FAA denies $3.5 million for VT-MAE project, but city says it has a plan

The Federal Aviation Authority has denied the city of Pensacola’s request for a $3.5 million AIP grant needed to extend the taxiway at the Pensacola International Airport to accommodate VT Mobile Aerospace Engineering’s aircraft maintenance, repair, and overhaul (MRO) facility.

The city may have come up with another funding source, but we are waiting for the city officials to release the details.

The FAA denial was in January, but Inweekly only recently learned of it through a public request of city emails regarding involving the $3.5 million grant from the Federal Airport Improvement Program (AIP).

Inweekly also found out Interim Airport Director Dan Flynn and Interim City Administrator Dick Barker knew six months ago the grant might not be given to the airport.

In an email, dated Sept. 24, 2014, consultant Michael Moroney told Barker and Flynn, “FAA has said to me that we should not count on the $3.5 million from them.”

This revelation came three weeks after Mayor Ashton Hayward held a ceremonial contract signing event with VT-MAE officials, Pensacola City Council and area leaders. The project promised to create 300 jobs.

Barker had his Accounting Services Manager, Laura Picklap, check on what would happen to VT-MAE project if the FAA did not issue the grant.

According to Picklap, if the AIP grant was not received, VT-MAE could either fund the shortfall itself or find another funding source. If the company did not elect to do either option, the scope of the project could be reduced.

For nearly two months, the city did little on the grant application, according to the documents released. The city did not start working on the grant until Nov. 12, 2014—a week after the general election. Over the next two months, Flynn, Hayward supporter Dave Penzone, John Daniel of Beggs & Lane law firm, lobbyist Scott Barnhart and others worked to convince the FAA to hand over the $3.5 million. They enlisted the help of Congressman Jeff Miller and Senator Bill Nelson to apply pressure.

On January 9, the city submitted a Pre-Application for the funds arguing that the Airport Improvement Funds were for the construction of the taxiway designed to handle larger aircraft that could not be accommodated elsewhere at the airport. Unfortunately, FAA disagreed.

Flynn received a phone call from Bill Farris, Program Director in FAA’s Orlando district office, on January 22. Farris said the proposed taxiway was not for general use.

Farris later explained his decision to Congressman Miller’s staff. He wrote in an email, “Despite our best efforts, we cannot reach a conclusion that the taxiway serves any purpose other than to support the private, commercial interests of a single Maintenance, Repair and Overhaul (MRO) operator.”

It was that exclusivity that made the project ineligible for AIP funding.

“Before reaching this conclusion, we reviewed the airport’s planning documents going back to 1999 and cannot find any reference to the proposed taxiway, apron, or hangar,” said Farris. “Moreover, neither the ALP (Airport Layout Plan) or the airport’s Capital Improvement Plan request provided any documentation of a need for additional common use parking in this area.”

Through February the emails showed, the city was still lobbying Congress to get FAA to change its decision. Yesterday, Inweekly called Congressman Miller’s office about the status of the AIP grant and was told the city said they had another funding source from the state.

When Inweekly called Hayward’s Chief of Operations Tamara Fountain about the alternative funding source, she said that Flynn had the plan and would forward it to the paper. When the paper followed up with Flynn, we were told he needed permission from Fountain to talk with us.

Inweekly called Scott Luth, president & CEO of Community and Economic Development Association, who recruited VT-MAE to the area. Luth said he and VT-MAE are aware that the FAA had denied the grant for the taxiway, but he believed the project is still within its timelines for completion. The construction of the hangar, apron and taxiway are the responsibility of the city.

“I know the city and airport are working on other funding sources,” said Luth. “If they need our assistance, I expect we will be meeting with them soon.”

The only other recent news on the VT-MAE project is the cancellation of the selection committee meeting for RFQ 15-010 for architectural and engineering design services for VT Mobile Aerospace Engineering, Inc. hangar, which was scheduled for yesterday.

As soon as the city releases its alternative funding plan, we will publish it.