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.