Discussion advances on Walters hangar lease, site plan and state grant application

Participants at a meeting about the Walters hangar lease discussed site placement, stormwater, lease terms and state funding that could help prepare a pad for construction.

Doug, speaking early in the meeting, said the project currently lacks recent survey data and that preliminary measurements and the city’s approved Airport Layout Plan suggest shifting the proposed building about 80 feet back from the apron. “Our ideal is about 80 feet back from the apron,” Doug said, adding that the setback would allow the targeted building height while reducing the need for costly stormwater infrastructure.

Board members and staff described the trade-offs. At the 80-foot setback, staff estimated a peak building height near 34 feet; closer placement would create a three- to four‑foot grade change across the pad that would complicate apron access and require substantial grading. Doug and others recommended conducting a formal survey and a drainage study before final siting decisions are locked in.

On drainage, staff described a swale solution routed to the north as significantly cheaper than collecting runoff in large-diameter pipes or inlets. Alexa explained that a graded swale would avoid heavy pipe costs and preserve room for future development, while noting the state or federal grant match decisions will influence how robust the construction is.

Negotiations around the lease were a central focus. Staff proposed moving some lease provisions into an operating-rules addendum (covering maintenance, allowable uses and enforcement) and asked the board to settle the two major negotiable items: term length and rent. Jonathan said his initial proposal listed 5 cents per square foot, roughly $500 per year on a 10,000‑square‑foot pad. “My initial proposal … had 5 cents a square foot listed on there,” Jonathan said. Board members discussed alternatives: raising the per‑square‑foot rent (many favored moving toward 10 cents) and allowing a period with no escalations (for example, 10 years) to make the deal financially feasible for a developer.

Members framed incentives as a tool to attract aircraft and preserve FAA entitlements. One participant noted the airport needs a 10-aircraft base to secure entitlement funding; several said attracting private hangars would boost fuel sales and longer-term revenue. Staff and members also reviewed comparables from nearby airports to ensure lease terms remain competitive without “giving the farm away.”

Timing and funding influenced next steps. Alexa said the state grant program normally follows an 85/15 cost‑share and that applications could be submitted once the state fiscal year opens in July; she added that a request scored with a stronger local match (an 84/16 split) could improve competitiveness. Alexa also gave the typical maximum figure the board could request for the state grant: “The maximum amount that we can ask for at this point … is $300,000.” If the city intends to rely on state funds to cover site prep, work cannot begin before the state fiscal year starts, meaning grading would likely be summer or fall if the grant comes through.

The group agreed practical next steps: staff and Jonathan will refine the lease and the proposed addendum; the board will prepare a council briefing (planned for April 6) to educate council members about the airport and the project; and the board will ask the council at its April 27 meeting to consider submitting a formal state grant application. Staff said they can issue a public notice and hold the required hearing once terms exceed the city’s advertising threshold (generally a 30‑day notice window), so formal council action could follow within roughly a month after finalization.

Staff also recommended issuing a task order to complete survey and drainage work so siting, grading quantities and final cost estimates are grounded in measured data. Board members noted the airport’s longer‑range CIP already includes grading and runway work that would support FAA investment in vertical projects later, and they flagged the need to coordinate airside improvements with the FAA to qualify for federal hanger funding.

The meeting closed with agreement to continue lease negotiations, pursue the state grant application at the April 27 meeting, schedule council outreach in early April, and task staff to develop survey and drainage cost estimates.