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Council denies appeal by tenant seeking hangar lease after staff and attorney dispute
Summary
The Chico City Council voted 5-2 to deny an appeal by Mark Speltz and uphold the airport commission’s approval of a lease for Aeroflight at 100 Lockheed, after debate over verbal commitments, emails and whether an airport manager had authority to promise a lease.
The Chico City Council on Aug. 19 adopted a resolution denying an appeal from Mark Speltz and upheld the airport commission’s earlier approval of a lease for Aeroflight at the airport hangar known as 100 Lockheed.
Speltz told the council he relied on city staff representations and spent money and effort to prepare his operation. “I have acted in good faith,” he said during public comment, asking the council to “uphold the commitment made by your appointed airport manager and allow me to continue my lease as promised.”
The council’s discussion centered on two competing claims: Speltz’s assertion that airport manager communications — including a January email — amounted to a binding promise, and the city attorney’s position that leases must be executed in writing and approved by the airport commission under the municipal code. The city attorney cited case law and municipal requirements, saying the manager lacked authority to bind the city to a lease without the required written approvals.
William (Bill) Warren, an attorney representing Speltz, warned the council that his client would pursue litigation if the appeal was denied. Warren said his review found written and email exchanges and that Speltz relied on promises to his detriment: “The facts here are so clear. There was a November 6 email ... My client would not have done that but for the promises of the city.”
After debate about ethics, process and the reliability of verbal commitments, Councilmember Winslow moved a substitute motion to adopt the resolution denying the appeal and upholding the airport commission’s approval of the Aeroflight lease. The motion passed 5-2 (Goldstein, Holly, Winslow, Bennett and Mayor Reynolds voting yes; O’Brien and Van Overbeck voting no). The council also heard public statements from Speltz and his counsel urging the city to honor the earlier assurances.
The resolution denies Speltz’s appeal but does not resolve his attorney’s stated intent to pursue legal remedies. The city attorney advised the council at the meeting about limits on authority for staff and the required steps for a lawful lease, and council members noted the risk of litigation if the appeal were denied.
The council did not direct additional study; staff and the city attorney will handle any follow-up required for the airport’s leasing process and legal exposure.
Speltz and his counsel left the meeting having been heard publicly; Warren said his client would not seek litigation if the council reversed course, but added he would file an action based on promissory estoppel if forced to do so.
