The Upper Cumberland Regional Airport Board approved a new hangar lease agreement that will gradually reduce rent subsidies over the next five years.
The discussion centered on Aviation Services of Tennessee, which has paid approximately $500 per month for a 9,000-square-foot facility for the last decade. Board member Bill Austin said the board should not be in the business of subsidizing rent for any specific entity at the airport.
“I just don’t think the board needs to be in the business of deciding who gets a subsidy and who doesn’t, because there’s too much politics involved,” Austin said. “I can give you 10 good reasons why I need a subsidy, and I’m sure everybody here can give you 10 good reasons why they need one.”
White County Executive Kyle Goff said the new structure provides a stair-step approach to bringing rates closer to market value while acknowledging the service requirements placed on the tenants.
The board initially considered a proposal for a 75 percent discount that would decrease by 15 percent annually. Goff said the approved amendment sets the discount at 75 percent for the first year, followed by 70, 65, 60, and finally 50 percent in the fifth year.
“My job is to service the people here,” Aviation Services of Tennessee owner Kevin Alderman said. “If you want to go up to the 3, 4, $5,000, you won’t have anybody here to do this anymore because the money’s not here.”
Austin said the business should not have a competitive advantage over others on the field, while other board members noted the company is required to be on call 24 hours a day to service transit aircraft and jets.
“We have to supplement for certain services as well for them to be available,” Board Member Dr. Charlie Huddleston said. “I can’t offer a surgery at 2:00 in the morning if somebody comes in with a perforated colon unless we have anesthesia available, and we have to supplement them to be available.”
The board also updated general hangar lease requirements to ensure all based aircraft are airworthy and insured. Interim Director Heather McBride said the airport has faced issues with planes sitting for years without being flown or maintained.
McBride said the new lease requires tenants to maintain a million-dollar liability insurance policy and keep aircraft in annual inspection. Austin said any tenant whose plane is out of annual for more than a year should be required to provide a justification to the board.
The board also moved its monthly meeting time from 4:00 p.m. to 3:00 p.m. on the second Wednesday of each month.
