Springdale Commission Considers Airport Operator Extension

Friday, December 20, 2013

SPRINGDALE — The services provider at Springdale Municipal Airport could soon have a longer contract.

Springdale's Airport Commission discussed Thursday extending Summit Aviation's contract for 25 years as fixed-base operator. A fixed-base operator at the city airport is a commercial business that provides fuel, repairs and other services for aviation.

The extension, proposed by Summit, included an agreement allowing Summit to continue to operate from a hangar built on airport property for another 12 years. The current agreement, inherited by Summit when it took over airport operations, calls for the hangar to become city property in June 2016.

The hangar was built by Springdale Air, a previous fixed-base operator.

The new agreement delays turning the hangar over, but would keep Summit paying taxes, maintenance and insurance. Summit would also spend about $150,000 to demolish an old fuel area and add another tank to the new fuel area. The airport has two groupings of fuel tanks from the time when there were two fixed-base operators, said Wyman Morgan, city director of administration and financial affairs.

Summit needs the longer contract as operator to be able to borrow money for the renovation, said Dave Powell, an owner of the company.

“We want fair compensation for us and for the city,” Powell said. “We think both can win.”

Commissioners weren't sure about the length of the new contract.

“This is about how much control we give up,” said Neal Johnson, commissioner.

Situations can change, Johnson said, and what's a good deal today may be bad in the future.

The long contract would lessen the ability of the commission to react to events, said Micah Thomason, commissioner.

The commission also discussed setting a percentage of fuel sales as the airport’s share.

Tommy Lee, a pilot and owner of two businesses at the airport, said a fixed amount would be best for pilots. Sales taxes will rise and fall with the cost of fuel, he said. The sales tax is were the airport’s cut could increase, he said.

The commission will discuss the contract at an 11:30 a.m. meeting Jan. 2.