"Michigan's takeover of 2 airports gets all-clear by court"

Wednesday, September 25, 2002

State's takeover of 2 airports gets all-clear by court 
Suit can't alter control of Metro, Willow Run 
BY DENNIS NIEMIEC AND CECIL ANGEL
The Detroit (MI) Free Press


In a major victory Tuesday for the Wayne County Airport Authority, the
state Court of Appeals rejected the Wayne County Commission's legal
challenge of the authority's takeover of Metro and Willow Run airports. 

The county had operated the airports until the state Legislature
established a seven-member independent body at the request of Gov. John
Engler and Wayne County Executive Ed McNamara. The authority began
conducting business in April. 

In a 3-0 ruling Tuesday, the appellate panel of Judges Harold Hood,
Helene N. White and Peter D. O'Connell upheld the creation of the
authority. It was formed in response to long-standing complaints of
cronyism and mismanagement at Metro, the nation's 11th-busiest airport.
State and federal investigations into the allegations are ongoing. 

The commissioners had argued that creation of the authority violated
state laws and contracts with its bond holders. But the court wrote,
"Considering that plaintiffs themselves admit that Metro has been poorly
managed for years, and that plaintiffs were the entities responsible for
operating Metro for those years, the Legislature's transfer of
operational jurisdiction meets the test in United States Trust." 

"We got a hasty decision, which was compelled by the political
atmosphere surrounding this case," commission attorney Patricia Cwiek
said. "It's a setback for local communities that face the state taking
over local control." 

Lester Robinson, the chief executive at Metro Airport, said in a written
statement: "I hope this signifies the end of the appeal process, so we
can get on with the business of running these two important airports." 

Engler and McNamara were not available for comment. However, Engler's
spokeswoman Susan Shafer said, "This is obviously good news that the
authority can now be in a position to facilitate economic development
and improvements at the airport." 

The authority was established as a fix to allegations of mismanagement
and shoddy contracting practices at Metro that have been raised in
several state and county audits. 

In a report issued in February, state auditors contended that Metro
officials mishandled millions of dollars in bond money since 1986. The
200-page report questioned loans the airport made between bond funds,
discrepancies between projects the bonds were supposed to pay for and
the way money was used. 

According to various county audits, airport officials have overpaid for
services, including airfield lighting and signs. Some contractors were
campaign contributors or relatives of McNamara. 

It was unclear whether the commission will appeal the ruling to the
state Supreme Court. 

The county commission sued in Aprilto regain control of the airport,
claiming that the transfer of airport assets to the authority was
unconstitutional. The commission also maintained that the authority
would not be accountable to the public. 

The commission also is seeking to overturn the transfer of the operating
license from the Federal Aviation Administration to the authority. Legal
challenges are pending at the National Transportation Safety Board and a
federal appellate court in Washington, D.C. No timetable is set for
rulings in those matters. 

Cwiek said the commission's only hope for a fair hearing would be in the
federal court system. 

Four of the authority members were appointed by McNamara and two by
Engler. One member is appointed by the commission. The members serve
staggered terms. 

Reaction from commissioners was mixed. Some said they expected the
outcome. 

"The court said it's a good law. OK. I fought my fight," said Lyn
Bankes, R-Livonia. "That's it." 

Bankes said all she wanted to know was whether the law creating the
authority was legal. She said she believed the Supreme Court would rule
the same if the case were appealed. 

"If something goes wrong, it'll be the court's fault," she said. "I
would say at this point it's over." 

Bankes said she is unsure whether the commissioners would want to
continue the legal fight. 

"I think it's time to stop," she said. "I would be hard pressed to use
taxpayers' money to go on." 

Commissioner John J. Sullivan, D-Wayne, said he expected the ruling
would favor the authority. 

He said it's going to be more difficult for constituents to seek help
from commissioners if they have problems with noise or other issues
regarding the airport. 

"Now, they don't have an elected representative to go to," he said. 

"Now it's going to be run like a business. It's all about profit." 

Sullivan said he doesn't believe the state Supreme Court would overturn
the decision if the case were appealed. 

"I think it would be a waste of money for us to appeal it," he said.


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