Latest News   ·   January 20, 2010

Air park a means to an end: jobs

Gary Huffenberger   ·  Wilmington News Journal   ·  Link to Article

Air park a means to an end: jobs

New, quality jobs are the hoped-for end result now that the Clinton County Port Authority (CCPA) has the assurance it will be the landlord of the Wilmington Air Park.

The CCPA, in the presence of Gov. Ted Strickland, U.S. and state lawmakers and local elected officials, voted Tuesday to accept a preliminary donation agreement relating to DHL’s former U.S. air superhub in Wilmington. According to the CCPA, the target closing date for the donation transaction is Feb. 28, while DHL said it hopes the closing will take place before the end of first quarter 2010.

During a press conference following the CCPA action, CCPA chairman John Limbert said he hopes to see new employment at the air park by year’s end.

“Economic recovery may now commence,” Limbert said.

Local officials have received inquiries “from a range of companies that may be interested in locating at the air park,” Limbert said.

In reply to a question about the type of businesses expressing interest, Limbert said there have been “a number” of aeronautics-related firms and “perhaps unmanned vehicles” on the part of the U.S. Department of Defense.

Limbert said the CCPA envisions the air park as a “multi-use” facility with “an aeronautical flavor.” A lot of transportation companies could find the air park location and buildings attractive, “especially with the bypass [which helps link the air park to Interstate 71],” he said.

Don’t expect any official announcement of an employer locating at the air park until after the donation transaction is closed, according to Limbert.

“No businessman would sign on with us until that happens,” Limbert said.

Both Limbert and Wilmington Mayor David Raizk said they have their sights set on “sustainable jobs.”

Terms of the donation transaction have DHL agreeing to repay an approximate $250 million bond indebtedness it incurred to finance air park improvements in 2004-05.

The terms also indicate DHL will have the post-closing obligation “to maintain the material handling system within the sort facility,” according to a transaction summary distributed by CCPA at the press conference. That DHL obligation will end when CCPA “locates an acceptable tenant.”

DHL will have the right to store aircraft for up to two years in a specified location at the air park.

DHL will also have the right to share, on a declining percentage basis, any windfall associated with any sale transaction and certain long-term lease transactions that occur within 10 years after closing, the summary said.

Regarding closing, DHL has agreed to fund up to $625,000 in various transaction and closing costs incurred by CCPA.

According to Limbert, the CCPA is negotiating with Air Transport Services Group (ATSG) to reach an agreement to have ATSG perform airport maintenance. ATSG is the Wilmington-based parent company of ABX Air and AMES, two existing air park tenants.

Mayor Raizk opened the press conference by saying, “Wow. What a day.”

Ohio Gov. Ted Strickland, who was present at Wilmington College’s Kelly Center for the announcement, said, “We are energized as we can begin to see a new horizon and new life for this great [air park] facility and this wonderful community.”

Ohio Lt. Gov. Lee Fisher said that “it’s no secret we were unhappy and disappointed and at times angry” about DHL’s plan and its impact on workers. And although the donation is “extraordinary,” Fisher said, it is “not much comfort to people who are still out of work.”

Public officials will be judged by what they are able to do with the air park in terms of jobs, Fisher said.

“There is no such thing as a Democratic or Republican job. There are just jobs. Too many people have been evicted from the American dream,” Fisher said.

State Rep. David Daniels (R-Greenfield) said, “Our responsibility now is redevelopment of this air park.”

Reading a letter from U.S. Sen. Sherrod Brown (D-Ohio), his aide Courtney Hansman said Brown foresees “brighter days” ahead for the region’s residents, and the focus now is “bringing good jobs.” Brown said the “rebirth” of the air park is something to “celebrate together.”

Nan Cahall, district director for U.S. Sen. George Voinovich (R-Ohio), said the senator looks forward to the air park being a site for “good-paying jobs and innovative partnerships.”

U.S. Rep. Michael Turner (R-3rd District) described the donation as “an incredibly important step” for the area economy. Both the federal and state levels of government will come together “for further commitment” in assisting the residents in the economically distressed region, Turner said.

Clinton County Commissioner Randy Riley, referring to potential employers locating at the air park, said, “We’re ready. Bring them on.”