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Commission approves five‑year lease with Shield AI for Hangar J South at Newton airport
Summary
The Board of County Commissioners approved a five‑year lease (with two five‑year renewal options) with Shield AI for Hangar J South and roughly three acres at Newton City/County Airport; initial combined rent is $7,500/month ($90,000/year) and a broker commission of $18,265.44 was included.
Harvey County commissioners voted Oct. 28 to approve a ground and hangar lease with Shield AI Inc. for the south portion of Hangar J, attached office space and about three acres at the Newton City/County Airport, and to approve a related broker commission agreement.
Airport Manager Brian Palmer and Jacob Miller, Shield AI representative, presented the proposed lease. Key economic and operational terms recorded in the packet include:
• Lease term: initial five years commencing Jan. 1, 2026, with two optional five‑year renewal terms.
• Rent: combined initial monthly base rent for land plus hangar/office $7,500/month (equivalent to $90,000/year) with a 1.5% annual increase on the hangar/office component; land rent listed at $2,500/month.
• Scope: approximately 10,000 sq ft of hangar, ~6,000 sq ft of office space and ~3 acres of ground; permitted uses include office, R&D, manufacturing, aircraft/engine testing and storage.
• Landlord obligations: a set of seven City/County responsibilities to be completed by Jan. 1, 2026 (road construction, ADA restrooms, office upgrades, plumbing tie‑ins, parking, broker fee payment and early access for improvements); packet lists a shared cost figure of $18,265.44 associated with City/County responsibilities and the broker fee amount of $18,265.44.
• Broker commission: packet states a commission of 4% of the first five years’ base rent, calculated as $18,265.44, payable in two installments per the commission agreement.
Palmer told the board the tenant intends to use the site for aeronautics technology work, including research, data collection/analysis and engine testing. The lease contains operational conditions (noise mitigation efforts, environmental indemnities, insurance requirements and rights of inspection) and pre‑approved lessee work including a 150’ x 150’ concrete pad and temporary/mobile structures subject to FAA compliance.
Commissioner Terry Scott moved to approve the ground lease and brokerage agreement as presented, pending minor staff revisions; Commissioner Becky Reimer seconded and the motion passed unanimously.
The lease document in the record also includes provisions allowing Lessee access 24/7, requirements for insurance (minimum $1,000,000 CSL), non‑discrimination covenants, hazardous‑materials indemnities, and landlord obligations to bring existing building systems up to code prior to commencement.
