Airport commission approves ground lease for Hangar 319, advances six-unit hangar project

The Airport Commission voted to approve a ground-lease agreement with Hangar 319 LLC that clears the way for construction of a new multi-unit hangar at the municipal airport.

Commission discussion centered on the proposed hangar’s design, budget and how new spaces would be allocated. Commissioners and staff described a proposed “six-place” hangar with 45-foot doors (designed to accommodate newer, wider aircraft), an expected tenant rent of about $350 per month and a total project budget of roughly $1.4 million.

Staff said the $1.4 million estimate breaks down to about $1 million for the building and roughly $400,000 for taxiway infrastructure and associated work, including design and construction oversight. Funding sources discussed at the meeting included roughly $600,000 from the Bipartisan Infrastructure Law, about $300,000 from the general aviation vertical infrastructure program (noted in the packet as a capped source) and approximately $425,000 from an EIP program for paving. Commissioners were told a mix of cancelled CIP items (solar array and a modernization project) would free roughly $100,000 as local match, leaving a remaining shortfall the airport might fill with a short-term loan if necessary.

Commission members discussed alternatives to the six-place plan. Staff reported options to expand to eight units and that a nine-place option had been priced at about $1.8 million, which would require substantially more loan financing. The commission also discussed lease terms and tenant-selection policy: staff proposed an initial three-year lease term (with the possibility of extending to five years, which the manager said would require additional public hearings), first offers to existing tenants who wish to move, and use of the airport waiting list to fill openings. Staff also said they would run presales and preleases once state grant commitments were confirmed.

Commissioners asked whether displaced pilots would get priority; staff said displaced pilots could receive hybrid priority and that the airport intends to give current tenants the first opportunity to move to new units before backfilling from the waiting list. The meeting record shows commissioners emphasized the need to match lease terms to any borrowing the airport undertakes and to preserve long-term flexibility for the airport.

The commission opened and closed a public hearing on the Hangar 319 ground-lease item and reported no public comments. The resolution to enter the ground-lease agreement carried on a voice/roll-call vote: Commissioners recorded as voting "aye" were Chris, Ryan, Warren and Judy; the motion passed.

Separately during the meeting the commission approved two other procedural items: hosting an intern supplied by McClure (to work at the airport a few hours per week from May through September on tasks such as grant work, waiting-list cleanup and social media) and placing a commercial-business payment item on a future public hearing calendar. Both items were handled by motion and roll-call votes recorded during the meeting.

Staff told the commission the next steps are to apply for the discussed state funds, complete bid documents and pricing, and return with firm bid results before committing to any borrowing. Staff estimated construction would not be ready by spring and described a likely late-summer schedule if grants and bids align.

Other operational notes raised during the meeting included a recent FAA flight check (staff reported PAPI systems were successfully checked, with some temporary lighting issues at low intensity that the electricians were troubleshooting) and ongoing work to transition flight-training equipment for spring/summer operations.

Votes at a glance: - Resolution approving ground-lease agreement with Hangar 319 LLC to construct a multi-unit hangar — outcome: approved; recorded yes votes: Chris, Ryan, Warren, Judy; public hearing opened and closed with no public comment. - Approval to host a McClure-provided intern (May–September) — outcome: approved; roll-call aye votes recorded in the minutes. - Resolution setting a public hearing for a commercial business payment/agreement — outcome: set for public hearing (motion carried).

The commission scheduled follow-up work: staff will refine construction and soft-cost estimates, submit state grant applications, and return with final bid pricing and funding details for commission review before construction contracts are executed. The commission also noted the airport will prioritize current tenants and use the waiting list for backfill when new units become available.