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Committee backs sending $4.3M airport hangar plan to council under hybrid funding option
Summary
The finance committee voted to forward to council a recommendation for a $4.3 million investment in hangar construction at Beaufort Executive Airport, favoring a hybrid option that splits the amount 50/50 between a $2.15 million general-fund contribution and a $2.15 million long-term loan to the airport (the proposal included a 30-year term at 0.5% interest as presented).
Beaufort Executive Airport representatives asked the committee to recommend a $4.3 million investment for construction of additional aircraft hangars; after discussion the committee amended the recommendation and forwarded a hybrid funding approach to county council.
The airport representative outlined high demand for hangar space (34 existing T-hangars at 100% occupancy and a waiting list of 68) and argued that new hangars would generate lease revenue and increase based aircraft and personal-property tax revenue over time. He said site work has been funded and that the vertical build-out remains.
The committee reviewed three funding options and, following member feedback, agreed to recommend "Option 2": split the $4.3 million so that $2.15 million would be an investment from the general fund and $2.15 million would be a long-term loan from the county to the airport. The draft motion described the loan as a 30-year instrument at 0.5% interest; some members expressed discomfort with the low interest assumption and asked staff to return with alternative rate scenarios and the option of structuring the loan more formally before final adoption.
Supporters said the hangars would relieve apron congestion, increase based-aircraft counts and produce additional property-tax receipts tied to aircraft. Critics asked whether the loan terms were appropriate and whether airport-generated personal-property tax revenues should be reinvested into the airport rather than the general fund.
Next steps: the committee forwarded the amended recommendation (Option 2) to county council for first reading; staff will present alternative loan-structure and interest-rate scenarios and additional financial projections as the ordinance proceeds through council review.
