McCall council approves hangar development lease and agrees to up to $200,000 airport fund contribution for Jacob Street waterline

The McCall City Council on April 30 approved a multi‑document lease and construction agreement to allow new hangar development at the McCall airport and authorized up to $200,000 from the airport fund toward an upgraded Jacob Street water main that staff said will support a 2,500 gpm fire‑flow standard and future hangar growth.

Emily Hart, the airport manager presenting the agreements, said the package has been under negotiation for about two years and includes provisions for water and sewer utilities, taxi lane construction and tie‑down areas. Amy Holm, counsel for the developer identified in the meeting as Fal's (Matthew Falv/Fal's Earthworks), described a not‑to‑exceed $200,000 public‑private contribution that would be applied to airport infrastructure and said the developer will cover any costs above that amount.

"This water main extension across Highway 55 at Jacob Street would achieve all of our goals," Hart said, describing the effort to meet McCall Fire’s needs and FAA grant‑assurance requirements that restrict use of airport revenues to airport capital and operations.

Developer representative Matthew Falv confirmed his team has expanded planned hangar capacity and that, while the developer will pay most construction costs, the city contribution would pay for an upsized water crossing that benefits the entire airport. City staff presented estimates showing hanger leasable square footage could generate a multi‑year return and noted that increased square‑foot rental rates would shorten the projected payback.

Council discussion centered on the public‑benefit rationale and financial mechanics. Council members asked staff to amend the agenda language to clarify the contribution as "up to $200,000." The motion to authorize the contribution carried unanimously.

Why it matters: the city framed the contribution as an airport capital investment intended to improve fire‑suppression capacity across the airport and to support private hanger construction that will generate future airport revenue under FAA grant assurances. Council members emphasized the contribution is drawn from airport funds and not from the general fund.

Next steps: staff and the developer will finalize construction documents and proceed with the water‑main upgrade and hangar construction; the airport advisory committee will also consider modest square‑foot rate adjustments to improve return on investment.