Regional Airport Board approves consent to financing for Hangar 23C with safeguards for airport property

The Regional Airport Board approved a consent-to-financing agreement tied to the assignment of Hangar Site 23C from Dillon Ripley to Cloud 9, with board members stressing protections to prevent airport land from being encumbered.

Airport Director Caden Young said the board and city must ensure "real property at the airport is not used as collateral for any kind of loan," adding the consent document was reviewed with the bank to reflect that concern. Young said the bank will file a UCC-1 financing statement to secure chattel (personal) property rather than the city's real property.

Board member (S3) asked whether the bank would file a UCC-1; Young confirmed that it would, and staff and board members discussed the legal effect: a UCC-1 gives the lender a security interest in chattel (personal property) and allows repossession of fixtures or equipment on default, but it should not allow the lender to seize city-owned real property.

A staff speaker (S6) noted the board previously encountered a tenant leasehold mortgage that encumbered airport property and said that case is being handled through litigation; the board discussed ensuring future lease consents require the same protections.

Chair moved the consent agreement; the motion was seconded and approved by voice vote. The board directed staff to proceed with execution and to obtain the banks signatures consistent with the agreement.

The action preserves the airport's long-term control of its real property while allowing the tenant's financier to take a security interest only in personal property attached to the hangar, according to discussion at the meeting. The board recorded the motion and closed the item.