Council approves $298,000 design authorization for proposed airport hangar

Chad, an airport staff presenter, told the Murfreesboro City Council on July 10 that the airport is seeking design authorization to prepare construction documents for a proposed 150-by-100-foot hangar with approximately 3,000 square feet of office space. The design contract price is $298,000; the estimated total construction cost presented to council was about $5,000,000.

Chad reviewed the airport’s recent land work and investments including runway extensions, taxiway construction and prior development that attracted tenants such as a privately built TDK hangar and Vanderbilt Life Flight. He said the proposed hangar is intended to attract flight-related businesses and create jobs (pilots, mechanics, dispatch and administrative staff) and new revenue for the airport through rent and fuel sales.

On funding, Chad said the airport would use a combination of airport fund balance (about $2.145 million from prior land-sale proceeds and grants) and city general-fund cash (roughly $2.8 million in the presented scenario) to finance the project. Staff said the airport’s ongoing rent and fuel sales are expected to replace the current general-fund subsidy to the airport over a roughly 10–11 year horizon under the assumptions shown to council.

Council members questioned assumptions about tenant rent, minimum fuel requirements and the payback period. Staff said earlier scenarios modeled a conventional loan and a $22,000–$26,000 per month lease to reach positive cash flow; they emphasized the current approach uses fund balance and a grant-reimbursement path rather than a bank-style loan. Chad said the city expected a state RPZ grant reimbursement related to prior property purchases.

After discussion, the council approved the $298,000 design authorization by roll-call vote. Chad said construction bids and any lease agreements would return to council for approval.