per sq m.

Club president John Switala thinks the 566 per cent rise is excessive and is now looking at other potential homes.

“We understand the rate is cheap and we understand it has to go up and we want to pay our fair share but fair is not this,” he said.

Mr Switala believes $2 to $3 would be a fairer rent for what he says are sheds with dirt floors and no services.

Benalla mayor Don Firth defended the hike and said the city will not budge on it.

“It is a high percentage increase but there has not been a percentage increase for many years,” Cr Firth said.

“We’re prepared to negotiate but not on the $5, there are other components of the lease agreement we would be prepared to talk about.”

Cr Firth declined to say what those aspects were, but noted there were also leases for the gilders’ clubhouse and accommodation park at the airfield to be finalised.

Money from the increase will go towards the council’s 20-year $12 million airport master plan, with $1.6 million of that forecast to come from hangar rents.

Cr Firth said it was important airport users contributed to the plan and costs were imposed across all stakeholders not just gliders.

There are 24 hangars at the airport with 10 not linked to the gliding club.

“It sounds like we’re being hard-nosed we’re simply trying to be fair to everyone,” Cr Firth said.

Mr Switala said the club was a not-for-profit association which had a surplus of $24,000 which was spent on renewing equipment.

He said the existing annual rent bill was $25,000, so “we would be going backwards” if it rose markedly for the hangars, clubhouse and aero park.

“It could be we don’t have a choice about moving, it could be the way the rentals are structured we would have to move because we couldn’t survive,” Mr Switala said.

“Somewhere like Corowa, Tocumwal, Wangaratta, Bendigo, Euroa – those places would all be suitable to use.”

Mr Switala said he had an “unsolicited” email from Federation Council inviting him to talk about using Corowa airport and had already spoken to Wangaratta city representatives.

Cr Firth was pragmatic about the potential loss.

“I don’t want to see anyone leave Benalla, however that’s their decision,” he said.

“If they leave then we have an airport that we’ll have to find another anchor tenant for and they do exist.”

Cr Firth and Mr Switala are expected to meet face-to-face for the first time next week to discuss the dispute.

The club has full-time staff and more than 230 members.