Fernandina Beach Airport to add 8 Flags Aviation as second fixed base operation

Submitted by Suanne Z. Thamm

Reporter – News Analyst

Fernandina Beach Municipal Airport
Fernandina Beach Municipal Airport

During its March 18, 2014 regular meeting, the Fernandina Beach City Commission unanimously passed Resolution 2014-33, approving a lease agreement with Eight Flags Aviation LLC (8FA) to operate a second fixed base operation on city airport property located on the north side of the airport, conditional upon the City Manager’s receipt of a satisfactory professional survey. The terms of the lease set the duration at 20 years with a possibility of two 5-year renewal options.  Eight Flags Aviation will pay $.20 per square foot of unimproved land and $.22 per square foot for non-exclusive use of the public ramp (management fee).  The company will also pay a fuel flowage fee of $.08 per gallon.  The successful negotiation of this lease follows more than two years of often-contentious exchanges between the parties and complaints to the Federal Aviation Authority regarding what appeared to be the city’s reluctance to accede to 8FA’s choice of location.

Commissioner Charlie Corbett moved and Commissioner Pat Gass seconded approval of the resolution before it was even completely introduced, signaling a significant change in FBCC attitude toward 8FA.  No commissioner questioned lease terms or expressed any reservations over the length of the lease.

Only Mayor Boner raised questions during discussion.  He asked whether the city might require a percentage of 8FA’s gross concession sales and whether the city might look toward substituting a percentage as opposed to a pennies per gallon charge for fuel flowage.  He indicated that he had spoken with a representative of the Ocala Airport who advocated such lease terms.  Boner also reminded commissioners and the audience that the additional revenues would not flow to the city’s general fund but would stay in the airport fund, where they would be used to match grants for airport improvements.

DSCN1891Vice Mayor Pelican and Commissioner Charlie Corbett appeared taken aback by his suggestions.  Pelican asked why Boner had not brought forward these concerns earlier instead of waiting until “the 11th hour.”  City Manager Joe Gerrity quickly interjected that Boner had raised the issues with him earlier but that he advised Boner that there would need to be a public discussion with all the commissioners.

Pelican suggested that the Ocala airport differed from Fernandina Beach’s airport because it was an international airport.

Brian Echard, 8FA principal, addresses FBCC as Richard Gray, Chair of the city's Airport Advisory Commission, looks on.
Brian Echard, 8FA principal, addresses FBCC as Richard Gray, Chair of the city’s Airport Advisory Commission, looks on.

Mayor Boner invited Brian Echard, 8FA principal, to weigh in on the discussion.  Echard said that 99% of fixed base operations leases spell out fuel flowage charges in pennies per gallon, with rates ranging from 2-10 cents per gallon.

Commissioner Pat Gass turned to Boner and said, “You aren’t sounding very business friendly.”

Richard Gray, Chair of the city’s Airport Advisory Commission (AAC), addressed the commission.  He said that the AAC had discussed the same points raised by Boner at two separate times previously.  Ultimately, the AAC rejected the ideas because they believed they were not conducive to economic development at the airport.  He said that under certain circumstances they might be construed as arbitrary and capricious, even potentially discriminatory. Gray said that the AAC wanted to demonstrate that the airport is business friendly.  He feared that adding more restrictions or conditions that go beyond the minimum standards would discourage potential relocations to the city airport.

DSCN1890City Manager and Acting Airport Manager Gerrity told commissioners that the lease calls for CPI adjustments and that the city was getting favorable terms with the ground lease, stating that it is “not like the existing lease.”   The existing lease is with McGill Aviation, the only other fixed base operator at the city airport.

Echard added that as his operation gets up and operating, he would always be open to revenue sharing opportunities.

Following discussion the lease was approved unanimously without amendment.

When contacted after the meeting, Echard said that he expects to start the environmental permitting process next month and plans to be operational this fall.  He added, “I’m pleased that the City Commission voted unanimously for 8 Flags Aviation to proceed with providing another FBO for airport users.  The aviation community has been negatively impacted by having only one service provider at the airport, and the resulting lower fuel sales have led to a steady decrease in City revenues over the last several years.  FBO competition at the airport will enhance the attractiveness of our airport to development and increase airport tourism, both of which will benefit local businesses.  I commend City Manager Gerrity for working with 8 Flags over the last 18 months to overcome the legal issues and administrative hurdles.  I’m positive that this new relationship will prove beneficial to the City as well as 8 Flags Aviation.”

Suanne ThammEditor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.

March 20, 2014 8:50 p.m.

 

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Vince Cavallo
Vince Cavallo(@grandvin)
10 years ago

Why do I feel this has something to do more with retribution to McGill for winning their suit than it has about the “development” of the airport. Furthermore, those who live within its flight path are not keen about the plan to increase airport traffic.

Some in the city seem to be more concerned with turning this island into a fixed position aircraft carrier then with the quality of life for those who live here. BTW, I don’t want to hear the all pshaw about the airport was here when you bought your property. So were the streets but I didn’t have reason to believe some of the streets were to become freeways comparatively either. The airport was a bucolic place until the rush to convert the island into something it was not since the turn of the 20th century, a winter get away.