Waterloo Considers Legal Action Over Airport Lease Dispute

Oct. 27—WATERLOO — The city is considering legal action against a hangar tenant at the Waterloo Regional Airport.

The tenant, Kingfisher Aviation, is delinquent on its lease agreement and has halted communication with city officials, said City Council member Margaret Klein on Monday. She said a letter will be sent to the tenant from City Attorney Martin Petersen. Petersen said he last reached out to the tenant in June about a March contract, but has not heard back since.

"We get a little correspondence, and we get a little something, and then there's no follow-through or seldom a follow-through that we expected," Klein said.

Council member Ray Feuss said the dispute began almost two years ago. The tenant is paying amounts outlined in a temporary agreement from February, Petersen said.

"It's time to do a little more, push a little harder to get everything solidified and agreed upon and put in writing — as everything should be — and just to make sure that the city of Waterloo is receiving its just and honest payments in a timely manner," Klein said.

Council member Dave Boesen asked for more specific information to be sent to council members.

"There's no responses to our inquiries or to our legal inquiries, and so... the board at the airport believes it leaves them with no option except to move along on an official legal path," Klein said.

The reason for the dispute is unclear. At an Airport Board meeting in September, airport director Keith Kaspari said work is being done at the hangar, including mold mitigation.

Kingfisher Aviation opposed a proposed corporate aircraft hangar at the Waterloo Regional Airport in 2019. A 12,800-square-foot hanger was proposed to sit southwest of the airport terminal, near the Kingfisher Aviation hangar. Kingfisher said the proximity to its own hangar would cause ramp congestion.

Developers agreed to move the corporate hangar 180 feet away from the Kingfisher hangar. A 50-year land lease was then approved by the City Council, and the project received property tax rebates from the city.

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