The Daviess County Water District (DCWD) wants to purchase the plot of land where its office currently sits from the Owensboro-Daviess County Regional Airport (OWB). However, the potential sale would be accompanied by several challenges, specifically restrictions set forth by the Federal Aviation Administration (FAA), forcing the airport board and director Tristan Durbin to conduct additional research.
Ultimately, the current purchase offer for the lot at 3400 Bittel Road will expire on August 31, as the OWB board was reluctant to negotiate without an appraisal, which the FAA would ultimately require. Both parties agreed that Durbin would research the cost of an appraisal by the end of the week, and if they both agreed on the price, they could hold votes with their respective boards to move forward.
Following an agreement on the appraisal, DCED and OWB could determine the value of the property and the buildings, which is necessary because the FAA will not allow the airport board to accept anything lower than the appraised value.
According to DCWD board member Phil Haire, the water department has occupied the property for nearly 40 years, leasing the land where the buildings sit. He said they erected the buildings at their cost, and those buildings now need updates.
“With the latest lease proposal, we’re looking at spending close to $1 million on the property with additions and upgrades,” Haire said. “One of the criteria was that PSC came to us and said we need to ensure we have good approvals and long-term leases.”
Haire said he understands the OWB board’s fiscally responsible approach, as DCWD operates similarly.
“Originally, we thought we could get a good deal, but then, fair market value entered the equation,” he said. “It’s something that’s a little unbearable for our board members and our 14,000 customers that could be impacted in Daviess County.”
Still, Haire said it’s in their best interest to continue to pursue the idea of purchasing instead of improving the property that OWB currently owns, even if that means buying the buildings they’ve already paid for.
The OWB board was not against selling; they implied they wanted to do their due diligence to ensure they were acting in the best interest of the airport and the community and complying with all FAA regulations.
OWB board member Madison Silvert said the board simply can’t receive the offer without an appraisal. He and other board members expressed the importance of ensuring the property is not included in OWB’s 10-year plan—which they established it isn’t—and that its potential for future aviation use is nearly nonexistent.
“I think it’s in everyone’s best interest to follow the procedure and understand the actual value – it gives everyone better information,” Silvert said.
Durbin said the FAA’s previous recommendations have always been not to sell.
“They continually say you have to go through the process and won’t give a determination until you do,” he said. “They’ve always advised not to sell airport property.”
Some OWB board members speculate this is because it’s difficult to predict the future or if the area might encounter a surge in aircraft logistic needs. The board also agreed that proving the land would never be utilized for aviation purposes would be tough.
Haire established that OWB acquired the land in 1948 through bonds rather than FAA dollars, making the process somewhat easier.
“It’s not in the 10-year plan or the strategic plan, so it seems like a win-win,” Haire said. “It’s a good deal for DCWD as a nonprofit and OWB as a nonprofit – two agencies working together to make this happen. It would be good for the public.”
DCWD’s current lease is valid through 2027, making the current timing convenient as OWB board chair Dough Hoyt said the entire process could take close to 2 years.
Once an appraisal is conducted, both agencies must agree on the price before proceeding. The FAA would then need to approve the determined cost. From there, Durbin said the FAA would need to conduct additional appraisals, specifically an archeological study, among others, that could amount to nearly $50,000, which Hoyt said would fall on the seller.
Ultimately, the OWB board remains open to exploring the possibility of selling while maintaining its commitment to the airport and the community. Both parties hope to find a solution that works for everyone involved.
