City of Chelan looking to acquire property near Lake Chelan Airport

CHELAN – The City of Chelan is looking into purchasing another piece property. This time it is a lot owned by Eugene Kelly located next to the Lake Chelan Airport.

During the Oct. 28 Council Meeting, city attorney Quentin Batjer brought forward such consideration.

“The land owner has notified the City of an offer to purchase that property on certain terms,” said Batjer

The lot is being offered to the City for $294,000 with $254,000 down at the time purchase. The remainder $40,000 would be carried out for five years at five percent interest for a five year term. The five percent interest would only apply in the initial six months, the seller and buyer also split closing costs.

Currently the Lake Chelan Airport is run and maintained by the City, in partnership with the Port of Chelan County.

Due to this, the adjacent property to the airport is key for future operations. Port of Chelan County Deputy Director Jim Kuntz, Executive Director Patrick Jones and Commissioners Rory Turner, gave some  feedback on the subject to the Council that evening.

“We think it’s a great asset out there and this is certainly your decision,” said Turner. He also explained to the councilmembers that over time the cost of operation at the airport will increase. However, Turner added that properties surrounding the airport could help bring in revenue.

Jones also showed his support towards the acquisition, “if you look at long term importance of air transportation to the community, it’s our view and experience that acquiring airport related land with direct access to the runway is a really smart long term investment … aviation is here to stay.”

According to Jones the Port has seen a bigger demand for hangars at the LCA, which will only keep growing. This growth will also be favorable for opening up businesses around the airport.

At the moment the lack of water access is holding back the airport’s growth.
Kuntz also believes that is a key property, “have that in public ownership, lease it back to generate revenue to reduce the subsidies that our taxpayers are paying.”

Since the Port is airport partners with the City, they will paying half of the property costs after the City purchases it from the Kelly’s.

A bona fide offer was received by Kelly from Kamron Blevins, owner of North Wing. “I am leasing a facility and I realized that unless I can buy a piece, a building and acquire that, having an asset for myself, I cannot afford to keep on paying someone else’s rent,” said Blevins.

Blevins approached Kelly because owing the property is a great opportunity for his business. For 22 years, Blevins has been designing and manufacturing hang gliders, this is consider an “airport related business.”

The airport currently has a budget of $170,000 which according to Finance Director Steve Thornton purchasing the property at the moment is very tight. The money in the budget at the moment provides all the cash flow for operations and it also supports equipment replacement at the airport.

Turner stated, “if financing is an issue, the Port could step in and help somehow if that helps you. Again it is Council decision and we want to be supportive in whatever way we can.”

That evening there was a lot of variables on the table and Council needs more information in order to get a full clear picture of the gains and losses of purchasing the parcel.

The City has until Nov. 9 to act on this and notify Kelly if they are interested in the offer. A final say for the property acquisition will be put on hold until the Nov. 6 budget workshop.