Sheridan County airport manager urges clearer terms for lease reversion clauses

Robert Gail, Sheridan County Airport Manager, told county commissioners on Aug. 11 that the airport’s long-standing practice of including reversion clauses in private development agreements can complicate future ownership and financing of multimillion-dollar buildings. “Ultimately on the airport … we can't sell and we can't lease indefinitely,” Gail said, explaining that many agreements include clauses returning buildings to airport or county ownership at the end of a lease term.

Gail said the practice dates back decades; he cited the oldest agreement he found (with Spinalworth) that included a 20-year term plus a 20-year option. He said options such as repurchase by the county, converting land back to airport use, or assignment must be considered carefully. “I feel like when that happens, there's very few options,” he said, noting the difficulty of repurchasing large properties or extending terms without risking public dollars.

Commissioners and staff discussed possible ways to tighten language: allowing assignment or sale of buildings for continued airport purposes while protecting land interests, building buyback options, or explicit term limits to remain in compliance with federal obligations. One commissioner suggested permitting sale of buildings to private companies for airport-related purposes while keeping the land governed by airport oversight.

Gail proposed continued research and outreach to other airports and legal counsel to identify more business-friendly but compliant approaches. He said federal obligations and reversion mechanics require careful drafting so the airport is not left with large, unwanted assets or unmanageable obligations. Commissioners expressed support for Gail’s continued work and asked to be kept informed as he explores clearer options.