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Council conditionally approves RMC Aviation lease and FBO permit after executive session
Summary
Klamath Falls council authorized a ground lease with RMC Aviation LLC for airport lots and approved an FBO operating permit; the lease approval was conditional pending legal review of a late tenant objection and council held an executive session under ORS 192.660.
The Klamath Falls City Council on May 19 authorized a ground lease with RMC Aviation LLC for Lots 1.2 and 1.3 at Crater Lake Klamath Regional Airport and approved an FBO operating permit allowing RMC Aviation to offer commercial aeronautical services. The lease authorization was conditioned on a legal review of a late objection from an airport tenant and council recessed into an executive session to consult with legal counsel.
Airport Business Manager Linda Tepper described the leasehold as long‑standing on the field, with buildings that currently house FedEx Ground, Air Link (air ambulance), and other hangars. Tepper said the lease includes a minimum investment of $250,000 and that an investment of $500,000 in permanent improvements would allow RMC to receive a maximum term of 45 years. “So that's nice and we would realize, about 1,200 a little over $1,200 a month from this lease that is being proposed,” Tepper said.
Tepper also explained the airport’s minimum standards — a recommended FAA best‑practice document adopted by council on Feb. 19, 2019 — and said staff found RMC’s FBO application met or exceeded the standards and applicable grant assurances. “We are not able to discriminate against applicants and say, no, I'm sorry. We're only wanting 1 commercial aeronautical provider on a field. We have to allow everybody that opportunity as long as they meet the minimum standards, which RMC Aviation is doing,” she said.
A tenant submitted an objection late on the day of the meeting; staff advised that because of a threat of litigation the council should adjourn into executive session under ORS 192.660 for consultation with legal counsel. The council recessed and later reconvened; upon return the council moved to authorize the city manager to execute the lease conditional upon the outcome of the legal review. The council also authorized the city manager to execute a fixed‑based operator (FBO) operating permit agreement with RMC Aviation.
Public comment included two speakers who said they supported the RMC application. The transcript records no further action or a final determination on the tenant objection; the lease will not be finalized until legal review is complete and any issues are resolved.
