OK3 AIR signed a settlement with Heber City on June 30, ending a lawsuit it originally filed in federal court in 2017. The suit claimed the city “improperly interfered with OK3 AIR’s ability to run its business” and violated its lease agreement and Constitutional rights.
According to OK3’s news release this week, the terms don’t require Heber City to make a cash payment to the fixed-base operator. However it does require the city to renew OK3’s leases for another 50 years, and allows the operator to build a new 33,000-square-foot hangar at the airport “as soon as possible.”
OK3 AIR owner Nadim AbuHaidar said the settlement and the city’s recent approval of a master plan to upgrade the airport benefit its users, and is a good outcome for both parties who can now work together.
In 2022, a Heber City staff report said a federal court issued an order dismissing a majority of the claims brought by OK3 AIR “without prejudice,” which allowed the FBO to refile those claims in state court. Since then, the parties negotiated the terms in closed sessions, which is allowed under state code when litigation is pending.
Heber City spokesperson Ryan Bunnell called it a compromise for all involved, saying ending the lawsuit and adopting the master plan is good for the community.
The Heber City Council approved both the master plan and settlement terms on June 20. Councilmember Yvonne Barney was the lone no vote for both decisions.
The master plan shifts and widens the airport’s runway, increases safety buffer areas and develops new buildings and amenities over the next 20 years.
