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Council approves long-term lease with airport operator, formalizes short-term WPA hangar deal
Summary
The Marshall City Council approved a short-term WPA hangar lease and a long-term fixed-base operator (FBO) lease to keep Midwest/Southwest Aviation as the airport operator, add a forthcoming fuel flowage fee, and set a multi-year term with renewal options.
The Marshall City Council approved two airport lease agreements Tuesday that the city says will secure ongoing operations and allow the city to test shared hangar use.
On behalf of absent airport staff, Sharon summarized the packet and asked the council to approve a short-term lease for the Works Progress Administration (WPA) hangar and a revised long-term facility lease for the fixed-base operator. "On behalf of Jason Anderson, who could not attend tonight, I will attempt to give a really good summary of the request before council," Sharon said.
The short-term WPA hangar lease runs from 07/01/2026 through 06/30/2027 and is intended to test shared use of the space and inform a future approach. Councilmember Jim moved to approve the WPA agreement; the motion passed.
The council also approved a long-term FBO lease with the airport operator (identified in the packet as Midwest/Southwest Aviation). The packet notes the company has operated at the airport since 1974 and that the prior agreement ran through Dec. 31, 2024. The new term in the packet is Aug. 1, 2026, through Dec. 31, 2031, with options for additional five‑year renewals.
Staff said the revised agreement formalizes previously implied utility fee credits to the operator, adds construction cost‑share thresholds requiring city approval for large projects, and introduces a fuel flowage fee; staff and the operator agreed the fee level will be set later by a fee-schedule amendment. The agreement underwent review by the city attorney and the city's airport consultant.
Council members said they favored continuity at the airport and noted the importance of an experienced FBO for transient aircraft, fuel services and hangar support. The motions to approve both the WPA short-term lease and the FBO long-term lease passed on council votes.
