Advisory board recommends higher lease rates and tie-down fees to Bonner County commissioners

The Bonner County Airport Advisory Board voted to recommend higher land lease rates, a change to lease-duration terms and increased tie-down fees, and will forward that recommendation to the Bonner County Board of Commissioners for formal consideration.

Board members recommended raising Executive Row land-lease rates for new leases to $0.45 per square foot and increasing lease rates at Priest River from $0.20 to $0.30 per square foot; they also recommended setting initial lease terms at 40 years with the option to negotiate up to 50 years for tenants who provide substantial improvements. The board recommended increasing tie-down fees to $8 per night and $80 per month. The recommendation bundles new land-lease and county-owned hangar lease rates and tie-down fees and instructs county staff to publish the proposed fee changes and schedule the required public hearing(s).

The recommendations come after a broad discussion of Sandpoint airport market constraints, comparables at nearby airports and the county’s limited land inventory. Airport staff said current land-lease rates are about $0.40 per square foot in outlying lots and previously reached $0.43 near main roads on older leases. The board debated using annual CPI adjustments with a market review every five years — a structure staff said aligns with FAA guidance and local market practices — and preserving negotiation flexibility to extend terms up to 50 years when significant tenant-funded improvements are involved.

Board members also discussed county-owned hangars. The Smith hangar (listed at 60 by 60 feet) was described in the meeting as rented at about $1,500 per month; Life Flight’s county hangar was identified as renting for about $3,600 per month and the board agreed not to raise Life Flight’s rate at this time because of substantial tenant improvements and the organization’s community role. The board noted the county already uses rent credits to recognize tenant-funded improvements in hangars and other infrastructure.

On the motion that bundled the land-lease, county-owned hangar and tie-down recommendations, the board held a roll-call-style vote. The transcript records Bob Bilbao voting no on the tie-down portion and others voting in favor; a proxy from Jan Lee was recorded as voting yes. The board chair declared the advisory recommendation passed and directed staff to publish the proposed fees and schedule a public hearing; any county action will be decided by the Bonner County Board of Commissioners.

The board also discussed implementation details: staff suggested annual CPI increases written into new leases and a market review every five years, and reminded members that changes above a 5% threshold will require formal public notice and hearing under county code. Staff noted use of third-party ADS-B–based fee collection services would cost a percentage fee (discussed at about 22% in the meeting) and that the aviation trade group AOPA has recently challenged some airport fee-collection practices.

Next steps: the advisory board forwarded the recommendation to the county commissioners for publication and a public hearing; commissioners retain final authority to change, approve or reject the proposal.