The Gary Jet Center is
suing the former Gary/Chicago International Airport Authority, alleging
it schemed to give unfair competitive advantages to a prominent Chicago
real estate firm and ultimately shortchange taxpayers.
The lawsuit filed in
federal court Monday alleges former Indianapolis Airport CEO and Gary
airport consultant John Clark hatched the deal that led to East Lake
Management & Development Corp. being extended unusual airport
privileges, including a nine-month waiver for collecting standard
airport fees.
East Lake Management
& Development operates a fixed-base operation, basically a service
station for aircraft, at the airport under the name of B. Coleman
Aviation. It currently operates out of modular housing units but
yesterday broke ground on a new 25,000-square-foot hangar facility.
"I'm not here to shut
anyone down," said Gary Jet Center owner Wil Davis on Tuesday. "I'm just
here to say, 'Wait a minute, let's play on a level playing field.' And
right now, it's not."
The Gary Jet Center has
been the airport's fixed base operator for more than 20 years. B.
Coleman was launched when the airport authority granted it a 20-year
lease to build a hangar earlier this year.
Among privileges the
lawsuit alleges East Lake Management & Development enjoys are a lack
of any requirement to collect landing fees, parking fees, fuel flowage
fees and others that the Gary Jet Center must collect and turn over to
the airport authority. The suit claims those exemptions give East Lake a
huge competitive advantage.
B. Coleman General
Manager and Partner Benjamin Toles on Tuesday said he had not seen the
lawsuit, but vigorously denied the allegations made by the Gary Jet
Center.
"We pay every fee Wil Davis pays," Toles said. "We pay every fee the airport asks us to pay."
The lease for B. Coleman
aviation's hangar facility spells out it must adhere to the regulations
and standards of the airport and it abides by those, Toles said.
The lawsuit alleges John
Clark's JClark Aviation, working as a consultant for the airport,
developed the unlawful plan to exempt East Lake Management &
Development from rules and regulations. Clark could not be reached for
comment Tuesday.
The lawsuit states
treating all airport tenants equally is a requirement of federal law and
by discriminating the Gary airport is endangering millions of dollars
in taxpayer funded benefits from the Federal Aviation Administration. It
also takes issues with the no-bid contract the former airport authority
awarded East Lake Management & Development for managing the
airport's hangars for small planes.
It also alleges B.
Coleman's use of truck-to-truck refueling for aircraft violates both
regulations and best practices for fixed base operators.
Toles said B.Coleman's
fueling operation has been inspected by the Gary fire department and
comports with all regulations. He said B. Coleman was forced to use
truck-to-truck refueling when the Gary Jet Center enforced a provision
of its own lease, which basically grants it exclusive use of the
airports fuel tanks until the airport chooses to install more.
East Lake Managment &
Development's interest in the Gary airport has caused a stir among
Chicago political observers, because the company is run by Chicago
real-estate baron Elzie Higginbottom. He was at one time a top
fundraiser for former Chicago Mayor Richard Daley.
Toles defended his boss
against any allegations special favors may have been extended to him
because of his political prominence.
"Elzie stayed completely
out of these negotiations," Toles said. "If anything, all he's ever told
me is make sure I do everything according to the law."
The lawsuit asks for the
court to issue an injunction forbidding the current Gary airport
authority from discriminating against the Gary Jet Center. It also seeks
monetary damages.
It names the Gary airport
authority and five former authority members who voted for a waiver from
airport requirements for East Lake as defendants.
Gary Jet Center lawyer
John LaDue said Davis wants to ensure a secure future for the airport
where he has made his living for more than two decades and employs 48
people.
"He expects to be here
for a good long time and want to make sure everyone is treated fairly,
not just today, but going forward," LaDue said.
Source: http://www.nwitimes.com
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