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Council approves 30‑year Trimble Aviation FBO lease and extends FAA lease at McMinnville airport
Summary
Council adopted Ordinance 5176 to award a 30‑year (plus 10‑year option) FBO lease to Trimble Aviation, which plans $350K–$750K of investment in a new terminal and hangar improvements; the council also adopted Ordinance 5177 to extend the FAA lease for a small office space, both measures passing unanimously.
Council approved two airport items on April 14. Public Works Director Jeff Huner presented the recommended award of the fixed‑base operator (FBO) lease to Trimble Aviation after a competitive review of proposals. The proposed agreement is a 30‑year lease with a 10‑year extension option, reflecting Trimble’s proposed capital investment at the McMinnville Municipal Airport and the airport’s multi‑decade planning horizon.
Key lease highlights presented to council included a commitment by Trimble to invest $350,000 (and potentially up to $750,000 if the city receives a Connect Oregon grant) toward a new permanent general aviation terminal, a lease‑credit reimbursement to Trimble (up to $175,000 spread over 15 years), and a monthly lease revenue increase compared with the expiring contract. The proposed contract also separates airport management duties from the FBO agreement and anticipates shared tie‑down/overnight parking fee revenue.
Huner emphasized that the longer lease term helps the city attract capital investment: a developer or operator needs sufficient time to amortize terminal and apron investments. The ordinance includes termination and default protections for the city and a clause that city ownership of improvements reverts to the city at lease end.
Council voted unanimously to adopt Ordinance 5176 on first and second readings and to adopt Ordinance 5177, a 10‑year supplemental FAA lease extension covering approximately 616 square feet of airport space used by the Federal Aviation Administration.
Why it matters: the airport lease is intended to increase airport revenue, attract private investment in airport facilities, and position McMinnville to expand aviation services. The city will own improvements at lease end, while the longer term aims to allow the operator to recover capital costs.
What happens next: staff will finalize lease documentation and work with Trimble on terminal and hangar improvement timelines, seek grant opportunities (e.g., Connect Oregon) to match operator investment, and bring administration agreements forward as needed.
