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B-17G “Lacey Lady” Update: May 27, 2025

B-17G “Lacey Lady” Update: May 27, 2025

The mostly volunteer crew at Salem, Oregon, rebuilding and restoring B-17G 44-85790, is making good progress. As B-17 Guys and Gals already know, this is the B-17, now known as Lacey Lady, that was mounted above a gas station in Milwaukie, Oregon, alongside U.S. 99E from 1947 until 2014. The detailed history of the airplane is provided in Final Cut (what, you don’t have a copy?) as well as on the B-17 Alliance Foundation website and other sources, so I won’t go into too much detail here. Short version is that Oregon entrepreneur Art Lacey purchased the war surplus bomber at Altus, Oklahoma, and flew it to the airport at Troutdale (Oregon), dismantled it, and trucked it to his gas station. It was a distinctive local landmark but suffered from vandals, climate, and collisions over the many years. Lacey passed away in 2000, but his family is intent on rebuilding the airplane and established the B-17 Alliance Foundation toward that end. The airplane was pulled down from the gas station in 2014 and, disassembled, moved to the hangar at the Salem airport where it is undergoing the rebuilding effort.

The forward fuselage of Lacey Lady as seen in May 2025. The area between Station 3 and 4 contains the cockpit and top turret. It has greatly progressed over the past two years as the major structure has been completed and installed. Flight control components, seats, instrument panel frames and other parts are being fitted for installation. The ‘turtle deck’ cockpit cover is being made as a new assembly and should be available later this year to be added.

I last visited Salem in May 2023, two years ago, and recently came back to find out first hand how the project is coming. There is much visible progress, particularly in the cockpit section, the left wing, and the left wing’s engine nacelles. But with a project such as this, much of the actual progress is not obvious. The rebuilding of the B-17, under the direction of project manager Lee Nielson, requires that each small part of the plane, and there are thousands of them, be carefully evaluated: can it be returned to airworthy condition or does it need to be replaced with a new one? If it needs to be replaced, is a part available or does it need to be manufactured? It is a process that is repeated endlessly for each of the small structural components, brackets, gussets, whatz-its, and flotsam that eventually come together to become sub-assemblies that are finally woven into the airplane. So though major sections like the cockpit shows obvious progress, it is the less-apparent behind-the-scenes activity where the action is.

For parts that need to be replaced, there are a number of other B-17s restorations doing much the same work as the team at Salem, and trading and cooperation exists between the various projects. And, if a new part needs to be manufactured, Nielson reports that the volunteer team has assembled the materials and machines to create, directly from Boeing blueprints and patterns, new parts that are identical to the originals. Whether the part is new or rebuilt or acquired, it needs to meet exacting standards and documented in intricate records for eventual FAA signoff for an airworthy airplane. The whole process necessarily needs to be highly organized. One of the volunteers, Dave Hevel, has contributed greatly by organizing the parts so that they can be cataloged and, if needed, stored for future installation. Hevel also maintains a volunteer training program and the Boeing digital blueprint catalog, providing detailed drawings and specifications when needed.

There are two big changes apparent from when I visited two years ago. For the cockpit section, between Stations 3 and 4, the basic floor support structure underlying the cockpit has been completed and installed. The major cockpit components such as seats, flight controls, and instrument panel framework are being fitted and readied for installation. The frames and longerons are also being fitted and will eventually have new skins added. The cockpit section is being built into the bomb-bay section (aft of station 4), and also joins the already-completed nose compartment section.

A closer view of the cockpit work underway. The basic understructure is complete. The frames and longerons are being fitted and will eventually have new skin riveted to them. The area between Stations 3 and 4 is a complex assembly and also will provide support for the top turret installed aft of the cockpit.
Years ago, before it came to Salem, the first section of the airplane to be rebuilt was the nose compartment, mostly because it was relatively simple and demonstrated what could be done. It is being incorporated now into the cockpit section, which is being built into the bomb bay section.

Years ago, Lacey Lady‘s badly-corroded ‘turtle-deck’ cockpit cover that includes the windscreen, overhead windows, cockpit side-windows, and top turret mounting ring was removed and sent to a parts supplier in the southeast. They were to be used as pattern parts for new assemblies not only for Lacey Lady but for several other restorations underway. It turned out to be a long and winding road for that ‘turtle-deck’ but new parts should finally be arriving this year from another restoration team. They will be assembled and fitted at the appropriate time.

The bomb-bay section, between Stations 4 and 5, is the heart of the B-17, containing the wing attach and carry-through structure. It will be a major undertaking to rebuild this section but, fortunately, many new components are available from Ray Moore and his Lucky Thirteen shop in Asheville, Georgia, so that will make the process at least straightforward. At least four other major B-17 rebuilding efforts are doing similar work in that section of the airplane so there is expertise and common knowledge available.

The left inner wing panel is slowly coming together in its jig. Two years ago, the disassembled wing and the two wing spars were located on a big work table. Now the wing is starting to look like a wing again. The spars and ribs have been mounted and assembled. The critical spar tubes have been carefully inspected, as was the rest of the spar assembly. All corroded or damaged ribs and other internal wing structure have been replaced.

The left wing being reassembled in its jig. The side facing is the front spar with ribs attached aft to the rear spar. The rebuilt nacelles will be grafted back to the front spar as the wing comes back together. The underwing rib cutouts, hard to see in the middle part of the wing, will contain a large fuel tank when completed.
A closer view of the left wing as it comes back together. The spar tubes received a very close inspection, as did the other wing parts. Those spar tubes and the wing attach fittings are the subject of an FAA Airworthiness Directive due to cracking found in other airplanes.

Both left wing nacelles, for engines one and two, required much work due to corrosion from water and bird ‘stuff’ that accumulated over the years, particularly on the lower part of the assemblies. Both nacelles are nearing completion. Fortunately, much of the structure was reusable but was replaced with new where needed. The nacelles will eventually be mounted back onto the front spar. Still to go on the left wing will be the leading edge and the trailing edge, and then the whole process will be duplicated on the right wing. Fortunately, the learning curve is steepest at the front end the right wing will come quicker.

Nacelle for the number 1 (left side outboard) engine nears completion. Though the lower parts of each nacelle had corrosion damage, much of the upper parts were reusable after cleaning and inspecting. The engine firewall will be installed at the bottom of the nacelle as it is seen here; the top will be reinstalled to the front wing spar.
Here’s an idea of the heavy corrosion that was found on the bottom of the nacelle. The aluminum alloy is basically separating and disintegrating after years of exposure to pooled water and bird ‘stuff.’ Fortunately, most of the nacelle parts were in much better condition.

The aft fuselage and the tail components are awaiting attention. Much of that work is straightforward and the structural parts are available for replacement parts if needed. Much of the skin on the aft fuselage, especially the lower sections, will need to be replaced.

The aft fuselage awaits loving hands to return it to airworthy condition. These sections are stored indoors so further corrosion should not be a problem. Though much work will be required to rebuild the aft fuselage, it is fairly routine work and replacement structure is available. All that is needed is some talented volunteers and a bit of $$$power.
Displayed in the museum is a good example of what vandals did to ‘Lacey Lady’ over the nearly seven decades it was mounted over the gas station. Even with the airplane locked and secured, every thing that could be broken, cut, banged, or ripped out was done so. On the right is the complete throttle quadrant now earmarked for ‘Lacey Lady.
The ball turret that will eventually go into Lacey Lady. On the floor is a female mold for new nose glass. Forming that glass is not an easy task. Boeing has precise measurements with which to create the correct profile, so much trial and error was required to get the mold to create a correct B-17G plexiglass nose. There are other nose molds out there but none were available to be used for this project.

It needs to be emphasized that this rebuilding project is pretty much all-volunteer and is funded by donations. There is a core group of about twenty volunteers who regularly spend time working on the plane over the course of a month, each with varying degrees of skill and abilities. I asked project manager Lee Nielson if it was workers or funding that set the pace for the restoration and, after thinking about it a bit, said that both were setting the pace.

Funding is obviously critical to keep the project moving, and on the administrative side, B-17 Alliance Foundation executive director Terry Scott works hard to secure donors and programs, neither an easy task. The funding end is particularly challenged right now because the foundation has a short-windowed opportunity to purchase the hangar at Salem for $800,000. They have been renting up until now, but if the funds can be raised by the end of the year, they will become owners of the hangar and ensure the project’s home for the future. There is a special effort underway right now to pull the funding together with details seen here for those who can consider donating any amount, large or small. They are more than halfway to the goal as this is being written.

For the volunteer end, they want to spread the word that volunteers are needed and welcome to help rebuild this airplane. Volunteers are trained for the tasks that they will be assigned to…you don’t get to pound on aluminum until you know where to pound. But what is particularly needed right now is a volunteer with some airplane structures experience, someone who has done major structural repairs to big airplanes would be ideal. The B-17 is a big airplane and it has big structures that need work, so the need is there.

The talented volunteer crew working the day of my visit during a much deserved lunch break. From left, Peter Robinson, Dave Hevel, project manager Lee Nielson, Nick Santillan, Mike Fitzpatrick, Steve Breuer, and Tony Kraxberger. Not pictured is George McClellan, who is also an Inspection Authorized (IA) A&P mechanic keeping the inspections going for an eventual airworthy airplane.

In the end, the rebuilding project will proceed at a pace set both by the funding and the volunteers. The B-17 Alliance Foundation team is eager to put this airplane back together and back in the air and are always looking for help to make that happen sooner.

Visitors to the Salem area can visit the B-17 Alliance Foundation museum and restoration hangar. It is currently open on Tuesday, Thursday, and Saturday. Details about visiting can be found here. And, perhaps consider making a gift to the rebuilding effort. The Alliance is an IRS 501(c)(3) non-profit so donations, especially really really big ones, are tax deductible.

(Special thanks to project manager Lee Nielson, B-17 Alliance Foundation executive director Terry Scott, and volunteers Dave Hevel and Bill Deveraux, for their time and information in putting this update together.)


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