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Commission authorizes staff to finalize and execute long-term lease with Dodson Aviation at Ottawa Airport

Ottawa City Commission · October 16, 2024
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Summary

The commission authorized the city manager and city attorney to finalize and execute a ground lease with Dodson Aviation to combine existing leased acreage with roughly 6.92 additional acres at the Ottawa Airport, enabling construction of a new hangar. Key terms discussed included a 50‑year lease with two 10‑year lessee renewals, tenant improvements estimated at about $1.5 million and projected rental income of roughly $36,500 per year after improvements.

The Ottawa City Commission authorized the city manager and city attorney to finalize and execute a long‑term ground lease with Dodson Aviation for airport property during its Oct. 16 meeting.

City Attorney Finch and staff described a proposed lease that would wrap the current five‑acre lease and an additional roughly 6.92 acres for nearly 12 acres total, enabling Dodson Aviation to build a third hangar and complete associated ramp improvements. Finch said the lease term would be 50 years with two 10‑year renewable options at the lessee’s choice. The company estimates the new hangar improvements at about $1.5 million.

Finch explained lease protections: improvements must be built to a standard consistent with recent city investments at the airport, the lessee has ongoing maintenance obligations, and at lease termination the tenant must remove improvements or the city may take possession and decide whether to reuse or clear the site. City attorney and staff said the updated lease would increase annual rental income to about $36,000–$36,500 when improvements are complete (up from about $600 under the old lease). Rent rates discussed included approximately $0.23 per square foot for building space and $0.06 per square foot for land.

Representatives from Dodson (JR Dotson and Nick Dotson) were present and said the company expects to expand and hire locally; Dodson noted roughly seven employees at the Ottawa Airport operation and 60–65 at another site. Commissioners authorized finalization and execution of the lease; the vote was recorded in a roll call with a majority in favor and Commissioner Crowley absent.