Tue, Feb 16, 2010
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.
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