HomeMy WebLinkAboutAirport Board Brief May 6, 2026 MeetingCraig Cobia
Airport Board Brief — May 6, 2026
Task List — Current Progress
CIP & Cost Context
Rigby/Luthy Option Agreement
BLM/FAA Coordination Summary
Next Milestones
Emphasis / Recent Accomplishments
• Option agreement signed
Priority
1 i
Progress
Maintain consistent line of
5 calls, visits with Ardurra; 15 visits local
1
communication to engineers and FAA
officials; 40 discussions with others
through the approval process
Interface between the owners (city and
1.1
county) and the elected officials that can
Ongoing communication with FAABLM/other
assist in land exchange and environmental
stakeholders
approval
Williston, ND; St. George; Rock Springs; Nebraska
Network with other airport managers to
Avionics.
ensure we are on cutting edge of airport
Attended the IAMA conference. Networked with
1.2
development and management
10 airport managers/engineering consultants.
Elected to the board of IAMA.
opportunities
Planning to attend Helena Montana Conference in
he Fall. Using info to guide our tasks
3
Seek funding opportunities from State and
Researching grant opportunities. Uniform Act
AA for current and future airport
(requirement for FAA funding)
Design a plan to enable a smooth
3.1
transition to the new airport. Includes
Hangar Lease Agreement - drafted and reviewed
BO, utilities, hangars and tenant
ommitments
3.2
Help develop a sound rent factor -based
Made contacts within the avionic community that
fee system to encourage occupancy
can help us with this (ardurra reference)
3.3
Develop and maintain budgets for current
CIP info from Ardurra -hope to add Gantt Chart
and future airport facilities
4
Use database to seek and target flight
operations to use the new facility
Oversee the current facility and ensure
5
roper use of funds are applied to most
We had Airport Runway restriping completed
needed projects. Maintain and or oversee
recently
he proper upkeep of current facility
Work with potential FBO's in securing
Made contacts within the avionic community that
5.1
assets and equipment for proper fuel
can help us with this (ardurra reference)
handling
Researching Joint Powers authority as
recommended by Devin Brubaker - Rock Springs
5.2Develop
a plan for asset ownership of fuel
See 5.1
system and FBO facilities
CIP & Cost Context
• 2020 estimate: —$45M —* Updated projections approaching —$100M
Increase driven by:
Inflation + construction cost escalation
• Expanded scope (compliance, mitigation, infrastructure)
Reinforces need for:
• Phased development (via CIP)
• Early funding strategy alignment
Current focus: refining realistic, fundable project scope
Rigby/Luthy Option Agreement
• Status
o Option agreement signed
• Purpose
o Secures pathway for land control and mitigation strategy
• Key Considerations
o Grazing rights transfer not guaranteed (BLM discretion)
o Terms may change over time (seasonal/regulatory factors)
• Next Steps
o Continue coordination with landowners + BLM
o Integrate into land conveyance process
BLM/FAA Coordination Meeting
• Key Takeaways
o Airport relocation justified due to current site limitations
o BLM land conveyance is required process (not traditional exchange)
o NEPA led by FAA, with BLM as cooperating agency
• Environmental Work
o Habitat Quantification Tool (HQT) not yet completed
o Additional field data collection required (Spring/Summer)
• Risks Identified
o Grazing rights transfer uncertainty
• Risks Identified
o Grazing rights transfer uncertainty
o Mitigation site validation
• Action Items
o Draft Memorandum of Understanding (MOU)
o Continue interagency coordination
Next Milestones
• Current Phase
o Land option + early coordination
• Next Milestones
o Finalize MOU between agencies
o Advance NEPA environmental review
o Complete vegetation + habitat data collection
o Progress land conveyance request to BLM
• Long -Term
o Design phase --> Construction
o Looking to receive an updated capital improvement plan to identify all phases of the
airport project from now until airport build.
Emphasis / Recent Accomplishments
• Option agreement signed
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OPTION AGREEMENT TO PURCHASE LUTHY/RIGBY MITIGATION PROP
FOR LAND CONVEYANCE WITH BIM PROPERTY
1. This Option Agreement to Purchase Property ("Agreement") is entered into as of the
day of April 2026 ("Effective Date" b
)� 3 and between Scott Rigby and Russel Luthy
(collectively, the "Sellers") and the City of Rexburg and Madison County (collectively,
the "Buyers"), Scott Rigby is Russell I.,uthy's father-in-law and the Sellers are collectivel
into this Agreement based on the individual land parcels they OEVn. y entering
2. The "Property-
subject to this Agreement consists of no more than a total of 1,240
acres, of which the Sellers will determine the parcels or fractional parcels to be sold, if the
buyers request less than 1,240 acres in total to be purchased. The "Property" exists within
Jefferson County, Idaho and can be described as tax parcel numbers, RP06N37E017200 32
acres), RP06N38E067200 (320 acres), RP06N38E130001 (120 acres), RP06N38E200001320
acres), and RP06N38E093000 (160 acres). Note. The bold parcels are owned by Russell Lu
th
and the un-bold parcels are owned by Scott Rigby. The Property is located west of Rey,
north of HWY 33. xburg, and
3. In addition, a fraction of Parcel 4 RP06N38E070001 that encompasses 265 acres has
been identified as a potential supplemental acreage for future consideration. These 26 be studied, but it currently not part of the "Property" included for Potential 5 acres will
(specifically Scott Rib 4G p ntial sale by the sellers
gy). Again, the Property" consists of up to 440 acres currently owned by
Russell Luthy and 800 acres currently owned by Scott Rigby; with a col
acres (see Exhibit A - Rigby Allotment Ownership/Sale Map). collective total of 1,240
4. The Bureau of Land Management (BLM) and the Federal Aviation
(FAA) are the federal agencies with implications for this ultimate land purchase. The
land
Administration
purchase option .is being sought out by the Buyers to further a Land Conveyance betweena
Buyers in coordination with FAA and BLM for mitigation purposes for a new Ai ort Site
the
benefit the Buyers, rP Stte to
5. The Buyers intend to acquire the Property for mitigation purposes associated with th
Proposed relocation of the Rexburg Airport and related habitat impacts. No �Jr• e
axing land
Page I of 6
management changes are being proposed as part of this acquisition; however, it is understood b
the Sellers that the BLM would have the final authority associated with razi Y
the Property, post -sale of the Property. For. good and valuable consideration, he reczeipt nd of
sufficiency of which are acknowledged, the Sellers hereby grant to the Buyers an exclusive irrevocable option to purchase the Property, and
p Y, as generally depicted in Exhibit A.
6. As part of this Agreement, the Sellers retain grazing authorizations on the "
ieasi"Pro ertY "
consistent with and subject to BLM management practices, BLM administered
arrangements, and an approved Grazing Management Plan following Idaho Standards for
Rangeland Health.
7. The Buyers shall be granted reasonable access to the Property during the Option Period
to conduct surveys, environmental studies, biological assessments, and other due dili ence
activities necessary to evaluate its suitability as a mitigation site. g
8. As independent consideration for this option (the "Option Consideration'), the Buyers
shall pay $25,000 in earnest money within 45 days upon signing of this Agreement and an
additional $25,000 per year for each subsequent year the Option remains in effect, not to e
a total Option Period of four (4) calendar years. This Agreement will sunset (or the Option Teed
p
will expire) on December 31, 2029. The parties agree that the Option Consideration is
rm
nonrefundable, except as expressly provided herein, and shall be credited toward the Purchase Price (defined below) at Closing if the Buyers timely exercise the Option, '
shall commence oil the Effective Date and shall continue for the duration of the ptzon Period
forth in this Agreement. As a condition precedent to any payment, Sellers shall Provide tide Term set
with properly completed and executed IRS Form W-9s, together with anv other information
reasonably required to process such payment.
8.1 Escrow/Title Company
Escrow/Title Company: [Company Name]
Escrow Officer: [Name]
Escrow Contact Email: [Email]
Escrow Contact Phone: [Phone]
8.2 Earnest Money Holder: [Title Company or Escrow)
Page 2 of 6
8.3 Earnest Money: Buyer shall deposit earnest money in the total amount of T'went -
Five Thousand Dollars ($25,000,00)upon execution of this Option Agreement and a Y
Twenty -Five Thousand Dollars ? - x n additional
i$�a,400.U0} on or before January e
15 of ach. subsequent year
during which the Option remains in effect.
8.4 Notwithstanding the foregoing, the first One Hundred Thousand Dollars
($100,000'00) of earnest money shall be paid directly by Buyer to Sellers in
separate checks, one payable to Russell Luthy and one payable to Scott Ri tilein equal qu orm of two
b
and shall not be deposited with the Escrow/Title Company. All earnest money 'paid thereafter s,
shall be deposited with. the Earnest Money Holder unless otherwise agreed in writing b the
Parties. g Y he
9. The Buyers may exercise the Option at any time during the Option Period by
delivering written notice of exercise to the Sellers at the notice addresses provided below.
Upon
s set
delivery of such notice, the parties shall be bound to buy and sell the Property on the term set
thirty �-30
forth herein and shall, within business days, enter into a purchase and sale a e)
substantially in the form customarily used for Idaho real estate transactions of this ement
consistent with this Agreement. nature and
10. If the Buyers do not exercise the Option within the Option period, this Agreement
shall automatically terminate without further action by either party, and the Sellers shall r the Option Consideration as liquidated damages in full satisfaction of the option ri ht 7r et
g b anted..
11. If the Buyers exercise the Option, the purchase price for the Property ("Purchase
Price") shall be no less than $1,500 per acre. All Purchase Price negotiations will occur in
accordance with the Uniform Relocation Assistance and Real Property Acquisition Act. In the
event the appraised fair market value is less than $1,500 per acre, the Buyers shall use be st
efforts to explore all available funding mechanisms, including but not limited to requests fa
FAA participation, grants, and other t�deraI and state programs, to cover an nr difference
between the appraised value and the purchase price. Any such funding efforts and finalpurchase
price shall remain in compliance with applicable Idaho State law. purchase
12. Within ten (10) business days following exercise of this Option Agreement, the
Buyers shall deposit additional earnest money in the amount of $250,000 with the Escrow agent
ent
Page 3 of 6
identified herein. Such earnest money shall be applied to the Purchase Price at Closing and held,
administered, and disbursed pursuant to Idaho law and the escrow instructions. The Closing
timeline will be agreeable to all Parties.
13. To the extent owned by Seller and appurtenant to the Property, all water rights, ditch
and canal rights, and shares in any irrigation district or company, together with all minerals, oil,
and gas rights (collectively, the "Rights"), shall transfer to Buyer at Closing, free and clear of
encumbrances other than the Permitted Exceptions.
14. This Agreement shall be governed by the laws of the State of Idaho. The parties
acknowledge that agreements concerning the sale of real property must be in writing and signed
by the party to be charged to be enforceable. Either party may record a memorandum of option in
the land records at Buyer's cost, provided it contains only the parties' names, the legal
description, the Option Period, and such other non -financial terms as are customary.
15. Special Provision: The Sellers and Buyers have negotiated the following provision
into this Option Agreement. If the BLM for any reason disallows ALL grazing activities to the
Sellers within the Property post sale and exclusively between the ten-year span from 2030 to
2039, the Sellers will receive a check from the Buyers for $20,000 per year, for their lost grazing
opportunities. The $20,000 is applicable per year and up to a total of $200,000, through 2039.
The $20,000 payment will be made by the Buyers to the Sellers by June 30th on any given
applicable year. After 2039, there will be no further financial compensation between the Buyers
and Sellers linked to this Special Provision.
16. Sellers certify that they are not currently owned or operated by the Government of
China, as defined in Idaho Code § 67-2359.
17. In accordance with Idaho Code § 67-23)46, Sellers certify that they are not currently
engaged in a boycott of goods or services from Israel or territories tinder its control.
18. This Agreement constitutes the entire agreement between the parties regarding the
option and supersedes all prior discussions and writings. It may be amended only in writing after
mutual agreement with both parties and subsequently signed by both parties. This Agreement
may be executed in counterparts and by electronic signatures, each of which shall be deemed an
original and together shall constitute one instrument.
Page 4 of 6
Signatures
SELLERS:
Name: Scott Rigby
Address/Contact:
Signature:
Name: Russell Luthy
Address/Contact:
Signature:
BUYERS:
Name: Todd Smith — Madison County Commissioner
Address/Contact:
Signature:
Name: Jerry Merrill — Mayor of Rexburg
Address/Contact:
Signature:
Notary Acknowledgment
STATE OF IDAHO )
ss.
COUNTY OF
Date:
Date:
Date: Gf - 6 - Lz
Date: S`-
Page 5 of 6
Signatures
SELLERS:
Name: Scott Rigby
Address/Contact:
Signature:
Name: Russell Luthy
Address/Contact: ) r�
Signature: ��"_ el Date: Z �r -/
BUYERS:
Name: Todd Smith - Madison County Commissioner
Address/Contact:
Signature:
Name: Jerry Merrill - Mayor of Rexburg
Address/Contact:
Date:
Signature: _-- - Date:
Notary Acknowledgment
STATE OF IDAHO )
ss,
L"alihMM f
Page 5 of 7
On this 0day of
I - � 20 2�(- before me, the undersigned, a Not said State, personally appeare �'Y Public in and for
� known or identified to me (or proved to
me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are su
the within instrument, and acknowledged to me that he/she/they executed the s bscribed to
same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed m official Year first above written. Y al seal the day and
A
Notary Public for Idaho`'
Residing at:
My commission expires:
Page 6 of 6
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