Elkhart aviation panel commits FAA entitlements to runway rehab, approves hangar payments and leases

ELKHART CITY — The Elkhart City Board of Aviation Commissioners voted on several capital and operational items at a meeting on Feb. 26, 2025, including a formal commitment of federal entitlements to a Runway 18/36 pavement rehabilitation project and multiple approvals tied to a new 10-unit T-hangar project.

The board authorized the commission president to sign a letter dated Feb. 26, 2025, committing the airport’s accumulated FAA Airport Improvement Program (AIP) nonprimary entitlements (roughly $150,000 per year, with carryover from prior years) to the Runway 18/36 pavement rehab project. "That project's going to cost a lot more than your entitlements," Andy, airport director, said, adding that the FAA discretionary program would cover remaining costs and that the board must commit entitlements by an April 1 deadline to preserve the local funding pool.

Why it matters: committing entitlements makes the airport eligible to be considered for FAA discretionary funding this grant cycle. Andy said the full project will exceed $2 million, that federal shares for FY25–26 are unusually generous (about 95% federal participation for those years) and that the airport will use a reduced local match from a federal fund rather than seeking new local appropriations.

The board also ratified the commission president’s signature on a state design-release form so the contractor can pursue state permits and begin foundations for a new 10-unit T-hangar. The contractor requested expedited sign-off to hold a construction window and foundations work; board members said the state review typically responds within 10 days and that foundations could start in April if approvals proceed on schedule.

Separately, the commission approved Progress Estimate No. 1 for the 10-unit T-hangar project in the amount of $122,265. Andy said the total hangar project is about $1,200,000; the building package portion is roughly $390,000 and the manufacturer required a down payment (the contractor sought 30% of the building package). The board will hold retainage (noted as $6,435 on the current invoice) and expects additional monthly progress invoices as foundations and other work proceed. Andy noted the airport has about $700,000 in federal funds available for reimbursement and that reimbursement requests will be submitted after payments are made.

Other business: the board approved an agricultural lease with a new farmer to till airfield acreage at $200 per acre (the lease contains a parenthetical typo showing $100 that staff will correct and initial before the farmer begins). Because the prior farmer had been invoiced for 2025 after the previous lease expired, the board approved a refund/credit to that existing farmer of $25,000 for services that will not be provided in 2025.

The commission authorized Andy to submit quote-specification applications and sign on behalf of the board for tower liability insurance shopping with the broker. Andy said tower controller liability premiums have risen over the years and were around $28,000 at the last renewal; the policy covers controller actions but not the tower building itself.

Routine authorizations approved included the board president signing an INDOT invoice voucher to obtain an $810 reimbursement for an eligible cost (EKM airport), and a staff request to attend the AAAE course and Northeastern Conference with costs capped at $2,500. The airport manager reported that a new information sign approved in the FY2025 budget is expected to be delivered and that hanger doors and insulation work are complete.

Votes at a glance: - Minutes (01/29/2025): approved (roll call: Tim — yes; Maggie Maroka — yes; Tom Schauff — yes; Bruce Schreiner — yes; Kim — yes). Outcome: approved. - Claims: $46,804.75 — approved (roll call recorded). Outcome: approved. - Agricultural lease (new farmer, $200/acre; parenthetical typo to be initialed): approved. Outcome: approved. - Refund to prior farmer: $25,000 — approved. Outcome: approved. - Airport director attendance at AAAE/Northeastern Conference, cost not to exceed $2,500 — approved. Outcome: approved. - Authorize president to sign INDOT invoice voucher for $810 reimbursement — approved. Outcome: approved. - Authorize insurance broker quote-submission and director signature for tower liability insurance application — approved. Outcome: approved. - Ratify commission president signature for 10-unit T-hangar construction design release — approved. Outcome: approved. - Authorize president to sign MPE letter (02/26/2025) committing FAA AIP nonprimary entitlements to Runway 18/36 rehab — approved. Outcome: approved. - Progress Estimate No.1 (10-unit T-hangar): $122,265 — approved. Outcome: approved.

Board members and staff said the runway rehabilitation will be advertised for bids late April–May to minimize bid-hold exposure, with discretionary grant awards likely close to the end of the federal fiscal year; if discretionary funds arrive late the actual paving may be scheduled for spring 2026. Andy said the airport will present another plan review to the board next month.

The meeting closed after a brief manager’s report and a privilege-of-the-floor opportunity.