Lexington fire department left in limbo after de-annexation from Davidson County Airport
When the Davidson County Airport was de-annexed from Lexington in July, it left a nearby city fire department in no man’s land regarding how it will continue to service the area.
In May, North Carolina Senator Steve Jarvis, who represents Davidson and Montgomery counties, submitted Senate Bill 908 which removed the Davidson County Airport from the corporate limits of the City of Lexington. It went into effect on July 1 along with two other local bills.
Want to know more about what is happening in Davidson County? Support local journalism, subscribe to The Dispatch.
This means any person or company housing an aircraft on property owned by the airport will no longer have to pay property taxes to both Lexington and Davidson County and instead just pay the county.
This bill also requires the sale of the building currently occupied by Lexington Fire Station #2 and it is no longer “technically” part of the department's coverage as part of the City of Lexington.
According to Lexington Fire Chief Paul Jarrett, the sale of the building, will not affect the response of the fire department nor lessen their coverage area, at least for a while.
“We have been assured that (the county) are in no hurry for us to go anywhere,” said Jarrett. “Nothing has changed as far as our response coverage...We still have a good working relationship with our fellow fire departments in the area and this gives us time to get a plan together.”
The de-annexation is only for property owned by the Davidson County Airport Authority, not any residential or commercial properties in the area which is still considered part of the city and in the coverage area for Lexington Fire Department #2.
One of the biggest issues is that part of Senate Bill 908 requires the sale of the fire station building by Dec. 31, 2022.
Section 2a of SB 908 states “The Davidson County Airport Authority shall purchase, and the City of Lexington shall sell to the Davidson County Airport Authority, the fire station building, and equipment located at 285 Hargrave Road, Lexington, N.C....for $2 million.”
Davidson County Manager Casey Smith said the county is facilitating the purchase of the Lexington Fire Department building on behalf of the Davidson County Airport Authority and has told fire officials they can remain in the building. He said there will be future discussion on leasing the property or other financial arrangements with the City of Lexington.
“Right now, we are working on buying the property,” said Smith. “Besides that, there hasn’t been any discussion about what Lexington is going to do, if they want to rent the building or if we can work something else out. We aren’t interested in making any problems, they can stay. We just said tell us how long you need.”
Lexington Mayor Jason Hayes said, although this local bill was passed before he was sworn in as mayor, he feels there is time to discuss the future of Lexington Fire Station #2 and its coverage of the airport.
“We haven’t talked much about what will happen in the future, but one of the things we are not going to compromise on is fire coverage,” Hayes said. “They are paying us $2 million for the building but the cost potential to build a new station would be significantly higher than that. (The county) has been very amenable in working with us from a timeline standpoint. We understand the rationale about de-annexation, and this has happened at several other airports, although acquisition of assets isn’t something that's very normal.”
More: Workshop shows development plans for Davidson County Airport
The City of Lexington built the fire station on property owned by the Davidson County Airport Authority in 2011 for $1.5 million and continue to pay debt financing on the fire station.
Lexington City Manager Terra Greene said she is not satisfied with how quickly these local bills, including the de-annexation, were passed and the impact it will have on the city budget. The city received approximately $100,000 in tax revenues from the airport each year, which it will no longer receive since the de-annexation.
"It is not about whether the airport wanted to be de-annexed, it was how it was done. It was not done in a methodical way so city officials could adjust and prepare,” said Greene.
She also feels the city is not being adequately compensated for the current market value of the building.
Jarvis said the reason he proposed the de-annexation from Lexington was because it would help recruit more companies to house their corporate jets at the airport. That the state legislature was in short session in May, and he wanted to expediate the bill so the tax reductions at the airport could become effective in July, therefore enticing new potential aircraft owners to Davidson County sooner than later.
“Local bills typically go through short session,” said Jarvis. “We have companies in discussion who want to house their planes in Davidson County, but they don’t want to pay double taxes. Having this airport is a huge asset when you’re talking about recruiting these big companies.”
As far as the $2 million to purchase the fire station, Jarvis stated that the amount well covers the remaining debt the city owes on the building.
“I feel it is more than fair,” said Jarvis. “They are not being pushed out, they can stay where they are and work out an agreement with the airport authority about a contract for fire coverage. They already have a contract on the lease of the land (where the building is located) so they can continue to work with them, if they choose.”
Jarrett said there have been talks prior to SB109 about the need to build new fire stations, including the need for a new station near 763 acres of property in Linwood recently voluntarily annexed into the City of Lexington.
He said the Lexington Fire Department is working with an advisor to create a study on the deployment of resources, meaning taking a comprehensive look at the age of all the current Lexington Fire departments and whether they are in appropriate locations for maximum efficiency.
Greene said although the City of Lexington has discussed the need for new fire stations, Lexington Fire Station #2 would probably not been prioritized for relocation as it is the newest of the current stations.
More: Commissioners consider adding $3.8 million for corporate hangars at Davidson County Airport
In February, the Davidson County Commissioners approved $3.8 billion capital investment to build new corporate-size hangars at the Davidson County Airport.
Smith said the money is the remnants of dollars set aside for future economic development opportunities after EGGER chose to buy as opposed to leasing property within the I-85 Corporate Center. With the proceeds from the sale of that property, the county was able to repay a $7 million community development block grant loan from the N.C. Department of Commerce much earlier than expected, leaving approximately $4.2 million available for future economic development projects.
Also, in 2021, county commissioners appropriated $1.2 million in overage of local sales tax funds to the Davidson County Airport, bringing the total investment to $5 million.
There are currently eight corporate-size hangars at the Davidson County Airport. The airport authority is using the $5 million in county funding to add four new corporate hangars. According to county calculations, a corporate jet valued at $30 million which was housed at one of the corporate hangers created $145,000 in county tax revenue in one year.
Jarvis said the potential growth at the airport could make a significant economic impact throughout the county, which is why he proposed the de-annexation to reduce property taxes.
He said he realizes the immediate effect it may have on the City of Lexington, but in the long run any potential economic development coming from recruiting potential corporations, and housing their jets, will be beneficial to all.
“Anytime I have worked with city leaders, county commissioners and on up, I have always said what is good for Lexington is good for Davidson County and vice versa,” said Jarvis. “We are all in this together, and even when we don’t see eye to eye, I want the best for everyone involved.”
General news reporter Sharon Myers can be reached at sharon.myers@the-dispatch.com. Follow her on Twitter @LexDispatchSM.
This article originally appeared on The Dispatch: Lexington Fire Department in limbo after de-annexation from airport
