Beaufort County airport board backs county loan to build hangars at Buford Executive Airport

The Beaufort County Airport Board on July 18 voted to recommend that County Council pursue a county loan to finance construction of new hangars at Buford Executive Airport, a move board members said is intended to keep the buildings county-owned and produce long-term revenue for the airport.

Steve, acting deputy director for Beaufort County Airport, presented three funding scenarios to cover an estimated $5.9 million project cost and described anticipated revenue streams from T-hangar rentals and a larger nightly-rental “hotel” box hangar. He said the board had conservative revenue estimates of about $187,000 annually and that the county loan approach (Option C) would require roughly $3.9 million in borrowing after using ARPA and state grant funds.

"We would be asking for a loan of roughly $3.9 million," Steve said, describing interest assumptions used for the board’s analysis. He added that the airport’s conservative revenue projections show the facility could cover debt service under the sample amortization schedule provided by county budget staff.

Board members pressed for realistic rent assumptions and for clearer margin protection. Howard, a board member, urged more conservative public messaging but supported higher initial rates. "I would recommend that we make it at $6.50," Howard said during debate, referencing the per-unit monthly rent used to improve projected cash flow.

Brian Cronin, the airport budget staff member, provided the sample amortization schedules and said the conservative revenue projection produced an annual loan repayment figure that the airport’s estimates could cover. "Based off the revenues that we could get, we could easily pay the debt service," Cronin said.

After discussion of alternatives — selling hangars or using license fees for tee hangars — the board voted in favor of recommending Option C to county council, with the board asking staff to present a higher, more realistic starting rental rate (the board discussed figures such as $6.50 per square foot/month or equivalent around $650 per month for some hangars) when the proposal is refined for council review.

Board members said county financing keeps the asset under airport ownership and preserves future revenue upside. "You own those hangars," one member said, urging the county-loan route as a way to retain long-term value.

Next steps: the board will forward the recommendation to Beaufort County Council for consideration; staff said bids for civil and construction work will proceed, with construction bids expected to be released in August and more detailed financials supplied to council when available.