Middleton panel approves 5‑year FBO extension, asks to pursue parity with 15‑year term

The Middleton Airport Commission on Oct. 9 approved a five‑year extension to the fixed‑base operator agreement held by Mori Airplane Company and asked staff to pursue parity with a 15‑year term in subsequent negotiations.

The commission voted to allow Mori to exercise its contract option to extend the FBO agreement to Dec. 31, 2031. Chair indicated the motion was seconded and the board recorded voice approval. Commissioners then passed a separate motion directing staff and council to explore extending the FBO term so that, over time, the FBO agreement could equal a total 15‑year term — a parity measure discussed in relation to a separate SASO (specialized aviation services and operations) agreement that already runs 15 years.

The vote followed a prolonged exchange about insurance limits and contract language. Commissioner Charles asked whether the contract’s insurance requirement — written at $5 million in the current FBO draft — was sufficient and whether a higher policy (for example, $10 million) should be required. Staff and several commission members said they had to survey the market and peer airports; one participant said higher policies are uncommon in the market. "I don't know that we can come up with a $10,000,000 liability," the airport manager said during the discussion.

Commissioners also noted the Middleton Area Development Corporation must sign off on any extension because it owns the terminal building. Staff recommended handling the votes as separate motions so the five‑year option could be resolved now while any longer‑term parity discussions and negotiations with MADC proceed later.

Next steps: staff will coordinate with the Middleton Area Development Corporation and present the FBO extension paperwork to the common council. Any additional changes to insurance or later term extensions were left for future negotiation and possible council review.