Company May Continue With Scaled-Down Plans; Investor Seeks New Operator

Current economic woes appear to be trickling down to companies that support the relatively booming business aviation segment.

Maine-based Oxford Aviation had planned to open a second location at Sanford Regional Airport (SFM), to complement the company's original repair facility at Oxford County Regional Airport (81B). Company president Jim Horowitz hoped the new location would help the company take advantage of the current boom in aircraft refurbishments.

That project is now on hold... if not off the books completely. The Portland Press-Herald reports talks have been scrapped between Oxford Aviation and the Boston-based investment company, Oso LLC, that was to provide funding for the $10 million deal.

That leaves Oxford without an apparent plan for expansion at SFM... and it leaves city officials in Sanford scrambling, after investing over $300,000 in public funds in the multi-year, high-profile project. The city already demolished a World War II-era hangar at the Sanford airport, to clear land for Oxford's planned 96,000 square-foot building.

Oso President Roberto Tenenbaum wouldn't say why negotiations broke down. So far, Oso has invested over $400,000 in the potential deal.

Horowitz didn't return the Press-Herald's calls for comment. Oxford has already signed a new lease with Sanford, though any deal to salvage the project won't involve Oso. There's a chance Oxford may be able to press on with a scaled-down project at the airport.

Conversely, Tenenbaum held out the possibility his company could find another vendor for the site... just not Oxford.

"We're sort of in the wings. We would be interested in finding another operator. We could easily renew talks with the town" if a new lease became available, Tenenbaum added.

State Economic Development Commissioner John Richardson focused on the positives. Should Oxford's plans to expand at SFM fall through, he says the land has been cleared for another tenant to move in.

"In this tight credit market, this happens sometimes," Richardson said. "There was some expectation (the Oxford-Oso) deal would happen in Sanford because they were so far down the development road. But for tight credit, I think this project would be in the ground."

FMI: http://oso-llc.com/, www.oxfordaviation.com