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Tue, Feb 16, 2010

Florida Judge Determines City Owes FBO

Court Determines Fernandina Beach Violated Its Lease With McGill Aviation

A 4th judicial circuit judge in Nassau County, Florida has accepted the determination of a mediator that the Fernandina Beach, Florida city government owes McGill Aviation, an FBO at Fernandina Beach Municipal Airport (KFHB), nearly $411,000, and the FBO must be allowed to continue operations at the airport. The question of who will pay nearly $2 million in legal fees is still undetermined.

The Fernandina Beach News Leader reports that the city is not liable for $4.5 million in hangar rental and fuel sales McGill claims they lost over the past six years.

According to court documents, McGill had leased 485,000 square feet, which included 357,000 sq ft of paved ramp space. The county filed a "Verified Complaint for Removal Of Tenant" in early October, 2004, citing a dispute over the amount of rent paid by McGill. McGill claimed that it believed the county intended to remove it as the airport's FBO and replace it with Sheltair Aviation Services "or another third party" in at the end of October, 2004, and filed an emergency injunction against the county.

As a finding of fact, the court said the City, through its agents, bulldozed a portion of McGill Aviations paved ramp space which McGill used for aircraft parking. It had also taken another portion of the FBO's paved ramp space which was identified as a taxiway, but for which McGill had paid rent for six year. It also found that the city had taken a third section leased by McGill to construct a commercial T-Hangar. In August of 2004, it poured a concrete pad and installed a 285-gallon diesel tank next to McGill's fuel farm with no notice to McGill. The court found that the city's installation encroached on space leased by McGill.

The court found "substantial likelihood" that the City of Fernandina Beach had breached the lease.

Fernandina Beach City Attorney Tammi Bach told the News Leader that it will likely be months before a judge eventually determines who will be required to pay the attorney's fees.

FMI: www.fbfl.us, www.mcgillaviation.com

 


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