The Airport Authority Board discussed a proposed overhaul of land-lease terms for hangars and airport property, focusing on whether to charge rent based on hangar footprint or by lot size and whether to adopt a $0.43-per-square-foot standard tied to the state average.

The debate carried significance for airport revenue and future development. Board member Jeanne (role not specified) recommended charging the state average of $0.43 per square foot on hangar footprints going forward; others argued for exceptions for older small hangars that occupy relatively large lots. Airport staff also described a developer inquiry about building large hangars, installing customs facilities and widening the runway, and the board agreed to form a small committee to review that proposal and report back.

Board members said the existing rents were low — about $0.22 per square foot — and that raising rates would move the authority toward greater self-sufficiency. "My proposal would be that we'd go with the 43¢ if we do footprint only," Jeanne said. Several board members supported a uniform, predictable rate for future leases and discussed a mechanism to allow annual adjustments tied to a board-set formula or cost-of-living adjustments in the lease language.

At issue was how to treat older, small hangars sited on large pads. Several board members said a one-size-fits-all approach could unfairly penalize owners of decades-old small hangars; others said the airport must plan parcels so future hangars use land efficiently. An airport consultant explained that master-plan maps typically reserve areas for small or large hangars and that taxiway and pavement dimensions drive which lots are appropriate for larger aircraft.

Board members asked staff to prepare a redline of the revised lease language and to make that redline public before the next meeting. The airport manager, Bob (last name not specified), said he was holding roughly 30 expired leases while the board resolved policy changes and that many tenants would see higher rates when their leases came up for renewal under any new standard.

Other lease provisions discussed included:
- A 180-day termination-notice clause for leases (raised by a board member as a point to clarify so lessees understand long-term investment risk). The board emphasized termination for cause remains a separate default provision.
- Insurance and additional-insured language; board members asked staff to check local insurance-market costs so lessees know the financial effect of required liability coverage.
- Whether to keep a flight-line premium (historically higher rent for parcels receiving added airport services such as snow removal) or to move to a single rate for all locations. Some members favored a modest premium for flight-line spaces because they receive additional services and provide more valuable access.

The board also discussed long-term planning: mapping small- and large-hangar areas in the master plan so future leases align with taxiway and infrastructure classifications. The consultant said master plans set general areas for small and large hangar development but do not typically specify exact building dimensions because future tenants may use nonstandard sizes.

The board directed staff to: produce a redline lease showing the proposed changes; estimate insurance-cost impacts for lessees; and return the lease as an action item at the next meeting. Members also agreed to form a small committee — including the two economic development directors, Bob and a board volunteer — to engage the developer who has signed a nondisclosure agreement and expressed interest in large hangars, customs facilities and runway widening.

The board said the lease revisions will not be applied retroactively to existing, unexpired, long-term leases; those will continue under their current terms until renewal. The board expects many leases to transition to the new model as they come up for renegotiation.