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Mohave County supervisors press airport authority for forensic audit and contract reviews after operating losses and fuel-farm concerns
Summary
Supervisors voted multiple motions directing Mohave County Airport Authority reports after staff showed unaudited multi-year operating losses and flagged potential problems tied to a recent FBO purchase and legacy development agreements. The board ordered forensic-audit deadlines and analyses of contracts, financing and property options.
Chairman Lingenfelter and Supervisor Letman led an extended oversight session on May 18 that pressed the Mohave County Airport Authority (MCAA) to provide detailed accounting and legal analyses after staff presented unaudited FY2025 figures showing multi-year operating losses.
Auditor staff and county analysts presented a slide summary indicating a three-year net operating loss of roughly $900,000 based on FY25 unaudited actuals and the airport—s current-year projections. Supervisor Letman said the trend was "alarming," noting that FY25 had an unaudited loss of about $563,000 while the current-year projection shows another large shortfall.
The board focused on several contract and asset concerns. Letman questioned a 2004 development agreement with Park West Development LLC that appears to entitle Park West to 30% of "excess revenue" from certain subleases in perpetuity; the board voted to instruct MCAA directors to request a report comparing that agreement—s financial and liability terms with comparable agreements elsewhere in Arizona. "They did a good job for their negotiators," Letman said, summarizing the contract language.
Supervisors also requested that MCAA set a deadline for completion and delivery of a pending forensic audit and that the airport board develop an operational plan to respond to any issues identified within 60 days of receipt of the forensic audit. County staff reported the forensic audit had been expected by May 20 but had not yet been delivered.
Board members raised alarm over the MCAA—s 2024 purchase of a fixed-base operator (FBO) from Signature Aviation for about $1.42 million. Letman recounted an MCAA email describing a previously identified fuel-farm condition (a 2017 audit reportedly found tank-wall thickness at 25% of specification) and cited a $3.5 million estimate to replace the fuel farm. The board voted to request a formal analysis of the Signature Aviation purchase agreement and the financial implications to MCAA, with particular attention to the fuel-farm condition at the time of purchase.
County counsel noted the Signature Aviation agreement is governed by Florida law with venue in Orange County, Florida, and flagged potential complications for contract remedies.
Separately, supervisors directed MCAA to provide an analysis of the design, financing and replacement plan for the fuel farm, and to assemble a report listing all current and pending FAA grants and related grant proceeds and expenses. The board also asked MCAA to analyze a 194-acre parcel (APN 213-32-007) near the control tower for potential revenue-generating uses to help airport finances.
In other motions, the board asked MCAA to secure counsel to clarify whether the authority is a quasi-governmental entity or nonprofit and to confirm employee eligibility for the Arizona State Retirement System (ASRS) and related pension obligations.
The board framed these requests as oversight steps to protect county taxpayers and federal grant assurances; no direct budget transfers or immediate county expenditures were authorized by the May 18 actions. The airport—s forensic audit and the requested reports were ordered to be delivered to the Board of Supervisors for follow-up.
