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Commission approves 9 Line commercial-hangar lease and updates hangar lease process for airport
Summary
The Morgan County Commission approved a new lease framework for commercial hangars at the county airport (9 Line Commercial Hangars) and authorized new 26-year leases for two existing hangars (A1, K1) to buyers Paul Smith and Lewis Bjork; staff will standardize future leases on the updated 2025 lease form.
The Morgan County Commission on May 6 approved a revised commercial-lease template and authorized leases for the 9 Line commercial-hangar building footprint, moving the county toward a standardized approach for airport hangar leases and future assignments.
County staff and airport manager Joe Garfield told the commission the new agreement refines prior language to make the county the long-term owner and maintainer of hard surfaces depicted in the lease exhibit, clarifies that hangars in the commercial row are to be used for commercial aviation-related activities (not general private aircraft storage), and allows the county to require conditional-use or other planning approvals before a new assignee begins commercial operations.
The code changes and lease language emphasize that aircraft storage inside a hangar must be “essential and ancillary” to a commercial activity conducted at the premises — for example, an avionics modification business temporarily housing customer aircraft while performing work — rather than permitting private owners to use the commercial hangar solely for personal storage that would crowd out business uses.
After discussion about tie-downs, public access to taxiways and who will maintain hard surfaces, commissioners voted to accept the 9 Line commercial-hangar lease template and to issue new leases for hangars A1 and K1 using an updated form dated May 6, 2025. Those two hangars will be leased to Paul Smith and Lewis Bjork as indicated in the packet; the commission instructed staff to use the revised 26-year term (to align future expirations) and to include annual CPI/adjustment language consistent with other airport leases.
On earlier hangar-sale items in the meeting, staff noted that some existing assignment documents used older lease forms; the county attorney recommended executing new leases on the current form rather than retroactively assigning older forms. Commissioners asked staff to ensure assignments and sales come before the commission so leases and rent rates remain consistent across the airport.
No construction or tenant improvements were approved at the meeting. Commissioners said the county will move forward with a single, consistent lease cycle and clarified that airport apron hard surfacing and associated taxiways will be maintained by the county and will remain eligible for airport grant programs.
