Supervisor urges state audit and more local oversight of Mohave County Airport Authority

Mohave County Supervisor Rich Letman told the Bullhead City Council on Aug. 5 that Mohave County has unresolved questions about the Mohave County Airport Authority’s (MCAA) finances, governance and transparency and is pursuing further review by state auditors and legal authorities.

Letman and Mohave County attorney William Davis described a pair of long‑term leases covering the Laughlin Bullhead International Airport and adjacent revenue parcels. Davis said the lease documents were bifurcated in 2005 into a master lease for the commercial parcels and a separate airport operations lease; both leases have terms that expire in December 2048 and include language allowing the airport authority unilateral extension rights in some circumstances.

Letman said the county has not received timely audited financial statements and is concerned that the MCAA operates as a nonprofit that pays no property tax on leased land, which he said has deprived local taxing districts of revenue for decades. "This is one of the worst deals ever executed by the county for the taxpayers who live in Mohave County," Letman said in the presentation. He cited county estimates that vacant parcels north of Sam’s Club represent lost tax receipts and described an earlier period in which the authority reported about $2.5 million on hand following CARES Act funding in 2022.

Letman outlined county requests and actions: asking the MCAA board president and executive director to present before the Board of Supervisors (which he said did not occur), seeking two years of audited financials (which the county requested and has not yet received for some years), and requesting a voting seat for Mohave County — and for Bullhead City — on the authority’s board so local interests are represented.

He summarized additional county concerns that have prompted referrals and potential state involvement: a roughly $1.46 million check tied to acquisition of a fixed‑base operator, an early payoff of about $1 million in debt, the authority’s reported plan to apply for a $5 million loan to replace fuel‑farm tank walls described as at diminished thickness, and a reported 2024 embezzlement of roughly $100,000 (the authority paid a $5,000 fee and insurance covered the remainder, Letman said). Letman said county staff has collected documents from multiple MCAA board members and has asked the county attorney to review possible violations of Arizona open meeting law and other matters; he said the county may seek JLAC (the Arizona Legislature’s Joint Legislative Audit Committee) or auditor general involvement and could refer appropriate matters to the attorney general.

During a question‑and‑answer period, county attorney Will Davis said the leases provide inspection and book‑review rights and that the county will attempt to exhaust contractual remedies before escalating to subpoenas or other enforcement actions. Several council members asked whether legislative or FAA/ADOT channels could provide records; staff said FAA/ADOT reporting is another avenue and that some financial records for FY 2022 had been obtained while FY 2024 audit work remained outstanding.

Letman urged the council to press for a local seat on the authority board and to seek clarity on how federal CARES Act funds and sublease revenues were used. The council voted to move into executive session after the presentations; the motion carried 7–0.