MidAmerica Airport Getting Looks But No Takers
BELLEVILLE, IL (July 4, 1999) -- MidAmerica Airport's record for generating interest in the aviation industry is known only by a few high-ranking county employees and consultants.
But what has been announced publicly shows a pattern: New companies have looked at MidAmerica Airport as a possible launching point, while established firms have preferred to remain at home or move to established airports.
A Cincinnati delivery company, once considered as a MidAmerica Airport prospect in 1997, stayed in Ohio. And when a Texas aviation company wanted to open a St. Louis area operation, it chose a Bethalto airport instead of the $218 million MidAmerica Airport.
Compare those to the most recently revealed proposal by Surface Technologies.
Dan Maher, St. Clair County director of administration, estimated the company has to raise at least $40 million for its initial plan to build two hangars large enough for stripping paint from military and civilian aircraft and repainting them.
County Economic Development Director Terry Beach said the company then plans to add a more traditional maintenance operation. "They don't have their financing yet," St. Clair County Board Chairman John Baricevic said. "There won't be any serious negotiations with them until they can finance their project."
John Bodony of St. Louis is one of the company's principals. But with fund-raising efforts still under way, he's circumspect about releasing any information. "We may be able to announce more (about the company) in a few weeks," he said. "What you already know is about all I can say."
The county board last Monday, however, agreed to support Surface Technologies by acting as a conduit for up to $200 million more of the company's financing.
According to municipal bond experts, it's a complicated deal that benefits both the investors and the company, but shields St. Clair County from any liability if Surface Technologies goes bankrupt. The company benefits from lower interest payments, while investors take advantage of the fact the "airport improvement" bonds are tax free.
"The corporate investors come out ahead once you figure the taxes they would have to pay on ordinary corporate bonds," said Robert Beck, head of the municipal bond department at Edward Jones in St. Louis.
Surface Technologies' $40 million start-up financing is precisely the figure retired United Airlines pilot Clifford Sanderson quoted for starting his own airline.
He announced his intention in February to be flying out of MidAmerica Airport by this summer, but said this week that some investors have backed out. He has since marketed his idea to investors from Chicago to Dublin, Ireland, but has delayed his takeoff date to next February.
DHL Express was the Cincinnati company that considered MidAmerica Airport before staying put. Eagle One Aviation, a Texas aircraft maintenance company, chose to open a new operation at Bethalto's St. Louis Regional Airport. Officials there could not be reached to see whether they considered MidAmerica Airport.
But according to an Associated Press report, Bob Grant, head of marketing, said the airport's office and hangar space was a factor, something lacking at MidAmerica Airport's largely passenger-dedicated terminal.
Information provided by the Belleville News-Democrat
Michael Shaw Article
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