Springdale Airport Commission hears renovation proposal from Summit Aviaton

SPRINGDALE -- The fixed-base operator at Springdale Municipal Airport has offered to pay for some renovation at the terminal building, but asked in exchange for a lengthy lease.

Commissioners discussed at Thursday's Springdale Airport Commission meeting a proposal from Summit Aviation in Springdale for a new lease and improvements the company would pay for.

The company proposes spending up to $300,000 to do interior renovation. There is a list of nine items in the proposal stating what the company would renovate. Included are the bathrooms on the first floor, replacing the flooring on the first floor, new furnishings, a new monument style sign and painting and replacing the flooring upstairs.

"Summit will retain an architect/interior designer as needed to prepare plans and decorating designs to be approved by the commission or a committee ASAP so work can begin," the proposal states.

The proposal also lists six projects the city would need to complete. The list includes painting the outside of the terminal, repairing leaks in the roof and updating the terminal's heating, ventilation and air conditioning.

Dave Powell, co-owner of Summit Aviation in Springdale, said he doesn't know if the terminal's roof has any leaks. He mentioned water got into the building during a recent storm, but doesn't know if it all came through windows.

Chairman Neil Johnson said there are some areas of the heating, ventilation and air conditioning system needing attention. He said he wouldn't want to completely re-do the system because it's working.

The City Council approved allocating up to $45,000 from capital improvement program money for needed work on the exterior of the terminal at a Jan. 12 meeting. The work includes resealing windows and painting the exterior.

Wyman Morgan, city director of administration and financial services, has said the city applied for a $40,000 grant from the Northwest Arkansas Economic Development District on behalf of the Springdale Airport Commission. This money could help pay for the work on the terminal.

Officials have heard from the development district the application was completed to the district's satisfaction. Springdale officials will find out next week if the grant is approved.

The grant money would reimburse the capital improvement program money after money is spent on the project, Mayor Doug Sprouse has said. That means the capital improvement program would be reimbursed for all but $5,000 spent on the terminal.

The proposal also had a three updates the company wants added to its lease. The company's lease on the terminal expires in 2017, Johnson said.

One update is Summit would like to continue to have a lease on a hanger it uses. Another would be Summit continuing to lease the terminal for an increased rate of $2,350 per month, according to the proposal.

The city now gets $2,210 in rent from the terminal building, Powell said. The amount includes rent from Summit, a restaurant and another organization in the building.

Summit has proposed collecting rent from those two other entities, then paying the sum of all three rent amounts to the city, Powell said.

Summit also asks for the lease for the terminal and fuel station to last 30 years. It requests the option of two 10-year extension options. It also notes the lease rate would be adjusted every five years.

Johnson said he isn't willing to tie anything up for 30 years.

"I don't think any of us can look that far ahead," he said.

However, Commissioner Greg Willoughby said he thinks a five-year lease would be too short for a company that wants to invest.

The commissioners decided to work on the agreement in a work session Feb. 11. Johnson said he think it will take more than one work session to finish an agreement.

NW News on 01/22/2016