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Saturday, January 4, 2014

CONCERNING THE NEWSPAPER ARTICLE.

I received an email from Mr. Domke on Thursday Jan 2nd.   The paper publishes on Friday mornings.  I did not check my email until Saturday.  I was going to reply to comment to the online article, but have decided not to do so.  In December, I received an email from the tenant that recently moved to Sullivan, which stated that the reason he was leaving, was due to the poor condition of the taxiway, the lack of fuel, and the high hangar rent.   St. Clair is $40 a month higher than similar surrounding facilities.   With four tenants, airport income will be around $8500 for 2014 with a rental rate of $175.  If the rate was competitive, as outlined by the FAA guidelines, the airport income could be $15,000.   This action by the city to keep hangar rates above market rates, to discourage full occupancy, demonstrates intent to not follow FAA guidelines.    
In September of 2010 MoDOT Aviation sent a letter to the city stating that “Based on the information provided by the City for their 2009 revenue and expenses for the airport, it is possible for the airport to sustain itself if management and operational practices were executed in accordance with Federal Aviation Administration guidelines and circulars and in compliance with federal grant obligations.  Our office is available to assist the City with any questions related to the airport and can provide FAA documents related to compliance with federal grant assurances.”   The FAA has stated repeatedly that the prime obligation of an airport sponsor is to operate the facility for the benefit of the aviation public.   The number of tenants on the airport will have no bearing on the decision by the FAA in regards to a plan submitted by the city to close the airport; if the city does present a plan.  The FAA has stated that there is no support for what the city has submitted so far, anywhere in the entire FAA organization.   The FAA has not lifted the hold on the closure issue due to a formal complaint, and an ongoing United States Department of Transportation Office of Inspector General Investigation of the airport management.    
The audited financial statements also show depreciation of a 1.6 million asset at the airport.  No one has stated what this was where it is, or when it was completed. 
The key element here is, if management and operational practices were executed in accordance with Federal Aviation Administration guidelines and circulars and in compliance with federal grant obligations.  Until the city understands this and realizes that the direction they have chosen to proceed is not going to get them what they want, the airport closure attempt will continue to sink into a quagmire that will end up costing the city and city taxpayers  more and more money.   


2 comments:

  1. Why does the Missouriian forget to mention the FAA and what they have told the City so far?

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  2. The Missourian is one sided, they have been that way from the start of this deal. The paper only prints what they want the public to here, not the facts. The paper always ends their story with " and none of the pilots live in St Clair " but what they fail to tell everybody is that most of the pilots have been at that airport for more than 20 years and know more about the city than the people running it. I wonder how long Dumke and the rest of them have been around the City.

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