Passenger terminal decision on hold for airport

COEUR d’ALENE — Kootenai County commissioners put off a decision Tuesday on whether to approve a 25-year lease for the development of a commercial use passenger terminal at the Coeur d’Alene Airport, pending additional input from legal counsel.

The proposed development and ground lease is with Avports, an airport operations and management company based in Virginia, for approximately 14 acres and a base rent of around $183,000 per year for the first five years.

Airport Director Steven Kjergaard confirmed Tuesday that the proposed lease had not yet gone before the Airport Advisory Board.

Commissioner Leslie Duncan criticized the proposed lease, calling it “bare bones.”

“The county is not sufficiently protected,” she said. “If the county finds that there is significant reason to not continue, there is no out for the county. There is only an out for the lessee.”

Under the proposed terms, Avports could terminate the lease during a 180-day due diligence period, provided that no construction on the premises had commenced.

The county, meanwhile, could only terminate the lease if Avports fails to pay rent or does not begin construction by June 1, 2024.

Kootenai County attorney David Ferguson advised commissioners to engage with outside legal counsel who are more experienced in this area. An attorney with the firm Kaplan Kirsch has indicated that the proposed lease is “simplistic,” Ferguson said, which could be cause for concern.

“It may not protect the county in the best way possible,” Ferguson said. “But I don’t think we know what that means, exactly.”

Steven Anderson, who is on the board of the Coeur d’Alene Airport Association, addressed commissioners when they met Tuesday.

“This is the first time we’ve heard of this lease,” he said. “It’s a substantial lease. It’s not a typical ground lease.”

Frank O’Connell, a pilot and hangar owner, questioned whether a commercial airport so close to Spokane International Airport makes sense, especially given the proximity of residential areas to the Coeur d’Alene Airport.

“Does it make sense to duplicate what is essentially a cost-free service to the residents of Kootenai County?” he said.

O’Connell also urged commissioners to consider what neighborhoods would be impacted.

Commissioner Bill Brooks made a motion to approve the lease.

“I think we’ve had all the input we need,” he said.

The motion did not receive a second.

Though Commissioner Chris Fillios said he was reluctant to table the decision, he said more input was needed.

“The advisory board needs to take a look at this lease and weigh in,” he said. “There has to be an out. If the residents are opposed to this and the county commissioners choose not to proceed, there’s got to be an out.”

The matter will go before the Airport Advisory Board before commissioners reconsider it.