UNITE D STATE S DEPARTMEN T OT' TRANSP j FEDERA LAVIATIO NADMINISTR A

WASHINGTON , D C Venic e Je t

Center , LL C Complainant , V . FA A Docke t No . 16-09-0 5 Cit y o f Venice , Florid a Respondent . / SWOR N DECLARATIO NO FDONAL D MARTI NKRETCHMA N Unde r penaltie s o f

perjury , I swear

that th e followin g i s tru e an dcorrect : JS j 1 . I amth e managin g directo r o f Instat e Aviatio nGrou p o f Fload aLI ("Instate") . 2 . O n Decembe r

29 , 2009 , o nbehal f

o f Instate , I me t

withCity o f

Venic e official s a t Cit y Hal l aroun d1 0 a.m . t o informall y discus s th e hangar disput e (amon g othe r

issue s relate d t o Instate' s becomin g th e lesse e unde r th e leas e betwee nth e Venic e Je t Center , LL C an dth e Cit y o f Venice) . Presen t

at th e meetin g o nbehal f

o f th e City wer e Isaa c lumer , Nanc y Woodley, Jef

f Snyder , an dWayn e Hal l (fillin g i nfor Bo b Anderson , city attorney) . Possibl e resolution s t o th e hangar disput e wer e discusse di ngoo dfait hbu t th e disput e wa s no t

resolved . Th e hangar

discussion s conclude dwit hmy tellin g th e City o f Venic e tha t

Instat e intende dt o buil dth e hangar s i n thei r originall y planne dlocation . 3 . Th e quote s fromth e short excerpt s fromth e meeting s cite db y th e City o f Venic e i nthei r Memorandu mo f

Point s an dAuthority date dFebruary 18 , 201 0 ("Memorandum" ) are take nout o f context .4 . M y respons e t o Su e Lang' s commen t (Exhibi t II t o th e Memorandum) relate dt o th e financial pr o formas . I wa s tryin g t o ge t acros s th e poin t

that th e busines s was viabl e eve n withou t th e ne w hangar s usin g curren t traffi c levels , a s th e City seeme dvery hun g u p o nho w we' dmak e i t

work wher e other s ha dfailed . Whil e tryin g t o b e amenable , I neve r onc e sai dI didn' t inten dt o buil dth e hangars . I n respons e t o he r commen t

that hangar deman dwa s down , I sai d" I wan t

t o leav e th e possibility (t o buil dhangars ) open " becaus e I hadn' t don e an y "independen t

evaluation" . 5 . I n respons e t o th e mayor' s commen t (Exhibi t II I t o th e Memorandum) , I responde di nreferenc e t o Mr . Mckeon' s comment . Ih e othe r counci l membe r

mad e th e poin t that the y weren' t

ther e t o discus s hangars , the y wer e ther e simpl y t o approv e o r den y th e leas e transfer . M y remark

" I don' t hav e an y intentio nt o break groun dtomonow " an d"it' s aver y linea r process " wa s intende dt o say "let' s tal k abou t thi s whe nth e tim e comes. " Somethin g that I se e i s omitte dfromth e City' s exhibits , obviously , i s th e commen t I mad e t o th e mayo r

i n th e sam e meetin g wher e I sai d(paraphrasin g fro mmemory ) "i f th e leas e transfe r

i s contingen t

o n a respons e regardin g th e hangars , the n we'l l discus s i t further " t o whic hthe y responde db y quickl y movin g o nan dconsentm g t o Iristat e becomin g th e lessee . 6 . Thus , Iristat e i s no w th e lesse e vmde r th e leas e an dha s every intentio nt o buil d th e hangar s a s proposed . Ih e Cit y o f Venice' s continuin g refiisal an dfailure t o allo w th e hangar s t o b e buil t

(an dgenerall y violatin g variou s FA A gran t assurance s arisin g fromth e City' s diversio no f

airport revenu e an dit s failure t o properl y maintai nth e airport ) i s causin g har mt o Iristate . Pleas e se e attache dstatemen t whic hwa s state dt o th e City o f Venic e at

acounci l meetin g o nFebruar y 9 , 2010 , whic hinclude s anadmonishmen t o f th e City for

refusin g t o allo w Iristat e t o buil dth e hangars .Swor n thi s 21 " day o f

February , 2010 . 

# Af c iJSlSiflMR ' DOlULDfJfeSiRTINKRETCHMANMr
. Mayor , Cit yCounci l Member s an d Cit yStaff
.

M yNam e i s Mart yKretclnma n an d I represen t Tristat e Aviatio n Group , th e owne ran d operato ro f Suncoas t Ai rCente ra t th e Venic e Municipa l Airport
. I hav e bee n part yt o an d observe ro f th e happening s her e ove rth e las t severa l months , an d I spea k toda yno t o n an yon e specifi ctopi cbu t o n a variet yo f issue s I fee l counci l shoul d giv e seriou s consideration
. Sinc e takin g ove rth e facilit yles s tha n 3 0 day s ago , I hav e see n a lo t o f mis informatio n an d ''half-truths " bein g propagate d t o counci l member s an d cit y staf f regardin g th e directio n tha t counci l shoul d take , strategie s t o implement , an d eve n engineerin g advic e b ya voca l bu t ver ysmal l numbe r o f loca l residents
. Thes e fe windividual s hav e targete d thei rtim e i n a n effor t t o consum e Staf f resources , provid e informatio n deeme d a s "expert " an d t o misguid e thi s counci l int o a fals e sens e o f securit yan d knowledg e o f th e rea l trut h abou t th e operations , th e aircraf t counts , th e condition s an d th e futur e directio n o f thi s tremendou s asse t t o th e resident s o f Venice
. Today , I pos e fo ryou rthough t an d consideratio n simpl e statement s o f fac t an d additiona l information
. Wheneve rther e i s a hal f truth , a s i n man yo f thos e statement s provide d t o you , ther e i s alway s a n equa l an d positiv e componen t tha t i s essentia l t o understandin g th e entir e issu e an d no t jus t a smal l numbe ro f individual' s attempt s a t paintin g a certai n picture
. First , I woul d lik e t o as k th e followin g question : As Staf f an d Counci l hav e take n muc h o f thei rdirectio n fro m onl ya fe w voca l opponents , ho wdoe s on e kno wfo rcertai n thi s accuratel yrepresent s th e feeling s o f a majorit yo f cit yresidents ? A s Staf f an d Counci l hav e bee n provide d wit h numerou s recommendation s an d comment s o f fac t fro m thes e individuals , ar e thes e people , i n fact , qualifie d t o provid e thi s information ? If , base d o n FA

Arecords , the yhav e no t bee n activ e pilot s fo rman yyears , the n ho wcoul d the yb e deeme d th e bes t sourc e fo ra curren t conditio n repor t fo rRW

Y4/22 ? I f the yar e no t curren t Aviatio n specialt yengineers , the n ho wca n the yprovid e yo u wit h recommendation s a s t o ho wbes t t o fi x th e runways ?I pos e tha t whe n informatio n wa s presente d t o yo u fro m a website ,

fliQhtaware.com
. whic h a residen t use d i n a n emai l t o quantif yth e C- 2 counts , i t i s a hal f truth
. Alarg e numbe ro f C- 2 (an d larger ) aircraf t hav e mad e request s t o th e FA At o hav e thei rtai l number s blocke d fro m th e public' s vie wo n site s suc h a s this
. Thi s mean s tha t ther e ar e aircraf t wh o com e i n an d ou t o f Venic e eac h wee k tha t d o no t sho wu p o n thes e fligh t trackers
. I pos e th e question , i f yo u ar e relyin g o n thes e type s o f mis-information , whe n th e FA

Areject s you rreques t agai n fo ra downgrad e an d yo u hav e spen t hundred s o f thousand s mor e o f th e loca l communit yfunds , wh o i s liable ? I s i t th e resident s wh o hav e take n thi s initiative ? O ri s i t th e counci l member s an d staf f wh o wer e s o easil yswaye d b yth e informatio n tha t the y accepte d i t a s fac t an d ar e no wputtin g thei rnec k o n th e lin e fo rit ? Mypersona l though t i s tha t whe n th e hatche t come s down , thes e voca l fe w offerin g inpu t wil l no t b e defendin g thei rpositio n t o th e lawyer s an d residents
. Mycomment s t o counci l ar e t o liste n t o you rhire d experts , wh o hav e th e error s an d omission s insuranc e policie s t o protec t yo u fro m liability , an d no t t o thos e wh o appea rt o hav e littl e i f an yqualification s fro m whic h t o guid e you , wh o hav e n o persona l liabilit yfo ran yaction s o rinaction s base d o n thei rrecommendations , an d wh o likel yar e no t supporte d b yth e majorit yo f th e community
. Safet ycontinue s t o b e ou rnumbe ron e priorit yan d th e City' s lac k o f attentio n t o th e seriousl ydeteriorate d conditio n o f RW Y4/2 2 i s concernin g t o al l i n th e aviatio n communit ya s well
. Thi s runwa yi n it s presen t conditio n i s a safet yhazar d tha t expose s th e Cit y t o additiona l futur e financia l losse s resultin g fro m damag e t o aircraf t an d possibl ylife
. Ms
. Lang , a s yo u sa t i n m yconferenc e roo m wit h m yassistan t an d I , w e watche d a vide o o f a n aircraf t o n runwa y4/2 2 afte rwhic h yo u state d tha t yo u agree d tha t i t wa s i n nee d o f immediat e repair
. Th e airpor t i s operate d solel yfro m th e airpor t enterpris e fun d an d receive s n o mone yfro m th e city' s genera l fund
. Mone yfo rth e enterpris e fun d come s fro m th e airport' s lan d lease s whic h obviousl yinclude s ours . We sugges t tha t mone ybein g spen t ou t o f th e Airpor t Enterpris e Fun d t o downgrad e th e airpor t an d contes t th e FAA' s positio n i s illega l accordin g t o 4 9 us e 47133
. "Restrictio n o n us e o f revenues"
. Bein g i n conflic t wit h 4 9 us e 4713 3 potentiall yplace s th e cit yi n a positio n o f bein g subjec t t o th eassessmen t o f civi l penaltie s unde r4 9 US C 47107(n)
.

Th e Cit yi s als o i n violatio n o f a numbe ro f it s gran t assurance s whic h wer e give n a t th e tim e i t receive d th e airpor t propert y Reclassificatio n o f th e Airpor t a s B-I I woul d diminish , rathe rtha n develop , aviatio n service s provide d b yth e Airpor t t o th e publi can d woul d significantl y undermin e th e valu e o f Tristate' s lease
. Accordin g t o calculations , th e Cit yha s no wspen t ove r$700,00 0 (includin g th e propose d sum s t o D Ybefor e you rrevie wtoday ) o f whic h ove r$300,00 0 i s fo rfightin g th e Part 1 6 complain t ove rth e hangar s whic h ar e ou rrigh t t o build
. Now , th e Cit ypropose s spendin g hundred s o f thousand s o f dollar s mor e t o prepar e an d submi t a pla n t o th e FA Awhic h you rpai d consultant s hav e tol d yo u wil l no t b e approved
. An d ye t counci l an d certai n member s invit e additiona l litigation
. A t wha t cost ? I f yo u wesr e personall ypayin g thes e bills , woul d yo u stil l choos e th e pat h yo u ar e on ? Th e tim e t o sto p thi s patter n o f misguide d attempt s an d devastatio n o f th e airpor t i s now , no t whe n yo u hav e cos t th e loca l residents , th e airpor t fun d an d th e city' s coffer s al l o f it s resources . Hopefully , yo u wil l accep t m yaforementione d persona l comment s i n goo d faith
. The ywer e submitte d simpl yt o giv e yo u basi s t o questio n an d verif y al l th e fact s befor e yo u ac t an d obtai n you rdirectio n fro m qualifie d group s wh o posses s th e curren t experience , th e histor yan d th e integrit yt o giv e yo u unbiase d truth s tha t ar e th e whol e pictur e an d no t jus t part . Accordin g t o Einstein , th e definitio n o f Insanit yi s "doin g th e sam e thing , ove ran d ove ragain , an d expectin g differen t results. " Th e FA Awil l no t bac k

down , th e Cit ywil l los e an d a t th e en d o f th e day , wha t i s th e rea l cos t o f tha t loss ? I s i t you rreputations , you rpersona l exposure ? I pos e tha t th e cos t i s fa rgreate rtha n an ytrivia l benefi t yo u stan d t o gain
.Exhibi t "B " (Novembe r

12,200 9 Newspape r

articl e quotin g Tristate' s state dpositio nregardin g th e hangars )Venic e Je t

Center' s sal e ha s afe

w hurdle s 11 HeraldTribune.co mhttp://www.heraldtribune.com/apps/pbcs.dll/article?AID=/20091112 . 

# ii#[lerai(lTribune.coii i
Thi s cop yi s fo ryou rpersonal , noncommercia l us e only
. Yo u ca n orde rpresentation-read y copie s fo rdistributio n t o you rcolleagues , client s o rcustomers her e o rus e th e "Reprints " too l tha t appear s atxive anyarticle
. Orde ra reprin t of thi s articl e now . Printe do n pag e BN i 

# Venic e Je t

Center' s sal e ha s afe w hurdle s A judg e mus t

approv e th e sale , an dth e hangars ' fat e i s unclea r B y Ki mHacket t Published : Thursday , Novembe r 12,200 9 a t

1:0 0 a.m . Th e Venic e Je t

Center' s potentia l ne w owne r ha s vowe dt o b e agoo dneighbo r an dmen d relation s withth e city , bu t numerou s hurdle s remai nbefor e th e compan y get s th e key s t o th e controversia l facility . "It' s no t signed , seale dan ddelivered, " sai dMart y Kretchman , vic e presiden t o f Th e TriStat e Group , whic hoperate s fligh t center s a t

th e Sarasota-Bradento nInternationa l Airpor t an d acros s th e countr y unde r th e Vol o Aviatio nname . "We'v e worke do nanationa l leve l an dspen t tim e researchin g th e issues " i nVenice , h e said . Kretchma nannounce dTuesda y tha t hi s compan y i s th e myster y buye r referre dt o b y federa l receive r Burto nWian di npublicl y disclosin g th e Je t Center' s pendin g sale . Wian dspurne doverture s b y anothe r buye r an dth e city t o purchas e th e Je t Center , onc e owne db y Ar t

Nadel , wh o i s accuse dof runnin g aPonz i scheme . Neithe r Wian dno r

Kretchma nwoul ddiscus s ho w muc hTriStat e woul dpa y fo r th e Je t Center , i nadea l tha t

mus t b e approve db y afedera l judge . Th e compan y wil l operat e i nVenic e a s Suncoas t Aviatio nCente r

of Florid aif

th e dea l i s approved . Wian dsai dh e plan s t o presen t th e offe r b y TriStat e t o Judg e Richar dLazzar athi s week . The n th e Cit y Counci l wil l hav e t o approv e th e sale . "We'r e tryin g t o b e ver y transparen t abou t this, " Kretchma nsaid . "We'r e jus t abunc ho

f guy s wh o love dairplane s a s kids. "

J of 9 2/21/201 0 8:4 8 P) VI yenic § Je t Center' s sal e ha s afe

w hurdle s 11 HeraldTribune.co mhttp://www.heraldtribune.coni/apps/pbcs.dll/articIe?AID=/20091112.. . Kretchma nha s bee ngenera l manage r of Vol o Aviatio nSarasota . Othe r executive s includ e BrianCiambra , chie f

executiv e officer

an dpresiden t

of TriState , an dHenr y Paulino , chie f operatin g officer . Ownershi p include s privat e investor s tha t Kretchma nwoul dno t

disclose . Unresolve di s th e fat e of

th e fou r hangar s fo r

whic hWian dha s fough t wit hth e city fo r approva l sinc e takin g ove r th e Je t Cente r earl y thi s year . Kretchma nsai dth e hangar s wil l hav e t o b e buil t wher e the y ar e designate do nNadel' s plans . Some counci l member s hav e insiste dtha t the y b e locate dfarthe r

fro maresidentia l are anea r Airpor t Avenue . W e "hav e t o hav e hanga r acces s fro mth e street, " Kretchma nsaid . "Th e valu e i s no t th e sam e i

f the y ar e buil t

i nth e interior " of

th e airport . Kretchma nplan s t o atten da2 p.m . worksho p toda y a t Cit y Hall , wher e som e of

th e mos t contentiou s airpor t

issue s ar e t o b e discussed . Topic s includ e whethe r th e city shoul dalte r

th e facilit y t o mee t FA A regulation s o r

tr y t o downgrad e th e airpor t s o safety area s d o no t

imped e o naresidentia l are aan dagolf course . Airpor t administrato r

Fre dWatt s wil l no t

attend . Cit

y Manage r

Isaa c Turne r

place dWatt s o n administrativ e leav e unti l a t leas t Dec . 1 followin g Watts ' arres t las t weeken do ndomesti c abus e charges . Nex t wee k th e Departmen t

of Transportation' s Office o f Inspecto r

(jeneral , whic hi s auditin g airpor t operations , i s schedule dt o visit . This stor y appeare di n prin t o n pag e BN i Copyrigh t © 201 0 HeraldTribune.co m—Al l right s reserved . Restricte dus e only .

2 o f 2 2/21/201 0 8:4 8 P V