Stuttgart's City Council voted unanimously Tuesday to require CAVU Aerospace owner Bryan Hancock to provide either a personal guarantee or a security bond lasting 10 to 20 years before the city moves forward with financing a $1.3 million expansion of the company's operations at Stuttgart Municipal Airport. The condition is meant to protect taxpayers if CAVU can't keep up with lease payments on a facility the city itself would build and own.
Under the arrangement approved by the council, the city would borrow from Farmers and Merchants Bank and construct the new building on city-owned airport property, according to the Stuttgart Daily Leader. CAVU would then sign a 20-year lease, with those lease payments covering the mortgage, while the city retains ownership of both the property and the building itself.
The council had already laid groundwork for the project at its Sept. 1 meeting, approving Resolution No. 2026-09 to authorize the borrowing. The new building is expected to mirror CAVU's existing facility at the airport, and the project would let the company consolidate its Stuttgart and Roswell, New Mexico, locations under one roof in Stuttgart.
Hancock Pushes Back on the Guarantee Requirement
Hancock was not in favor of providing a personal guarantee or security bond, the Daily Leader's report notes, setting up the central tension aldermen worked through before Tuesday's vote. Alderman Henry Newby said he recognized the city's financial situation but also said he understood Hancock's position, noting that a security bond would come with its own monthly payments for the business owner to shoulder.
Alderman Karolyn Jackson said she'd support a 10-year security bond rather than stretching the requirement out to 20 years. Alderman Darrin Haller raised a more pointed question, asking whether the city could afford its loan payments if something happened to CAVU and the building had to be leased out to another business instead. Alderman Teddy Holt was direct about the stakes, saying the city could not shoulder that kind of financial burden on its own.
In the end, the council agreed it had to be cautious with taxpayer dollars even as members expressed support for helping a local industry stay in Stuttgart and grow. All aldermen were present for the vote, which requires Hancock to provide one form of security or the other before the expansion can proceed.
Roswell Consolidation Plans
Mayor Norma Strabala has said CAVU intends to close its Roswell operation and move those functions to Stuttgart, according to Deltaplex News, though that outlet's report also noted CAVU itself had not independently announced a Roswell closure. The company has previously described ambitions to keep growing its footprint: in a 2024 profile, Hancock said CAVU hoped to keep expanding its aircraft dismantling, recycling and asset-management services, and at that time was also looking at adding services and capacity at its Roswell repair station.
Other Business Before the Council
Separately, Strabala said she is working with the Arkansas County judge on ditch cleaning in the North Hills area aimed at improving drainage there. The city and county have agreed to split the cost of that work, with Stuttgart expecting to pay roughly $50,000 for its share, which the mayor said can come from the drainage portion of the city's bond funds. Strabala also said she hopes to hear soon on a Delta Regional Authority grant application the city submitted earlier this year.
The council additionally approved minutes from its Oct. 20 meeting and voted to pay the city's bills during Tuesday's session. The next regular Stuttgart City Council meeting is scheduled for 5:30 p.m. on Nov. 17 at City Hall.
