Airport budget seeds hangar development and runway improvements
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Summary
Airport managers told the council they are saving across multiple years to fund hangar expansion and airfield work, planning to use cash on hand rather than large federal grants to avoid prevailing-wage and other cost escalators; they also described grooving the runway as a lower-cost way to accommodate larger aircraft.
Airport staff briefed council members on a multi‑year plan to fund new hangar space and airfield improvements without relying on large federal grants. County staff said they have been setting aside cash over a three‑year period to pay for environmental studies and preliminary construction work on land purchased next to an existing industrial site.
The presentation noted operational costs such as utilities and insurance have increased, and that the facility receives revenue from hangar rents and farmland leases in addition to a small property tax rate dedicated to the airport. For project work the airport still expects to compete for Federal Aviation Administration grants, which often fund 90% of eligible costs; staff said they are intentionally planning some work “in house” to avoid federal prevailing‑wage rules and other administrative requirements that can raise total project costs.
As a lower-cost alternative to a full runway extension, staff described grooving the existing concrete runway. Grooving increases friction and drainage characteristics, which staff said can allow the field to accommodate a larger class of aircraft without lengthening the runway.
IU Health was cited as a major tenant whose longer-term lease on the newest hangar provides a steady revenue stream. Staff also described a strategy of encouraging private developers to build hangars or facilities under public‑private arrangements that would expand capacity without the county shouldering the entire upfront cost.
Council members asked about community benefits, and staff said the airport supports economic development recruitment and can serve community uses — meeting space, event rentals and medical helicopter operations — in addition to aviation activity.