AIR EVAC ENTERS AGREEMENT MAKING IT FIXED BASED OPERATOR AT AIRPORT

Air Evac, which is purchasing the assets of Cape Girardeau Municipal Airport fixed-base-operator Cape Central Airways, has entered into a 15-year lease agreement with the city with the option for a five-year extension.

The change of fixed base operators hinged on whether Cape Girardeau City Council agreed on a settlement with Cape Central Airways. The settlement involves both parties dropping lawsuits against each other in order for Air Evac to take over as the next FBO. Both sides have agreed to do so.

Air Evac will pay the same rent as Cape Central Airways, $1,740 a month. However, there is a provision in the lease that calls for a richer package for the city in the event Air Evac profits exceed $84,000 per month. The city would get 2 percent of anything over that amount.

In addition, Air Evac has the right of first refusal on two acres of land that was not leased by Cape Central Airways.

Members of the city council questioned whether right of first refusal would restrict fair competition at the airport. But Cape Girardeau City Attorney Warren Wells said Air Evac only has right of first refusal on the two acres -- not the entire airport.

"They will have the same space that Cape Central Airways occupied plus right of first refusal on one acre of land for the extent of the lease and another acre for two years," Wells said. "There is still additional land available for any other company wishing to become a fixed base operator at the airport."

Air Evac President Jim Lentz said he was trying to keep all of the property he would need for his FBO in the same area. "We just wanted to have the option on land close to where our operation is to make it easier to expand," said Lentz.

The city has also retained an option to purchase the fuel facilities once Air Evac is officially in place as the next fixed base operator. This gives the city leverage over the FBO that it did not enjoy when it attempted to evict Cape Central Airways.

The arrival of Air Evac takes the city out of a prolonged lawsuit with virtually no interruption of its fixed base operation. Since Air Evac owns an emergency medical helicopter that serves St. Francis Medical Center, the company already complies with Federal Aviation Administration requirements for a fixed base operation and needs only to upgrade its 135 certificate. A 135 certificate allows fixed base operators to charter aircraft.

Lentz said he expects to begin operation as soon as the deal to buy Cape Central Airways' assets is final. Wells said the deal is scheduled to be completed by Thursday.

"We have plans for expansion, but that won't take place until later on," said Lentz. "Right now we want to start up immediately and provide the services we promised."

Meanwhile, Prestige Air Services is still working to become another FBO at the airport. Prestige has provided the city with details of its plans and is in the process of having the Airport Advisory Board review the plans. Prestige President Duane Beussink said it would take him three to five months to begin operation after being approved by the city council and FAA.

Prestige's plans might be reviewed at the city council at its next meeting Oct. 10.

Yet another player in the airport's expansion is Leopold Corp., which has six months to exercise its option for 7.6 acres of land at the airport. William Florich, an aviation consultant, is guiding Leopold Corp.'s efforts to establish an executive fixed base operation at the airport.

Air Evac will be joined at the airport by George Miekel's aircraft auction, which will be held once a month at the airport.

Webb Aero Inc. officials decided to sell part of their operation to Miekel with hopes of generating more business. WEB Aero President John Ellis said the auction will bring increased traffic to the airport and the WEB Aero shop, which repairs and restores airplanes.

WEB Aero asked the city council to approve a two-year lease on the hangar Miekel would use on the north side of the airport. The lease is for $345 per month. The council has approved the resolution to renew the lease with WEB Aero.

"We feel this will be a much better arrangement since it will keep our shop open and all equipment intact and provide needed service to aircraft owners," said Ellis.

The council last week also authorized an agricultural lease extension of airport property with an amendment that Robert Niederkorn's property be protected from airport expansion plans. Those plans include construction of a ramp and taxiway.

The lease with Niederkorn, scheduled to expire Dec. 31, contains provisions for a five-year extension of the agreement. The extension, which will run until Dec. 31, 1999, applies to approximately 280 acres. It will generate about $16,000 annually for the airport.