Newton commission weighs bidding for new Shield AI airport hangar
City seeks fixed-price proposals to nail down costs before finalizing a 10-year lease for the autonomous fighter jet developer
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Sign up freeThe Newton City Commission met Thursday morning to consider seeking fixed-price construction proposals for a 33,000-square-foot hangar at the Newton City-County Airport, a crucial step in accommodating a major defense technology employer.
The proposed facility is contingent upon the city and Harvey County finalizing a 10-year lease with Shield AI, a company that recently named Newton the flight test and maintenance hub for its X-BAT autonomous fighter jet.
According to city documents, soliciting bids while continuing to negotiate the lease will give officials a clear picture of the project's total cost before executing a final agreement in late November.
The city intends to finance the hangar's construction through general obligation bonds, with the expectation that Shield AI's rent payments will cover the debt service.
Under the proposed bidding schedule, contractors would have until 10 a.m. on Nov. 10 to submit their lump-sum, design-build bids. They must commit to finishing the project by July 1, 2027, or face $850 per day in liquidated damages.
Beyond the airport expansion, commissioners were also scheduled to consider a temporary alcohol permit for a Friday event at Prairy LLC, a specialty market and deli in downtown Newton.
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