Commission approves $298,883 design contract and LOI with Concierge for new 150x100 hangar

The Airport Commission voted unanimously to authorize $298,883 in design and engineering work for a proposed new hangar and to approve a letter of intent (LOI) with Concierge, a charter operator led by John Brandon, to lease the facility.

The action authorizes Barge to complete design and bid documents for a 150-by-100-foot hangar with about 3,000 square feet of office space and related apron, taxiway stub and partial parking; the commission approved the fee to move the project into the bid phase. The commission also approved the LOI with Concierge, which proposes a 20-year lease with two 10-year renewal options and an estimated starting rent of about $22,000 per month.

Commission members approved the Barge work authorization and the LOI by roll call votes. The design fee is intended to get the project through engineering and to a public bid; staff said they expect to advertise bids in July and have contract awards in August so construction could begin this year and the hangar could be ready by next summer.

"We're moving forward with a construction of a hangar," said Chad, a member of the airport staff leading the project presentation. "We'd like to have this hanger up and going by, next summer, next year at this time." Chad described the Barge proposal as a full design and bid package and identified the $298,883 fee as covering design, engineering and the bid process.

Staff estimated the full build — hangar, apron, taxiway and parking — at just under $5 million. Chad said that revenue from rent would flow to the airport fund and then be used to reimburse the general fund over roughly a 10- to 15-year period. "What we're hoping for is about a 10 to 15 year turnaround," he said.

The LOI presented to the commission formalizes key lease terms under negotiation. Chad said the proposed lease term is 20 years with two 10-year options and that the annual rent adjustment would be 3% starting after the first five years. "We're looking at a term right now of 20 years with 2 10 year options," Chad said. "Rent adjustment is a 3%. It'll start after the first 5 years."

The LOI also includes a fuel-purchase commitment. Staff described a minimum purchase requirement of about 45,000 gallons per year; the LOI ties into-plane pricing to volume, with a 10-cent-per-gallon discount on the into-plane rate and additional pricing mechanics if annual minimums are exceeded or not met. Chad said there is a penalty structure if the minimum purchase is not met, and negotiations over details were ongoing.

Concierge, described by staff as a charter operator relocating some operations from Lexington, would operate multiple aircraft and said it intends to base aircraft and staff at the airport. Chad and staff said the hangar footprint was sized to accommodate larger corporate jets and that the proposed hangar could house roughly three to four aircraft depending on type and interior layout.

Commission discussion covered utilities and site work for the parcel west of the existing TDK hangar, access control and fencing, hangar door types and placement (staff said the hangar door would face east), and coordination of interior build-out with the tenant. Benson and other staff explained utilities would be brought in from the roadway side, with the current contract covering initial site work, taxiway stub and half the parking; subsequent phases would add additional apron and parking if a second hangar is built.

A motion to approve the Barge work authorization passed on a unanimous roll call vote. The commission then voted unanimously to approve the LOI with Concierge; staff said the LOI and bid documents will go to city council for the mayor's signature and that a formal lease agreement would return to the commission after bids and schedules are in hand.

Next steps identified by staff include completing the Barge design, advertising for bids, returning contract and schedule information to the commission, and advancing the final lease agreement for commission review once construction bids are received.