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County close to awarding FBO lease

by Keith KINNAIRD<br
| October 4, 2008 9:00 PM

SANDPOINT - The developer of a fly-in residential community is poised to secure the lease for the fixed base operations at Sandpoint Airport.

Bonner County commissioners gave conceptual approval to SilverWing Flight Service proposed lease last week, clearing the way for final approval of the contract. The FBO provides aviation fuel and other pilot services at the airport.

SilverWing Flight Service is affiliated with SilverWing at Sandpoint, a 44-lot housing development on the west side of the airport.

Under the terms of the proposed contract, SilverWing Flight Service would lease the FBO building for $1,600 a month and pay the county 40 percent of the fees collected on tie-down and ramp fees.

SilverWing also proposes bringing in a rental car agency and a charter service, in addition to upgrading office equipment and food concessions for pilots.

SilverWing will provide new equipment for standard jet and high-octane aviation fuels. The company would pay the county a fuel flowage fee of 6 cents per gallon, which would be tied to the agreement granting SilverWing direct access to the airport.

Interim airport Manager Sol Pusey told commissioners on Tuesday the fuel flowage fee is tied to SilverWing's through-the-fence access agreement, not the 5- to 10-year FBO lease.

Pusey said the arrangement protects the stream of revenue the county derives from fuel sales in case SilverWing ultimately decides to relocate the FBO from the east side to the west.

SilverWings' proposal was one of two submitted for the FBO contract. It outscored current FBO operator Jorge O'Leary's proposal under a weighted ranking system used to analyze the offers, Pusey said.

SilverWing, according to its proposal, does not want its personnel to serve as airport manager to avoid the appearance of a conflict of interest. County officials, however, are reportedly zeroing in on a potential candidate for the post.

There was a thread of wariness running through the commission's discussion on Tuesday, most of it having to do with how the Federal Aviation Administration would react to the assignment of the FBO lease to SilverWing Flight Service.

The FAA threatened to pull airport improvement funding for allowing SilverWing at Sandpoint midfield access to the airport, a threat which came well after the Sandpoint City Council approved and county airport officials endorsed the housing project.

Commissioner Joe Young said he did not want to see a similar scenario unfold involving the FBO.

"That's my only concern," said Young, who sought reassurances that the FAA was advised of the county's pick for the FBO and had no problems with it.

Scott Bauer, the commission's legal counsel, said FAA was aware of the county's intentions and voiced no outright objections. However, he reminded commissioners there's nothing to prevent the FAA from changing its mind.

"They can change their position in a heartbeat," said Bauer.

Commission Chairman Lewie Rich agreed, saying a change in regional FAA personnel caused the agency's 180-degree shift of position regarding SilverWing at Sandpoint.

"We can't stop them," Rich said of FAA's ability to do an about face.