Under the new agreement, the National Guard will pay for the property including the hangar based on the value appraised by the U.S. Army Corps of Engineers.

If the appraised value is less than the full cost of building a replacement hangar for Aerovation, the Guard has agreed to pay the difference, along with other relocation costs, under the letter of intent.

Construction of the new gate complex will be funded through the military construction budget approved by Congress, the Air Guard’s Wilson said.

The land purchase and hangar reconstruction will be funded either through a program specifically for “unspecified minor military construction projects” or through the main military construction program, while any other relocation costs will be funded separately, she added.

Under federal law, an unspecified minor military construction project is one that costs $6 million or less.

Wilson said the Guard’s goal is to complete the land acquisitions in fiscal year 2020, with the main gate potentially being funded in fiscal year 2021.

In 2011, the National Guard Bureau completed a development plan for the Tucson base that included expansion into the corner of South Park and East Valencia for a new gate.