Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Management topic
No spam. Unsubscribe anytime.
Payson council to assume management of airport hangar complex, declines lease renewal
Summary
Payson Common Council voted to take over management and financial responsibility for the 10-unit Payson Hangar 1 complex and to not renew the existing month-to-month ground lease with Payson Hangar 1 LLC. Council cited liability and FAA grant‑compliance concerns; the motion passed 6–1.
The Payson Common Council voted 6–1 on May 14 to assume management and financial responsibility for the 10-unit hangar complex known as Payson Hangar 1 and to not renew the existing ground lease with Payson Hangar 1 LLC. Council directed staff to complete the transition within 30 calendar days and included a temporary restriction that current tenants not be relocated during that 30‑day period.
The council vote followed a multi‑hour public discussion in which members of Payson Hangar 1 LLC and the Payson Aero Club urged the council to leave management with the private group. Tom Thompson, president of the Payson Aero Club and a member of Payson Hangar 1 LLC, and Mike White, a long‑time airport user, told the council they had repaired hangar doors and argued the private group generated net revenue for the town and could continue maintenance more cheaply than the town could. They also said members had made capital investments in membership shares and asked for a long‑term lease instead of termination.
Town staff and outside advisors, including the town attorney and risk manager, warned council members that the town owns the property and therefore retains primary liability for safety and maintenance. Staff cited federal airport grant assurances and the FAA Airport Compliance Manual as constraints the town must consider when changing management practices or lease terms. Town staff and the town attorney also raised concerns about ensuring nondiscrimination among airport users under federal grant rules.
Public commenters were split. Some airport users said the private group had helped the airport and could continue to manage the hangars; others said the town should follow standard procurement steps (including requests for proposals) and asserted the town had been negligent in failing to regularize its rights earlier. The council asked staff to use a standard town lease form for hangar tenants and to repeat standard lease terms for those tenants if management is transferred to the town.
The formal motion directed the town manager to assume management and financial responsibilities for the Payson Hangar 1 complex and to not renew the ground lease with Payson Hangar 1 LLC; the motion included the temporary restriction that current tenants not be moved or re‑leased during the 30‑day transition window. The motion passed on a 6–1 vote.
What happens next: staff said they will prepare standardized one‑year leases for hangar tenants, provide Council with a proposed schedule for bringing the hangars into the town’s standard asset‑management and maintenance practices, and return with language and timetables to implement the management transfer.
Why this matters: airport property subject to federal grants must be managed in ways that meet FAA grant assurances, including nondiscrimination and competitive access. Council members said the town’s primary responsibility is to limit legal and financial exposure for municipal assets while preserving aviation access and local aviation activity.
