Oahu’s only skydiving operations can continue to operate at Dillingham Airfield at least until Dec. 31 under an extension granted by the state Department of Transportation.

Some lawmakers are optimistic, meanwhile, that a long-term lease eventually will be secured between DOT Airports as landlord for civilian aviation and the Army, which owns the North Shore airfield.

Businesses including two popular skydiving operations — Pacific Skydiving and Skydive Hawaii — were previously given until June 30 to vacate the airfield because the Airports Division said it was losing money at Dillingham and it was ending its lease.

Tenants were sent a letter dated Thursday that said DOT Airports “is currently negotiating the terms of its underlying lease with the U.S. Army in order to determine whether it is possible to address DOTA’s ongoing legal concerns with the terms of its lease.”

As a result, the letter said, the Airports Division intends to extend the lease with the Army until Dec. 31.

Revocable month-to-month permits for aviation activities will continue until then. A few tenants are being evicted for not paying fees, the state said.

The reprieve is good news for a variety of business owners, hundreds of employees and private-plane users at the airfield that pre-coronavirus pumped an estimated $12 million to $15 million annually into the state economy.

“Obviously, it’s a move in the right direction. It’s just too bad that we keep on taking baby steps” toward long-term operations, said Tom Sanders, owner of Paradise Air Hawaii, a powered hang glider flight school and 19-year tenant at the airfield.

The wave of mainland tourists now heading to Hawaii under COVID-19 entry protocols is making its way to Dillingham attractions.

“I’ve never been busier in my life. I’m packed (and) I have a waiting list,” Sanders said.

State Rep. Lauren Matsumoto, whose district includes Mokuleia and Waialua as well as Mililani, said she has been working for the past year on continuing Dillingham Airfield civilian operations.

“It really is a treasure of the North Shore. It’s a great economic driver, and I think that’s been even more evident this year when you talk about diversifying our economy — that it’s important to keep the various industries open,” she said.

“Stakeholder” meetings are held every two weeks now, and Matsumoto said “tremendous progress” has been made in the past few months toward a long-term lease.

Jai Cunningham, a spokesman for the Department of Transportation, said in an email that “negotiations for a long-term lease continue with the Army.”

Pre-coronavirus, Pacific Skydiving and Skydive Hawaii were among the busiest operations in the world for first-time jump students and provided the bulk of the economic impact from the airfield, officials said.

On a recent visit, U.S. Rep. Kai Kahele from Hawaii and Lt. Gov. Josh Green were among more than 20 state and federal officials to tour the airfield.

The Army last month said it was “working closely with the state and other agencies to identify the requirements and terms of a joint-use agreement and lease of 25 years.”

To be sure, Dillingham has presented its share of headaches for the Airports Division — and that prompted its announced exit from the airfield.

The state has sought and received multiple lease renewals from the military since 1962. A couple of 25-year leases were obtained in 1983 and 2009, but the local Army realized in 2012 it did not have the authority to execute a lease beyond five years without approval from the secretary of the Army, the Airports Division said.

A series of short-term leases followed. As a result, the Airports Division said it has not been able to obtain federal grants to make improvements at the airfield.

The state said the airfield operated at a deficit of nearly $1 million in 2019, but tenants say that includes costs for an old water system that supplies the nearby Air Force satellite tracking station, among other users. No fees are collected.

“There are great challenges when it comes to this airfield — whether it’s that long-term lease, whether it’s the water issue, there are a lot of issues,” Matsumoto said. “But the fact that everyone is willing to come to the table to develop solutions is what gives me optimism.”