Friday, August 08, 2014

Gary/Chicago International Airport Authority settles in prime tenant's lawsuit

The Gary/Chicago International Airport Authority settled a lawsuit accusing previous members of favoring a real estate baron's new business over a longtime airport tenant.

Under the settlement, the Airport Authority is paying $90,000 to the Gary Jet Center and providing promises it will level the playing field with regulations for all aircraft-servicing companies at the airport.

"It's important that we put this behind ourselves and now can move forward with all the new things happening at the airport," authority Chairman James Cooper said.

Gary Jet Center owner Wil Davis expressed the same sentiments about the future but reviewed what he thought was the root of the problem during the meeting's public comment period.

"I hope this never happens again," Davis said. "I firmly believe the previous board showed a lack of leadership. And the former airport director showed a lack of leadership. And I believe the consultants involved displayed a high degree of arrogance and stupidity."

The settlement comes one week before a federal court hearing on the Gary Jet Center's motion for a preliminary injunction. The previous airport board was turned out under state mandate in September 2013.

The Gary Jet Center filed its lawsuit in December and alleged former Airport Authority members schemed to give an unfair competitive advantage to Chicago real estate firm East Lake Management & Development and shortchanged taxpayers.

That company is owned by Chicago real estate magnate Elzie Higginbottom, a prominent fundraiser for former Chicago Mayor Richard Daley.

East Lake Management & Development had set up a fixed-base operation, basically a service station for planes, at the airport in 2013 and announced plans to build a 25,000-square-foot hangar. It named the new company B. Coleman Aviation.

The lawsuit contended B. Coleman Aviation was not held to the same strict airport standards as the Gary Jet Center. Among unusual privileges granted to the newcomer was a waiver of certain fees including fuel flowage fees, according to the lawsuit. It also alleged the truck-to-truck refueling used by B. Coleman Aviation violated regulations and was unsafe.

East Lake Management & Development denied it had been granted any unusual privileges when it intervened in the Gary Jet Center lawsuit in late January. It also pointed out the truck-to-truck refueling had passed inspection by the Gary Fire Department.

Under the settlement approved Thursday, the airport and B. Coleman have to develop aviation fuel tanks for B. Coleman's use within 15 months.

On Thursday, B. Coleman General Manager Benjamin Toles said his company had only intervened in the lawsuit to protect its name. B. Coleman continues to offer a full range of aircraft services at the airport. Its 25,000-square-foot hangar remains under construction.

- Source: http://www.nwitimes.com

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