Chico council upholds appeal, directs staff to restore Speltz’s lease at 100 Lockheed

The Chico City Council on June 17 voted 5–2 to uphold an appeal by pilot and tenant Mark Speltz and directed staff to return with a resolution to restore his occupancy rights at hangar space known as 100 Lockheed at Chico Regional Airport.

The council’s action follows a public hearing in which city staff, airport tenants and community members disputed whether a valid, enforceable lease existed after a 2024 series of transfers and defaults. City staff told the council that a new lease for the space had been approved by the Airport Commission in April for Aeroflight Inc., a company proposing to expand aerial firefighting operations, and that the city attorney’s office viewed a prior purported lease with Speltz as invalid because it was not executed in writing, not approved by the city attorney and not formally approved by the airport commission.

The timing and administration of the handoffs were central to the dispute. In 2021 Speltz held a multi‑year lease for the hangar. In early 2024 the lease was assigned to Dawson Taylor Aviation Services, which later reduced operations and defaulted on the lease in November 2024. Speltz says he negotiated to resume occupancy in late 2024 and that airport manager Tom Barr confirmed in writing and verbally that the hangar “is yours” and that interested parties could sublease from him. Speltz presented copies of emailed assurances and rent checks that staff cashed for January and February 2025. City staff said they stopped cashing checks once the Aeroflight matter intensified and that their formal notice to vacate was issued in late March.

Airport staff described Aeroflight’s proposed use as parts and service support, aircraft storage and potential retrofitting work that staff said would increase airport revenue. The lease Aeroflight sought represented a roughly 73% increase in monthly rent over the previous rate (from about $3,000 to $5,200 per month, with escalators), staff said. City Attorney Mr. Lyon told council members that courts generally presume private parties negotiating with a public agency understand the agency’s procedures, and he advised caution about implying an enforceable lease without the required written approvals.

Appellant Mark Speltz and his attorney Michael Shepherd urged the council to “honor the commitment” made by the airport manager, stressing Speltz’s long presence and investments in the property. More than a dozen community members, many with long ties to the airport, spoke in support of Speltz. “If the airport manager’s verbal and written communication have no meaning, where do we stop?” Speltz told the council.

Council debate split on whether honoring the airport manager’s assurances would be morally right even if the city’s legal position favored Aeroflight. Councilmember Katie O’Brien said, “We can be both legally correct and morally wrong,” and announced she would vote to uphold the appeal. Councilmember Van Overbeck moved to grant the appeal and to direct staff to renew or restore the lease consistent with the prior terms while asking Mr. Speltz to use his best efforts to sublease any excess space to Aeroflight; the motion was adjusted on city attorney advice to direct staff to uphold the appeal and bring back a resolution with findings and to take any future lease terms through the Airport Commission and normal approval and signature processes.

On the roll call, Councilmembers Goldstein, O’Brien, Van Overbeck, Winslow and Vice Mayor Bennett voted in favor; Councilmembers Holly and Mayor Casey Reynolds voted no. The council’s direction requires staff to prepare a resolution consistent with the council’s findings and return it on consent for formal action.

Next steps and implementation: staff will draft a resolution reflecting the council’s vote, present it on consent at a future meeting, and, if approved, pursue any subsequent lease paperwork through the airport commission and city attorney review so any renewed lease complies with the City Charter and municipal rules.

Votes at a glance: The motion to uphold the appeal and direct staff to return with a resolution carried 5–2.

Sources: city staff presentation; public testimony by appellant Mark Speltz and attorney Michael Shepherd; comments from Airport Manager Tom Barr and City Attorney Mr. Lyon.