County approves 30-year ground lease for large hangar at Flagler Executive Airport

Flagler County commissioners approved a ground lease with Upstate Companies LLC to develop a four-unit hangar complex at the Flagler Executive Airport.

Airport Director Roy Seager described the proposed development as a roughly 51,750-square-foot metal hangar complex with about 19,200 square feet of office space divided among four buildings on approximately 3.5 acres on the airport’s southeast side. The initial lease term is 30 years with two 10-year renewals; construction would be privately financed and is estimated at over $4 million, with a required build-out timeline of 24 months from lease execution.

Owner Brian Zazak told commissioners Upstate anticipates tenants that will provide aviation maintenance, avionics work and related services; one confirmed tenant is an avionics firm planning to relocate from Daytona. Commissioners asked about permitted uses, including whether flight training could operate from the site; county counsel and the director noted that FAA and FDOT grant conditions prevent arbitrary exclusion of legitimate aviation uses and that the lease language must remain consistent with nondiscrimination and grant-assurance obligations.

After public comment (none for the item) and questions, a motion to approve the ground lease passed. The airport director said the project aligns with county economic-vitality goals and could attract additional aviation businesses and employment.

Next steps: legal will finalize lease language and execute the ground lease, and airport staff will coordinate lease execution and construction oversight.