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City OKs payment plans for
delinquent airport tenants
MELANIE STAWICKI AZAM - STAFF WRITER
August 30, 2007; Page 01A
NEW SMYRNA BEACH -- NEW SMYRNA BEACH - City
commissioners decided against evicting two airport
businesses, which are both behind thousands of dollars
in rent, and gave them several more months to pay up.
"I think this is a way to try to get both of these
individuals back on track," City Manager John Hagood
said at last week's special City Commission meeting on
airport matters.
Four Winds Aircraft has an outstanding debt of about
$102,000 on its lease payments to the city, while
Vintage Props & Jets is $95,000 in arrears on its rent,
Hagood said.
After much discussion, commissioners approved
promissory notes with an 8 percent interest rate and
scheduled payment start dates. They said if payments
weren't made, the city attorney would start eviction
proceedings.
Jeff Rahm, president of Four Winds Aircraft, said his
company has been behind on its $17,577 monthly rent
three times before, but has always ultimately recovered
and paid its bills. He said he has three repayment
contingency plans in place.
An airport tenant since 1997, he said he's also
"never complained" to the city about the roof leaks and
other maintenance problems at the four airport buildings
he rented, although they sometimes resulted in losses at
his business. He added that he's put a lot of
improvement into the city buildings he rented.
In 2002, Four Winds lost $1.2 million after two of its
pilots died when the company plane they were
demonstrating slammed into the Federal Reserve Bank in
Miami, Rahm said. Then in 2004, hurricanes caused the
roof to leak and resulted in losses.
This year, he said, he sold Four Winds to a North
Carolina company for more than $6.5 million. He was paid
the $800,000 down payment, but in late May, the company
said they lost their investor and were unable to pay the
rest.
"So I've had less than 90 days to react," Rahm said.
Commissioners Lynne Plaskett and Jim Hathaway
questioned why Rahm would pay rent on dilapidated
buildings and said they needed to look out for the
public's financial welfare.
"You can say we don't have compassion, but we have to
look out for the entire city of New Smyrna Beach,"
Hathaway said. "They're the ones that are supporting you
and your business right now."
Airport Manager Rhonda Walker said Rahm has paid his
rent for July and August. Rahm will begin payment on his
promissory note starting Dec. 1.
Hagood said three of Rahm's buildings were in excellent
condition, while the 28,000-square-foot Airway Circle
building had some roof leaks. She said the city replaced
the building's roof in 2003, but its skylights were
damaged in the 2004 hurricanes and were repaired in
2007.
Vintage owner Tom Crevasse said he's been based at
the city airport since 1989. He's been a commuter
airline since 1998, serving the Bahamas, and his
commuter status has helped the city get additional
federal grant money for airport improvements.
He said he ran into financial problems after being
affected by the 2004 hurricanes and spending more than
$1 million in an unsuccessful attempt to get major
airline certification from the Federal Aviation
Administration. The certification would have allowed him
to transport a large number of passengers.
"The FAA, they kind of led me down a long, expensive
path," Crevasse said.
Crevasse said he has a plan for Vintage's recovery and
is working on some new business partnerships. He is also
looking to add domestic routes in the Southeast.
Crevasse's payments on the promissory note begin Jan. 1.
Walker said she is busy trying to lease out the
buildings Vintage and Four Winds have left.
The commission approved a sublease for 1501 Airway
Circle to R&R Aircraft LLC, which is subleasing part of
the building from Four Winds.
She said Composite Solutions, a subsidiary of Four
Winds, plans to lease 404 United Drive. There are also
potential clients for 408 and 412 United Drive, which
are both undergoing repairs.
Flying, then Falling Behind
*Four Winds Aircraft has an outstanding debt of about
$102,000 on its lease payments to the city, while
Vintage Props & Jets is $95,000 in arrears on its rent,
according to city officials. City commissioners approved
promissory notes with an 8 percent interest rate for
both.
*Four Winds paid $17,577 a month in rent for four city
buildings at 1501 Airway Circle and 404, 408 and 412
United Drive. Airport Manager Rhonda Walker said Rahm
has downsized to one building at the airport and his
rent has dropped to $9,346 a month.
*Vintage paid $10,715 a month for two executive
hangars, ramp space and two buildings at 602 and 604
Skyline Drive, Walker said. Its monthly rent will drop
to $5,507 for the two buildings and ramp space. |
