Washington Developer Sues City of Lewiston, Nez Perce County Over $8 Million Airport Hangar Dispute
Lawsuit Claims Airport Authority Backed Out of Signed Agreements, Left Developer With Unusable Facility
A multimillion-dollar lawsuit is now working its way through the courts in Nez Perce County, Idaho, pitting a Washington-based real estate developer against the City of Lewiston, Nez Perce County, and the Lewiston-Nez Perce County Airport Authority over an aircraft hangar development deal that allegedly collapsed after years of cooperation.
Mad Properties LLC, based in Washington state, filed the suit in January, claiming it was left holding an $8 million aircraft hangar it says it can no longer use — along with hundreds of thousands of dollars in mounting losses — after the airport authority abruptly withdrew from signed agreements tied to the project.
The dispute traces its origins to December 2021, when Mad Properties first approached the airport authority about constructing a large aircraft hangar near the Lewiston-Nez Perce County Airport. According to court documents, the authority worked closely with the developer over the following years, assisting with FAA approvals, construction planning, and infrastructure development, including utilities and access ramps.
By August 2024, the airport authority had drafted and signed agreements connected to the project, including a real estate purchase and lease arrangement totaling more than $230,000. However, Mad Properties alleges that just weeks after those agreements were executed, the airport authority board withdrew from the deal entirely. The company says it was subsequently told to remove its aircraft from the facility and informed the hangar could no longer be used for aircraft operations.
Developer Cites Mounting Losses, Challenges Airport Authority’s Legal Standing
Since September 2024, Mad Properties estimates it has been losing more than $20,000 per month as a result of the dispute. In addition to the primary hangar investment, the lawsuit seeks damages for those ongoing financial losses as well as approximately $277,000 in additional construction-related costs.
The complaint raises several distinct legal claims. A claim of unjust enrichment alleges the company spent roughly $276,000 on utilities, fencing, and other site improvements that directly benefited the airport — costs the developer argues it should be reimbursed for regardless of how the contractual dispute is resolved.
A separate trespass claim alleges that underground utilities were installed or left on Mad Properties’ land without proper authorization, causing an estimated $143,000 in damages.
Perhaps most significantly, Mad Properties is challenging the legal validity of the airport authority itself. The lawsuit argues the authority was not lawfully created as a separate legal entity and contends that a 2023 joint powers agreement governing the airport is “illegal, void, and unenforceable.” That claim, if successful, could have broader implications for how the airport is governed and how contractual obligations entered into under that structure are interpreted by the court.
In response, the City of Lewiston, Nez Perce County, and the airport authority have denied the key allegations. The airport authority stated that relevant documents “speak for themselves” and disputed the developer’s characterization of events. City and county officials also denied liability, saying the legal questions raised will ultimately be resolved by the court.
Mediation Ordered Ahead of February 2027 Jury Trial
A jury trial is currently scheduled for February 2027. In the meantime, all parties have agreed to pursue mediation following a recent conference hearing, suggesting an out-of-court settlement remains a possibility before the case reaches trial.
The outcome of this case carries significant implications for public-private development agreements at taxpayer-supported facilities like the Lewiston-Nez Perce County Airport. The airport serves as a critical transportation hub for the Lewis-Clark Valley and the broader region, and the lawsuit raises questions about how the airport authority enters into and manages development commitments with private investors.
The total damages sought by Mad Properties, encompassing the hangar investment, ongoing monthly losses, construction costs, site improvements, and trespass damages, could push the overall exposure for the city, county, and authority into the multiple millions of dollars.
What Comes Next
With mediation now on the table, the parties will have an opportunity to negotiate a resolution outside of court before the February 2027 trial date. If mediation fails to produce an agreement, the case will proceed before a jury in Nez Perce County. The legal challenge to the airport authority’s structure could also prompt local officials to review the foundation of existing governance agreements tied to the facility. Nez Perce County News will continue to follow this case as it progresses. For statewide coverage of legal and government accountability issues, visit Idaho News and Idaho News Network.