Airport Authority Votes To Terminate Operator's Lease (Updated)

Fairhope, Alabama 

Updated to add councilman Burrell's comments. Edited 1/14/22.

January 11, 2022 Airport Authority meeting.

HANGAR TENANTS BEING EVICTED BY COMPANY

At the end of its January meeting yesterday, the city's Airport Authority voted unanimously to approve a resolution to terminate its long-time contract with airport operator Contintenal Motors, unless the company rescinded its surprise decision the day before to terminate over 30 leases it had with local citizens for hangar space for storing their planes at the Fairhope airport (effective January 30).

Resloution passed Tuesday: "To terminate the lease with Continental Motors effective January 19th, 5 PM ... unless Continental rescinds their letter of cancellation ... of all of their lessees' hangar spaces ... sent out yesterday (Jan. 10) ... prior to that time."

Airport attorney Josh Myrick called it potentially a "very serious safety issue, eviciting 30 odd tenants and have their planes scattered all over the airport ... ."

 

RECENT LAWSUIT CITED AS REASON BY COMPANY

In the letter referred to (e-mailed), Continental Motors' attorneys blamed a lawsuit filed against it by the Authority last month for the situation, calling it "completely without merit" ... and asked tenants' help to "stop this flagrant abuse of the boards' authority." (see the letter at bottom).

The letter goes on to say the company will rescind the evictions ... if the Authority withdraws its lawsuit.

The lawsuit alleges various shortcomings by Continental on its own FBO (fixed base operator) lease agreement, including: failure to secure proper insurance and inadequate fuel farm maintenance; failure to install required office/hangar space; et al.

Also, the Authority's lawsuit cites Continental's descision to renege on a mutual agreement dated August 24, 2021 to voluntarily end their operator's lease on June 30, 2022.

The lawsuit (see below) asked the court to terminate Continental's lease on June 30, 2022 instead (and vacate premises by the end of the day), pursuant to the prior mutual agreement refferred to.

The Authority's action Tuesday to immediately termiate the lease seems to have superceded this lawsuit ... for the time being.

COMPANY MEETING WITH LESSEES TODAY

Continental Motors has scheduled a "town hall" meeting in its north hangar to discuss the matter with the lessees today, 4:30 PM (Wednesday).

COUNCILMAN BURRELL'S COMMENTS

During the meeting the city council's representative on the board, Jack Burell, called the letter to evict "absurd" and asked members of the aviation community present for patience: "this is nothing more, in my personal opinion, a ploy ... to drive a wedge between the aviation community and airport authority ... an attempt to coerce us into settling this dispute (lawsuit) in a manner not in our best interest ... or your best interest ... no reason to vacate (evict) given ... other than for you to come to us to force setttling (lawsuit)... ."

(Update) NEW TAX NOW IN EFFECT

The 2% surcharge on most goods and services at the airport imposed by the Authority in October takes effect this month as well.  Continental Motors and other vendors there expressed dissatisfaction with the new tax.


Burrell addressing aviation community.

Plane owners present.


Eviction letter.
                                                               
Lawsuit details.

Comments

Anonymous said…
So it is apparent that Fairhope can not even manage the airport. It has never turned a penny profit & is of no use to the average citizen .
Anonymous said…
If the company can not do the job get some one else.
Anonymous said…
Maybe the city should take over the airport again.
Anonymous said…
The Authority is correct. The current management is not doing the job. The airport does show a negative cash flow but those hangars
Will eventually be under authority control at no cost. That is a valuable asset. I wonder if the city would consider selling the airport or a controlling percentage of it. It is a profitable operation especially when the debt goes away.
Anonymous said…
If CMI has a legal and contractual obligation to "failure to secure proper insurance and inadequate fuel farm maintenance; failure to install required office/hangar space; et al." Then they are wrong and Fairhope has grounds to terminate their contract.

I would also say the FAA could have a say in this matter since Federal money is involved with this airport.
Will Bruce said…
To Fairhope Times, thanks for your accurate reporting.

William Bruce, Member
Board of Directors
Fairhope Airport Authority
Anonymous said…
Fairhope Times gave an understandable explanation of these events. I think the unanimous vote by the Authority says plenty. Time to play hardball with these. “people.”
Anonymous said…
Much of city business these days is being conducted in private. State Open meeting law requirements are ignored or "avoided."
Anonymous said…
I do not see what the last comment has to do with the article. You may not agree with everything done by the city but they seem very
transparent.
Anonymous said…
Mr Ripp why do you continue to report fake news. Fairhope Times does a great job at reporting all the facts.
Anonymous said…
Wy not privatize the airport or let the county take it over?
Anonymous said…
Really you want the county to run it, or anything is a joke. They allow private companies to put utilities in the ground, build and do nothing to regulate. Terrible suggestion.
Anonymous said…
If there is, heaven forbid, like a plane crash at the airport isn’t it possible the city could be liable ? I realize it is unlikely but it seems entirely possible. And catastrophic for Fairhope. Sell!
Anonymous said…
Given that Continental Motors is Chinese owned and represented by an attorney from Los Angeles, CA, I highly doubt they have our best interests in mind. I’m backing our Fairhope community leadership on this one!
Anonymous said…
It would be more appropriate for the city to focus on infrastructure, than something that benefits a select few. How much is spent on the airport?
Anonymous said…
The federal government pays 90% of the airport, state 5% and city 5%. If you look at the Gulf Shores airport 30 years ago it was a financial drain on the city, now it is a cash cow.
Anonymous said…
This is not a select few, surely some fly in their jets but many fly in their airplane that costs less than a pick up truck. They stay in our local lodging, eat at our restaurants, shop downtown, possibly buy real estate here and invest in our community.
Anonymous said…
The airport authority is responsible for the runways, lighting, etc.. Once an airplane is off the ground they have no responsibility or jurisdiction.
Anonymous said…
One thing Rip and Trump have in common. Both are great liars!
Anonymous said…
"One thing Rip and Trump have in common. Both are great liars!"

How about we use our real names when we post such accusations, or we don't post at all?