Propeller Airports Files Federal Suit against Paulding County

Suit: Paulding County Board of Commissioners Unlawfully Stepping In to Stop Previously Agreed Upon and Much Needed Commercial Air Service

NEW YORK--()--Propeller Airports LLC, through its subsidiary Silver Comet Terminal Partners, filed a federal complaint today in the Northern District of Georgia against Paulding County and the Paulding County Airport Authority seeking clarification of the Airport Authority’s role. The complaint details how Paulding County leadership has reneged on previously agreed upon plans to develop commercial passenger service at the County’s airport – plans that were developed in conjunction with and approved by the County. The County is currently claiming, however, that the Airport Authority was not authorized to enter into these agreements, while at the same time the County is seeking reimbursement for bond payments from Silver Comet which they claim are owed under the same agreements. As such, Silver Comet is seeking a declaratory judgement to determine whether or not the Airport Authority was authorized to enter into these agreements and act in these matters.

“The Board of Commissioners’ decision to bend to outside corporate self-interests and reverse course on bringing commercial service to Paulding County is a travesty for the taxpayers of this County,” said Brett Smith, CEO of Propeller Airports. “The facts laid out in this complaint clearly demonstrate that the Airport Authority was well within its authority to enter into these agreements. The agreements were either legally authorized or they weren’t, but the County can’t have it both ways.”

Beginning in 2012, after the County approached Propeller Airports about developing the airport for commercial service, Silver Comet and the Airport Authority signed a series of agreements to bring commercial service to the regional airport, including a 20 year lease of the terminal. Additionally, the Airport Authority submitted a Part 139 Application to the Federal Aviation Administration to authorize commercial service. The County Commission recently sued its own Airport Authority asking the Court to declare that the Airport Authority was not authorized to enter into these agreements.

Silver Comet believed and relied upon the Airport Authority’s representation that they had the ability to submit the Part 139 Application and to enter into the Lease and Airport Use Agreement. In fact, in the Intergovernmental Contract where the County authorized the Airport Authority to act on these matters it clearly indicated that the purpose of these agreements was to bring commercial air service to Paulding County.

Today’s complaint seeks to affirm the legality and declare the validity of all of these agreements, and to force the Paulding County Board of Commissioners to take a consistent position regarding the Airport Authority’s legal authority.

“We’d be happy to resume making bond payments, but we aren’t doing that until we have clarity as to whether or not our agreements with the County are valid,” said Brett Smith. “We need clarification from the courts on these matters before we spend millions of more dollars. In the meantime, the County Commission is costing tax-payers money.”

About Propeller Airports

Propeller Airports is a subsidiary of Propeller Investments. With offices in New York, Seattle, Dublin and Atlanta, Propeller identifies untapped potential for commercial air travel by working with local governments and communities to maximize local airport assets. By bringing private, free-enterprise business practices to airports that contribute to the local economy, Propeller and its government partners focus on “smart” development that is in-line with local objectives.

Contacts

For Propeller Airports LLC
John Gallagher, 212-681-1380
jgallagher@mercuryllc.com

Release Summary

Propeller Airports Files Federal Suit against Paulding County

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Contacts

For Propeller Airports LLC
John Gallagher, 212-681-1380
jgallagher@mercuryllc.com