Finance Committee backs five-year FBO extension for Morey Airplane Company, leaves 10-year option subject to agreement

The Middleton Finance & Personnel Committee voted to recommend that the common council approve a five‑year extension of the fixed‑base operator contract with Morey Airplane Company to Dec. 31, 2031, with an option to extend for an additional 10 years upon mutual agreement and any required Middleton Area Development Corporation approval.

Brian, a city staff member leading the airport briefing, told the committee the current FBO contract runs through Dec. 31, 2026, and that Morey had requested the 5‑year renewal and indicated openness to a longer term. He said the airport commission recommended drafting the agreement to include the optional 10‑year renewal, but left the ultimate decision to the finance committee and common council.

Committee members pressed staff on several operational and fiscal details. One member flagged that a draft page in the packet shows the operator paying $0 monthly to the city and urged documenting the “total cost of an FBO agreement” in the city budget, including any rent paid to the Middleton Area Development Corporation, so city financial planners can prepare for replacement or acquisition of fuel facilities should the operator change. Staff said the net fiscal impact is presently $0 and agreed to follow up on how rent and budget entries would be documented.

The group also debated fuel flowage fee language. The draft stated the operator pays 11¢ per gallon and that Middleton reserved the right to raise that fee by up to 8¢ (to a total of 19¢) by Dec. 31, 2031. One member moved to strike the cap language so the contract would instead state the current fee and reserve the city’s discretion to increase charges; proponents said removing the cap preserves the city’s ability to use fees as a policy tool (for example, to incentivize unleaded fuel). Opponents warned of potential legal and market consequences if fees were manipulated; staff confirmed the current flowage fee began at 8¢ in 2021 and is now 11¢.

The committee also approved an amendment to the agreement’s right‑to‑flight paragraph to add a parenthetical recognizing Middleton’s voluntary noise abatement policy, aligning the FBO language with the existing SASO agreement.

After debate, the committee voted to recommend the FBO extension as amended. The recommendation will go to the common council for final action.

Next step: council consideration of the recommended extension and any further changes requested by staff.