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"Yuba, California airport auction halted"
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- Subject: CAA: GA News, "Yuba, California airport auction halted"
- From: "Stephen Irwin" <stepheni@xxxxxxxxx>
- Date: Thu, 6 Sep 2001 19:43:53 -0700
- Reply-To: "Stephen Irwin" <stepheni@xxxxxxxxx>
- Sender: ganews-owner@xxxxxxxxxxxxxxxxxxxxxx
Thursday, September 6, 2001
Yuba airport auction halted
Ryan Aviation's loan bill prompts action
By Harold Kruger
The Marysville (CA) Appeal-Democrat
Yuba County obtained a restraining order Wednesday to stop Ryan Aviation
Inc. from holding an auction Saturday.
The county acted because it says Ryan, based at the county airport, owes
about $187,000 on a 1999 loan.
"It was more of a misunderstanding than anything," said company owner Larry
Ryan. "I was going to have an auction and sell some of the junk that's been
accumulated in my hanger here, plus we were going to invite some airplane
owners to bring their for-sale aircraft here."
Ryan said he told the county of his intentions, and "they got nervous
because some of the assets in the building are collateral for their loan to
Ryan said he canceled the auction before the county went to court.
Daniel Martinez, the county's lawyer, said when county officials saw the
auction notice, "it appeared the sale would be of some of the county's
By the time Ryan had canceled the auction, Martinez said, "we had already
prepared the documents and had scheduled the hearing."
In court papers, Martinez estimated that the auction included items valued
at about $50,000 that could have been used as collateral for the loan.
Judge Thomas Mathews signed the order and set another hearing for October.
"The bottom line is there is a default on the note obligation," Martinez
Martinez said Ryan obtained a $178,368 economic development block grant loan
through the county in April 1999. The block grant funds were from the state.
Ryan secured the loan with a promissory note and failed to make payments
starting in September 2000, the county said.
In June, county supervisors declined to spend $198,000 to buy aboveground
fuel tanks owned by Ryan at the airport.
"Very selfishly, number one, it helps me out and keeps me a viable operation
at the airport," Ryan told the supervisors. "Without it, I'm not sure what
will happen. Number two, it gives the county an asset they own at the end of
the lease. You're getting something for nothing."
Ryan had initially proposed an outright sale to the county. He later amended
that to a leaseback arrangement in which he would sell the tanks to a
leasing company, which would lease the tanks to the county, which, in turn,
would lease them to Ryan.
Supervisors rejected both proposals.
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