Monday, June 18, 2012

Galt Field (10C), Greenwood/Wonder Lake, Illinois: Airport scheduled for auction block ✈ $16 million debt forces McHenry County airport into foreclosure

 
Ron Carlson, of Hawthorn Woods, with his de Havilland Beaver behind him in a hangar at Galt Airport, downloads pictures he took with a camera attached to the plane.
 (Keri Wiginton, Chicago Tribune / June 14, 2012)


Story and photo:  http://www.chicagotribune.com
 
By Robert McCoppin, Chicago Tribune reporter June 18, 2012 

Pilots barbecue in front of their hangars at Galt Airport. Fly fishermen pull trout out of a nearby pond. Cows from neighboring dairy farms occasionally wander onto the property and are herded off. Vintage and experimental aircraft dot the skies overhead.

Despite the tranquil appearance, the real estate crisis has extended even here, to the ground beneath the pilots' feet. The property on which the small airport stands near Wonder Lake in McHenry County is due to go on the foreclosure auction block this week over a debt of $16 million.

Galt has some quirky characteristics — including a cabin in which hangar tenants can spend the night — but its story reveals some of the pressures facing small, general aviation airports. A downturn in business, high gas prices and potential redevelopment threaten the existence of the 62-year-old airfield, much to the chagrin of the student pilots, aviation enthusiasts and others for whom Galt has become a social hub.

"I'm hoping somebody can find a way to make it work financially and keep it pretty much the way it is," said plane owner Claude Sonday, a motorcycle dealer. "This is a nice place to play out in the country."

General aviation, which includes all civilian flying except scheduled passenger airlines, fights the perception that it's just a form of recreation for the wealthy. A Federal Aviation Administration study last month called the nearly 3,000 general aviation airports in the U.S. "a national asset" that contributed an estimated $39 billion to the economy in 2009. General aviation airports also support medical, law enforcement, search-and-rescue, commercial and agricultural flights while relieving congestion at bigger airports.

Galt, billed as "the friendliest airport around," provides flying lessons and plane rentals, and the Experimental Aircraft Association occasionally offers free rides for kids. But the airport, which has no control tower and relies on pilots to talk to each other by radio, primarily serves recreational aircraft for hobbyists. Aerobatic pilots take advantage of the clear air space to practice stunts.

Friends of Galt, a group that includes self-described "airport bums," has bonfires and competitions like a flour drop, in which pilots try to drop a bag of flour closest to a target. A band shell at the airport has hosted performances by Iron Butterfly and Canned Heat.

"It's like a country club, but instead of a golf course we have a runway," aircraft mechanic Brian Spiro said.

Spiro co-owns JB Aviation, the business that essentially runs the airport, with airport manager Justin Cleland. They say business has never been better, but they don't own the property.

The airport was started by farmer Arthur Galt Jr., who first cut a grass landing strip for a friend who wanted to fly him to a fishing spot. Galt liked flying so much he turned the strip into an airfield, eventually adding a paved runway. In 1998, he sold the airport for about $2 million to investors Ivan Djurin and Michael Stanard.

Stanard later backed out of the deal, and Djurin took out a $13 million loan and used what he said were millions of his own dollars to improve the facility. He said he built and refurbished hangars and other structures; cleared the grounds of dumpsites; regraded and added taxiways; and repaved and expanded runways. But Harris Bank filed suit to foreclose on the property two years ago, and the airport land was scheduled for auction.

Djurin acknowledged that, like other businesses, he borrowed too much money in a shrinking market.

"We were expanding while market conditions were good," he said. "That changed in 2008, and there was a substantial drop-off in business."

General aviation broadly has seen a marked downturn. DuPage Airport in West Chicago went from a peak of 197,000 flights in 2004 to 83,000 last year, according to FAA statistics. Statewide, Illinois dropped from 800,000 general aviation flights in 2000 to less than half that last year. Nationwide, flights last year were at a low point for the past two decades.

FAA spokesman Tony Molinaro said that as a privately owned airport, Galt gets no federal funds and is not federally obligated to operate.

Ultimately, though, the bursting of the real estate bubble could help to save Galt. A housing development that sprang up next to it stalled with only a couple of homes built. Cornfields surround the airport for miles around, which airport supporters hope makes it an unlikely target for development. Harris Bank attorneys Chapman and Cutler did not return calls for comment.

One person who frequently flies small planes for business gives credit to Galt not only for being a high-quality airport but for once saving his life.

WGN-AM 720 agribusiness reporter Orion Samuelson said he was flying over northern Illinois in the middle of a summer night in 1998 when a huge bang came from the front of his Cessna 210. The engine lost power, and the plane "started shaking like it was going to come apart," he said. Samuelson often flies the plane but said he always has a professionally licensed pilot at the controls.

They radioed for help and were directed to airports in Lake in the Hills or a grass landing strip on a farm, but he didn't think they would make either. As he looked out into the darkness, he saw lights outlining the runway at Galt. Samuelson and his pilot banked toward it and landed just as the propeller stopped spinning.

"It really did save my life," he said. "I'm sorry to see it's threatened with foreclosure."

Article and photo:  http://www.chicagotribune.com

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