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Fri, Feb 12, 2010

FAA Calls For Changes In Leases At Avon Park, Florida Executive Airport

City Of Avon Park, Florida Aircraft Services Need "Solid Paper Trail"

Following complaints of favoritism by another airport tennant, the FAA looked into allegations that the city of Avon Park, Florida offered a lease arrangement to Florida Aircraft Services that it had not extended to other FBOs at Executive Airport (KAVO).

The allegations were been raised by Samuel E. Poole of Poole Industries, which is based at the Avon Park airport. He says the airport management agreement with Florida Aircraft Services "appears to convey an exclusive right because other qualified tenants were not solicited to bid on the management agreement."

Poole says the arrangement keeps the airport from being "self sustaining" because it offers free rent to the company, and that it is "discriminatory" in requiring Poole industries to "remove equipment from outside their hangar."

The Sebring, Florida News Sun reports that the FAA looked into the overall arrangement and dismissed Poole's allegation about economic discrimination. The agency did, however, tell the city to re-structure the agreement with Florida Aviation Services to assure a solid paper trail for the exchange of rent forgiveness for services. "They did not have a problem with Florida Aircraft Services providing services, but they wanted to see an arm's-length agreement where we have a lease, and that they (Florida Aircraft Services) guarantee to provide certain services," Airport Manager C.B. Shirey told the Avon Park City Council. "Their concern was what we were forgoing is rent was less than the services provided."

Richard McKenzie of Frostproof, FL, who owns Florida Aviation Services, says his company has provided as much as $70,000 in services and labor, far more than the city would have charged for rent at the airport.

The Council has directed Shirey to develop a lease that meets the FAA requirements.

FMI: http://avonpark.cc/, www.faa.gov

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