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Wed, Jan 27, 2016

Springdale, AR Airport Commission Mulls FBO Offer

Business Has Proposed Paying For Improvements In Exchange For A Long-Term Lease

The Springdale (AR) Airport Commission has received a proposal from FBO Summit Aviation that would bring improvements to the airport's terminal building in exchange for a long-term lease at the airport.

The Arkansas Democrat-Gazette reports that Summit has proposed a project totalling about $300,000 for renovations to the first-floor restrooms and much of the flooring on the first and second levels, as well as retaining an architect /interior designer "as needed" to prepare plans that would be approved by the airport commission.

The city would be responsible for fixing leaks in the roof (if any), painting the exterior of the building, and repair of the terminal's HVAC system.

The Springdale City Council recently approved spending up to $45,000 for needed work on the exterior, which would include resealing windows and painting. The city has applied for a $40,000 grant from the Northwest Arkansas Economic Development District that would offset some of that cost.

Summit's lease expires in 2017, and the company has asked for three updates to its lease. They would continue to lease the terminal for $2,350 per month. The city currently gets $2,210 from Summit, a restaurant, and another organization in the building. Summit has proposed that it collect rent from the other businesses in the building and pass them through to the city.

Summit also wants to extend the lease on a hangar it uses, and has asked for a 30-year agreement on the terminal and fuel station with two 10-year options with rates adjusted every five years.

Airport Commission chair Neil Johnson said that he is not in favor of such a long-term lease, but Commissioner Greg Willoughby said during the meeting that a five-year lease would not be enough given the amount Summit has proposed to invest.

The next meeting of the commission will be a workshop on February 11 in which the proposal will be discussed, but Johnson said that it will likely take more than one such meeting to finalize an agreement.

FMI: www.springdalear.gov/commissions_boards/airport_commission/index.php

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