Goodrich Pilot Training Ctr., LLC v. Village of Endicott, N.Y.-186

FAA Docket No:

16-08-03

Author:

Fiertz, Randall S., Director

Author Title:

Director

Complainant(s):

Goodrich Pilot Training Center, LLC|Aviation Management Group, LLC

Respondent(s):

Endicott (N.Y.)

Airport(s):

Tri-Cities Airport (CZG)

Holding:

Dismissing complaint.

Abstract:

Complainants, Goodrich Pilot Training Center, LLC and Aviation Management Group, LLC., were parties to a Management Agreement with Respondent, the Village of Endicott, New York, sponsor of the Tri-Cities Airport, pursuant to which Complainants had the right to manage the Airport on behalf of Respondent. A few days prior to the expiration of the Management Agreement, the Complainants signed standard lease agreements in their own names for airport properties. When the Management Agreement expired and the Respondent resumed control of the Airport, the Respondent sought to evict the Complainants. Complainants allege that Respondent acted in a manner that violated Grant Assurances 22 and 23 when it terminated Complainants’ leases at the Airport. The Director also considered a potential violation of Grant Assurance 5, but found Respondent was in compliance and dismissed the allegations.|Grant Assurance 22:|Respondent did not violate Grant Assurance 22 when it terminated Complainants’ leases at the Airport. The Director found that there was good cause for the termination because Complainants had not paid rent and had failed to cooperate with a state audit. (p. 31)|Minimum Standards:|Complainants also alleged that Respondent improperly had failed to adopt Minimum Standards. The Director determined that airport sponsors are not required to adopt Minimum Standards. (p. 20).|Grant Assurance 23:|Complainants did not show that an exclusive right had been granted to a someone else. In fact, the Director found that, if anything, the Respondent had granted an exclusive right to Complainants, but that because the Management Agreement in question had expired, Respondent was now clearly in compliance. (p. 29).|Grant Assurance 5:|The Director addressed sua sponte Grant Assurance 5. It found that certain statements by the Complainants suggested that the Respondent had improperly ceded powers to the Complainants, such as allowing Complainants to unilaterally raise rents at the Airport. Because that Agreement had expired, the Respondent was not found in violation, but it was “required to preserve its rights and powers to enforce the grant assurances should it wish to engage in future management arrangements.” (p. 31).

Index Terms:

Goodrich Pilot Training Ctr., LLC v. Village of Endicott, N.Y. -- No. 16-08-03 -- No. FAA-2008-1024