CITY OF NEWTON
At Tuesday’s meeting, the Newton City Commission approved a lease agreement with Shield AI, an aeronautics technology manufacturer specializing in artificial intelligence drones, for a site at Newton City/County Airport.
The lease agreement includes 16,000 square feet of hangar and office space in Hangar J, as well as three acres of undeveloped land on the east side of the airport. The lease has an initial 5-year term at $90,000 per year, and two additional 5-year term options with an annual 1.5% increase on the hangar rate.
Shield AI, founded in 2015, develops autonomy software and aircraft that use artificial intelligence to protect service members and civilians in high-risk environments. The company’s latest innovation, the X-BAT, is the world’s first AI-piloted, vertical takeoff and landing fighter jet.
Jacob Miller with Shield AI said the company had been searching for a location as it develops the next iteration of its combat aircraft technology.
“We look to Newton airport to be the spot to help unlock and continue to keep the U.S. at the forefront of artificial intelligence and specifically artificial intelligence on aircraft,” Miller said.
The company’s initial plans are to use the Newton facility for testing during the manufacturing process.
The City and County, as joint owners of the airport, agreed to install a gravel service road from First Street to the ground lease acreage, and to update the office area and restrooms to code. City staff estimate the remodeling work will cost about $15,000 and are still working with Shield AI to determine the specifications and estimated cost of the road extension.
The City and County will also pay about $18,000 in fees to Shield AI’s real estate broker.