Mind Blowing - The City's Mismanagement of the Hickory Regional Airport

The following article is written in collaboration with Joe Brannock, a third generation pilot, whose family has utilized Hickory Regional Airport's facilities for years, and who served as a member of the Hickory Regional Airport Task Force in 2006.

River Hawk Aviation is contracted by the City to provide aviation related services at the Hickory Regional Airport. Such a company is known in the aviation community as an FBO (Fixed Base Operator). At a minimum, most FBOs offer fuel and parking. FBOs, such as River Hawk, offer additional services such as hangar storage, maintenance, aircraft charter and rental, flight training, and ground services such as towing and baggage handling.

River Hawk became Hickory Regional Airport's FBO after merging with the prior FBO, Profile Aviation. Due to several questionable actions by Profile Aviation, a mistrustful relationship developed between the City and that FBO. In 2007, Profile "merged" with River Hawk unannounced and unexpectedly. This "merger" was questioned by the City. The City retained aviation attorney Frank Newton to advise on the matter. Against counsel's advice, the City decided to recognize River Hawk as the proper FBO service provider.

Around the Spring of 2008, the City approached River Hawk with the intent of renegotiating the Concession Agreement (the contract between the City and the FBO) under which the previous FBO had operated, and the same contract under which River Hawk had been operating, and planned to continue to operate. This Concession Agreement called for roughly $120,000 per year to be paid by the FBO to the City in concession fees.

Under the City's new contract, the concession fee was increased by roughly $60,000, bringing the fee up to $180,000 per year. On top of this set fee was also placed a "floating" fee. A benchmark was established taking into account the current tax base at the airport. Aircraft owners that base (park) their aircraft at the airport pay a property tax on the value of the aircraft. If River Hawk added to this tax base (i.e. attracted more aircraft to be based in HKY) the "floating" fee would decrease. As the tax based decreased, this fee would again increase; to be capped at $75,000. So, it would be to the FBO's benefit to get more aircraft to make Hickory their base of operations.

The FBO hesitantly went along with this newly devised fee plan in an effort to reconcile their contentious relationship with the City which was inherited from the previous FBO. Bottom line is this, the concession fee was increased by over 100%. Is this something the City should have done to a local business in these economic times?

The City has repeatedly acknowledged its pleasure with the job the FBO is doing at the airport. In fact, over the first 18 months of operations, the FBO was able to attract 17 new aircraft to re-locate to Hickory. This equates to nearly $40 million of new tax base. Nowhere in the city is this level of growth even possible. The FBO spent over $100,000 to achieve this type of growth. The City receives nearly $80,000 in increased tax revenue, due solely to the FBO's efforts.

By increasing the tax base, the FBO's "floating" fee was nearly zeroed out. However, look at it this way. It cost River Hawk $100,000+ in order to save $75,000 - all the while the City benefits $80,000.

Due to the increased fees and the overall economic downturn that hit the aviation industry, over time the FBO defaulted on its commitment to the City. In short, the FBO was unable to make their scheduled concession fee payments to the City in full. After several months of default, the City formally put the FBO on notice and began legal proceedings. The FBO rectified the default by the deadline set by the City.

Recognizing the current economic conditions and likely forecasts, the FBO approached the City regarding plans to grow the company and expand its presence at the airport. This basically meant building more hangars in order to attract new customer base and to accommodate those already placed on a waiting list for hangar space. This would help the FBO increase its revenue streams and the side benefit is that this would also increase the City's tax base. In short, the City denied the FBO's request to expand. As a counter, the FBO proposed the City build the additional hangar(s) that the FBO would market/manage on the City's behalf. Again, this proposal was also rejected.

Here's the catch. In order to build additional hangar(s), Runway 1/19 would need to be closed. In fact, on Nov. 20, 2007, Council voted to close this very runway, but held off on the final step of closure until a "viable economic opportunity" presented itself. Does the fact that there is currently NO available hangar space coupled with the FBO's willingness to invest its own capital in airport development not constitute the "viable economic opportunity" required by the motion passed by City Council?

The FBO is not the first entity to request permission to build hangars at the airport. Within the past two years other pilots and nationally recognized pilot associations have presented Council with development plans. All proposals have been summarily rejected. Why?

Why the need for more land development? The answer is simple. We're out of space. Moreover, there is a waiting list for hangar space right now. What happens if this development does not happen? Again, the simple answer is this; we will begin losing tax base.

A locally based corporation that currently bases its aircraft fleet in Hickory is looking elsewhere to meet its need for more hangar space. This company has purchased an additional aircraft and is planning delivery of a second newly purchased aircraft next spring. Currently, these new purchases, totaling around $30 million of new tax base, are not slated to be based in Hickory. If this need for additional hangar space is not met in Hickory, it will be met by another airport. Not only will these newly acquired aircraft not be based here, but this company's aircraft that is based here will be moved as well. Not only will Hickory miss out on the $30 million of new purchases, but Hickory will lose the $20 million in aircraft assets that this company does base here due to this company's desire and need to hangar its entire fleet at the same airport. That's around $50 million worth of tax base that the City is willing to literally let fly away.

Conversely, by direct investment or allowing third party investment in our airport, we not only retain our current tax base, but we would see immediate returns of an increasing tax base by attracting new flight operations.

The "opportunity cost" to this type of gain is this - we lose a runway. What the City will not tell the public is that Runway 1/19 will be closed within the next 5 years regardless of the City's actions. NCDOT will only fund the upkeep on the primary runway, Runway 6/24. Due to the low traffic volume, the State will not fund secondary runways. Without proper maintenance, the FAA will close Runway 1/19. To prevent this, the City will have to shoulder 100% of the re-paving costs. Simply put, the City cannot afford to do this.

So this is the choice; be pro-active and close the runway now while there is someone willing, ready, and able to invest and develop the newly available land; or sit back and wait for the FAA to mandate the closure of Runway 1/19. By that time there conceivably will not be an FBO or other entity able to develop the land. Moreover, the cost of development now would be less than future costs.

As it happens, the City's Airport Task Force recommended to Council the need for land that has the potential for development. Unfortunately, after studying this issue for nine months, the conclusion was that aside from Runway 1/19, there was no available land for potential, immediate development. Moreover, the City hired a consulting firm that developed a plan and recommended the closure of this runway. This plan was presented at a public meeting held at the airport.

By the way, whatever happened to the Airport Task Force's report? Well, it was "unanamously received" by Council. No other action was taken. In fact, the case can be made that the City not only has ignored the report's recommendations, but has actually proceeded to act contrary to the report. Let's see, the City forms a committee to study an issue only to ignore any recommendations presented. Sadly, that seems par for how the City of Hickory operates.

The truth of Hickory's Regional Airport is this; it is the crown jewel of regional airports in Western NC. Aside from Charlotte and Greensboro, no other airport in Western NC has the amenities that Hickory can offer. Does this sound familiar?

Hickory was at the summit of another economic sector not too long ago - manufacturing. We had fiber optics, textiles, and furniture. We reached the top of the mountain and we sat there simply enjoying the view. Before we knew it though, it all disappeared. We went from sitting on the highest of mountains to finding ourselves in the lowest of valleys. All the while we wondered how did this happen? The very same thing is poised to happen again. This time, however, it will be with an aviation spin.

Hickory has an ILS (instrument landing system), we have the longest runway of any airport of comparable size, we have an FAA certified Part 145 maintenance facility, and we have the only Air Traffic Control Tower from Charlotte to Asheville. So what do we have to fear? This.....

Ten years ago Statesville did not have an ILS. Today they do. Statesville also extended their runway within the past five years in an effort to better compete with Hickory. Statesville also pro-actively closed their secondary runway. What's located there now? Only a dozen flight operations belonging to NASCAR race teams and a little home improvement company called Lowe's! Moreover, inside of five years Statesville will also have a control tower. Lincoln County is currently in a building frenzy at their airport. They too have plans of installing an ILS system in the near future. Why? They are planning for future growth.

Interesting little tidbit...Hickory currently has two runways. We used to have three runways. So what happened? Well, when the City closed the third runway - wait for it - development happened! Hangars were built, and new aircraft were based at Hickory, new jobs were created and the City's tax base grew. At every airport where a secondary runway has been closed, increased economic growth has followed.

Without strategic planning, Hickory will be eclipsed by Statesville and Lincolnton in aviation terms; just as we were made nearly irrelevant in terms of textiles/furniture/fiber optics.

Lastly consider this, if the City is blocking a local company from investing in Hickory (at the airport) and the City is not willing to invest in its own airport, then why should anyone else invest in Hickory? Moreover, why should we as citizens invest in our current city leadership?

There Will Be No Debate in Hickory!!!

Harry Hipps informed me on Sunday afternoon that there was not going to be a debate held involving the candidates for the two ward seats contested in this years Hickory City Election. He stated that there will only be a forum sponsored by the Catawba County Chamber of Commerce at the Catawba Country Club in which candidates from throughout Catawba County will basically meet and have a chat with Chamber of Commerce members.

I didn't believe this was true and I thought it was all a misunderstanding. Well Harry called me back on Monday Morning and informed me that his initial understanding was correct.

Two years ago I went to an actual debate that was held at the Chamber of Commerce when Brad Lail and Danny Seaver were challenged and there was an audience and it was open to the public - Bruce Meisner wasn't there, because he wasn't challenged. All of the candidates made opening and closing statements and people were allowed to ask questions and the candidates answered the questions and it was reported in the Newspaper. It was called a forum, it was advertised to the public, and it could not be construed as anything other than an actual debate. The place was packed with every seat taken and some people having to stand. How would this time be any different? I bet more people would show up this time.

This thing being set up this go around is not conducive to finding out where anyone stands on anything. Every candidate for every race in the county is supposed to be there and it only lasts two hours. So that means there are supposed to be 50+ candidates confined to a 120 minute time period to discuss issues. You know, that is hardly enough time to sneeze much less talk about the real issues this area faces. Why would anyone from Hickory need to know how someone from say Catawba feels about an issue?

This is just a Good Ole Boy dog and pony show, where people who know one another, from the clique, are going to stand around have cocktails, nibble on some snacks, pat each other on the back and tell one another how great they are -- and it is appropriately being held at the Country Club.

That type of event has its place, but it is no substitute for a debate. Debates, and discussing issues, in an open setting before the public at large is what this country was founded on. I'm sure you read about the Lincoln-Douglas debates when they used to actually teach U.S. History. Like Mayor Wright said at the Patrick McHenry town hall meeting, "Let's show them that we can do things right in this community." Amen!!! I agree 100% - A discussion of the issues with proper decorum. Isn't that what America is all about?

This is just a sad situation. Harry Hipps, Hank Guess, and/or Larry Pope deserve to be heard by the people of this community and not by methods that carry prohibitive costs (ie TV, Radio, and Newspaper Advertising). Jill Patton and Z.Anne Hoyle have had years of representation on City Council to let us know where they stand. Do these challengers, for those positions, not deserve a two-hour public forum to compare and contrast what they have to offer versus these incumbents, especially in the serious times that we are living in.

Is this all a set-up? Are the Powers That Be, in this city, trying to keep this election under wraps, just to ensure that extra level of control of outcome? It would take some truly small-minded people to think that such a form of governance, as this, could be effective and not have negative consequences over the long haul. Is this part of the "All of One Mind" strategy?

Harry is seeking alternative methods to discuss the challenges that our city faces and how he would address these issues. He challenges Mrs. Patton to a discussion of the issues anytime, any place, and anywhere. He stated to me that he is going to get his message out one way or another. He would like to be able to do it in a traditional manner, but now he may have to go to truly alternative means. Chut-Oh.

Harry Hipps for Council - 21st Century Leadership for the People of Hickory!!!

HDR Editorial - Give young people a chance to thrive

My editorial published in the Hickory Daily Record on 9/27/2009 and Context Below

Changing our Culture is as important as Education

In reading Lamar Mitchell’s contribution from September 22, 2009, I would like to provide a different perspective. Mr. Mitchell is preaching to the choir when he goes down the laundry list of reasons why kids should stay in school. But, I am here to bring you a truly teachable moment.

Our area has suffered economically for years and it cannot all be blamed on uneducated people. These people, who are already suffering, should not be treated like villains. They worked hard and played by the rules that our area lived by for generations. Local leaders did not stress education years ago. Cheap labor was the desire of Old Hickory ’s Culture and now we are paying the price for that Monoculture of Manufacturing Industries.

Who could not agree that having a 17%+ dropout rate in our community is disastrous, but what is even worse is the loss of the younger demographic in this area. Population numbers show that since 2000, the O-44 age bracket grew by a measly .38%, while the 45+ age bracket grew by 14.34%. The older generation grew 23 times faster than the younger generation. Does that seem healthy to you?

"Educational Attainment" statistics count people who have obtained a degree of higher education and are age 25 or older. If a young person goes to college, but does not stay in our area, then it hurts our Attainment statistics. Looking at results from ncreportcards.org show that area High School students are actually fairing quite well compared to NC averages. The question should be asked, what are we going to do to retain our best and brightest and entice the educated class to move to the Hickory area?

It is obvious to me that there is a lack of opportunity in this area for people with higher education. We have a real problem with job quality. Many people with Bachelor’s degrees (or higher) are vastly overqualified for what they do. Young graduates can wait tables, perform other menial labor, or leave town.

We have seen the Brain Drain in this community that is associated with a lack of understanding and compassion for what the citizens of this community have truly endured. If we are going to turn our plight around, then we are going to have to reconnect with the younger generations who can reinvigorate this community. We need to present college graduates with possibilities for internships, apprenticeships, and other specific opportunities to rebuild Hickory and start a Cultural Renaissance in this area.

Mr. Mitchell’s commentary once again has an area leader focusing on the negative. What does our plight have to do with Obama, Bush, or Perdue? Local leaders need to focus on transforming our area into a Cultural Bastion of Excellence, where young educated people can thrive. If this happens, I truly believe the drop-out rate, which has a lot to do with depression and despair, will soon begin to recede.


My Editorial was in Response to Lamar Mitchell's editorial, which is provided below:


The Hound believes in Knowledge and in what I wrote I am not arguing against people obtaining any form or level of Educational Attainment. What I am saying is that we need to look at what has led to the problem we see today. Furniture and Textile owners didn't care if people had diplomas. They wanted to teach people specific task oriented skills and then have them do it for the rest of their lives. In my opinion, they also didn't want people asking questions and daddburnit that is exactly what educated people do.

Today we live in a highly competitive global world that demands people who can think outside of the box, who are innovative, and can constantly figure out new ways to do things better. Old Hickory's culture did not want this. The ideal was to have an employee not think. Just work like a machine and don't ask questions. Now you have automated machines or cheap foreign labor to do those menial tasks. So the people brought up in that culture are now lost.

That being said we need to change the culture around here. Steve Ivester, who comes from a completely polar-opposite philosophy than myself on most issues, was the person who spoke of the Monoculture of Furniture, Textiles, and Cabling that did not demand education (Ivester audio link). Many of these people, who expected lesser educational attainment from the workforce, passed this philosophy down from generation to generation. How many of the business owners that are now fussing about our community's lack of educational attainment are the same people who had no problem hiring people with less than a high school education in the past. Where does such self-righteous indignation come from?

Let's face it, the people who are older than 50 are not going to go get their GED and is it realistic to expect them to do so at this point? Are those people not a major demographic in this community? Yes, we have to change our local culture and instill in our youngsters that they need their education, but we also need to find out why they would want to quit school, why they think they don't need their diploma, and figure out how we are going to address such a sad situation. I addressed this at the last city Council meeting, when Alder Jill Patton mentioned that she and the Mayor were at the Champions of Education meeting and it was a kickoff for 2012 that made a statement that businesses would not hire anyone without a High School Diploma or GED. Newsletter about the City Council meeting of September 15, 2009 (The whole summary is at the bottom of the article).

The bigger issue is the demographic issue shown in the chart below. I mentioned it in the article. The stats were extrapolated from this chart (Link stats below):


This is the article where I sum up this issue - The Younger Generation is the Key!!!

The Graphic below shows that our High School Educational rankings aren't that bad compared to North Carolina State averages (Link stats below):


This is the article where I sum up this issue - Our High Schools versus the State of North Carolina Averages.

The Hound believes we deserve more than canned answers and philosophies on the issues we face. I have faith that we can turn this area around, if everyone does their part. I have heard a lot of great things about the Champions of Education and what I wrote is not meant in any way to dismiss or slight their mission. I think we need to worry about the real issues we face and not waste an opportunity to address the true issues that our area faces in trying to right our Economic Ship.

I also encourage you to read - Hickory, Time to Put the Puzzle Together

1859 Cafe says Thank You to the People who cleaned the Property next door

1859 Cafe

This is the Follow-Up of the "Under Belly of Your City" video that I shot 18 days ago. I want people to see that I am not just looking to show the problems in this city. I also want people to see the solutions and this issue could not have been resolved without the help of Alex-Lee and I am sure that there were others involved behind the scenes. Jane Thanks You and I want to say thanks to everyone who played a role in cleaning this situation up. Below is a video that shows how the property has been revitalized.



1859 Before the Clean-Up


If we can revitalize this piece of property in just 18 days to this extent, then I know that we can do the same with other blighted properties throughout this town. Please, let's show that we love our home and give it the respect and attention it deserves. Let's put our best foot forward. I truly believe this is a key to turning our Economic Fortunes around.

Working on a story that will blow your minds

That is the reason why I haven't put anything out in the last few days. I am sourcing, getting the I's dotted and T's crossed, but this one will bring out the full range of emotions in this community when it comes out, I assure you. So stay tuned.

Anyway, I hope you enjoy my editorial that will be out in the Hickory Daily Record in the next couple of days. I am going to allow them to publish it there before I do here. Again stay tuned so that I can further explain the meaning behind the commentary.

Thank You,
Thom

The Election is Under Way -- The Process and Hickory City Ward Map

Hickory City Ward Map Link

Many of the people that come to this site realize that this is an election year. Early primary voting started last Thursday at the Highland Recreation Center.

This is a year when the Mayoral seat and Council seats in Wards 4, 5, and 6 are up for grabs. In reality what we are seeing is two seats up for contention, because no one is challenging Mayor Wright or Alder Sally Fox (who is the representative from Ward 5).

In Ward 4, Hank Guess and Larry Pope are challenging incumbent Z. Ann Hoyle. Since there are more than two candidates running for the position, a primary election is being held to reduce the race to two candidates for the General Election. Early voting will continue until Saturday, October 3rd. The Highland Center Polling Precinct is open from 8am to 5pm Monday through Friday and 8am to 1pm Saturday. So early voting will end on Saturday, October 3rd, 2009 at 1pm. The official primary date is October 6th, 2009 from 6:30am until 7:30pm at polling places in the 4th Ward only.

The Ward 4 primary is only eligible to people who live in the 4th Ward. The 4th Ward Northern Boundary runs along the Railroad tracks from 14th street SW to 10 street SE. It includes all of Highway 70 from 19th street SW east to Robinson Road and includes all of the annexed properties in Mountain View. It also includes the Green Park and Ridgeview sections of Central Hickory. The two candidates who receive the most votes during this primary will move on to the General Election where they will be voted on by all eligible voters throughout the City of Hickory

In Ward 6, there are only two candidates, Incumbent Jill Patton and Challenger Harry Hipps, so they are assured of facing off in the General Election, where they will run throughout the City. Early voting for the General Election will also be held at the Highland Recreation Center and will run from October 15th to October 31st from 8am to 5pm Monday through Friday and 8am to 1pm on Saturdays. So the last date for early voting will be Saturday, October 31, 2009 at 1pm.

The official General Election date is November 3rd, 2009 and polling precincts throughout the city will be open from 6:30am until 7:30pm. Mayor Wright and Alder Fox's names will still be on the ballot and they can be challenged by write-in candidates, but historically the chances of being successfully challenged this way are infinitesimal.

Hope this information helps those who need information about this process.

Impulse Spending not wise with Tough Times Ahead - Harry Hipps

At the Hickory City Council meeting, September 15th, we saw a clear example of the poor decision making process that too often occurs here. On an impulse the Mayor stated that he wanted a new sign with the City’s newly designed logo placed at the intersection of Tate Blvd and LR Blvd. The road will be re-opened in October and Mr. Wright, enthusiastically supported by Mrs. Patton, decided on a whim that the sign would be pretty and make a splash.

The logo was designed as part of the Wayfinding Program that was discussed and voted on earlier in the year. At that time, when the $73,500 for the design was approved, the plan was that the signs would be purchased in phases. The total cost of City wide signage will be several hundred thousand dollars and was to be phased in over a number of years as funds were available and one would assume that there would be some logical progression to it. Now it seems that we won’t worry about the budget or what the priorities for sign placement are, but, whenever the mood strikes the Mayor or Council we’ll put a sign up somewhere. And with an election coming up I guess they are feeling festive.

Our tax base is eroding, few building permits are being issued, housing values are stagnant, which means we are headed for budget problems soon. Should we be impulse spending now? And is this the professional, methodical way we expect our City finances to be handled? Some would say it’s only $6,100 and we can afford it. That’s not the point. The point is money is tight now and we need to be good stewards of what we have. Impulse spending is not wise for family budgets and it is poor public policy. If tax rates have to be raised to pay the City’s bills, Mr. Wright and Mrs. Patton’s impulse spending will only make a tough situation worse. The taxpayers deserve better.