Nov. 26--MIDDLETOWN -- Several business owners at Middletown Regional Airport have halted or canceled expansion plans after details of executive session discussions by City Council to possibly sell the city-owned airport and its buildings were "leaked" to the public.
"Businesses that want to expand or move here now have a moment to pause to think things may be unstable, or someone else could take over," said airport manager Rich Bevis.
Selling the city's stake in the airport, along with other non-core services such as Weatherwax Golf Course, is something that is examined almost every year during budget discussions, especially when the city has very little financial wiggle room, City Manager Judy Gilleland said. The city spends about $90,000 annually to offset costs for the airport and has $1.8 million in bonds that were used to purchase airport hangers.
"It's good management to examine a variety of alternatives and to investigate privatization of non-core services," she said.
While city officials acknowledged there had been discussions about the airport, they made it clear that no decisions had been made. City officials said they did not know who would have leaked the information.
Bevis said selling the entire airport likely won't happen because the city would be required to repay 20 years worth of grants back to the Federal Aviation Administration. How much that would be is unknown at this point, but for 2012 the city received $150,000 from the FAA.
Some see the $90,000 subsidy from the city to fund airport operations as a sound investment, including Tim Epperhart, president and owner of Middletown Regional Flight Training and president of the Butler County Warbirds.
"This is a portal to this city, the same way (Ohio) 4 is a portal, the same way (Ohio) 122 is a portal, the same way (Ohio) 73 is a portal," Epperhart said. "Are we going to shut those roads down because the city has to put money in them?"
Councilman Joe Mulligan, who sits on the airport commission, said it is "regrettable" the closed door discussions about the airport became public. The city is permitted to have executive session meetings when discussing a variety of topics, including the sale or potential sale of city-owned property or land.
After the information became public with the leak, Mulligan sent an email to other members of the airport commission, stating there is "an abundance of misinformation regarding the city's plans for the airport."
"The proposed plans are still in the very early stages and no decisions have been made," Mulligan wrote in the email. "To bring it up sooner would not be productive because no details had been discussed."
Mulligan said Gilleland simply presented council the concept of selling the airport and "no parameters of a potential sale were identified. Members of council raised no objections to see if there was an interested buyer."
However, Gilleland told council in another executive session meeting there was a potential buyer, Mulligan said. Gilleland would not provide any details about the identity or background of that "interested buyer."
"At some point in the future, the manager will report back to council how the potential sale might work, if she feels such a deal is in the city's best interest," said Mulligan.
That step would be, at best, weeks if not months away from occurring, Mulligan said.
Bevis said it may be "a blessing in disguise" because the airport commission can have an active role earlier in the process to make the airport budget neutral.
There are 86 full-time equivalent jobs associated with the airport, according to Matt Eisenbraun, Middletown Economic Development program manager. He said the number of operations -- the number of times a plane takes off or lands -- is projected to be at 91,000 for 2012, which is more than double since 2009 when there were 41,000 operations.
The airport is becoming a popular destination, and the city is trying to capitalize on it and there is "room to grow," he said.
"The Airport Commission, working with the City's Economic Development team, is exploring opportunities to bring additional aerospace- and aviation- related companies to the airpark," Eisenbraun said. "There are development opportunities at the airport and we aim to take advantage of them to bring even more jobs to Middletown."
Middletown Tube Works flies a plane in and out of Middletown Regional Airport almost daily. And while the sale of the airport wouldn't affect her company, Middletown Tube Works President Angela Phillips believes the city would want to keep it.
"It would be one of the last things, I think, they'd want to get rid of," Phillips said. "There are too many companies that rely on aviation to get around."
Gilleland said there is has been interested from a potential buyer, but she wouldn't divulge any information about the potential buyer and if they were interested in buildings or the airport.
Copyright 2012 - Middletown Journal, Ohio
