Thu, Dec 31, 2009
Wants To Rewrite Lease Agreements to Take Ownership of Private
Hangars Built On Leased Grounds
ANN is monitoring media reports of a change of heart (or a lack
thereof) on the part of the powers-that-be that control North
Little Rick Airport, in Arkansas. Recent decisions by airport
management seem determined to take ownership of hangar facilities
that have been built on leased grounds... while such arrangements
with public (and some private) airports are not uncommon, the
property grab is a mite unusual -- and unsettling.
The normal lease agreements allow people to build what they need
on the leased grounds, thereby eliminating the cost and maintenance
issues that airports are otherwise ill-equipped of unable to
undertake... this way the airport gets a tenant and the land-leaser
gets to build a facility that fits their needs and gives them some
of the benefits of ownership. Many of these lease agreements are
not only renewable but transferable and usually of fairly long
duration.
Where KORK seems to want to play Grinch is occurring via their
decision to re-write leases upon renewal, eventually allowing them
to seize/take ownership of the property that others have built...
and (one assumes) to then turn around and charge them (or others)
for the property that they incurred NO EXPENSE in developing.
In emails to ANN, pilot/tenants on
site were of the impression (and allegedly had been assured by
various members of the airport management team) that their
ownership of the "improvements" (the facilities/hangars) they built
remained their property to do with as they please... within the
confines of the lease agreements that had been in force for many
years. To say the least... tenants are not happy and are
threatening major litigation and other actions if KORK management
continues on this path.
Media reports allege that the airport management's rationale
(which as not returned ANN's calls on the matter) is built on their
contention that seizing all such improvements on the airport
grounds will "allow it to receive more rental income and become
more self-sustaining, which is what the Federal Aviation
Administration wants."
There is a meeting coming up next week (01.07.10), of the North
Little Rock Airport Commission's lease committee, in which affected
parties will have the chance to air their grievances. We'll follow
up and let you know what happens... but hopefully cooler heads will
prevail, the FAA has not or will not support such measures in the
future, and other such ideas are shut down ASAP... aviation really
does not need this kind of behavior when airports are struggling to
retain tenants and the business they provide... which a number of
concerned KORK users claim is an invitation to turn the airport
"into a ghost town."
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