The City of Longmont and Mile Hi Skydiving are working to extend an interim settlement agreement that was approved March 20 and expired June 30 whereby Mile-Hi has agreed to pay rent for its current use of property at Vance Brand Airport. Under the interim settlement agreement, Mile Hi made rent payments and both parties agreed to engage in discussions to resolve outstanding issues relating to Mile Hi’s operations at the Airport, including possible noise mitigation measures for its operations and payments for past rent under a 2007 ground lease to Mile Hi at Vance Brand Airport. As outlined in the initial interim agreement, Mile Hi has made payments of $36,634 through June 30 and has paid an additional $4,070 in anticipation of execution of the extension to the interim settlement agreement.

If the amendment is executed, the interim settlement would be extended through October 30. On August 14, 2015, the City of Longmont provided Mile Hi with the draft interim agreement extension for signatures by Mile Hi representatives.

Background
The interim settlement agreement was prompted by a dispute between the City and Mile Hi regarding a 4.15 acre parcel on the south side of the airport which the City leased for 20 years to Mile Hi beginning in 2007. At that time, Mile Hi was finalizing plans for a proposed skydiving facility that would allow the company to consolidate its facilities from the north side of the airport to the south side. The lease called for Mile Hi to begin lease payments to the City “30 days following issuance of a grading permit.” Due to worsening economic conditions following the execution of the lease, Mile Hi never built its planned facility—and therefore never applied for a grading permit. However, Mile Hi has used the property as a landing zone and to house parachutes and related equipment in a quonset hut that was later constructed on the leased land.

The City believes that it cannot permit the continued exclusive use of airport property without compensation based on certain grant requirements placed on the airport by the Federal Aviation Administration. Vance Brand has received a number of grants from the FAA, and therefore must comply with all grant requirements in order to avoid reimbursing the federal government for funds received in the past.  Mile Hi has disagreed with the City’s position.

According to the original interim settlement agreement and the extension of the interim settlement agreement, if the City and Mile Hi do not agree to terms regarding lease payments and other issues or both agree to again extend the agreement, each party has reserved its rights with respect to legal arguments regarding the 2007 lease in question. 

The interim settlement agreement was entered into under the City Attorney’s authority—with the concurrence of the City Manager—to settle threatened or pending litigation on terms in the best interest of the City pursuant to Longmont Municipal Code 2.20.061.

No specific noise mitigation actions are outlined in the agreement, and the City has made no commitments to Mile Hi other than to temporarily halt efforts to collect past lease payments that Mile Hi may owe for 2007 through a portion of 2014.

Regarding the purpose of the agreement, City Manager Harold Dominguez stated, “Extending interim agreement provides a negotiating window through the end of October to continue productive discussions on a global settlement of the Mile-Hi issues including the lease dispute, future development of the leased airport property in question, and implementation of noise mitigation measures.”  Mile Hi owner Frank Casares agreed, “I am pleased with the collaborative nature of the negotiations to date, and am committed to seeking a long term resolution of these issues in partnership with the City.”

In addition to the payments received to date, according to the agreement extension, Mile Hi will make an additional three payments of $4,070 each through the end of October.