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Council approves sublease license terms for Hangar 1 and adopts shorter construction deadlines for defaulting hangar leases
Summary
Council authorized staff to draft a memorandum of understanding approving a sublease to LifeLink 3 with a license for adjacent parking (at $0.20/sq ft), a five-year right of first refusal and maintenance responsibilities; separately, council adopted a settlement timeline shortening extensions for three defaulting hangar leases and made termination automatic if deadlines are missed.
City staff presented two airport-related matters: a proposed sublease of Hangar 1 from Northern Plains Aviation to LifeLink 3 and settlement agreements intended to resolve defaults by several leaseholders who failed to construct hangars on leased airport lots.
Jolene, a city staff member, said the proposed sublease to LifeLink would allow corporate aviation and emergency medical services training, and that the airport commission recommended approval of the sublease while deferring lot-rate and policy decisions to council. The proposed license for an adjacent lot would allow temporary overflow parking and was priced at $0.20 per square foot (about $1,280/year for an ~80x80 lot). The draft included a right of first refusal for five years, to be exercised within six months if triggered. Chris Webb, an operating partner of the hangar, said LifeLink would bring operational resources such as jet fuel service and professional management that could benefit airport operations.
Council directed staff to draft a memorandum of understanding to finalize the sublease and license terms, including language that the parking license would terminate if LifeLink were no longer the tenant and that the licensee would be responsible for snow removal and mowing on the adjacent lot.
On a separate airport matter, the city attorney presented draft settlement agreements for three lots in default. After discussion about appropriate extension timelines and concern about lengthy delays, council adopted shorter deadlines: submit hangar plans by Oct. 1, 2026; obtain a building permit by Jan. 1, 2027; and complete construction with a certificate of occupancy by Dec. 31, 2027. The settlement would automatically terminate leases that fail to meet those deadlines.
Both items passed after motions and votes; one abstention or opposition was recorded on each item as noted in the minutes.
