Charging "flagrant
discrimination," Brian Echard, manager of 8 Flags Aviation LLC, filed a
complaint Thursday with the Federal Aviation Administration against the
city of Fernandina Beach.
Claiming what he called the city's
"preferential treatment" of its lone fixed-based operator, McGill
Aviation, Echard said the city publicly promotes economic development at
the Fernandina Beach Municipal Airport but "chooses not to act on their
words."
Last September, Echard submitted a commercial lease and
operating permit application to City Manager Joe Gerrity, which was
presented to commissioners at a meeting in October, although there was
no vote on the permit.
Echard told commissioners at the time that
the FAA requires the city to "negotiate in good faith and on reasonable
terms with prospective aeronautical service providers" if the city is
not already providing identical services. Although commissioners agreed
to hold a workshop to discuss the matter, it has not been held to date.
According
to Echard's letter to the FAA, Gerrity told him in June that the city
"had concerns" about a second fixed-base operator because of alleged
insufficient fuel volume to support it. He said Gerrity also voiced
concerns about additional litigation from McGill Aviation, which was
involved in a complicated lawsuit against the city beginning in 2004.
That lawsuit ultimately cost the city almost $2 million.
According
to Echard, Gerrity also said the city may be required to solicit
proposals for a second fixed-base operation and that it "may wish to
open its own FBO in the future."
Later, Gerrity also allegedly
told Echard the city "would not consider (8 Flags') proposal until at
least three of the city commissioners voiced their support." Gerrity
also allegedly said that a second FBO application would not be
considered until January because he had "too many responsibilities," the
complaint states. Gerrity took over as airport manager after Richard
Johnson retired last May.
According to Echard, he met with
Gerrity and City Attorney Tammi Bach on Nov. 6 along with his attorney
Paul Lange and aviation consultant Michael Hodges. At that meeting, he
allegedly was told the city "would reject (8 Flags Aviation's) proposal
to locate a second FBO on the north side of the airport." The city also
hired aviation counsel Edward M. Booth Jr. around the same time.
"The
city's new-found objection was incomprehensible, given that there had
never been the slightest hint that the north side development was not
acceptable," Echard wrote in his complaint. "The north airport parcel is
a designated aeronautical development area and contains a basic
infrastructure ... nonetheless, the city stated they would direct all
future development to the currently undeveloped east side of the
airport."
According to Echard's letter, the city "hoped that by
eliminating the prime site location, (8 Flags) would simply drop their
plans to develop a new FBO."
"The city's refusal to lease the
north side location for a new FBO not only favors the existing FBO with
the prime location," Echard told the FAA, "but also protects the
existing FBO from having to compete directly with a new service
provider."
"As a business owner and Fernandina Beach resident,
this is not how I choose to conduct business," noted Echard. "The city's
flagrant discrimination against me, and preferential treatment toward
the existing FBO (McGill Aviation), leave me with no other choice."
Echard
also claimed that 8 Flags' financial proposal for the FBO was based on a
current market lease rate of 15 cents per square foot, but that there
are "concerns over equitability" because the city's lease agreement with
McGill Aviation is at 2 cents per square foot.
Echard also
complained that McGill Aviation "enjoys the economic benefit of not
having to provide the initial capital expense of fuel tanks and is
allowed to pay fuel flowage fees (to the city) after its own retail
sales are made."
"There is a surprising lack of transparency
between fuel delivered and fuel sold that could potentially prove
detrimental to the city," Echard wrote.
He also claimed the city
must comply with federal codes in order to be assured of grants from the
federal government, but is not doing so because of discrimination and
inequity in fees.
In his complaint Echard has asked the FAA to
"find the city in violation of its FAA Grant Assurances and exercise all
appropriate remedies to bring the city into compliance, including but
not limited to withholding any additional airport grant in aid funds
pending the city's compliance."
Last year the city lost a lawsuit
against McGill Aviation regarding an airport land lease dispute, which
ended up costing the city $2 million in damages and attorney fees.
McGill has been the airport's fixed-base operator since 1998 and mainly
handles fuel sales and light ground support. Its lease is set to expire
on March 31, 2018.
Source: http://www.fbnewsleader.com
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