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Lincoln County sets new hangar ground-lease rate at $0.40/sq ft, 25-year minimum lease
Summary
After public comment and debate, the Lincoln County Commission voted 4–1 to set airport ground-lease rent at $0.40 per square foot with an annual escalator equivalent to a half-cent (expressed as 1.25% for contract language) and a 25-year minimum lease term, with escalator and terms to be reviewed every five years.
The Lincoln County Commission voted Thursday to raise the county airport ground-lease (hangar) rate to $0.40 per square foot and to adopt a 25-year minimum lease term, with an annual escalator equivalent to a half-cent (the commission amended contract language to specify a 1.25% equivalent) and a five-year reevaluation of the escalator.
Commissioner Schmidt moved the measure, citing the need to reduce a running airport deficit and to create stable lease terms that enable financing and private investment. "I have a motion that we establish the annual rent at 40¢ a square foot with a caveat that each year of a contract there is an additional half penny that is included," Schmidt said when proposing the measure.
Commissioners and staff discussed implementation details, including whether the escalator should be stated as a fraction of a cent or a percentage for billing clarity. Lincoln County auditor Sherry advised using a percentage rather than a half-cent per square foot because a half-cent is difficult to calculate in lease billing; the motion was amended to specify the equivalent percentage with auditor concurrence.
Public testimony was mixed. Hangar owners and pilots, including Craig Arnold and Dale Knuth, urged the commission to balance market rates and demand; Davies proponents argued private development could reduce county risk while others urged the county to capture revenue. Craig Arnold, a hangar owner, said the instrument approach should be a focus to attract business aviation that could increase fuel flowage and revenue.
Commissioner Putnam voted against the measure, expressing concern about the impact on existing tenants; the roll-call vote was 4–1 in favor. Chair clarified the commission will not force existing contracts to change immediately but said new or renewed leases would be offered the updated 25-year term and escalator provisions.
County staff cited the airport's current operating picture: annual income from haying, hangar rent, land leases and fuel flowage was roughly $48,500 while expenses were about $111,000, producing a deficit of approximately $63,000 for the year. Commissioners framed the rent change as one step in a multi-part plan that could include private development of hangars and pursuing additional grant funding.
The commission directed staff to draft lease documents consistent with the amended motion and to continue outreach to hangar owners about lease options and timing.
