Excel-Jet to repay $375,000 loan from Guthrie; Company's relocation to airport not expected

June 25, 2007
Relationship unravels after crash of prototype

GUTHRIE - Excel-Jet officials said this week they plan to repay their $375,000 loan to the city of Guthrie but doubt the company will relocate to the Guthrie-Edmond Regional Airport.

"We're not welcome there at all," President Bob Bornhofen said. "We had wanted to move there. At this point in the time there's not a lot of warm fuzzies between us and the city."

The Monument, Colo.,- based company has had a "strained" relationship with the city since they stopped making their $4,849.37 monthly payments in January, according the city and Excel-Jet. Bornhofen said the cash-strapped company is trying to restructure its payment schedule.

The city secured the $375,000 loan in December 2005 as part of a deal to relocate the company to the airport. The company delayed their move after its prototype plane crashed in a test flight in June 2006.

Bornhofen said the company's relationship with the city deteriorated rapidly after the crash. He said the company now is looking for another community to build its manufacturing plant.

"At the current time we're moving the company forward," he said. "We intend to pay the loan off as soon possible."

City Manager Melody Kellogg said she was not aware the company was working to restructure its payment plan.

Communication has deteriorated to the point that attorneys are handling it just because city leaders weren't getting any answers,

Guthrie City Attorney Randel Shadid said he is working with Excel-Jet's lawyers to get updated financial information.

Nathan Altadonna: 475-3428, [email protected]

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