Claims Of "Economic Discrimination" By New County Leased Developer Voiced To FAA

The Federal Aviation Administration has received a complaint filed by several businesses at Opa-locka Executive Airport regarding alleged economic discrimination by Miami-Dade County and its contracted developer for the airport.

Threatened with eviction, tenants are asking the FAA to invalidate the lease of airport developer AA Acquisitions and grant their businesses long-term leases instead according to a report by the Miami Herald late last week.

Miami-Dade County granted airport leasing rights for about 200 acres to AA Acquisitions, headed by developer Michael Adler, including the land occupied by the tenants filing the complaint.

Adler, chief executive of Miami-based Adler Group, said in November that AA Acquisitions would invest $200 million to create Airside International Business Park at Opa-locka, with new hangars, office, industrial and retail structures, and a hotel and parking.

Adler said then that AA Acquisitions would "work with the few remaining existing tenants who are interested in being part of the plans for the future of Opa-locka airport. Part of that means being willing and able to enter into long-term lease agreements at fair market rates. If they choose not to remain a tenant, AA Acquisitions will work with them to ease their transition."

The businesses have had month-to-month leases for years according to the Herald. Instead of securing long-term rental agreements with AA Acquisitions, the businesses are now being evicted said Michael Pizzi, an attorney representing the tenants.

"These are all minority-owned, small business people that have devoted their lives and their families' lives to the airport for over 30 years, and the thanks they got from the county is they are being thrown under the bus and thrown on the street like dogs," he said.

Pizzi represents Opa-locka Executive Airport tenants: Airkraft Parts, Wayman Aviation, Suncoast Aviation, National Aviation, ALCA Aviation and BMI Aviation. Those businesses have either received official eviction notices or letters of intent to do so from AA Acquisitions.

Bruce Rubin, spokeman for Adler, noted that the company made reasonable attempts to work with the tenants as the city and county made plans to improve the underused airport and "bring it into the 21st century."

"AA Acquisitions has made extraordinary efforts to reach these existing tenants and invite them to be part of the future plans," Rubin said. ``We have asked repeatedly for business plans from the tenants, we have asked repeatedly for their financials, and generally speaking, they have not provided them."

The FAA complaint contends that the tenants "sent letters to Adler making reasonable good-faith offers to remain at the airport long term, under similar terms that were offered to them by the county. The letters and subsequent phone calls offering to set up meetings to continue negotiations were ignored by Adler."

FAA spokeswoman Marcia Adams said to the Herald the complaint is still under review.

Miami-Dade county also disputes the allegations.

"The county has provided ample access to the existing tenants to participate in the new development of Opa-locka Airport," said Miguel Southwell, Miami-Dade Aviation's assistant director of business retention and development.

"There is enough land at Opa-locka and there will be enough opportunities at Opa-locka to accommodate everyone," Southwell said, ``if everyone acts reasonably."

Once one of the busiest airports in the United States, Opa-locka has recently seen its share of problems. In an attempt to develop the airport in the 1990s, the county offered leasing rights of a large portion of the airport to developer company Stagecoach. Stagecoach planned to entice low-cost carriers to make Opa-locka their home.

Worried by the threat of traffic and noise, local residents fought the move to turn Opa-locka into an airport for passenger service and eventually county commissioners took their side as well. As a result, Stagecoach's plans were denied.

The 90-year lease granted to Stagecoach stipulated it didn't have to pay rent until construction began. Nothing was ever built and as a result Stagecoach never paid rent. In addition, Stagecoach sued the county for $20 million.

Adler and AA Acquisitions bought the leasing rights last year for $20 million from Stagecoach. The purchase resulted in Stagecoach dropping its lawsuit against the county.

FMI: www.miami-airport.com/html/opalocka.html