Friday, February 1, 2008

City of Lancaster sued over airport

By Bill Conrad of Lancaster TODAY

A lawsuit against the city of Lancaster requesting damages in excess of $50,000, was filed last week by Clinton and Ouida Pye, on behalf of the estate of Henry T. Pye.

According to the Pye's attorneys, the suit was filed because the city of Lancaster forcibly evicted the Pye's from their place of business at the Lancaster Airport on Jan. 29, 2007, and violated the Fifth and 14th amendments to the U.S. Constitution.

According to the plaintiff's court petition, on or around June 2000, Clinton and Henry Pye bought the business of Lancaster Airport, Inc. and the main terminal building at Lancaster Municipal Airport from Larry Murphy. On June 12, they executed a Fixed Base Operation Agreement with the city of Lancaster. The Fixed Base Operator's function is to service aircraft with fuel, storage and overnight tie-down.

As the airport's Fixed Base Operator, the plaintiffs were under contract to collect rent from tenants located in hangars owned by the city, manage the airport according to Federal Aviation Administration regulations and run the day-to-day affairs of the airport. In return, the city would share profits from fuel sales and rent revenue with the plaintiffs.

On July 15, 2000, the plaintiffs entered into a ground lease agreement with the city that would last for 20 years with two five-year options. The ground lease was necessary because while the Pyes own the terminal building, the city owns the underlying land.

The plaintiffs then signed another ground lease agreement with the city July 1, 2003, to construct six new airport hangers.

On Jan. 22, 2007, the plaintiffs paid Murphy in full. Murphy then notified acting Lancaster City Manager Jan Belcher that all payments to him were current. According to the petition, in January 2007 the Pyes were about four months delinquent in rent to the city.

The plaintiffs met with city officials Jan. 29, 2007, where Belcher delivered a letter to them immediately terminating the FBO contract. The plaintiffs were given no prior notice, hearing or right to cure the default. They were allowed two hours to remove their personal property from the airport.

The plaintiffs claim to have cured the delinquent rent by paying $30,534.66 Feb. 5 toward the full amount owed and the remaining $908.59 Feb. 7. On Feb. 26, the city sent the plaintiffs a letter terminating their ground lease for the terminal building without a hearing.

According to documents filed with the court, the FBO agreement the city signed with the plaintiffs requires the city to give 15 days notice to cure any break before termination. The ground lease requires 30 days written notice.

The petition also said the city has taken, including but not limited to, the plaintiff's two fuel trucks, a tug, a tractor, a golf cart, a ground power unit, aeronautical charts, oil, office equipment and art work.

The plaintiffs are seeking compensatory damages and attorney's fees. The petition said the plaintiffs have suffered significant financial losses including, but not limited to, court costs, attorney fees, loss of reputation and lost business opportunity.

Lancaster Assistant City Manager Opal Mauldin-Robertson told Today Newspapers that the city does not comment on pending litigation.

Pegasus News content partner - Lancaster TODAY

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