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Board approves $27,000 buyout of hangar term to return rental revenue to county
Summary
County staff requested and the board unanimously approved a $27,000 transfer to buy out the remaining term of an existing hangar agreement with D.E.S. Properties LLC, allowing county ownership to charge market rent and consolidate airport hangar revenue as court FAA and state grant encumbrances allow.
Andy Wade, the county’s director of economic development, asked the board on Sept. 2 to approve a $27,000 transfer to buy out the remaining term of an agreement between the Industrial Development Authority and D.E.S. Properties LLC for a hangar at the Louisa County Airport.
Wade told the board that the IDA historically allowed private parties to build hangars on airport property under long-term arrangements and that, after a 2008 agreement and later FAA policy changes in 2017, the property has grant encumbrances controlled through the FAA and the Virginia Department of Aviation. Wade said D.E.S. had sublet the hangar and the IDA had been receiving less revenue than current market rates. Buying out the remaining term would allow the county, as it transitions toward ownership of the airport, to return the hangar rental to county control and set market rents.
Wade recommended the county pay $27,000 to D.E.S. to end the agreement; he told supervisors the hangar buyout would be revenue positive for the airport in future years because county-controlled rent would exceed the buyout amount over the remaining term. The motion to approve the transfer was moved and seconded on the record; the board approved the transfer unanimously.
No further county action was required at the Sept. 2 meeting beyond the budget transfer approval. Staff noted that airport property is subject to federal and state grant conditions and that county staff will coordinate any rental changes to comply with FAA and Virginia Department of Aviation regulations.
