Businessman, city at odds over $70 million airport project


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  • | 10:14 a.m. December 17, 2012
  • Ormond Beach Observer
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The city rejected Arnie Green's proposal for an economic-development project at the airport. Now, Green is looking for federal help to push the project into negotiations.

BY MATT MENCARINI | STAFF WRITER

The city and a local businessman await the Federal Aviation Administration’s response to an informal complaint regarding a proposed $70 million development project at the Ormond Beach Municipal Airport.

Arnie Green, president of Arnie B. Green Associates, filed the complaint after the city rejected his bid for several new hangars, an airport-themed restaurant and an aircraft financing, sales and management division on the 87-acre southwest quadrant of the airport. Green's was the only response the city received following its request for proposals.

His proposal was given 66 points out of 100 by city staff Feb. 7, then rejected, partly due to Green’s lack of experience, according to the city.

“The applicant has not demonstrated that his corporation has the experience to negotiate and lease municipal airport property,” the city’s selection committee said in its recommendation, “particularly a project of 87 acres, which would be the largest development project on city property.”

Green, however, says his company has 800 combined years of experience, among its 21 members, and is only looking for an opportunity to negotiate with the city — not be guaranteed a project.

“While the city is not obligated to accept our proposal, they must negotiate in good faith,” Green said. “We’re not saying (that) because we’re showing up on their doorstep, we're entitled to a lease.”

Green also says the city could potentially lose $5 million in past federal funding if the FAA rules against them for not negotiating. But that's something Deputy City Attorney Ann-Margret Emery says has “0% chance” of happening.

“And that’s the problem I have,” Emery said. “He’s using (that idea) politically, and that’s not the case. It’s not going to happen.”

Emery said the city would welcome the economic impact Green has projected — “approximately $382 million dollars (in revenue after more than 20 years)” and “800 full- and part-time jobs,” according to his proposal. But it isn’t willing to take the risk with a startup company.

“It would be unreasonably risky for the city to tie up that kind of property for that long,” Emery said,” with someone who doesn't have the experience.”

Green said he intends to acquire a performance bond, which would help protect the city and himself, if his company isn't able to complete the project. But he can only secure one if the city accepts his bid.

The southwest quadrant is an underdeveloped piece of land that would require access and development before any economic development, like Green’s proposal, could begin.

 

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