Thu, Mar 12, 2009
Aviat Westchester Says County Proposal Will Cost County
Millions
In what it sees as a
one-David-vs.-two-Goliaths battle, Avitat Westchester is
challenging a proposal by Westchester County Executive Andrew Spano
to give its lease for one of the largest hangars at Westchester
County Airport in White Plains, NY to JPMorgan Chase.
Avitat CEO Michael Dolphin, who told the County Board of
Legislators last week Spano's proposal could cost Westchester
upwards of $100 million in reduced fees and potential damages if
Avitat prevails in litigation against the County concerning the
hangar, is now seeking public and business sector support at a
hearing scheduled for March 23, at the Michaelian Office building
in White Plains.
According to Dolphin, the RFP process for the hangar's lease
renewal -- currently scheduled to take effect in March of next year
-- was "flawed, violated longstanding County practices and was a
retaliatory action against Avitat for complaining about illegal
practices at the airport."
Dolphin also questioned the logic in granting such a perk to "a
TARP-assisted financial institution that cut its dividend by 87%
and eliminated 14,000 jobs," saying he was concerned about the
possible "regulatory and/or public reactions."
The projected $200+ million cost on new jets and hangar
renovations could require Westchester to find a new lessee during
the 30-year term of the lease, Dolphin added. Loss of the existing
hangar would force Avitat to cut 30 jobs, or half its workforce at
the airport.
JPMorgan Chase leases space at another hanger on the airport, he
adds, where it already is housing an existing fleet of planes.
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