WEST JORDAN — The decision to not renew the contract of the management company operating one of the area’s regional airfields is raising concerns from some in the local aviation community.
After operating South Valley Regional Airport for the past five years, Leading Edge Aviation’s contract is set to expire on May 15.
Leading Edge has served as a fixed-base operator — a commercial business granted the right to operate at the airport and provide aeronautical services including fueling, hangar privileges, tie-down and parking, aircraft rental, maintenance and flight instruction, among other services.
Recently, company officials responded to a request for a proposal from Salt Lake City to remain as the operator for South Valley Regional Airport.
At the time, Leading Edge was the only organization to submit a proposal and proceeded into discussions with the Salt Lake City Department of Airports. The department originally requested an investment of $1.5 million in capital improvements from Leading Edge as part of the new contract proposal, said Leading Edge President Scott Weaver.
That investment, he said, did not make financial sense for the company.
“This is a perfect example of big government trying to squeeze every nickel out of the little guy,” Weaver said. “They wanted massive rent increases for the facilities, and they wanted large capital investments.”
During the negotiations, the company agreed to a $60,000 annual rent increase and a $1 million investment based on a 20-year term, he said.
“We thought the $1 million was the most the business could support,” Weaver said. “We would be able to maintain the business in operation, employ people and do the thing we love.”
Despite the city's Department of Airports decreasing its investment requirement to $1.3 million, Leading Edge was unable to meet the condition. Since then, the department has decided to reissue the request for proposals to solicit other potential operators.
That leaves Leading Edge in a position where it may have to shut down — a fate that is not uncommon for previous operators of South Valley Regional Airport.
Before Leading Edge, a series of seven different operators tried managing the small airport, with six of them filing for bankruptcy, Weaver said.
For the time being, the department will try to secure an interim operator to provide similar services, with the possible exception of flight instruction, explained Nancy Volmer, spokeswoman for Salt Lake City's Department of Airports. Flight school students will likely have to find other schools to continue their education, she said.
Other than that, users will be able to receive the same kinds of services that had previously been offered — either by the department or another short-term provider, Volmer said.
The department is expected to issue a new request for proposals in the next 30 days, she noted, with a new fixed-base operator in place by “the end of the summer.”
About 200 people attended a briefing Tuesday to discuss issues related to the pending expiration of the contract for the current fixed-base operator and what services will be provided to airport users.
“We are dedicated to that airport and moving forward with it,” said Pete Higgins, director of operations for the Salt Lake City Department of Airports. He noted that about $4 million to $5 million in improvements are already scheduled for the facility, including upgrading the tarmac.
As for the present situation, the process has begun to formulate and issue a new request for proposals in the next few weeks, Higgins said.
“I believe we can get a provider selected and get a contract in place by the last quarter of this year,” he said.
As for those in attendance, most expressed disappointment that Leading Edge Aviation may no longer be the operator. Tim Miller, of Sandy and a veteran pilot of 40 years, said the company was the most competent manager the facility has had in his time using the airport.
“It’s like losing a family member,” he said. “We’ve gotten to know (the owners) over the past five years and come to depend on them for great service, including not only our maintenance, (fuel) and supplies, but they have also helped grow the (local) aviation community.”
Miller said he hopes the company may still be retained, but either way he is upbeat about the feedback the department received from concerned aviators who peppered them with questions and comments.
“This meeting was constructive,” he said. “I’m optimistic that they heard a message loudly and clearly from this packed room."
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