The Rundown – City reviews possible Shield AI expansion project

Published on July 29, 2026

Shield AI's X-BAT drone

The Rundown is prepared by the City of Newton Communications Office to summarize the City Commission action and does not represent official Commission minutes.

7 p.m. July 28, 2026, Newton City Commission meeting

At Tuesday’s meeting, the City Commission reviewed a proposal for a new hangar to serve Shield AI, the rapidly expanding drone manufacturer already leasing space at Newton City/County Airport.

The project includes a 30,000-square-foot hangar to be constructed by the City on the east side of the airport runway and leased to Shield AI for an initial seven-year term.

Last fall, Shield AI leased 16,000 square feet of hangar and office space in Hangar J, as well as about 10 acres of undeveloped land for a testing launch pad. This new lease would add another 10 acres of land.

Shield AI, founded in 2015, develops 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.

The new hangar would be the first development on the east side of the airport and would unlock future expansion in that area. The west side is nearly full of industrial development.

Harvey County Economic Development Director Beth Shelton said the proposal dovetails with a statewide push for additional hangar space and larger capacities. Manhattan and Salina have recently built new hangars to meet anticipated demand. She noted that airport industrial parks typically create jobs that pay above the median wage that highly benefit communities.

Shield AI’s existing investment has already exceeded the $1 million threshold originally estimated. The company currently has 13 employees and continues to hire as they ramp up toward 60 full-time positions.

“Shield AI is an amazing company,” Shelton said. “Other states are really trying hard to win their investment, so it’s exciting to have them here in Newton already and to be part of the testing they’re doing.”

Aviation Director Brian Palmer noted the proposed hangar would be for general-purpose aviation rather than a specialized build and would be a valuable City asset even if Shield AI eventually decided to move on. It would be about three times larger than any other hangar at the airport.

Negotiations with Shield AI on the final terms are ongoing. The lease and development agreement will be considered at a future City Commission meeting.

Themian Park

Approved a Land and Water Conservation Fund Grant application to fund Phase 2 and 3 improvements to Themian Park. Earlier this year, the City applied for a Community Development Block Grant for Phase 1 improvements.

Phase 1 includes pickleball courts, basketball courts, restrooms, lighting, and a shelter. Phase 2 and 3 include two small ball diamonds and a small-sided soccer field. The project is a public-private partnership of the City, USD 373, Newton Recreation Commission and the Railer Foundation.

The Land and Water Conservation Fund Grant and CDBG can be stacked to be used as matching funds. The costs to the City include in-kind labor and materials costs up to $160,046.

2026 Yard of the Year winner, 527 W. Seventh St.

Yard of the Year

The Commission presented the 2026 Yard of the Year award to Alan and Dana Cox at 527 W. Seventh St. Over the past 20 years, the Coxes have thoughtfully transformed and maintained their property, creating a landscape that blends colorful annuals and hardy perennials with a productive garden featuring vegetables, herbs, and a pawpaw tree. Irrigated by a well, the landscape provides year-round beauty, supports local wildlife, and enhances the Sand Creek Bike Path corridor.

In other action, the City Commission:

  1. Received an introduction of Newton Housing Authority Board Chair Greg Yutzy and Vice Chair Peter Miller.
  2. Awarded a contract for painting and rehabilitation of the two spheroid water towers to Kimery Painting for $786,875.
  3. Authorized road rehabilitation projects on East Broadway, East 12th Street, North Spencer, and West First Street, and set a bid date of 3:30 p.m. Aug. 25.
  4. Approved a temporary alcohol permit for Moxie Community Pub to extend its licensed premises to include the Old Main cul-de-sac for a special event on Aug. 11.
  5. Approved the mid-year financial report.
  6. Approved the Newton City/County Airport Capital Improvement Plan.
  7. Adopted local amendments to the 2026 editions of the Standard Traffic Ordinance and Uniform Public Offense Code.

The full agenda packet and meeting video are available online. For more information, please contact Director of Communications Erin McDaniel at 316-284-6055 or emcdaniel@newtonkansas.com.