FYN reported that Nancy Isom, owner of Gilmer Aviation, would no longer operate the F.B.O. at the end of March. Attorneys for Isom and Gilmer County spent the month of April negotiating an agreement to end the lease between the parties.FYN obtained a copy of the settlement agreement between the parties. Part 6 of the settlement deals with (Amounts Due to Parties) and states- The agreement reached between the two parties gave the County control of the Airport May 1st and the County gave Isom $27,669.03. After deducting $6,800 for past due lease payments (Isom made no rent payments in 2012) the County paid Isom $20,869.03.

The rumor in 2011 was that Isom was going to give the county the keys and leave. The facts in 2012 are that the County has no F.B.O. but they do have the keys to the place. Isom took nothing from the airport. She sold everything to the citizens of Gilmer County with a price tag of $14,378.16. The citizens bought the pictures on the walls, the rugs on the floors, the desks and the pencils. The county purchased everything, the Shell Logo sign, everything. In the legal agreement attached exhibit A has a full list of what was sold to the citizens of Gilmer County.

Last year at the 2012 budget meeting, would have been the perfect time and place to let the commissioners and the taxpayers know what was going on at the airport. Isom did not attend the meeting. The County airport liaison Jim Smith gave the budget report. Commissioner Will Beattie asked Smith if Isom was aware of the meeting, Smith gave no answer and referred to an Airport employee on whether Isom was aware of the meeting. One would think that with all the rumors that Smith would have made an attempt to get Isom to the meeting.

Smith started his report by announcing that the F.B.O. had just completed its second year at the airport. The rent was $1,200 a month and according to the lease, now with the jet A fuel tank, the rent would increase to $2,500 a month.

Jet fuel A tank was added to the airport to accommodate Life Force 4 and other aircraft that required jet A fuel. In the meeting Smith told commissioners that Life Force would probably purchase around 10,000 gallons of fuel. Beattie asked Smith

“how often does life flight services utilize it for fuel”

Smith replied

“Very often, they’re probably the biggest Jet fuel A customer we have.”

Below are Life Force jet A fuel purchases:

In May, Life Force helicopters (Med-Trans Corp.) bought 175 gal. of Jet A (the last was May 10th.) 2012
They bought Jet A 4 times in May, 6 times in April, 7 times in March, 4 times in Feb. and 7 times in Jan. for a total of 1,648 gal. in 2012.
They purchased 3,740 gal. in 2011.
They have purchased 5,388 gal. total.
Med-Trans is building (or has built) a hanger and fuel farm near Fannin Regional Hospital.
They used 49A (a hangar at Gilmer Airport) for maintenance and fuel while their building was in progress.

As you can see purchases are no where near 10,000 gallons as Smith reported to the commissioners. Life Force only used the Gilmer Airport hanger and fuel until they completed their own hanger in Fannin County. Did Smith not know they were leaving when he gave his report? Did Isom know her largest jet fuel A customer was leaving and she could not pay the increased rent? Someone should have known.

In September of 2010 Erlanger announced that they had received a $600,000 grant from the state of Georgia to locate a Life Force helicopter in the North Georgia Region. Life Force 4 would spend 2.1 million a year on this new service. At the same time this announcement was made Erlanger announced that they would be building a new hangar and service facility near McCaysville, GA. (Fannin County). At no time in the announcement does Erlanger mention Gilmer County. It is obvious that Gilmer Airport was only a temporary location.

So why invest in a Jet A tank? Why in Smiths report did he not tell the commissioners we are about to lose our largest customer? Instead he only said Isom was struggling and everyone knew it. Beattie pressured Smith about Isom. Beattie said his biggest concern was to know the forecast and intentions of the F.B.O. (Isom). Beattie went on to say that he understood that when Gilmer Aviation started that there was a ramp up period but he also understood that the financials may not support the increase in rent. Smith’s only answer was

“she’s struggling.”

Beattie to Smith

“at what point is that going to be exhausted, are there any known intentions of discontinuing the lease at any time?”

Smith gives no direct reply. Smith explained that with Jet A fuel along with a new maintenance business, Hammerhead Aeronautical, who had rented a hangar, that things were improving. He gave a glowing report about this company and how their presence would only enhance the airport and be a big help to Isom to attract new business. Smith gave no direct answers to Beattie’s questions.

Beattie continued to press Smith for a direct answer saying,

“The earlier we know the better, the worst case scenario for the county is that we find out we have no F.B.O.”

Smith ignores Beattie and says we need to talk about improvements to the airport. At no time does Smith acknowledge any known intentions of Life Force 4 or Isom leaving.

The balance of the budget meeting Smith discusses the improvements needed at the airport. Smith tells the commissioners that,

“we desperately need to start the land acquisition process.”

If you wonder where the Chairman J.C. Sanford and Post Commissioner Danny Hall are in this meeting, they are there- but remain silent. The entire time Beattie questioned Smith but Sanford and Hall adding nothing to the conversation. Hall made a couple of comments but nothing concerning the possibility of Isom leaving. The Commissioners approved the 2012 airport budget as Smith presented it including the county receiving $30,000 in rent payments from Gilmer Aviation. However the county will receive $0 revenue from Gilmer Aviation in lease payments this year. The $6,800 from the lease was backed out of a settlement agreement with Isom.

The Commissioners included Smiths proposed budget for the airport in the County’s 2012 budget. FYN became aware early in the year that the rumor and Beattie’s worst case scenario was coming true. In February FYN was told that the Jet A fuel tank was close to dry and Isom was not refilling it. In March Isom told FYN that the last day of operation for Gilmer Aviation would be March 31st. When we asked about the Jet A fuel she told us the county purchased it. On March 15th the county paid Eastern Aviation Fuels, Inc. $16,259.78 to fill the tank. Isom was leaving as suspected. How could Smith not know this?

After FYN spoke with Isom we asked Sanford for a comment and the only response we received was that it was in litigation. We asked,

“Who runs the airport?”

We got the same answer. After an agreement was reached the County officially took over Airport operations May 1st.

What about the county budget? FYN has asked repeatedly when the county will adjust the budget to reflect the cost of the airport to the public. The county has to do a budget adjustment to reflect the cost. Sanford will not comment about this budget adjustment. When asked in last month’s meeting he responded that they would probably do it in next month’s meeting. It’s June and the agenda does not reflect any discussion about the airport.

The question still remains as to who runs the airport? Hammerhead Aeronautical is still at the airport and has offered to operate the airport. Who in the county holds the qualifications necessary to operate the airport?

FYN spoke with Hall and asked if he was aware that the county purchased all of Gilmer Aviations assets to which he replied no. FYN then asked Hall, were you in the executive meeting when the county attorney handed you a list of assets? Hall replied, I seen them but I just voted that we need to move on and settle the problem at the airport. I will look further into it. It was clear Hall did not know much about the subject.

Several other unanswered questions remain: Did Smith know the answers to Beattie’s questions and just not answer? Did Smith know Life Force 4 was leaving, the largest Jet A fuel customer?
Smith’s two largest responsibilities are the Golf Course and the Airport and with the recent issues at both should Sanford continue to have Smith oversee county assets?

In the private sector when you don’t complete a lease you are sued for the balance and evicted. In this case the County bore all the cost and Isom got a check. There may be a good reason for the way the County handled this but it’s for sure they owe the citizens of Gilmer County an explanation.

Below are related stores about the airport and the video of the 2011 budget meeting.

Who Will Run The Gilmer County Airport?
When Will County Release Information About The Airport?
It’s Official! County Takes Over Airport
Isom Speaks Out About Gilmer Airport