Lincoln County approves new ground leases for two airport hangars with 90-day rent-adjustment clause

Lincoln County commissioners voted unanimously May 13 to terminate two existing ground leases at the Lincoln County Airport and approve new ground leases for the hangars now owned by new purchasers.

The action covers Unit R4 (terminating a ground lease with Arlan Hauck Trust and approving a new lease with Vanguard Squadron, Inc.) and Unit R2 (terminating the lease associated with Vanguard and approving a new lease with Top Gun Investments). The board approved both motions after the county attorney’s office explained the standard transaction process and added an explicit ability to adjust rental rates within 90 days.

The county’s State’s Attorney’s Office representative, Drew DeGrupp, told commissioners the terminations and subsequent re‑leases are the usual procedure when hangars transfer and that the county will use a provision in the new lease language to allow rate adjustments after board action. DeGrupp said the lease includes a clause (referred to in the draft as provision number 6) giving the county the option to adjust the ground lease rate within 90 days of the board’s approval.

A purchaser’s counsel told the board the parties prefer to complete the pending real estate closings and that adding a short adjustment window and an exit option in the new lease would address the county’s interest without derailing transactions. Commissioners discussed taking up a separate market-rate study before broader rate changes but agreed the 90‑day approach would let closings proceed while preserving flexibility.

The board’s motions included direction that the drafting of the new leases should (1) allow the county to increase rental rates to reflect market conditions based on a recent rental-rate study performed by AMCG, (2) include a termination/out clause for a purchaser who declines the adjusted rate, and (3) otherwise follow the standard lease form drafted by the State’s Attorney’s Office. The motions carried on roll-call votes with all commissioners recorded as voting yes.

No specific dollar amounts for new rents were adopted at the meeting; commissioners said the county will consider the AMCG market-rate study and discuss county-wide rental-rate adjustments for airport leases in future work sessions. The board’s action today enables the recorded property transfers to proceed while preserving county leverage to align lease rates with the market.

The commission’s immediate direction was procedural (terminate existing leases and authorize new leases with the 90‑day/termination provisions) rather than a final policy decision on the airport’s long-term rent schedule. Staff said more formal discussion of airport rental rates and related policy changes will return to the board in coming meetings.