Trudy - KORA the lease (Thanks)

 The 80,000 sq. ft. MRO hangar at Topeka Regional Airport (Forbes Field) has an estimated total project cost of approximately $25 million. Here's the current breakdown of who's paying based on public statements and records as of early 2026:

Primary Funding Sources

• State of Kansas: $10 million appropriation (from the State General Fund via Senate Bill 125 in the 2025 legislative session, through the Kansas Department of Commerce). This was originally proposed higher (around $15.5 million in early concepts) but was reduced during budget negotiations. It requires a local match and is described as helping offset a significant portion (roughly 40%) of the cost.
• Private Developer (Davcon Aviation): The developer is building the hangar under a long-term ground lease with the MTAA. Davcon is "committed to investing at least $25 million" in the overall project (which includes the hangar itself plus related site work on ~300,000 sq. ft. of apron land). They are taking the lead on construction, with confidence they can attract an end-user tenant (MRO operator) even before full completion.
• MTAA (Local/Public Share): The remaining costs (site preparation, utilities, design elements, and any match beyond the state grant) fall to the Metropolitan Topeka Airport Authority. Early planning documents estimated the local match could range from ~$4 million to $10+ million depending on final state support and other sources (e.g., unexpended federal grants). MTAA may cover this through:
  • Existing or future unexpended grants.
  • Bond issuance or debt service (MTAA has bonding authority as a taxing entity).
  • Operating revenues or other airport funds.
  • Possible additional local contributions.

Construction is slated to begin in summer 2026, with completion targeted for late 2027.

How MTAA Ultimately Pays (Taxpayer Connection)

As a taxing authority, the MTAA levies property taxes on real estate in its district (primarily Shawnee County). Its 2026 proposed budget includes a mill levy of about 2.176 mills, generating roughly $5.28 million in ad valorem (property) taxes for the year. These taxes help fund operations, debt service, and capital projects. Any shortfall or debt related to the hangar could be covered by future tax levies, airport revenues (fuel sales, leases, fees), or grants. Developers/tenants on MTAA land pay no real estate taxes as an incentive, shifting more burden to general taxpayers in the district.

In short:

• State taxpayers (via Kansas general fund) → $10 million.
• Private investor (Davcon) → Majority of construction investment via lease.
• Local Shawnee County / Topeka area taxpayers (via MTAA) → The balance through taxes, bonds, or airport revenues.

MTAA leadership has framed this as a low-risk deal for taxpayers because the private developer bears much of the construction risk and will repay through lease payments and future economic activity (jobs, fuel sales, etc.). Critics argue it's speculative spending with uncertain returns, especially given the airport's current scale.

For the most precise details (e.g., exact lease terms, bond plans, or cost overruns), I recommend a KORA request to the MTAA, Shawnee County Clerk, or City of Topeka for:

• The full Davcon lease agreement.
• Board packets/minutes discussing hangar financing.
• Updated budget documents showing debt or match allocations.

You can find MTAA's MRO concept paper and budgets on their website (mtaa-topeka.org). If you'd like sample KORA language tailored to the hangar funding, or help contacting the Shawnee County Commissioners (who appoint two MTAA board members, including Michael Munson), let me know!

Trudy -