LOXLEY – Last minute changes to a 40-year lease agreement forced the Baldwin County Board of Education to postpone the aviation training center to be housed at the Fairhope Airport.

“I’m not comfortable with it right now,” district financial officer John Wilson said during a special called school board meeting Thursday. “A few details were added today. I think we can work it out in a few days. I just can’t recommend moving forward right now.”

Under the agreement announced in February, Baldwin County Public Schools would enter into a partnership with Faulkner State and Enterprise community colleges and private industry to provide aviation and aviation industry related courses. The high school students would use the facility during the day. College and adult education courses would use the facility in the evenings.

“We are working under a tight time line,” said Superintendent Alan Lee. “We would like for it to be completed so students could occupy the building by the second semester of the next school year.

“After seeing several changes to the documents, it may not be wise to move forward. Alabama requires arrangements be made to shelter students (in the event of bad weather) and I’m not sure if that has been addressed.”

Another hitch was the project cost increased $100,000 to $2.7 million without an adequate explanation. One detail Wilson did negotiate out of the deal was a “pretty substantial” balloon payment at the end of the lease.

Payoff in seven years

While the school board was not ready to sign the complete agreement, they did agree that the long-term lease should be paid off quickly. The district had the option of spreading the payments over seven, 10 or 15 years.

The short term offers the lowest interest rates but the largest monthly payments. Stretching it out over 15 years would mean half the monthly payment, but the interest over the life of the lease nearly tripled. Wilson said that with a seven-year lease, the interest would be about $260,000. The figure jumps to $760,000 over the life of the 15-year lease.

“We can meet the financial obligation of the seven-year lease,” said Wilson. “It will give us the lowest interest rate and we won’t be locked into any long-term obligation.

“And, at the end of the seven years, we will only be responsible for minimal expenses and insurance.”

School district attorney Scotty Lewis said the lease for seven years would be around 2.39 percent interest, but that figure could drop to 2.0 percent or even lower.

Possible expansion

Officials believe the program will take off as Air Bus gets closer to operation in Mobile.

Curriculum director Julia Bryant said there is already a good bit of interest among high school students. With the addition of the two community colleges, plus adult workers looking for new skill sets, “enrollment will take care of itself.” said Bryant.

The courses will be taught in a building to be constructed on the edge of the airport facility. That will allow for expansion if needed. The site was chosen because the Fairhope Airport is within 15 minutes of about 80 percent of the county’s student population.

“With the growth of the county, I can’t see us ever closing this,” said board member Bob Callahan. “It’s more likely that we will want to expand the career technology portion.

“This could easily be expanded. And we have had discussions in the past about creating a vocational high school. Because it is outside the airport fence, adding on wouldn’t be a problem.”

The school district cannot buy the land, but will enter into a long-term lease for the use of the land under the school building. The Fairhope Airport Authority will construct and own the 15,000-square-foot center.