CAA: GA News, "Nebraska airport authority suing FBO"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Sunday, July 13, 2003

Authority suing airport operator
By HEATHER KOONTZ
The Columbus (NE) Telegram


COLUMBUS - The Columbus Airport Authority has filed a lawsuit in district
court to force the fixed base operator to discontinue operations at the
airport.

The Authority passed a resolution March 12 that required Avcraft to vacate
the premises.

Named in the lawsuit, filed June 23 in Platte County District Court, are
Avcraft, the fixed base operator owned by Keith and Janace Harbour. An FBO
provides fuel, maintenance, and other such services for those flying into
the airport.

Also named in the suit are those who are renting space from Avcraft: Richard
Gaspar, Leonard Babka, Ivan Goering, and Proair Inc. and Midland Aircraft
Inc., both owned by Tim Michaelsen.

Michaelsen is the chairman of the Authority, while Gaspar is a board member.

Keith Harbour said the Authority had no right to vote Avcraft out because
its lease does not expire until December.
 
"They voted us out and they breached our contract. We have a three-year
option. The way we look at it, we have three years and six months left on
our contract. They have no cause to put us out of business," Harbour said.

Authority attorney Ray Baker said there is no three-year option in the
lease. Baker said Avcraft did break its contract, as outlined in the
resolution passed by the Authority requiring Avcraft to vacate.

The reasoning behind the resolution was based on economic woes suffered by
Avcraft due to insurance difficulties, the Sept. 11, 2001, terrorist attacks
and loss of revenues during the runway expansion project.

Avcraft petitioned the Authority to cover losses it allegedly accrued during
the runway expansion, but Baker advised the board not to compensate Avcraft.
To do so would be to use taxpayer monies to prop up a private business,
which is illegal, Baker said.

Because the Authority terminated Avcraft's lease in March and ordered the
company out by June 1, the board has refused to accept any license payments
from Avcraft for the property it leases and for gasoline fees. Baker said
the lawsuit seeks to recover those losses incurred by the board since
Avcraft still continues operations.

On March 12, Avcraft's attorney, K.C. Engdahl, stated that the FBO would not
vacate without a court order.

Baker said it is standard to include tenants as defendants.

"They may be affected by the lawsuit," Baker said. Although Gasper claims
there are more renters than those listed, Baker said it was his intention to
include all of them.

Gasper, Babka and Goering all were surprised about being included.

As an Authority member, Gasper complained, "It's a blatent conflict of
interest. I'm being sued by my own attorney," as Baker is the Authority's
attorney.

But Baker pointed out that a majority of the five Authority members voted
for the resolution, which authorizes Baker "to take all actions deemed
necessary... to recover possession of the premises occupied by Avcraft by
June 1." The lawsuit is the next legal step to remove the FBO.

Authority members in favor of removing Avcraft were: Michaelsen, Rodney
Behlen and Don Hey. Gasper and Tony Weber voted against the resolution.

Gasper said he has written to the disciplinary board for the state bar
association.

Neither Babka nor Goering could understand why they were named in the suit.
Both are in support of Harbour and Avcraft.

Gasper currently has a petition circulating to remove Michaelsen and Hey
from the board. The time limit to collect signatures has not yet expired.


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