Parowan proposes new FBO operating agreement, retains city management duties

Parowan — City leaders outlined a proposed fixed‑base operator (FBO) operating agreement that aims to stimulate activity at the Parowan airport while keeping city regulatory control and FAA compliance oversight.

Staff said the draft agreement would lease the city‑owned main hangar to the FBO at $0 rent as a modest subsidy to make a rural FBO business viable. The operator would provide aeronautical services (maintenance, pilot amenities, flight instruction, and potential events), carry industry standard insurance for its activities and receive a five‑year initial contract term with renewals by mutual agreement. The city plans to retain primary airport management duties — snow plowing, weeds, NOTAMs and FAA communications — by creating a part‑time airport‑manager position. The city owns a house adjacent to the hangar; staff proposed offering it to the on‑site manager with a below‑market rental arrangement to ensure presence for security and emergencies.

The proposed arrangement would allow the FBO to propose limited hangar development under a separate ground‑lease agreement (the FBO sought reserved development rights for a block of hangar parcels, not blanket exclusivity). City staff emphasized clauses that require city approval of new commercial activities to protect community character, infrastructure capacity and FAA compliance; any activity that puts the city in conflict with FAA rules would be a material breach requiring immediate cure.

The airport board reviewed the draft and had no objections; staff will forward the contract to legal counsel and place it on a future agenda for approval. Council members discussed recruitment challenges for a part‑time on‑site manager, rent/compensation balance, and safeguards for conflicts of interest if staff work for both the city and the FBO in secondary employment.

What happens next: Staff will send the draft to the city attorney for review and bring a final contract to an upcoming council meeting for possible approval.