The ongoing dispute between the Greeneville Municipal Airport Authority and local businessman Scott Niswonger continued last week with the filing of a lawsuit against the Airport Authority.
The lawsuit was filed Sept. 4 in Greene County Circuit Court by Skyknight, LLC, a company owned by Niswonger. It centers on a lease Skyknight signed with the Airport Authority in December 2019 for office space, hangars and other facilities at the Greeneville-Greene County Airport. The lease allows Skyknight to use the property for aircraft fueling and other aeronautical purposes.
According to the lawsuit, the Airport Authority sent letters in August demanding Skyknight pay a fuel flowage fee of 25 cents per gallon retroactive to December 2020, based on what the company describes as an inconsistently enforced and belatedly disclosed fee increase. Skyknight claims the Airport Authority had, at various points, invoiced it at both 10 cents and 25 cents per gallon, and that some of the higher invoices were later reduced back to the lower rate.
The complaint further alleges the Airport Authority threatened to terminate the lease over the fee dispute and over Skyknight’s objection to an audit of its records, despite Skyknight asserting it has paid all rent owed under the agreement.
In a statement announcing the lawsuit, Niswonger said the Airport Authority’s demand letter accused Skyknight of failing to pay proper rent and fuel flowage fees, allegations he called “clearly in error and without basis.” He said Skyknight responded by providing the Airport Authority with a payment history, including canceled checks, showing the rent had been paid, along with records he said showed the Airport Authority itself was unclear on what fuel flowage fees Skyknight owed.
Niswonger said Skyknight asked the Airport Authority to retract its allegations and, when it did not, felt compelled to file suit “to protect its interests from any further unsupported allegations.”
Skyknight is asking the court to rule that it has met its rent obligations and to determine what, if any, fuel flowage fee it owes going forward. The company is also seeking unspecified compensatory damages, an order preventing the Airport Authority from interfering with its rights under the lease, and court costs.
Skyknight v Greeneville Municipal Airport Authority lawsuit
Skyknight LLC and Scott Niswonger Press Release regarding lawsuit
Background: A Dispute That Has Developed Over More Than a Year
The lawsuit follows months of increasingly public disagreement involving Skyknight, Niswonger and the Greeneville Municipal Airport Authority. The following summaries are compiled from Radio Greeneville News reports.
June 13, 2025 — Development Near Airport Becomes Subject of Lawsuit
A separate dispute involving property near the airport became the subject of litigation in June 2025 when Land Star Development sued the Town of Greeneville and the Greeneville Municipal Planning Commission.
Land Star had proposed a development of more than 200 homes on approximately 106 acres off Whitehouse Road near the airport. The company alleged town officials improperly halted the project after years of planning, approvals and investment.
Land Star said it had invested more than $2.4 million in the project and argued the Planning Commission’s decisions were “illegal, arbitrary, and capricious.”
Opponents of the subdivision had raised concerns about its proximity to the airport. Niswonger was among those who spoke against the development, calling its location a life-safety issue for potential residents and airport users.
That lawsuit is separate from the current Skyknight litigation, but the proposed development and questions about protecting the airport later became part of the broader public discussion over airport operations and land use. That lawsuit is still pending.
April 16, 2026 — Niswonger Publicly Criticizes Delay in Hangar Project
The disagreement between Niswonger and the Airport Authority became increasingly public in April of 2026.
Skyknight was proposing a new 120-by-120-foot box hangar of roughly 14,000 square feet to accommodate larger aircraft.
Niswonger told the Airport Authority at its April meeting that he had delivered a proposed five-page lease agreement to Airport Authority Chairman Paul McAfee and then-Town Attorney Ron Woods on Jan. 25 but had still not received approval.
He said a meeting was eventually held March 25 and that, in the weeks afterward, his representatives unsuccessfully attempted several times to contact aviation attorney Tad Wintermeyer.
Niswonger said he was “very disappointed” in the pace of the process and threatened to ask the Greeneville City Council to replace the Airport Authority Board if progress was not made.
McAfee said the board needed assistance from an attorney experienced in aviation matters before acting on the proposed lease and acknowledged the process had taken longer than some would have preferred.
April 20, 2026 — Town Continues Dealing With Separate Land Star Litigation
Days later, the Greeneville City Council prepared to consider hiring outside legal counsel to represent the town in the Land Star lawsuit.
The litigation involved the previously proposed subdivision near the airport and decisions by the Planning Commission to reject a mass grading permit and ultimately the development itself.
Despite the litigation, Land Star continued work on another Greeneville development at Johnson Farms off Rufe Taylor Road.
April 24, 2026 — Airport Board Appointments Become Contentious
Airport Authority governance also became an issue before the Greeneville City Council.
The Airport Authority had recommended reappointing Jimmy Collins and appointing John Curran to two board seats.
Niswonger suggested two other candidates, Don Johnson and Jack Miller.
Motions involving the Airport Authority’s recommendations failed for lack of seconds, and the City Council sent the appointments back to the Authority for additional information about how candidates were selected.
May 4, 2026 — Niswonger Announces Airport Expansion Will Move to Indiana
The dispute escalated significantly in early May when Niswonger announced Skyknight would relocate a planned Greeneville aviation investment to Indiana.
According to Niswonger’s statement, the project represented an initial $2.5 million investment in a new hangar and maintenance facility and was expected to create 18 jobs, including 12 pilot positions, four mechanic jobs and two administrative positions.
Niswonger said the project’s direct economic impact, including facilities and wages, was expected to exceed $5 million over time.
He said Skyknight had submitted its proposal expecting a commercially reasonable process but did not receive what it considered a workable response after 13 weeks.
Skyknight then approached officials in Indiana, where Niswonger said the project was approved in a single meeting.
“This was not our preferred outcome,” Niswonger said in the statement.
He also said future investment in Greeneville would depend upon what he described as a more responsive and aligned relationship with local government.
Airport Authority Chairman Paul McAfee responded at the time that he believed the Airport Authority was “in the right” in its handling of the matter.
May 8, 2026 — Mayor Doty Not Happy Airport Authority
Greeneville Mayor Cal Doty publicly expressed concern over the loss of the Skyknight project.
Doty said he was disappointed to learn the investment was moving to Indiana and noted that the town had funded airport operating losses over the years.
He also said the City Council had recently agreed for the town to assume $124,500 annually in debt previously carried by the airport.
Doty raised another issue that later became relevant to the current lawsuit, saying the airport manager and Airport Authority Board had failed to notify a tenant of a CPI-based rental adjustment until 18 months after it was due.
Doty said the City Council had authority to appoint Airport Authority members and, if necessary, dissolve the board. He said he would urge the council to determine how the loss of the Skyknight investment occurred and take steps to prevent a similar situation in the future.
Niswonger responded that he was not moving his other Greeneville operations out of the community but remained disappointed that the aviation jobs connected with the proposed expansion would not be located in Greene County.
May 8, 2026 — Airport Authority Gives Its Account of Hangar Dispute
The Airport Authority issued a detailed statement of its own later that day.
McAfee said the Authority was disappointed Skyknight had chosen not to move forward with the proposed $2.5 million expansion but said the board had a responsibility to comply with Federal Aviation Administration requirements because the airport receives federal funding.
The Authority said its review with specialized aviation counsel identified several issues with the proposal, including lease rates it considered below fair market value, a proposed lease of more than 30 years without regular market adjustments, what it described as outstanding CPI-based rent increases under Skyknight’s existing lease, and operational and fee compliance requirements.
The Authority said it had formally invited Skyknight to a negotiation meeting on April 24 to address the issues and that the meeting was declined.
“We respect Skyknight’s decision, but we believe a path forward was — and remains — possible under terms that are fair, compliant, and beneficial to the entire community,” McAfee said in the statement.
The current Skyknight lawsuit now directly disputes some of the assertions concerning obligations under its existing lease.
May 21, 2026 — Airport Authority Defends Its Actions
At its May meeting, Airport Authority members defended their handling of the Skyknight proposal.
Board members said they believed the Authority had acted properly by taking time to have specialized legal counsel review the proposed agreement.
Skyknight maintained that after 13 weeks it had not received a commercially viable path forward, while the Airport Authority said it had attempted to arrange a meeting that did not occur.
June 3, 2026 — Airport Authority Appointments Approved
The earlier disagreement between the Airport Authority and City Council over two board appointments was resolved in June.
The City Council approved Jimmy Collins for another term and John Curran as a new member of the Airport Authority Board.
Both had originally been recommended by the Authority before the council sent the matter back for additional explanation of the selection process.
The appointments were approved 3-1.
July 15, 2026 — Airport Overlay District Moves Forward
Meanwhile, the Town of Greeneville continued work on a proposed Airport Overlay District.
The proposal had been identified as a goal in the town’s 2017 comprehensive plan and was designed to protect flight paths, public safety and compatible development beneath aircraft approach and departure corridors.
The proposal would apply primarily to areas directly in line with the airport runway rather than all property surrounding the airport.
After review by TDOT Aeronautics, the Greeneville Municipal Planning Commission recommended the proposal move forward to the City Council for consideration.
July 17, 2026 — Airport Authority Member Questions Overlay
Two days later, the proposed overlay was presented to the Airport Authority for information.
Several board members said the proposal could improve safety and help address issues such as trees growing into flight paths.
Board member and former Greeneville Mayor W.T. Daniels, however, expressed concerns that the proposal could infringe on property rights.
Daniels’ family had previously owned property within a portion of the proposed overlay area that was later sold to Land Star Development.
Daniels said property rights were more important to him than the airport and suggested local government should be prepared to purchase property if regulations significantly restricted its use.
The proposed overlay remained under consideration and had not received final approval at that time.
