Airport granted adjustment

By Stephen Pritzen

R&M Aviation is one of the many victims of the economy’s strangulating grip and is now asking the City of DeKalb to make an adjustment on its lease agreement.

R&M Aviation is requesting financial relief from the Fixed Base Operator’s (FBO) Building Lease Agreement in the form of reduced monthly lease payments owed to the city for its use of the newly constructed FBO Building.

The adjustment on the lease agreement is necessary because R&M Aviation is struggling due to poor economic factors, Dean Kruitoff, interim city manager said.

In 1989, the City of DeKalb and R&M entered into a 20-year lease providing for various lease payments which were to pay for the construction cost of the FBO building.

However, because of troubles attributed to a failing economy, R&M is now unable to make full monthly lease payments in accordance with the agreement, and has requested permission for temporary leniency.

Kruitoff said R&M is not trying to get out of the lease agreement and that another FBO would walk into the same problem. “R&M is a quality FBO. We recognize the cash flow has not met what was anticipated, so we hope to accommodate a problem,” he said.

Second Ward Alderman Michael Welsh said, “I believe this is a good FBO. However, I am personally concerned we made an investment in the airport and it doesn’t look like the building will pay for itself.”

Kruitoff said the city feels that eventually R&M will be brought up to an income level that will allow them to pay the original lease agreement requirements.

During Monday night’s city council meeting it was agreed upon by the council members and Mayor Greg Sparrow that the lease will be adjusted to allow R&M to continue payment.

However, a final decision on a specific adjustment has not yet been made and was postponed to the next city council meeting.

The question brought up during the council meeting was how long and what is going to have to be done to increase business at the DeKalb airport.

Welsh said, “Fuel sales were expected to quadruple, but that hasn’t happened,” and expressed a concern of the city being caught in a situation in which money will be lost.

Kruitoff said airport construction projects were started in hopes of increasing future use, and that hopefully in the near future the airport will have higher usage.

No one was available at R&M to discuss what specific plans the airport has to increase business, but Welsh pointed out that additional facilities making it an all-weather airport, and a new runway accommodating larger traffic could increase traffic flow.