Spokane Airport Board distances itself from John Sessions as liquidation of Historic Flight Foundation continues

A trip to the Historic Flight Foundation was magical, not just for the school children who would visit to learn about the science of flight but for the attendees of galas held at the multimillion-dollar hangar.

Even for Sheila Geraghty, former executive director of the nonprofit, the planes were alluring.

“I would just walk around in awe of these planes that were a part of World War II and how historical they were and how beautiful and majestic they were and the fact that they could fly at a moment’s notice,” Geraghty said. “Deep down in my heart, I loved that job.”

The museum was owner and founder John Sessions’ brainchild. He donated the planes, got the Spokane Airport Board to build the foundation a more than $5 million hangar, recruited a fleet of volunteers and appealed to donors.

It was also Sessions, according to Geraghty and court records, who caused the downfall of the Historic Flight Foundation.

A bad business deal in North Dakota led to a company owned by Sessions defaulting on its loan. Then a practice of transferring money between his companies, including the flight foundation, allowed the bank to collect funds from those businesses.

Now, the hangar paid for with public funds is largely used as a storage site for the receiver tasked with selling of the foundation’s assets to satisfy the $20.1 million North Dakota court ruling.

The airport board and CEO Larry Krauter repeatedly declined to answer questions about the future of the hangar and its impact on Felts Field. But emails obtained by The Spokesman-Review through a public records request show the desire for caution in allowing another nonprofit into the space and pushback against Sessions’ plans to continue using a nearby hangar as an event venue.

Last month the airport declined to allow Aero Centers Felts Field to give Sessions a space permit for his new venture, Runway 4 Events Center, citing land use obligations with the Federal Aviation Administration. Sessions, who has remained optimistic publicly and to donors, declined to answer questions, citing ongoing legal issues.

On Tuesday, three large shipping containers were being loaded outside the large glass doors of the former Historic Flight Foundation hangar. The Douglas DC-3 with Pan American Airways System emblazoned on the side sat outside nearby.

Steps away across a parking lot, a small sign was the only indication of the new events center.

An alluring vision

Wesley “Wes” Bare has always loved Felts Field and historic planes. He learned to fly there when he was 16 and went on to become a Boeing engineer. When it came time to retire in 2016, nearby Millwood was the perfect place for Bare.

He knew Sessions from his time in Everett, where Sessions previously showcased the Historic Flight Foundation. Hearing Sessions planned to move to museum to Spokane, Bare was first in line to volunteer.

“It was hectic,” Bare said of the move.

But the community immediately was excited about the “new and unique” venue with lines out the door the see the fleet of vintage planes that could still fly, Bare said.

The foundation operated as a museum, where people could go inside the vintage aircraft as well as book flights on the operational planes.

It also held STEM classes for local youth. The facility also served as a venue for fundraisers for other nonprofits, weddings and corporate events.

Volunteers would often work these events doing everything from setting up tables and chairs to providing attendees information about the planes.

Bare noticed Sessions was could be odd about money. He wouldn’t share anything about the nonprofit’s financial status or let other people help with things as simple as taking museum membership payments.

As a volunteer, Bare thought that was above his pay grade and moved on.

The COVID-19 pandemic hit the foundation hard, but visitors slowly returned.

At the time, Geraghty, who was the executive director, said Sessions became more difficult than usual to work for, blaming her for a slow return by donors.

She had no one to turn to, Geraghty said. The board of the nonprofit was completely hands off with Sessions solely in control.

“John (Sessions) made it very clear that these were not directors,” she said.

Board members Larry Sohren and Bob Larson confirmed they were advisors and had no vote to set policy or govern the nonprofit.

Sessions was hard on the volunteers who performed most of the labor for the events, they said.

“He was controlling. He was opinionated. He was mean,” Geraghty said of Sessions. “Everyone in the nonprofit world knows you treat your volunteers with love and respect and kindness because they’re not being paid.”

Geraghty said she couldn’t stand the pressure from Sessions and working overtime to keep up with the events held in the space. She left in 2021.

Legal troubles

It wasn’t until 2023 that Bare heard about the lawsuit.

Sessions told volunteers he would appeal the North Dakota judgment being entered in Washington and everything would be fine.

In 2022, a jury in Williston, North Dakota, found that one of Sessions’ companies, Eagle Crest Apartments, had fraudulently transferred funds to other businesses he owns, including the fight foundation. Eagle Crest defaulted on its loan held by Kansas City, Missouri-based UMB Bank to build the apartments. The bank was awarded $20.1 million.

Due to the fraudulent transfers between Sessions’ businesses, the bank was allowed to collect from other companies owned by Sessions, according to the North Dakota judgment. Sessions appealed to the North Dakota Supreme Court but lost.

Last year, sales began on the vintage planes that were part of the Historic Flight Foundation’s collection .

Sessions told the foundation’s board of directors that he planned to appeal the North Dakota case in Washington courts.

Airport CEO Krauter was supportive of Sessions last July, filing a document in court detailing his support of the foundation.

In 2016, Krauter visited the foundation in its Paine Field location and courted a move to Spokane, he wrote.

He led the push for the Spokane Airport Board to build the hangar and approve a 20-year lease and operating agreement.

“HFF is an integral component of Felts Field, Spokane Airports and the community,” Krauter wrote.

He added that losing the foundation would greatly impact Felts as a whole.

“HFF is also a resource for based pilots at Felts Field, not to mention a considerable point of pride in the aviation community,” he wrote. “It is a primary component of why Felts Field enjoys a very positive reputation in the aviation community.”

Sessions argued in court that under Washington law a nonprofit couldn’t be implicated in a decision, despite the North Dakota court finding that Sessions was the sole operator behind the foundation and other businesses.

A Spokane judge ruled against Sessions in December. Sessions has since brought the issue to the Washington State Court of Appeals.

While the appeal is pending, the receiver continued selling off the flight foundation’s assets to satisfy the judgment. According to the receiver’s reports, Sessions has violated the terms of the agreement multiple times, including flying and crashing a World War II vintage Spitfire.

Hangar in limbo

The hangar at Felt’s Field built for the flight foundation has largely become a storage facility as the foundation’s assets are liquidated, according to court documents.

The Spokane Airport Board had lengthy discussions with the receiver managing the liquidation on how to handle the lease for the building, ultimately deciding to enter into a new lease with the receiver after terminating the prior lease with HFF. The foundation had a lease to purchase option.

Sessions, board members of the foundation and his friends tried multiple times to talk to the airport board about HFF 2.0, a new version of the museum after the legal issues resolved.

In emails, airport board attorney Brian Werst said the airport board would not sign a similar lease to the one it had with the foundation or transfer the lease to a new nonprofit without changes.

“Piggybacking off the need to protect the Airport, the Airport will need to conduct due diligence of the nonprofit entity that is the potential assignee, which will take some time for the Airport and may not move at the desired pace,” Werst wrote in September.

As the year moved on, Werst said he had to limit contact with proponents of a new foundation due to the on going litigation. In the meantime, Sessions created a new company, Felts Field Development, LLC.

He began operating Runway 4 Events Center in a nearby hangar at Felts Field owned by Aero Center. He continued trying to find a way to lease the museum hangar.

In mid-February, Sessions signed a space permit with Aero on behalf of Felts Field Development. Sessions would pay no rent until February 2026, at which time he would pay $10,000 a month for a five-year period if the lease is renewed and there were no issues.

In March, Sessions emailed the airport, formally notifying them of the flight foundation’s intent to vacate the hangar, despite the receiver having taken over all operations of the foundation.

Emails and court documents show the receiver was frustrated at Sessions’ letter and that the airport largely disregarded it.

Last month, the airport board, through Werst, declined to consent to the sublease. The airport has the right to do so because it owns the airport itself.

“The current use of the Space for special events, activities involving vendors, and other commercial purposes is not an authorized use,” Werst wrote. “Concession or commercial use of any Airport aeronautical property is prohibited unless there is a concession agreement with the Airport.”

The airport also objected to the document allowing Sessions to purchase the leasehold from Aero Centers. Werst said the “prohibited uses” of the hangar needed to stop immediately.

Runway 4 has not posted on its Facebook page since May 21, days before the airport’s letter was sent .

It’s unclear if the business continues to operate in the hangar. Sessions declined to answer questions on the issue.

The future of the former hangar remains up in the air. Todd Woodard, director of marketing and public affairs at the airport, said in an email Tuesday, “matters pertaining to the hangar at Felts Field continue to be subject to litigation, which makes conversations about the future untimely.”

He went on to say that until the litigation concludes, “we cannot speculate about the future.”