## 1

2 3 4 5 6 7 8 9 10 1 1 1 2 1 3 14 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 23 2 4 2 5 

# SECED W NOV O 5 200 9 AIRPORTS/ENVIRONMENTA L LAW
. AGC-60 0 • 

### BAIRD , WILLIAM S & GREER , L.L.P . 6225 NORT H 

### 24

TM STREET , SUIT E 

### 12

5 PHOENIX , ARIZONA 

### 8501 6 TELEPHON

E 

### (602)256-940 0 

## Daiy l M . William s (004631 ) Attorney s fo

r complainan

t UNITE D STATES DEPARTMEN T OFTRANSPORTATION FEDERA L AVIATION ADMINISTRATION r 3
' i t

- ' — (



## Valle y Aviatio n Services , LLP , a n Arizon a limitedliabilit

y partnership , Complainant , No . 16-09-0 6 Respons e t o Motio n t o Dismis s vs . Th e Cit y of Glendale , a

n Arizon a municipality . Respondent . Th e city' s answe

r t o th e complain

t i n thi s matte

r an dit s motio n to dismis s ar e bot h schizophreni c an

ddisingenuous . The

y ar e schizophreni c becaus e the y ar e contradictor

y an dtak e position s fo

r purpose s o f

convenien t arguments , an

dthe y ar e disingenuou s becaus e the

y lac k the cando r of realit y t o present

afals e appearanc e o f

simpl e frankness tha

t is , i n reality , legerdemain : sligh t o f handt o hid e th e rea

l facts . Muc

h o f thi s i s base dupon undocumented , conclusor y statements tha

t ar e jus t no t correct , particularly a s they relate t o attempt s o f settlement , th e substanc e of

Valley Aviation' s prior , informa l attempt s t o hav e th e FA A intervene , an

dth e suppose dchang e i n polic y which benefit s Valle y Aviatio n Services . Eac h o f th e city' s argument s wil l b e considere din turn .



# I . BACKGROUN D Th e motio n t o dismis s set s fort h wha t the cit y claim s i s th e histor

y o f Valle y Aviation a

t the Glendale airport . A

t pag e te n i t

addresse s acomplain

t made b y Valle y Aviatio n t o th e FA

A in

## 1 1999 as though thi s wer e aprio r Part-1 6 complain

t tha t dealt wit h th e ver y sam e issue s being 2 raise di n thi s case . I n point

of fact , it wa s no t aprior Part-1 6 complaint , but

a n informa l reques t 3 tha t was mad e t o th e regiona

l office to loo

k int o som e discriminator

y practice s tha

t ha dnothing 4 t o d o wit h th e issue s raise di

n thi s case . Th

e lette r precipitatin g tha

t complain t i s attache da s 5 exhibit A t o thi s memorandum . It i s datedApri l 17 , 1999 , andit wa s sen t t o th e FA A regiona l 6 offic e i n Lo s Angeles . The issu e raise di n tha t complain t wa s whethe

r ther e wa s som e economic 7 discrimination becaus e Valley Aviation' s leas e i s fo r a n entir e parce l o f approximatel

y ninetee n 8 acres , wherea s lease s were bein g made wit h tenant s a

t th e nort h en dtha t wer e footprin t lease s 9 only ; i.e. . Valle

y Aviatio n wa s require dt o maintain th e hanga r footprin t an dthe ram p an dtaxiwa y 1 0 spac e on th e entir

e ninetee n acres , includin g security , lighting , paving , striping , landscaping , an d 1 1 sweeping , whil e th e nort h endhangar s onl

y ha dto pa y rent fo r th e footprin

t o f thei r hanga r wit h 1 2 the cit y maintainin g th e ram

p an dtaxiwa y areas . The issue s raise di n th e 1999 lette

r to th e 1 3 regiona

l office , which wa s not

aPart-1 6 complaint , ar

e not a t issu e i n thi s case . Th

e cit y know s 14 tha t complain t raise dnone o f

th e issue s raise din thi s case , s o th e argument s basedupon som e sor t 1 5 o f re s judicat aor

collatera l estoppel effec

t ar e abrazen misrepresentation . A s aresult , claim s tha t 1 6 th e 1999 issu e of

leas e term s somehow resolve s thi s issu e i s palpably false . 1 7 Th

e histor y o f th e relationship s between Valle y Aviatio n andth e airpor

t goe s on t o sa y tha t 1 8 Cath y Gorham , th e director

o f cit y manage r relations , ha s bee

n makin g attempt s to smoot h thing s 1 9 ove r sinc e Octobe

r 2007 , attemptin g t o arrang e meetings , etc. , tha t Valle y Aviation ha s avoided . 2 0 Not onl y i s ther e n o factua

l suppor t fo r thes e statements , the

y ar e incorrect . Attachedheret

o ar e 2 1 the affidavits o f

bot h Georg e Va

n Houten an

dClar e Pryk e tha t attes t to th e numerou s effort

s an d 2 2 attempt s t o wor

k towar daresolutio n an

dsettlement . 23 I t i s als o incorrec t

fo r th e motio n to argu e tha

t th e curren t airpor t manager , Jud

y Skeen , ha s 2 4 bee n completel

y accommodating . An

dtha t she ha s neve

r hear dbefor e thi s complain

t of claim s 2 5

## 1 o f

discrimination . Again , th e affidavit s attache dheret o o f Georg e Va n Houte n an dClar e Pryk e 2 pu t th e li e t o tha t

argument . 3 Th e discussio n abou t Ms . Skeen' s assuranc e t o Clar e Pryk e tha t maintenanc e activity wa s 4 permitte di n Valle y Aviation' s hangar withou t writte n consent . Motio n t o Dismis s a t 13 , i s part 5 o f th e schizophreni aat

wor k here . Th e city' s answe r

t o paragrap h 3 8 o f

th e complain t

says : 6 Responden t admit s tha t

maintenance , othe r

than preventiv e maintenance , ma y no t

b e performe di n hangar s o n th e Airport withou t 7 th e writte n consen t o f th e Airport

an ddenie s tha t

Glendal e prohibit s subtenant s i n VA S [Valle y Aviation ] hangar s fromperformin g 8 maintenanc e unde r th e sam e circumstance s tha t Glendal e permit s subtenant s elsewhere i n th e Airport t o performthos e maintenanc e 9 activities . 1 0 On e wonders , therefore , wh y i t i s th e answe r

say s writte n authorizatio n i s require dbu t th e motio n 1 1 t o dismis s argue s tha t

suc h activity i s permitted . 1 2 Thi s sleigh t

o f han di s consisten t

wit h th e city' s cours e o f conduc t i n dealin g with Valle y 1 3 Aviatio n fo

r almos t tw o decades . Th e cit

y ha s repeatedl y mad e attempt s t o plac e Valle y Aviatio n 1 4 i n defaul t

o f it s leas e i n orde r

t o justif y aterminatio n o f

th e lease . I t

ha s communicated , 1 5 repeatedly , both orall y an di n vmting , tha t th e provision s o f

th e Valle y Aviatio n leas e wil l b e 1 6 strictl y enforced . Th e leas e itsel f require s writte n permissio n for al l bu t avery narro w clas s o f 1 7 aviatio n activities . Writte n permissio n i s requested , bu t refiised . Then , i f

Valle y Aviation' s tenan t 1 8 doe s what

othe r tenant s d o i n th e nort h en dhangars , th e airport manage r demand s that

the y b e 1 9 evicted . S o Valle y Aviatio n wa s force dt o adop t apolic y o f

requirin g writte n permission . Bu t suc h 20 i s neve r

given . Mor e recently , th e curren t airport manage r said , " I won' t

tel l you r tenant s wha t 2 1 the y can do , wha t

the y can' t

do , no r wil l I pu t anythin g i n writmg. " Se e Affidavi t o f Georg e Van 22 Houten , exhibi t

B . 2 3 I t

doe s n o goo dt o rehears e alitan y o f interaction s with Valle y Aviatio n an dit s manage r o r 24 Mr . Va n Houten , a

t forum s o r

meeting s wher e i t

woul db e inappropriat e t o brin g u p suc h claims . 2 5 I t i s als o misleadin g for

th e city t o argu e that

it s deman di n January 200 9 tha t Valle y Aviatio n

## 1 lowe

r it s hanga r rent s or b e in defaul

t o f it s leas e wa s no t

anotic e o f

defaul t preliminar

y to a n 2 eviction , but

merely a n attempt to compl y wit h th e gran t assurance s betwee

n th e cit y an dth e 3 Federa l Aviatio n Administratio n base dupo n th e stud y tha t Glendal e haddone . Wha

t Glendale 4 doe s not

addres s i s th e fac

t tha t th e principa

l comparable s ar

e base dupon renta

l rate s a t city

5 owne dairport s wit

h city-owne dhangar s tha

t ar e heavily subsidize db

y th e cities . No

r doe s th e 6 comparison dea

l wit h th e fact tha t privately-owne dhangar s a

t thes e airport s leas e fo

r fou r an dfive 7 time s as much . The repor t als o disregard s th e renta

l rate s fo r hangar s a t th e Glendale airpor

t and , 8 of course , doe s not

dea l wit h th e realit y tha t eve n though Valle

y Aviatio n loweredit s hanga r rate s 9 t o avoidevictio n a s aresul t

o f th e Januar y 200 9 deman

db y th e city , ther

e ha s not bee n a n increas e 1 0 in th e numbe

r o f tenant s occupyin g it s hangars . Th e reaso n fo r tha t ha s nothin g t o do wit

h prices : 1 1 i t ha s everything to do wit

h th e fac t tha t othe r hangar s a t th e Glendal e airpor

t an dhangars a

t othe r 1 2 airport s a s well , all allo w th e tenant t o do mor e tha n jus t par k their airplane i n th e hangar . 1 3 Th

e city' s notic e o f

defaul t pertainin g to th e issu e o f

rent s wa s but

th e lates t episod e o f 14 tortiou s interferenc e o f abusines s contrac t

b y th e city . Sinc e Valle

y Aviatio n observe s all 1 5 requirement s o f

it s leas e wit

h th e city , an

dpay s it s rent

on time , it

shoul db e afforde

dthe quie t 1 6 enjoymen

t o f it s leas e pursuant

t o articl e 1 3 o f

th e leas e agreement . On

e o f th e previou s airpor

t 1 7 managers , Mar

k Ripley , ha s indicate dtha

t around2003 , th e cit

y bega n t o view th e nort

h en d 1 8 cond o hanga r user s a s "owners " versu s Valle y Aviation , which the

y viewe da s a"tenant. " I

n fact, 1 9 ther e i s no differenc e or

distinctio n unde

r th e la w between th e owner s o f

th e nort h en dhangars , 2 0 whic h ar e locate do n lease dpremises , an

dthos e developedan

downedb y Valle

y Aviation , als o 2 1 locatedo

n lease dpremises . Ther

e ca n b e n o justificatio n i

n creatin g separat

e policies , rules , o

r 2 2 standard s base don thi s artificia l distinction . 2 3 Ther

e ca n b e n o doubt

tha t th e city' s decisio n t o contro l Valley Aviation' s rent s brough t 2 4 discrimination issue s t o ahead . But thes e issue s di dno t

stop attempt s t o resolv e matter s wit h th e 2 5 city .

## 1 A lette r wa s written t o Jud

y Skee n following he

r demandfo

r loweredrents . Tha

t lette r i s 2 attacheda s exhibit

D to thi s response . A s tha t lette r say s o n pag e one , tenant s ar

e allowedto 3 ignor e the rule s an

dregulation s a

t th e nort h en dhangars , an

dtherefor e the y ar e willing t o pa y hig h 4 rent s ther

e becaus e o f

wha t the y ca n do . O n pag e fou r it wa s pointe dou

t tha t eve n th e city , whic

h 5 charge s lowe

r rent s fo r tie-downs , allow s thing s t o b e don e o n it s ram p tha t cannot b e don e i n 6 Valle y Aviation' s tie-downs : "thro w fue l sample s on th e ramp , leav e persona l propert y alongsid e 7 their airplanes , run u

p engines , conduct

ma j o r maintenanc e an

dreconstructio n pro

j ects , pain t an d 8 san dthei r aircraft , driv e acros s area s o f th e ram p which ar e close dto vehicula

r traffic , par

k thei r 9 cars , wash an

dwa x their airplanes , an

dgenerall y ignor e th e city' s rules. " 1 0 Th

e lette r als o point s out

th e numerou s tenant s tha

t hav e bee n sen t to Jud y Skee n fo r 1 1 permission t o engag e in us e simila r t o othe r hangar s on th e field, tryin g t o ge t th e written 1 2 permission require dunde r th e lease , and , inadvertently require di n all o f th e lease s o

n the airport , 1 3 bu t Ms . Skee n ha s denie dever

y one o f those , an da s aresult , ever

y one o f thos e tenant s i s now 14 anort h en dresident . Moreover , a s explaine di n th e letter , Ms . Skee

n ha s eve n informe dtenant s 1 5 an dpotentia l tenant s o f

Valley Aviation , tha

t the y cannot eve n chang e th e oil i

n thei r airplane , 1 6 while tenant s i

n othe r hangar s a

t Glendal e airpor

t an do n th e city' s ramp , change their oil 1 7 routinely . The lette

r als o explain s tha

t owners a t othe r hangar s andon th e city' s ram p routinel y 1 8 brea k fue l lines , but

tha t i s no t allowedi n Valle y Aviation' s hangar . And , sinc e the dat e of Mr . 1 9 Va n Houten' s response , Februar y 11 , 2009 , ove

r 10 0 potentia l tenant s mad

e enquirie s abou

t 2 0 becoming tenant s a

t Valley Aviation' s hangar s onl y to g o elsewher

e whe n the y discoveredthe 2 1 restriction s imposedby th e cit y o f Glendale . Most

o f thes e went

t o th e nort

h en dhangar s wher

e 2 2 ther e ar e virtually n o restriction s a

t all . 2 3 O n pag e five o f

thi s letter , Mr . Va

n Houten explain s t o Jud

y Skee n tha t ther e ar e man y 2 4 letter s from1992 t o 2007 threatenin g evictio n if th e rule s wer

e no t followeda

t Valle y Aviation 2 5 Services , whil e there wa s ablatant an dwholesal e disregar

do f thes e rule s on the nort

h end , th e

## 1 cit

y eve n allowing washin g an

dwaxing on it s ope

n ram p space , wha

t i s probabl y aviolatio n o f 2 the Environmenta

l Protectio n Act . O

n pag e si x o f

thi s letter , Mr . Va

n Houten make s it

clea r tha t 3 tenant s violatin g th e rule s wil l continu e to b e sen t to th e cit y fo r awritten waive

r befor e eviction 4 but , o f course , non e hav e been given , 5 Pag e seve

n of thi s lette r reflect s th e attempt s b

y Mr . Va n Houten t o mee

t wit h th e cit y 6 manager , all t o n o avail , a s shown b y th e affidavi

t o f Mr . Va n Houten attache dhereto , he ha s bee n 7 repeatedl

y informedtha

t th e onsit e airpor t manager s an

demployee s ca

n do nothing , s o h

e ha s t o 8 tal k directl y t o cit y management , not

airpor t management . 9 Pag e eigh

t o f thi s lette r describe s aserie s o f

ope n violation s tha

t ar e tolerate da

t the nort h 1 0 en dwhil e being prohibite don th e sout h end : boa t storage ; R V storage ; bu s storage ; construction 1 1 equipmen

t materials ; movabl e fue

l storag e tanks ; utilit

y an dtrave l trailers ; automobiles ; 1 2 motorcycles ; disabledan dcollector vehicles ; tires ; busines s records ; exercis e equipment ; persona l 1 3 propert y an dfurniture ; score s o f

prohibite dchemical s an

dflammable materials ; non-aviation 14 businesses , includin g auto racin g teams , hobby shops , cabinet maker s an

dretai l companies ; 1 5 unbridle dus e o f

alcoholi c beverages ; barbeques ; welders ; full-tim e batter y chargers ; indoo

r 1 6 fuelin g activities ; derelic t

airplanes ; unregistere dan duninsure dhome-builts ; man y hangar s 1 7 completel

y devoi do f

an y aviatio n use s becaus e ther e i s not eve n roo mfo r a n airplane . 1 8 All o f

th e foregoing no t

onl y violate s th e airpor

t rule s an dregulation s an

dgran t assurance s 1 9 tha t the airpor t wil l b e use dfo

r aeronautica

l purposes , it

doe s no t dea l wit h realit y tha t Valle y 2 0 Aviation Services , per

pag e eigh t o f th e letter , ha s evicte dmor

e tha n 27 5 tenant s becaus e of

the 2 1 city ' s punctiliou s observanc e o f th e rule s wit

h regar dto Valle y Aviation , but

wholesale disregar

d 2 2 of the mwit h respec t to othe r operators . Se

e pag e eigh

t o f th e letter . A s se

t fort h o n pag e nine of 2 3 Mr . Va n Houten' s letter , there i s adail y flow o f flea-market

item s fromhangar s prior

t o the tw o 2 4 months ' advanc e notic e th e cit y give s th e inspection s on th e nort h side , wit h a n immediat

e retur n 2 5

## 1 o

f thos e item s afte

r inspection , including instruction s by th e staf f no t to loo k fo r violation s o

n th e 2 nort h end , whil e ther

e wa s rigidviolatio n enforcemen t a t Valle y Aviation' s hangars . 3 II . GOO D FAIT H ATTEMPT S A

T SETTLEMEN

T 4 Th

e cit y o f Glendal e argue s tha

t th e instance s o f

goo dfait h attempt s a

t settlemen t se t fort h 5 i n the complain

t ar e inadequat

e because , they say , attempt s hav e been focuse don circumventing 6 th e airpor

t manager , andtha

t Valle y Aviatio n didnot

follow up wit

h th e meeting hel dwit

h the cit y 7 o f Glendale' s attorney o

n March 3,2009 . It

i s arguedtha

t th e city' s permissio n grantedt o stor e 8 on e disabledaircraf

t fo r thre e mont

h show s th e city' s willingnes s to wor k wit h Valle y Aviation 9 Services . 1 0 Th

e problemwit

h thes e position s taken b

y th e cit y o f Glendal e i s tha

t the y ignor e reality . 1 1 Valle y Aviation , si x month s befor e th e notic e of

defaul t in Januar y 2009 , los t

ove r 10 0 potentia l 1 2 tenant s becaus e o f

a n inabilit y to ge t th e cooperatio n o f

th e cit y s o tha t hanga r tenant s ca n d o wha t 1 3 al l hanga r tenant s do in their

hangars . Attempt s t o get

v^itte n permissio n fromthe city , a 14 requiremen

t acknowledge db

y th e cit y o f Glendale in it s answer , hav e bee n futile . Anothe

r 1 5 proble mwit h attempt s a

t settlemen t i s th e fac t tha t Valle y Aviatio n ha s bee

n repeatedl y tol dtha t 1 6 onsit e airpor t managemen

t ca n do nothin g without

th e approva

l o f th e cit y manage r o r th e mayor . 1 7 A s aresult

o f this , therefore , whe

n th e lette r o f Februar y 11 , 2009 , wa s sen

t to the airpor

t 1 8 manager , it

expresse dadesir

e to meet wit h th e mayor . I f

th e manage

r ha dbee n willing t o mee t 1 9 an dha dth e powe

r t o do something . Valle

y Aviatio n Service s certainly wouldhav e don e that , bu t 2 0 tha t ha s not been th e realit

y o f managemen

t o f th e airport . 2 1 Ther

e wa s ameetin g wit

h th e cit y attorne y tha t wa s precipitate db

y thi s Februar

y 11,2009 , 2 2 letter , bu

t th e cit y attorney ' s meetin g wa s perfunctory . The da y afte r th e meeting , the cit

y attorne y 2 3 sen t the undersigne daletter , attache da s exhibit E , tha t explaine di

n th e first paragraph tha

t he ha d 2 4 no t bee n involved , but

ha dgathere dsom

e backgroundinformation tha t enabledhi

mto 2 5 characteriz e Mr . Va

n Houten' s Februar

y 1 1 lette r a s ful l o f "misstatement s an

daccusation s

### 1

2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 

## .. . indicativ e o f

th e difficultie s tha

t the Cit y ha s long experience dwit

h him. " Th

e cit y attorne y then support s Ms . Skeen' s notic e o f defaul t an din respons e t o all of

th e accusation s se

t fort h in the letter , includin g th e meetin g wit h counsel wher

e photograph s wer

e displayed , Mr . Tindale says : Mr . Va

n Houten' s letter

.. . i s ful l o f inaccurate statements . I do not believ e i t i s agoodus e o f

anyone' s time t o addres s each accusation individually an

dwil l merel

y disput e themi n their entirety . Id . pag e 1 . O

n pag e 2 o f

hi s letter , th e cit

y attorne y sai dtha t h e ha dconcludedtha

t al l rules , regulations , andstJindard s ar e applie dconsistently to each business , tha t he ha dneve r denieda reques t fo r use s or fo r tenants , onl

y one tenan

t ha dbeen submitte dfo

r approval , an

dhe simpl y doe s not pla n t o ge t involved , an

dthu s ther e i s alega l issue . Id . pag e 2 . Thi s respons e b

y th e cit y attorne y hardly justifie s th e cit

y o f Glendal e now saying tha

t Mr . Tindale was simpl

y waitin g fo

r som e evidence s o f

rea l violation s a

t th e cit y o f Glendale befor

e he took action , whe

n Mr . Va n Houten' s lette

r full y describe dall o f

thos e violation s an

dthe meeting wit

h counsel underscore dan

dhighlighte dwha

t wa s goin g on , including photographs . Wha t reall y happene dwa s jus t

abrush-of f wit h th e statemen

t tha t th e cit y wa s not goin g to get involvedunles s ther

e wa s som e lega l action . Th

e following statement , therefore , containedi n th e memorandu

mfiledb y th e cit y o f Glendal e is , onc e again , lackin g candor , disingenuous , an da misrepresentation .

The Complain

t als o doe s no t

not e tha t VA S [Valle

y Aviation ] neve

r provide dth e information to suppor t th e allegation s requeste db y Glendal e attorneys , othe

r tha n through th e civi l an

dPart-1 6 complaints . Motion to Dismiss , p . 19 .

## 1 Th e reality o f th e situatio n i s tha t

Valle y Aviatio n ha s attempte da t every turn t o cooperat e 2 wit h th e city , negotiat e wit h th e city , ge t th e cit y t o acced e t o it s request s an dpermi t th e activitie s 3 i n Valle y Aviation' s hangar s tha t ar e d e rigeu r

i n th e hangar s o n th e nort h end . 4 Th e cit

y als o note s i n it s motio n t o dismis s tha t Valle y Aviation' s meetin g wit h an FA A 5 complianc e officer

an dtou r o f th e airport

resulte di n asurprise dFA A official whe n th e Part-1 6 6 complain t

wa s filed. I n poin t

o f fact , tha t FA A official encourage dValle y Aviatio n t o file th e 7 Part-1 6 complaint , eve n explainin g wher e t o loo k i n th e cod e o f

federal regulation s fo

r th e 8 necessary requirement s an dh e requeste dtha t after th e formal complain t

wa s filed, that

h e b e 9 give n acop y becaus e he , ultimately , woul db e charge dwith lookin g at it . Th e particular

paragrap h 1 0 o f th e FAA Rinvolved , paragrap h 16.21 , doe s no t obligat e th e FA A official t o engag e i n 1 1 mediatio n o r

settlemen t

discussions . I t

merel y make s hi mavailable . Whe n th e violation s ar e a s 1 2 egregiou s a s the y ar e i n thi s case , an dth e cit y ha s mad e i t

clear throug h it s cit

y attorne y that

i t wil l 1 3 no t respon dunles s ther e i s som e sort o f lega l action , on e ha s t o wonde r ho w th e cit

y can mak e th e 1 4 argumen t

i t make s wit h astraigh t

face . 1 5 Th e argumen t

th e city make s become s eve n mor e embarrassin g whe n i t cite s fromTon y 1 6 Garcia' s lette r

i n 199 9 tha t

deal t with issue s no t

raise di n th e recentl y filedcomplain t a s an 1 7 argumen t

tha t someho w Valle y Aviatio n ha s no t attempte dbefor e an dsinc e 199 9 t o resolv e thes e 1 8 issue s al l t o n o avail . 1 9 III . TH E CITY' S CLAI M THA T VALLE Y AVIATION' S COMPLAINT S 20 WER E ADDRESSE D I N 199 9 2 1 22 Beginnin g at

pag e twenty-fou r

o f it s motio n t o dismiss , th e cit y o f Glendal e make s an 2 3 argumen t

tha t taxe s credulity . I t

argue s tha t

th e 199 9 informa l complain t resolve dissue s bein g 2 4 raise di n thi s complaint . A revie w o f tha t lette r t o th e regiona l offic e o f th e FA A i n 1999 , 25 however , show s tha t

non e o f th e issue s i n th e presen t

formal complain t

wer e th e subjec t

o f th e

## 1 lette r

vmtte n t o th e FAA' s regiona l offic e i n 1999 . Ther e i s n o rehashin g i n thi s Part-1 6 complain t 2 o f ol dissue s tha t

hav e afread

y bee n considere db y th e FAA . I t i s no t enoug h t o sa

y that letter s 3 evincin g th e ongoin g discrimmatio n writte n befor e 199 9 shoul dno t b e considere dany more tha n 4 i t i s appropriat e fo

r th e city o f

Glendal e t o say , a s i t

doe s o n pag e twenty-four , that th e FA A 5 determine di n it s 199 9 complain t th e factual issu e se t

fort h i n paragrap h fifteen o f

th e Part-1 6 6 complaint , t o wit , whe n i t wa s tha t rigi denforcemen t

o f rule s cam e int o full blossom . Th e 199 9 7 lette r t o th e regiona l offic e ha dnothin g t o d o wit h this . Likewise , th e 199 9 lette r ha dnothin g t o 8 d o wit h paragrap h sixtee n o f

thi s Part-1 6 complaint , dealin g wit h th e force devictio n o f th e 9 Glendal e Polic e Departmen t an dtenant s wh o wante dt o d o maintenanc e i n thei r hangars . 1 0 Likewise , th e 199 9 lette r t o regiona l counse l ha dnothin g t o d o wit h th e allegation s from 1 1 paragrap h twenty-thre e o f th e Part-1 6 complain t

tha t complain s tha t

th e Maricop aCount

y Sherif f 1 2 i s allowe dt o us e ahanga r t o stor e an armore dcar , mobil e comman dcenter , guns , an dmunitions . 1 3 Althoug h i t

perhap s onl y merit s afootnote , i t i s noteworth y tha t

th e cit y o f Glendale' s 1 4 respons e t o eightee n o f th e fort y paragraph s i n th e Part-1 6 complain t includ e th e clai mthat

i t i s 1 5 withou t

knowledg e o r

informatio n sufficien t

t o for mabelie f

Thi s includes , fo

r example , th e 1 6 nam e an daddres s o f

th e complainan t

an drespondent ; th e fac t

tha t th e sherif f use s ahanga

r o n sit e 1 7 t o stor e equipmen t

an dmunitions ; th e fac t

tha t ther e ar e photograph s attache dt o th e complain t 1 8 showin g th e remain s o f alarg e recreationa l vehicl e tha t caugh t fire i n an north en dhangar , alon g 1 9 wit h othe r equipmen t

store di n tha t

hangar ; th e fac t

tha t th e city require dth e evictio n o f so-calle d 20 derelic t

aircraf t fromValle y Aviation' s hangar s tha t ar e no w store do n th e city ' s ramp , alon g with 2 1 photographs ; etc . I f

th e cit y say s i t i s withou t

knowledg e an dinformatio n t o identif y abu s tha t 2 2 burne di n on e o f

th e hangar s o n th e airport wher e th e cit

y fire departmen t

responde dt o pu t

i t out , 2 3 yo u hav e t o wonde r

abou t th e cando r

o f th e respondents . 2 4 A s apar t

o f th e motio n t o dismiss , ther e i s additiona l subterfug e becaus e o f irrelevan t issue s 2 5 tha t ar e raise dwhe n Valle y Aviatio n wa s aske dt o allo w it s leasehol dt o b e use db y th e cit y an d 1 0

## 1 other s durin g th e Supe r Bow l wit h th e resul t

tha t th e cit y wa s "force dt o use dintermediaries , suc h 2 a s th e Glendal e Airpor t Pilot' s Association , t o obtai n an y cooperatio n fromVA S [Valle y 3 Aviation ] i n connectio n wit h plaimin g fo r tha t event. " Motio n t o Dismis s at 20 . Thi s re dherring , 4 o f course , ha s nothin g t o d o wit h th e discriminatio n issue s raise di n th e Part-1 6 complain t an di t 5 i s inconceivabl e tha t

th e Glendal e Airport

Pilot' s Association , th e associatio n o f th e nort h en d 6 hangars , woul dever , hav e ever , o r coul dnegotiate o n behal f o f th e cit y wit h regar dt o th e leas e 7 betwee n Valle y Aviatio n an dGlendale . 8 IV . CITY' S CLAI M OFEQUA L TREATMEN T O FAL L TENANT S 9 A t

pag e twenty-si x o f

it s motio n t o dismiss , th e cit y commence s an argumen t whic h i s both 1 0 ironi c an dtantamoun t t o a n admissio n o f

disparat e treatment . I t

argue s tha t

th e airport' s polic y 1 1 ha s metamorphose dbeyon dth e airport' s rule s an dregulation s s o tha t Valle y Aviatio n i s th e 1 2 beneficiar

y o f thi s change dpolicy . Thi s i s an ironi c argument , o f course , becaus e i t

seem s like an 1 3 admissio n tha t

Valle y Aviatio n ha s bee n able , sinc e th e institutio n o f thi s Part-1 6 complaint , t o 1 4 d o everythin g i n it s hangar s tha t th e city , ignorin g th e rule s an dregulations , allow s t o b e don e i n 1 5 th e north en dhangars . I t i s tantamoun t

t o an admissio n becaus e th e city acknowledge s th e fac t tha t 1 6 th e activitie s i n th e nort h en dhangar s violat e th e rule s an dregulation s and , therefore , violat e al l 1 7 thos e north en dleases . It s onl y solution , therefore , i s t o argu e tha t ther e i s som e curren t

airpor t 1 8 polic y that

override s th e rules , regulations , an dth e discriminator y conduc t whic h ha s bee n 1 9 ongoing . A t

pag e twenty-eigh t

o f it s motion , th e cit

y says : 20 Simpl y put , th e Airpor t woul dhav e n o objection s i f VA S [Valle y Aviation ] subtenant s use dthei r hangar s for

th e storag e o f

non 2 1 aeronautica l material s t o th e sam e exten t a s th e tenant s an dsubtenant s o f th e north-en dhangars , s o lon g a s suc h usag e i s consisten t with th e 2 2 curren t

Airpor t policy . Th e curren t

Airport polic y continue s t o requir e tha t an aircraf t eithe r b e i n th e hangar , o r

tha t roo mi s maintaine di n th e 2 3 hangar

for th e aircraf

t an dtha t an aircraf

t mus t b e identifie dt o th e Airpor t for storag e i n th e hangar . 2 4 VA S o f

cours e ha s th e righ t

t o restric t it s subtenant s t o standard s mor e 25 stringen t tha n th e curren t

Airport polic y i f i t s o chooses . Fo r

instance , 1 1

## 1 VA S ma y enforc e standard s such a s thos e articulate din th e Airport' s 200 4 Rule s andRegulations . However , i f VA S choose s to allo w it s 2 subtenant s t o stor e nonaeronautica

l material s in th e south-endhangars , an di f a n aircraf t i s present or roomi s maintaine dfo

r a n aircraft , the 3 Airpor

t wil l no t obiec t t o tha t storage . VA S ha s been , an dwil l continu e 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 

## to be , freatedequall y to th e othe

r tenant s an dsubtenant s a

t th e Airport , Thi s i s nic e an

dhigh-soundin g language , o f course , but

i t i s false . Sinc e the Part-1 6 complaint , th e cit

y ha s refusedt o gran

t written permissio n fo

r tenant s a t Valle y Aviation' s hangars to stor e non-aviatio n equipment . Within th e las t week , on Octobe

r 23,2009 , fo

r example , atenan

t was refuse dpermissio n to stor

e hi s gol f car t i n hi s hangar . See Affidavi

t o f Clar e Pryk e attached a s exhibi t C . Sinc e March o f

2007 , twent

y existin g o

r potentia l tenant s hav e bee

n sen t t o Skee n to mak e appeal s to Skee

n personally , o

r the y hav e bee n accompanie db

y Clar e Pryk e i n a n attempt to ge t Skee n t o agre e to amotorcycl e bein g store di n a n hangar , breakin g fue

l line s to replac e a wing o n a n airplane , t o do acomplet

e renovation , includin g remova l o f a n engine , an

dd o annua l inspection s o f

a n aircraft . Th e cit y ma y sa y tha t non-aeronautica

l uses , materials , an

dstorag e i s okay , bu

t wha t the y sa y an dwha t the y do ar e differen t things . Whe n it come s to specifi c example s o f discrimination , th e cit

y i s equivocal . Th

e cit y say s i t allow s anyone to discharg e fue l o n th e ramp . No t

a t Valle y Aviatio n Services . The

y sa y maintenanc e wa s permitte di n Valle y Aviation' s hangars ; it

wa s unti l th e cit

y tol dValle

y Aviation it ha dto evic t th e tenants . The cit

y say s storag e o f

adisable dvehicl e ha s bee

n allowedfo

r three months ; th e cit

y allow s storag e o f

disable dvehicle s elsewher e on th e airpor

t indefinitely . Wit

h regar dt o th e tie-dow n o f

th e PBY , which i s presently parke do n th e city' s ramp , the cit

y o f Glendale , incredulously , say s tha t Valle y Aviatio n doe s not

hav e tie-dow n spac e fo

r suc h ahanga r whe n the cit y know s Valley Aviatio n does . Th e cit y say s it i s no t clea r whe n eviction s wer

e requiredbecaus e o f

sfric t enforcemen

t o f th e rules ; th e cit

y jus t ignore s th e fac

t tha t i t is , t o thi s day , refusin

g t o allo w non-aeronautica

l use s an di s stil l sfrictl

y enforcing th e rule s agains t Valle y 1 2

## 1 Aviation Services . The cit y say s tha t it alway s give s adequat

e notice—sixt

y day s befor

e inspecting 2 hangars . Attache di s th e affidavi t o f Georg e Va

n Houten , however , tha

t show s tha t ha s not bee n 3 the cas e a

t Valle y Aviation , wher

e unaimounced , on-the-spo t inspection s hav e take

n place , an d 4 the cit y ha s eve n sai dit wil l cu t th e lock s of

f i f i t cannot ge t in . 5 A s apar

t o f it s argumen

t tha t i t i s consisten

t in it s applicatio n o f

it s rule s or , apparently , it s 6 metamorphosing policy , th e cit y say s tha t violation s o f

it s curren t policy , which onl

y requir e spac e 7 fo r a n aircraft , wil l b e investigated . How , then , doe s th e cit y justif y th e fac t tha t the Maricop a 8 Count y Sheriff , accordin g t o th e picture s submittedwit h th e Part-1 6 complaint , occupie s a n entir e 9 hanga r wit h munition s andarmore dcar s an dtanks , leavin g n o roomfo r a n airplane , unless , of 1 0 course , apape

r or model airplane qualifies . I n respons e to th e minimumsquar e footage 1 1 requiremen

t fo r commercia

l operators , th e cit

y attache s aresolutio n adoptedb y th e cit y counse l 1 2 allowing Cactu s Hangar s t o operat e belo w th e minimu

mbecaus e it

built o n aremnan

t parcel . 1 3 However, tha

t argumen t doe s no t explain th e discrepanc y in othe r cases . Fo r example , Glendale 14 Airpor t hanga r buildin g numbe

r 2 , ownedby Mik

e Ruiz , i s totally acommercia l operation , bu

t 1 5 the squar

e footag e requirement

i s not satisfied . 

# 1 6 V . RENTA L RATE S AR E NO T TH E PROBLE M 1 7 Continuing t o gras p a t sfraws , th e cit

y attache s tw o letter s t o it s motion t o dismis s to 1 8 demonstrat

e th e reaso n fo

r Valle y Aviation ' s hanga

r vacancies . On

e i s alette r written b y Michae l 1 9 Skrzec z to Michael Munroe , exhibit N N t o th e Motion to Dismiss . The lette r wa s writte n o n April 2 0 24 , 2007 , an

dsay s tha t th e leas e rate s wer

e to o high , s o he ha

dt o mov e hi s airplane t

o Marana 2 1 airpor t i n Tucson . The problemwit h thi s lette r i s th e fac t tha t Glendal e i s 12

7 statut e mile s from 2 2 Tucson . The Maran aairport , which i s nea r Tucson , i s 11 0 statut

e mile s fromGlendale . I

t certainl y 2 3 make s sens e tha

t someone offende

db y high hanga

r rent s woul dmove hi s plan e mor e tha n 10 0 2 4 mile s away , to a

n out-of-the-wa

y airport . Although hearsa y i s permitte di

n administrative 2 5 proceedings , thi s letter

i s s o incredibl e tha

t i t shoul db e disregarded . 1 3

## 1 Th e nex t lette r attache di n support

o f thi s argumen t

wa s writte n o n Jul y 31,1998 , an di t als o 2 complain s abou t

hig h renta l rates , bu t

Valle y Aviation' s hangar s wer e full after thi s letter , at

th e 3 rate s then bein g charged , an dValle y Aviatio n onl y los t it s tenant s after

achang e i n airport 4 manager s with th e replacemen t airport manage r decidin g t o refus e writte n permissio n an drequir e 5 evictio n o f

tenants . Th e rent s ar e no t th e problem . Th e proble mi s th e discriminatory freatment 6 agains t Valle y Aviation . 7 VI . POLICIE S UNDE RREVIE W 8 A s apar t

o f th e metamorphosin g polic y a t Glendal e airport , th e cit

y als o say s that

apolic y 9 revie w i s underwa y an dth e rule s an dregulation s ar e bein g rewritten . Ther e is , indeed , a n adho c 1 0 committe e t o revie w th e rules , bu t somethin g tha t

may happe n i n th e future i s no t answer t o th e 1 1 presently-existin g discriminatio n an dwha t ha s happene di n th e past . Moreover , i t i s no t clea r that 1 2 any propose dregulation s wil l pas s muste r o f th e gran t assurances . 1 3 VII . VIOLATIO N O FGRAN T ASSURANCE S 1 4 I t

i s no t unti l pag e thirty-seve n o f th e city' s forty-on e pag e motio n t o dismis s that th e cit y 1 5 begin s t o dea l wit h issue s o f gran t assuranc e violations . Th e issue s i t raise s ar e essentiall y legal 1 6 one s an dar e inconsisten t wit h th e purpose s o f

airport grant s an dth e developmen t o f airport s usin g 1 7 federal mone y for

aeronautica l purposes . 1 8 Wit

h regar dt o gran t

assuranc e 19 , th e cit

y say s tha t

i t ca n d o anythin g o n afederall y funde d 1 9 airpor t a s lon g a s wha t

i t i s doin g doe s no t

interfer e wit h aeronautica l uses . Th e pertinen t languag e 20 fromassuranc e 19 , however , i s emphatic : 2 1 I t

[th e gran t

recipient ] wil l no t

caus e o r permi t an y activity o r

actio n thereo n whic h interfere s with it s us e for airport purposes . 22 2 3 2 4 2 5 Th e wor d"thereon " refer s t o th e airport , th e groun dwithi n th e fence . Thi s doe s no t mean that th e cit y can accep t

federal gran t

mone y t o improv e an airport taxiway s an dramp an dthe n leas e spac e fo r constructio n o f

aircraf t hangar s i n whic h th e cit

y the n allow s cabine t

shops , racin g teams , ca

r 1 4

## 1 storage , an dothe r non-aeronautica l activitie s becaus e suc h activitie s d o no t interfere wit

h th e us e 2 o f th e airport

fo r airport purposes . Th e reducti o a dabsurdiu mo f thi s argumen t

i s th e constructio n 3 o f an airport

wit h federal fund s tha t

ha s awell-maintaine dairport , with dozen s o f hangars , on e 4 o f whic h i s occupie dwit h on e airplan e tha t flies i n an dou t

o f th e airport , whil e th e res t are 5 occupie db y commercia l businesse s tha t hav e nothin g t o d o wit h aviatio n activities . 6 No , th e purpose s o f federa l airport

grant s i s t o improv e an dmaintai n airport s fo r airpor t 7 purposes . 8 Gran t

assuranc e 2 4 obligate s th e airport t o maintai n afe e an drenta l structur e fo r facilitie s 9 an dservice s o f

th e airport

tha t wil l mak e th e airport

a s self-sustainin g a s possible . Th e way th e 1 0 airport

doe s this , o f

course , i s tha t

i t require s licensin g o f

commercia l operation s lik e Valle y 1 1 Aviatio n Services , includin g necessary insurance , ren t rolls , collectio n o f

taxes , etc . Wha

t i s no t 1 2 allowe di s an associatio n o f hangar owner s wh o ac t

lik e Valle y Aviatio n Service s bu t d o no t hav e 1 3 th e sam e insuranc e requirement s an dth e renta l payments , etc. , ar e al l mad e withou t th e associate d 1 4 collectio n o f

taxe s an dfee s tha t

benefi t th e airport . Valle y Aviatio n pay s thos e fee s an dtaxes . Th e 1 5 othe r "hangar associations " d o not . 1 6 Gran t

assuranc e 2 5 run s hand-in-han dwith gran t assuranc e 2 4 becaus e i t

require s revenue s 1 7 generate db y th e airport t o b e expende dfo

r th e ca p o r operatin g cost s o f

th e airpor

t that "ar e 1 8 directl y an dsubstantiall y relate dt o th e actua l ai r fransportation o f

passenger s o r

property ; o r

fo r 1 9 nois e mitigation. " Implici t i n thi s i s th e obligatio n t o generat e thes e revenue s an dus e the mi n 20 accordanc e with th e gran t obligation s whic h i s no t

bein g don e for

th e su b rosa , blac k

market-lik e 2 1 hanga r operator s at

th e Glendal e airport . 22 Gran t

assuranc e 2 2 require s th e city o f Glendal e t o b e non-discriminatory i n th e term s 2 3 impose do n thos e wh o us e th e airport an dit s services . Thi s includes , o f course , rate s an dcharge s 2 4 that th e cit y charge s it s tenants , bu t

i t als o include s othe r

element s o f

economi c discriminatio n that 2 5 includ e th e obligatio n o f "th e sponso r

[to ] establis h suc h reasonabl e an dno t unjustl y 1 5

### 1 discriminator y condition s t o b e me t b y al l user s o f

th e airpor t

a s ma y b e necessar y fo r th e saf e an d 2 efficien t

operatio n o f

th e airport. " Gran t

Assuranc e 22(h) . Thi s gran t assuranc e doe s no t

allo w th e 3 cit y t o discriminat e i n th e sort s o f thing s tha t

ca n b e don e b y it s tenant s wh o hav e hangar s o n th e 4 airport . Indeed , a s se t fort h i n th e complaint , gran t assuranc e 22(a) , (f) , (g) , (h) , an d(i ) ar e al l 5 violate dbecaus e o f

th e discriminator y conduc t i n thi s case . 6 VIII . CONCLUSIO N 7 Th e complain t

i n thi s cas e ha s substantia l justificatio n an dmerit . I t demand s investigatio n 8 b y th e FAA . Th e argument s raise db y th e cit y o f Glendal e ar e withou t

merit . 9 Date dthi s ^ da y o f Octobe r 2009 . 1 0 1 1 iBaryrM . William s ^fiird , William s & Greer , LL P 1 2 622 5 N(krt h 24*^ Sfreet , Suit e 12 5 Ph^nijj , Arizon a8501 6 1 3 Attorney s fo r complainan t 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 25 1 1 6

## 1 MAILIN G CERTIFICATIO N

2 Origina l an dthre e copie s delivere dthi s 30t h day o f Octobe r 2009 vi acertifie dU.S . 3 Mail , postag e prepai dto : 4 Offic e o f Chie f Counse l Attn : FA A Part

1 6 Airport

Proceeding s Docke t 5 AGC-610 , Roo m92 5 Federa l Aviatio n Adminisfratio n 6 80 0 Independenc e Ave. , S.W . Washington , D.C . 2059 1 7 

## 8 9 I hereb y certif

y tha t I hav e thi s day serve dth e foregoin g Respons e t o Motio n t o Dismis s o n th e followin g person s a t th e followin g addresse s vi acertifie dU.S . Mail , postag e prepaid : 1 0 Th e Cit y o f Glendal e Attn : Crai g Tindall , City Attorne y 1 1 585 0 W . Glendal e Avenu e Glendale , A Z 8530 1 1 2 E dBeasley , Cit y Manage r 1 3 Cit y o f Glendal e 585 0 W . Glendal e Avenu e 1 4 Glendale , A Z 8530 1 1 5 Judith Skee n Glendal e Airport

Manage r 1 6 680 1 N . Gle n Harbo r Blvd. , Suit e 20 1 Glendale , A Z 8530 7 1 7 Cath y Gorham , Directo r o f Cit y Manage r

Relation s 1 8 Cit y o f Glendal e 585 0 W . Glendal e Avenu e 1 9 Glendale , A Z 8530 1 20 Thoma s L . Toon e Bee r & Toone , P C 2 1 7 6 E . Mitchel l Dr . Phoenix , A Z 85012-233 0 22 Attorney s fo r Defendant s 2 3 // / 24 // / 25 // / 1 7

### 1

2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 

## A cop

y o f thi s Respons e to Motion to Dismis s ha s been delivere dvi acertifiedU.S . mail thi s sam e da y to : Mr . Ton y Garci a Western-Pacifi c Regio n Federa l Aviatio n Administratio n 1500 0 Aviatio n Blvd . Hawthorne , C

A 9025 0 Anthon y .Garcia(^jRAA.go

v Jaiyl M . Williams , Esq . iaird , William s & Greer , LL P 6225>y24t h St. , Suit

e 12 5 Phoenix , A

Z 8501 6 ^



## 1 8

# Exhibi t

A

### Glenda k Airpor t Haiigar s 653 5 Gle n Harbo r

Blvd . Glendale , Arizon a8530 ? Mr . Ellswort h Cha n Apri l 17 , 199 9 FA A Regional Offic e Airpor t Divisio n Lo s Angeles , Californi a RE : Glendal e Airpor

t Hanga r Leasee Discriminario n Dea r Mr . Chan , A s th e major

airpor t lease e a t th e Glendal e Municipa

l Airpor t sinc e 1992, 1 hav e experience da

n ever increasin g amoun

t o f discriminatio n whic h ha s reache da n intolerabl e level . I hav e discusse dspecifi c discriminatio n issue s wit h you r offic e during the 1995-199 8 perio dan dfollowe dyou r staffs suggestion s i n a

n attemp t t o resolv e thes e discriminatio n issue s withou t a n officia l investigatio n reques t

t o you r office . The loca l environment

ha s become economically destructiv e t o m y hanga r leasin g busines s an dth e direc t

operational expense s unde r the contro l o f

th e Cit y ofjQlendale ar e grossly , discriminator

y towardGlendal e Airpor

t Hangars . Th e FA A Airpor t Grant Assurance s ar e ver

y specifi c o n th e leasin g requirements a n Airpor t Sponso r mus t adhere t o insure ail lease s are provide dnon-discriminator y relationship s b

y th e airpor

t sponsor whe n conductin g simila

r coounercial o r

no n commercia

l operations . Effectiv e 3-24-9 8 th e Cit y o f Glendal e issue dalon g ter mland leas e t o Cactu s Hanga

r Associatio n which severely discriminate dagains t Glendal e Airpo n Hangars . Deser

t Hangar s i s anothe

r new associatio n wit

h severa l landlease s issuedfo r constructio n o f

hangar s specifically fo

r th e us e onl y o f

parkin g andstorag e o f aircraft . Th e leas e term s an dcondition s ar e simila r t o thos e issue dt o Glendal e Airpor t Hangars . However , th e landleas e fee s o f thes e lease s when compare dar e compute da

t a discoun t o f over 60 % to th e lan dleas e fee bein g pai db y Glendal e Airpor i Hangars . The specifi c term s andcondition s o f thes e lease s wil l b e include da s attachment s to provide greater detai l fo r your Airpor t Division investigation . Th e ne w lease s are bein g provide dcomplet e taxiway , ram

p an daircraf

t parkin g area s wit h asphal t surfac e maintenanc e an dcleanin g a t no expens e t

o th e leasees . Al

l o f thes e area s wer e constructe dwit h federa l an dstat e funds an dare identifie di n ou r tease s t o b e availabl e t o th e publi c fo

r th e movemen

t an dtransi t o f all aircraf) . FA

A Gran t Assurance s 24 state s tha

t rate basi s in establishin g fees , rate s andcharge s will not b e include dfo

r such federally funde

dareas . Glendal e Airpor

t Hangar s landleas e fe

e i s presently calculate dannually at . t3/sq . (I. , fo r 827,54 0 sq . ft.,\^ic h i s ou r entire are ao f ramp , ta.\iway s an dhanga

r footprin t area . Previou s request s t o adjust the landleas e fe

e t o areasonabl e leve l ha s been denie db y th e Cit y o f Glendale . The ne w leasee s hav e been give n ahanga

r footprin t onl y landleas e at . 1 0 /sq . ft . fe e rate . Whe

n yo u analyz e 

## CL0062 8

### A c comparabl e fun dcost s betwee n competin g hanga r leasin g operations , tli e gros s discriminatio n wil l b e eviden t Glendal e Airpor t

Hangar s hav e tie-<low n spac e fo r 4 8 tie-downs , however , sinc e ou r tie

dow n footprin t

cost s u s approximatel y $33.0 0 / nM.each , w e ar e unabl e t o compet e wit h th e Cit y o f

Glendal e tie-dow n leas e rates o f SIO.O O t o Sl5.00/mo.each . Thi s competitiv e discriminatio n b y th e Airpor i Sponso r ha s force dGlendal e Airpo n Hangar s t o forg o an y tie-dow n business . I n 199S , i t wa s necessar y t o remin dth e Cit y o f Glendal e tha t

t o compet e a s Airpor t

Sponso r i n direc t hanga r leasin g operation s withou t fill I consideratio n o f th e fixe dcost s w e mus t

includ e i n ou r

hanga r leas e rates wa s aviolatio n o f FA A Gran t Assurance s an dthe y suspende dplanne dcompetin g airpor t sponso r hanga r leasin g operations . No w tha t approximatel y 3 3 hangar s hav e bee n constructe db y privat e operator s for persona l us e an dcommercia l leasing , Glendal e Airpor t Hangar s i s losin g a n estimate d 10 % o f ou r customer s du e t o th e economi c advantag e thes e operator s hav e wit h th e lowe r lan dleas e fee s an dprovide droutin e airpor t ramp maintenanc e support . Ther e ar e othe r

discriminator y relationship s wliic h w e hav e endure di n th e pas t si x years . Durin g th e firs t

introductio n meetin g wit h th e Airpo n Director , Rut h Fisher , sh e advise d m e tha t I ha dn o busines s ownin g thes e hangar s o n th e airpo n an dtha t th e Cit y o f Glendal e woul de.\pec t

asal e o f th e propert y t o the ma t

th e earlies t

opportunity . Sinc e Jun e 199 2 th e Cit y o f

Glendal e ha s a t

evei y meetin g an di n correspondenc e suggeste d tha t Smit h Enterprise s conside r sellin g ou r

hangar s i f

w e wer e dissatisfie dwit h th e Airpo n Sponso r

relationship . Exorbitan t lan dleas e rates, tota l lac k o f airpor t maintenanc e suppor t

ait dnumerou s attempt s t o purchas e ou r hanga r propertie s a t

a fractio n o f

marke t valu e ar e majo r

discriminator y practice s b y th e Airpor t Sponsor . W e no w documen t

fo r you r revie w lease s an dcorrespondenc e a s yo u requestedfo r aforma l discriminatio n investigation . A s th e owne r

an doperato r

o f Glendal e Airpor t

Hangars , I reques t

aful l investigatio n o f th e gros s discriminatio n practice s affectin g th e economi c surviva l o f ou r hanga r leasin g operation . I conside r

thi s reques t

a s urgen t

an dwil l awai t

you r Airpor t Division' s reply.

RV:hardJ . Smith Glendal e Airport

HKngar s Glendale , Arizon a cc : Mr . Dary l William s Esq . cc : Mr . Georg e G . Va n Houten , consultan t Atch's : Supportin g Document s 

## CL0062 9

# Exhibi t

B

## AFFIDAVI T O FGEORG E VA N HOUTE

N Stat e o f Arizon a)

)s s Count y o f Maricop a) Georg e Va n Houten depose s an

dsays : 1 . I hav e been involve di n th e managemen t an dth e operatio n o f

th e hangars presently ownedby Valley Aviatio n services , LLP , sinc e th e early 1990s . During tha t time , w e hav e been require dby th e leas e wit h th e cit y o f Glendal e t o obtain th e written permission o f

th e Airpor

t manage r fo r an y use s which deviat

e fromth e specific hanga

r use s permitte di

n th e lease . Articl e II , Sectio n 3 , Paragraph 2 (pag e two ) o f ou r leas e clearly states : It i s specifically understoo dan dagreedupon between th e Lesse e an dLessor tha t th e demisedpremise s shal l b e sue d onl y fo r th e storag e an

dparkin g o f

aircraf t .. . aircraf

t maintenance , repair , washing , commercia l operation , or

an y othe r activit y no t specificall y describe di

n thi s agreemen

t i s prohibite dunles s prio r

written approva

l ha s been grante db

y th e Aviatio n Director . 2 . Thi s sectio n o f

th e leas e ha s governedou

r managemen

t o f th e hanga r operation fo

r th e pas t seventeen years . I

n th e past , Rut

h Fisher , Bruc e Barrows , Ji m McCue , Michael Munroe , an dMar k Ripley , being all o f

th e airpor t manager s tha

t have precededJudit

h Skee n durin g ou

r perio do f ovmership , hav e steadfastl

y insiste dtha

t we obtai n written permissio n befor

e allowing aus e not

specificall y grante di

n ou r lease , o r allowedunde

r th e publishe drule s andregulations . However , despit e sending numerou s existing tenant s an

dman y mor e potentia l tenant s t o Jud

y Skeen' s office t o obtain suc h

## permission fo r their requeste dnon-permitte duses , she ha s unilaterally refiisedto gran t approval s i n writin g an

dha s thu s withhel dpermissio n fo r use s outside th e narro w scop e of ou r lease . W e hav e proteste dt o n o avail . Sinc e she took office in 2007 , w e hav e not bee n allowedan

y variant t o th e specifi c an

drestrictiv e use s state din ou r leas e o r allowed unde r the 200 4 publishe drule s an

dregulations . 3 . A s ha s been made clea r t o Ms . Skee

n anda s i s clearly state din ou r renta l agreemen t wit h ou r tenant s (copie s o f

which hav e bee

n delivere dt o th e airpor

t manage r an dthe cit y attorney' s office on mor

e tha n on e occasio n withi n th e pas t

year , cop y attachedheret

o a s exhibit

1) , w e strictly enforc e th e leas e terms , rule s an dregulations , minimu moperatin g standards , an

dth e forma

l edict s o f prio r airpor t manager s fo

r fea r of eviction if w e do not , an

dw e do not

allo w an y non-permitte duse s o f

ou r hangar s not otherwis e grante dandapprove dby th e airpor t manage r in advance , i

n writing . W

e have don e thi s becaus e o f

warning s by th e cit

y tha t ou r leas e wil l b e strictly enforcedan d becaus e of actua l attempt s b

y th e cit y to put ou r leas e i n defaul t base do n use s not permitte db

y th e lease . 4 . A t n o time ha s Ms . Skeen , o

r an y cit y of Glendal e representativ e notifiedu s o f an y chang e in polic y or

relaxatio n o f

th e leas e terms , rule s andregulations , o r minimu mstandard s a s they pertai n t o ou r business . Ms . Skee

n tol dm e i n perso n tha

t he r policy i s on

e o f non-intervention : " I won' t tel l you r tenant s wha

t they ca n do , wha t the y can' t do , nor wil l I pu t anythin g i

n writing. " Tha

t statemen t sum s u p th e curren

t bran do f

## cit

y leadership . Sh

e seem s t o b e unde

r th e misguide dnotio n tha

t w e hav e simpl

y adopted ase t of rule s fa r mor e restrictiv e tha

n the y needt o b e an dtha t w e hav e overreactedt

o the previou s threat s o f

evictio n by th e city . Ever

y rul e w e enforce , ever

y polic y w e have i

n place , an dever y requirement

imposedo

n ou r tenant s ha s been forcedupon u s b y ou r lease , b y th e publishe drule s an

dregulations , b

y th e publishe dminimu

moperating standards , o

r by th e prio r

edict s o f airpor t managers . 5 . The city' s answe

r to th e FA A i s th e ver

y furs t indicatio n tha

t w e have receive dtellin g u s tha

t anew set o f policie s ha s been adopted ; moreover , Ms . Skee n ha s remainedunchangin g i

n her refiisa l to gran t written permissio n fo

r variant uses . 6 . I n 2003 , Mar

k Riple y mad e apoint o f tellin g u s tha

t he wa s seeking the eviction o f numerou s north-en dhanga r tenant s fo r violation s o f

th e rules , mos t

notably , thei r failur e to hav e a

n airplan e present

i n th e hanga

r an dtheir egregiou s violation s of

the rules . Thus , w e ar

e warne dto b e ver

y carefii l abou t breakin g th e publishe drule s ourselves . A

t n o time di dMr . Riple

y o r an y subsequen

t airpor t manage r infor mu s tha t ne w policie s wer

e bein g adopte dtha

t woul dserv e t o rela

x th e establishe drule s an

d regulations , minimu

moperatin g standards , o

r leas e term s a s they pertai n t o ou r operation . Mr . Riple y didallo w variation s fromth e stric t us e provision s o f

ou r leas e an dput suc h approval s i n writing . See exhibit s 2 an d3 . Mr . Munroe , i

n 2006 , made apoin

t o f tellin g u s tha t he wouldhol du s t o fijll an dstric t complianc e wit

h th e lease . He mad

e unprecedentedstatement s about limitation s to ou

r rights . H e wen

t s o fa r a s to tel l u s tha

t

## we couldnot allo w Cessn at o us e ou

r nineteen-acr

e ram p durin g th e Supe

r Bow l fo r a corporat e aircraf t display , sinc e ou

r leas e onl y allowedu s t o rent

hangar s an

dshades . This , despit

e th e fac t tha t Cessn awa s proposin g to brin g twent y jet s t o th e airpor

t fo r a stati c displa

y an dcorporat e hospitalit

y event . 7 . W e hav e no t receive dan

y notic e o f

chang e i n polic y an

dMs . Skeen' s unwillingnes s t

o codif y an y acceptabl e variation s t o us e onl y serv e t o underscor

e the importanc e o f

observin g stric t

complianc e wit

h th e leas e terms . 8 . W e hav e made agoo dfait

h effor t to wor k wit h th e cit y o f Glendale . M

y lette r t o Michael Munro e date dOctobe r 2 , 2006 , attache dhereto a s exhibit 6 , summarize s th e efforts tha

t I personally undertook

t o improv e th e relationship . But w e hav e been stonewalleda

t ever y juncture . Afte

r receivin g m

y letter , Mr . Munro e informedm e tha t ther e wa s n o needt o dea

l wit h u s sinc e he was tol dtha

t w e woul dnot

b e tenant s afte

r 201 1 becaus e E

dBeasley , th e cit

y manager , ha

dinformedhimtha

t he ha dn o intention o f extending ou

r leas e when i

t expire di n 2011 . Whe

n w e informedMr . Munro e tha t w e ha d alread y extendedou

r optio n t o extendth e leas e t o 2031 , h e sai dtha t th e cit y manage r ha d toldhi motherwise . 9 . I n fact , unbeknowns t

to Mr . Beasl

y an dMr . Munroe , adeput

y cit y attorney , Michae l Bailey , th e transportatio n manage r JamseedMehta , andth e Airpor t manager , Mar k Ripley , ha dapprove dan

daccepte dou

r leas e extension , an

dapubli c notic e of

leas e extension ha

dbee n dul y filed. Wit

h ou r leas e legall

y extende dby twent

y years , we

## though

t the cit y woul dthen hav e mor

e desir e to meet wit h u s an ddiscus s way s t

o improve th e relationship an dwor k fo r th e mutua l benefit o f ou r tenant s an dth e citizen s o f Glendale . Nothin g coul db e furthe r fromth e truth . 10 . Bot h Mr . Munro e an

dcit y councilwoma

n Joyc e Clark , who w e me

t wit h o n thre e occasion s t o as k

tha t th e cit y level th e playin g fieldan

dstop th e discriminat

e treatmen t between tenants , tol dm

e personally tha

t ou r proposals , suggestions , an

didea s wer e dismissedb

y th e cit y manage r an dtha t w e woul dno t

get a n audienc e befor

e hi mo r the cit y council . Sh

e seeme dsincerely frustratedby thi s attitude o n th e par t o f Mr . Beasley . Further , bot

h thes e individual s tol dm

e tha t i t serve dn o purpos e whatsoeve r t o mak e th e proposal s throug h them , but , rather , tha t w e mus t obtain adiret

meeting wit

h the cit y manage r or nothin g woul deve

r change . I t becam e ver y clea r t o u s during th e 2004-200 6 time frame tha

t Mr . Beasle

y ha dulterior motives , namely , tha

t he intendedto force u s of f th e fieldandtha

t h e wouldnot

dea l wit h u s in goo dfait

h t o resolv e ou

r complaints abou

t disparat e treatmen t an dviolation s o f

th e grant assurances . 11 . A t n o time afte

r Jud y Skeen' s appointmen

t a s airpor t manage r didsh e cal l u s wit h question s o

r suggestions , wal

k dow n t o meet wit h us , o r mak e a n attempt to understandou

r concerns . In fact , w e wer

e tol db y personne l a

t th e airpor t tha t sh e ha d bee n instructedno t

to meet wit h us . 12 . Befor

e th e Supe r Bow l in 2007 , w e wer

e informedb

y th e Rightpat

h Developmen

t Grou p tha t they ha darrangedfo

r Mr . Beasley t o meet

wit h us , bu t onl y t o

## discus s the us e o f ou r ram p fo r aircraf t parking which woul dbenefit Rightpath , a s th e FBO . Hi s persona

l assistant Cath y Gorha minformedu s tha

t n o othe r agendawouldb e permitted . Thi s i s not

ho w partie s t o acontract

shoul ddea

l wit h one another . W

e wer e stonewalledagain an

dhav e been since . 13 . Afte r all o f this , I wrot

e letter s to Jud

y Skee n an dth e mayor , copie s o

f whic h wer e supplie dt o al l th e member s o f th e cit y council . I aske dfo

r th e formatio

n o f a tas k force t o resolv e problem s a t th e airport , an

dt o investigat

e ou r complaints . I aske

dfo r ameeting wit

h th e mayor

or th e cit y council . T o date , no t

one o f themha s respondedt

o u s despit e councilma

n Phi l Lieberman' s persona l assuranc e to m

e tha t he wouldinvestigat

e ou r complaints . 14 . The city' s suggestio n no w tha t w e hav e no t

made agoo dfait

h effor t t o ai r an dresolv e ou

r grievance s i s preposterous , sinc e it i s th e cit y manage r an dth e mayo

r wh o have refuse

dto eve n talk wit h us . W e hav e propose dman

y suggestions , ideas , an

dplan s whic h wouldimprov e th e airport , cit y revenues , an

dkee p rate s lo w fo

r ou r tenants , an

d the centra l tenet o f ever y proposa l ha s been th e nee dto achiev e alevel , competitiv e playing fieldan

dstop violatin g th e gran

t assurance s through th e discriminator y enforcemen

t o f lease s andth e publishe drule s an dregulations . 15 . I n one formal , length

y meeting wit

h councilwoma

n Clar k i n ou r office s o n Septembe r 9 , 2004 , w e discusse dth e ful l rang e o f thes e concerns , suggestions , an d requests , Th

e agend afo

r tha t meeting , an

dth e meetin g itself

, include dman

y suggestion s

## fo

r the improvemen

t o f airpor t operations . And , it

include dalis t

o f issue s which needed to b e resolve dbetween Valley Aviatio n an dth e airpor

t pertainin g specificall

y to the area s wher e we wer e bein g treate ddifferentl

y fromth e nort

h endhangar s a s follows : appointmen

t of acommissio n t o conduct

afahnes s stud

y t o include th e issue s o

f consisten t leas e rates , rule s andregulations , equa l enforcemen

t o f leas e term s an

d condition s betwee

n all tenant s on th e field, th e inequit y o f "footprint " leases , consistency i n enforcin g hanga r us e fo r businesses , heav

y maintenance , RVs , storag e o f hazardou s material , car s i

n th e hangar s onl

y whe n th e airplane i s out , an

dth e us e o f

hangar s fo

r "fle amarket " storage . And , th e agenda , which w e didfollow stated , "i f cit y lowers ou

r rent , o r grant s concessions , w e wil l shar e all saving s wit

h tenants , dolla

r fo r dollar . THIS I S ABOU T LEVELING TH

E COMPETITIV

E PLAYING FIELD , AN

D FAIRNESS , AN D WORKIN

G TOGETHE

RFORTH

E BENEFI

T O FTH E CITY. " Councilwoma

n Clar k promise dt o "se e wha

t she coulddo " to mak

e thing s better

fo r u s an dfo r the city . Sh e wa s full y informedo f

th e discriminator

y enforcemen

t o f th e rule s an

dsh e lef t the meeting making promise s tha t she wouldfollow up . However , she di dnothing a t al l an d gave u s zer

o feedback . All o f

ou r complaints , suggestions , ideas , an dplan s hav e bee

n dismissedb

y th e cit y manager , w e ar

e told , an dJoyc e Clar

k ha s gone s o fa

r a s t o sa y sh e canno t d o anything fo

r u s a t all . 16 . W e hav e writte n letter s to th e mayor , includin g th e one datedFebruar y 11 , 2009 , attachedhereto a s exhibit 4 ; w e hav e hel dmeeting s wit h Mar k Riple y an dMichae l

r ~

## Munroe ; w e trie dto get th e cit y o f Glendal e Economi c Developmen t Counse l involved , se e exhibit 5 , attached ; w e hav e attende dandmade presentation s a t th e Airpor

t Advisor y Commission meetings ; w e hav e attende danorth-endhangar s tenant' s associatio n meeting wit

h Joyc e Clar

k an dothe r cit y official s in attendance , includin g Michae l Munroe , an

dhav e made th e formal , publi c commitmen t to wor k wit h th e city , an

dwit h ou r pledg e to mee

t wit h th e cit y manager . 17 . Clar

e Pryk e an dI wen t to Jud y Skeen' s office in 200 8 an dtol dhe r abou t ou r histor y o f misfreatmen

t a t th e hand s o f

th e city , wit

h examples , an

dinvitedhe

r to mee t furthe r wit h u s t o mor

e full y understandth e issue s an

dou r concerns . Fo

r aperio do f tw o year s between 2004 an d2006 , w e retaine dtw o o f

th e ver y bes t attorney s in Arizona , Erni e Bair dan dPaul Faith , to meet

wit h th e cit y i n th e spiri t o f reconciliatio n an

d forwar dthinking , an

dw e spen t ove r $50,000.0 0 i

n lega l fees , they ha

dnumerou s meetings , conversation s an

dcorrespondenc e wit

h Jamsee dMehta , Michael Bailey , Joh n Paladino , an

dHorati o Skeet , but

wer e unabl e to obtain acces s t o th e cit y manage r o r mayo r despit e their attempt s to do so . 18 . W e hel ddiscussion s one-on-one wit h member s o f

th e Airpor

t Advisor y Commission , mos t

notably wit

h Jak e Starr ; w e made a

n appea l to Trace y Steven s of

the Glendale EDC , wit

h meeting s arrange db

y Mr . Fait h t o intercede i

n ou r disput e wit h the city , t o find way s t o foste

r abette r working relationship ; from200 3 unti l hi s deat h i n 2009 , w e ha

dth e assistanc e o f

Jak e Starr , th e owne

r o f Glendal e Aviation , wh

o ofte n 8

## spok

e wit h cit y counci l members , especially Joyc e Clark , on ou r behal f W e hav e ha d numerou s conversation s wit h airpor t staf f members . All o f

thes e efforts , until now , have bee n of no avail . Datedthi s 30t

h da y o f October , 200 9 

# <5e.cU|-^^=t=r .

Georg e Va

n Houten SUBSCWBE

D AN D SWOR N TO befor

e m e thi s 30t h da y o f October , b

y George Va n Houten .


# M y ^mwi^MLSmiss . " DIAN A L CLAR K OFFICIA L SEA L t



### \ Notar y Publi c • Stal e o f Arizon a | MARICOP A COUNT Y } M y Comtn
. Eipira s Ma

y14,201 2 ^ 

# (yjua<- ^

Notar y Publi c

# Exhibi t

1

# glendal e Airport Kangar s (Vallq ' Aviatio n Services , LLP ) Glendal e Municipa

l Airpor t 66 3 S N . Glen Harbor

Blvd . Glendale , Arizon a8S307-370 1 (623)872-126 6 AmCRAF T STORAGE FERMT T PermiUe e Name : Telephon e Number : Registere dOwner : Telephon e Number : Manuftcture r

o f Aircraft : Mode l o f Aircraft : N-Number Aircraf t Insuranc e Carrier : Liabilit y Insuranc e Carrier : LienHoldo T Stree t Address : City/State/Zip : Permi t Tom : Star t Date : En dDate : Stree t Address : City/Statc/Zip :
Stree t Address : City/State/Zip : Typ e o f Aircraft : Number o f Seats : Seria l Numbe r Polic y ft Polic y # : Hangar/Shad e Space : Security Deposit : Cleanin g Deposit : •Loc k Fee : »No n Rcfimdable Fe w Exp . Date : Exp . E>ate : Monthl y Renta l Rate :

Th e Cit y o f Glendal e ha s take n th e positio n tha t th e hangar s a t

Glendal e Airport

Hangar s (GAH ) ma

y onl y b e use dfor

aircraf t storage . Item s suc h a s househol ditems , non-aviatio n items , an dvehicle s may no t b e store di n thes e spaces . In additio n t o th e limitatio n o n what ma y b e stored , th e Cit

y o f Glendal e ha s als o restricte dth e activitie s allowe di n thes e hangar s t o onl y mino r maintenanc e o f

th e aircraf t performe db y th e owner . Th e undersigne dPermitte e hereb y request s spac e a t th e abov e name dairport

facility i n orde r

t o par k o r hanga r th e aircraf

t describe d abov e an di n consideratio n o f th e reques t

bein g granted , agree s t o th e following : 1 . HANGA

RSTORAGE . Th e onl y item s allowe dt o b e store di n an y hangar spac e ar e a s follows : on e aircraft , part s specificall y relate dt o that store daircraft , smal l tool s use dt o maintai n th e store daircraft , on e toolbo x (n o large r tha n 36 " wid e an d60 " tall , whic h ma y b e locked) , on e shel f

uni t (n o larger

than 36 " wid e an d60 " tall) , on e meta l foldin g table , an du p t o fou r metal folding chairs . Al l aviatio n part s an dtool s mus t b e store do n shelve s (kep t of f th e ground) . Th e followin g type s o f aircraf t ar e no t allowed : experimental aircraf t -withou t avali dan dcurren t

Nflumber , ultralights , ki t planes , gliders , homebuilts , an drestoration s o r rebuilds . Helicopter s ma y b e permitted , althoug h the y ma y not b e started , idle do r

ru n anywher e o n GA H property , excep t o n th e extreme easter

n ram p are ai n th e activ e taxiway , a t leas t SO ' away fix>mth e end s o f th e hangars .

Dat e

Initia l Pag e 1 o f 1 

## CL0165 02 . SHADE D TI E DOWN STORAGE . Th e onl y ite mtha t ma y b e store din ashad e o r ti e dow n spac e i s asingl e aircraft . Th e followin g type s o f

aircraf t ar e not allowed : experimental arcraf t withou t avali dan dcurren t

Hnumber , ultralights , ki t planes , gliders , homebuilts , an drestoration s o r

rebuilds . 3 . N O GENERA

L STORAGE . Permitte e agree s no t t o stor e in th e hangar

o r shade dspac e (hereinafte r "space" ) an y househol d items , personal property , flammable items , weldin g equipment , tank s o r compresse dgasses , wast e oil , o r an y property not

directl y relate dt o aviation , excep t a s allowe di n paragrap h 16 , Electrica l Appliances . Permitte e understand s tha t th e storag e o f

prohibite d item s i s contrary t o th e maste r leas e betwee n Glendal e Airport Hangar s ("GAH" ) an dth e City o f Glendal e Anpor t

Authority . Permitte e understand s tha t fiiel , solvent s an dflamntabl e material s ma y no t b e store di n an y container s a t GAH . GA H employee s an dsubcontractor s wil l inspec t space s frequently , withou t notice , an ddispos e o f

an y suc h flammable item s i f an dwhe n found ; permitte e wil l b e charge dfo r al l documente ddisposa l fees . 4 . REGISTFRATION . Eac h aircraf t store di n an y hangar

o r shad e spac e mus t

b e registere dvi\ h th e FA A an dhav e avali dan d curren t N-Number . Permitte e shal l provid e GA H wit h acop y o f th e permanen t

FA A Certificat e o f

Aircraf t Registratio n tha t

ha s bee n complete dfor

th e aircraf

t t o b e store dunde r

thi s Permit , befor e occupyin g th e space . N o othe r aircraf t may b e stored . Permitte e shal l provid e acop y o f avali dtitle , exclusiv e lease , o r othe r documentatio n satisfactory t o GA H showin g a n adequat e possessory interes t

i n th e aircraft . Registnitio afor th e aircraf

t mas t b e I n th e nam e o f

th e Permittee ; inblettin g wil l not b e aDowed . 3 . CONDITIO N O FAIRCRAFT . Th e aircraf t t o b e store dmus t

b e presen t

a t th e commencemen t

o f th e Permit . Th e aircraf

t mus t b e kep t i n flyabl e condition . I f

an aircraf

t i s n o longe r

flyable , i t

mus t b e remove dfro mth e hangar , togethe r wit h al l it s relate d parts , unti l suc h time a s i t i s brough t

int o compliance . Havin g a n aircraf t whic h mus t

b e remove dfinmth e hangar i s no t ground s fo r terminatio n o f

thi s Permit ; however , GA H ma y agre e t o negotiat e aPermi t withdrawa l £e , thoug h i t i s unde r n o legal requiremen t

t o d o so . 6 . N O LIABILITY/INDEMNIFICATION . Permitte e agree s tha t us e o f th e spac e i s pursuan t

t o Permi t

an di s no t

abulment . Owner/Opeinto r

assume s al l liability for

ftre, theft , damag e o r

injur y sustaine din any even t

B y signin g thi s Permit , th e Permitte e release s GA

H o f an y an dal l responsibility fo r property damage , bodil y injur y o r death an dhereb y indemnifie s GA H ftomall llabilH y arisin g fro mPermittee' s us e o f th e spac e o r

it s operation s a

t th e airport . GA H assume s n o liabilit y fo r damag e o r

los s t o aircraf t or othe r persona l propert y store dunde r thi s Permit . GAH i s no t responsibl e fo r

theft , vandalism , o r

losses . Al l aircraf

t an dothe r persona l propert y ar e store da t Permittee' s risk . 7 . CERnFICAl E O FINSURANCE . Permitte e mus t maintu n liabilit

y insuranc e i n th e amoun t o f $ 1 millio n pe r

occurrence . Permitte e mus t

ad dValle y Aviatio n Services , LL P (db aGlendal e Airport Hangars ) a s a

n additiona l insure dfo

r purpose s o f general liability , casualty , environmenta l contaminatio n an dfir e insuranc e claims . 8 . PROPERTY DAMAGE . GA H assume s n o liability for damag e o r

los s t o aircraf

t o r othe r persona l property store dunde r thi s Permit . Aircraf

t an dothe r

persona l property are store da t Permittee' s sol e risk . An y insuranc e protectin g Permittee' s personal pit>pert y agains t fire , thef

t o r damag e mus t

b e provide db y th e Permittee . GA H strongl y encourage s Permitte e t o maintai n individua l property insuranc e coverag e o n store ditem s an daircraf t insurance , a s thes e item s ar e no t covere dunde r

GAH' s insuranc e an dGA H bear s n o responsibilit y for theft , vandalis mo r

th e destructio n o f

atenant' s property . 9 . PERlVnTRATE . a . Permitte e shal l pa

y renta l fee s i n th e amoun t state dabov e o n aquarterl y basis . Paymen t fo r renta l fee s mus t

b e mad e o n o r befor e th e l " day o f

eac h quarte r

tha t th e spac e i s assigne dt o Permittee . Ren t no t pai do n o r

befor e th e 1 " calendar

da y o f th e quarte r shal l becom e delinquen t an dshal l b e subjec t

to alat e fe e equal t o 18 % o f th e lat e payment , whic h mus t b e pai dwit

h th e delinquen t

fee s i n orde r

t o avoi dde&ult . I

n th e even t

th e Permi t

herei n begin s o n aday othe r tha n th e i^rs t

day o f a month , th e renta l fe e fo r

th e firs t quarte r shal l b e prorate ds o tha t al l subsequen t

quarter s begin , an dassociate drenta l fee s shal l b e du e o n th e firs t

day o f aquarter . b . Upo n expiratio n o f

th e permi t

term , th e renta l fe e state dabov e i s subjec t t o periodi c adjustmen t

b y GAH , provide dthat

GA H shal l giv e a t

leas t thirt y (30 ) day s writte n notic e o f suc h adjustment .

Initial Dal e Pag e 2 o f 2 

## CL0165 1c . Fee s fo r othe r service s ar e du e upo n receip t o f invoice . Invoice s no t

pai db y withi n 1 0 day s o f th e billin g dat e shal l becom e delinquen t

an dshal l b e subjec t

t o alat e fe e equal t o 18 % o f th e lat e payment , whic h mus t b e pai dwith th e delinquen t fee s in orde r t o avoi ddefault . 10 . SECURrr V AN D CLEANIN GDEPOSITS . Thes e deposit s ma y b e applie db y GA H towar ddelinquen t fee s o r t o cur e an y other default b y Permittee , an di f

use di n tha t

way . Permitte e shal l immediatel y replenis h th e deposi t upo n writte n notic e fro

m GAH . GA H i s not

require dt o kee p th e deposi t separat e fromit s ow n fund s an di s no t require dt o pa

y interes t o n th e deposi t Upo n terminatio n o f

th e Peimit , Permitte e shal l leav e th e spac e broo mclean an dfre e o f an y damage , excep t

ordinary wea

r and tear . Th e deposi t

may b e applie dt o clea n u p th e space , fi x an y damag e lef t b y Permitte e o r

ma y b e applie dt o an y sum s du e fro m Permitte e to GAH . Th e balance , i f any , shal l the n b e pai dt o Permittee . 11 . DURAHC M O P PERMIT . Thi s Permi t shal l b e fo r

aone-year

teim . Afte

r on e year , th e permi t

wil l automaticall y rene w o n a mont h t o mont h basis . Violatio n o f

an y o f th e condition s hereo f

b y Permittee , it s employees , agent s o r invitee s shal l constitut e caus e for cancellatio n b y GA H withou t notice , an dth e securit y deposi t wil l b e forfeited , les s an y amoun t neede dt o restor e hangar o r shad e t o th e conditio n i n whic h i t wa s whe n th e Permi t

began , wit h reasonabl e wea r an dtea r excepted . Permitte e shal l pa y al l charge s fo

r fee s an dservice s accrue dthroug h th e cancellatio n o r terminatio n date . 12 . CANCEUATIC mO FFERMTF . I f Permitte e request s a

n earl y cancellatio n o f

permi t durin g th e first

year , GA H wil l attemp t t o ren t th e spac e t o anothe r

party . However , Permitte e shal l b e responsibl e fo r ren t payment s unti l th e en do f th e termshoul d GA H b e unabl e t o ren t

th e sam e spac e t o anothe r tenan t Afte r th e firs t year , eithe r

part y may cance l thi s permi t with thirt y (30 ) day s writte n notic e t o th e othe r fo r an y reason , o r

for n o reason . 13 . MEIHO D O FPAYMENT . Al l payment s mus t b e mad e b y credi t

card : MasterCard , VISA , Discover , o r American Express . Ther e wil l b e a$5 0 processin g fe e for an y decline dtransaction , an dforfeitur e o f th e Permittee' s security deposi t ma y resul t

if th e amoun t du e i s not

pai do n time . Check s an dcas h wil l not b e accepted . 14 . COMPLIANC E WTF H REQUIREMENTS . Permitte e shal l compl y witi i al l GA H Rule s an dRegulations , a s publishe dno w anda s update dfro mtim e t o time. Permitte e ha s been provide dwith acop y o f th e curren t

GA H Rule s an dRegulation s (attached) . Followin g i s asummary o f th e GA H Rule s an dRegulations . I f aconflic t

i n interpretatio n exists , th e publishe dGA H Rule s an d Regulations , initiale db y th e tenant, wil l prevail . a . Permitte e shal l abid e b y th e airport fiel drule s o f

th e Cit y o f Glendal e Aviatio n Department , Ordinance s o f th e Cit y o f Glendale , Federa l an dStat e Statutes , an dRegulatio n o f th e Federa l Aviatio n Administratio n includin g environmental law s regarding th e handling , discharge , releas e an ddumpin g o f hazardou s substances , an dvehicl e acces s an doperatio n rules . b . Hazardou s activitie s suc h as , but no t limite dto , welding , painting , priming , doping , gluing , fiber glassing , sanding , ope n fue l lines , o r th e applicatio n o f

hazardou s substance s ar e expressl y prohibite danywher e i n th e hangars , shades , storag e areas , o r o n th e GAH ram p o r

premises . c . Buildin g an drestoratio n o f aircraf t i s not allowe di n hangar

o r shad e spaces . d . Th e premise s covere db y thi s Permi t shal l not b e use dfo r

th e storag e o f

flammable o r

explosiv e substance s o f an y kind , firearms , or

fireworks. Ope n flames ar e not allowed . e . Smokin g i s not

allowe di n an y o f

th e hangar s o r

shad e spaces , o r

anywher e o n th e GA H premises . £Aircraf

t shal l b e remove dfro mGA H hangar s an dshade s for an y activit y involvin g th e drainin g o r addin g o f

fuel products . g . Aircraf

t an dothe r

item s shal l b e remove dfro mGA H premise s for washin g an ddetailin g unles s suc h servic e i s performe db y a n insure dthir dpart y contractor , approve din advanc e b y GAH . h . Permitte e shal l kee p hi s spac e clea n an dfre e o f grease , oil , rags, paper , an dothe r debris .

Initia

l Dat

e Paee3of3 

## CL0165 2i . I f Permitte e fail s to maintai n th e spac e a s require dherein , GA H may tak e correctiv e actio n a t th e expens e o f

Permitte e upo n ten (10 ) day s notificatio n o r may ac t immediatel y i f

th e conditio n represent s a n emergenc y o r hazardou s condition . j . Hangar s mus t

b e kep t broo mclean . GA H personne l an dsubcontractor s wil l clean hangar s quarterly , a t Permittee' s expense , i f hangar s ar e not

maintaine dproperly . k . GAH reserve s th e righ t t o ente r space s a t an y time , withou t

notice , t o ensur e tha t

th e area s ar e kep t

fre e o f fire hazard s an

d debri s an dt o chec k

o n conformanc e t o Permi t terms . In orde r

t o facilitat e suc h entry , onl y lock s provide db y GA H ma y b e use do n hanga r

doors , an donl y on e loc k pe r door . N o shroud s o r

othe r device s t o shiel dth e loc k may b e used . I . N o perso n may resid e o r sta y overnigh t

i n ahangar

o r shad e spac e o r

i n th e loung e area , coo k o r prepar e foo dthereon , o r stor e clothe s o r

beddin g therein . m . Dog s andothe r

animal s ar e not

allowe danywher e o n th e GAH premises , unles s embarking/disembarkin g o n a n aircraft , a

t whic h time the y mus t

b e i n akenne l o r

carrier , o r

o n aleash . n . GA H ha s place dsevera l fire extinguisher s o n th e exterio r o f al l building s o n th e property an di n eac h hangar occupie db y a tenant I t i s th e Permittee' s responsibilit y t o notif y GAH staf

f i f h e o r sh e discharge s an y o f

thes e fir e extinguishers , witlii n 2 4 hour s o f

use , an dt o fill ou t

an inciden t

report . Th e fire extinguisher s ar c th e sol e property o f GA H an dwhe n not

in us e mus t remai n onsit e in thei r

designate dpositions . 15 . SraUCrURA L MODIFICATION . a . N o alterations , structura l o r electrica l modifications , improvement s o r repairs , paintin g o f

wall s o r floors , paintin g o f

stripe s o n ramp , o r

relocatio n o f

electrica l outlet s wil l b e mad e t o th e spac e withou t th e prio r writte n approva l o f

GAH . b . Permitte e shal l not

attac h an y hoisting , winchin g o r holdin g mechanis mt o an y par t o f th e hangar , shad e o r

storag e area , no r i s i t permitte dt o pas s an y suc h mechanism , rope , cable , o r chai n ove r

th e beam s o r

brace s thereof. Floor-mounte delectrical retrieval winche s ar e not

permitted . 16 . ELECTRICAL APPLIANCES . Bac h hangar i s provide dwit

h onc e incandescen t

ligh t bul b (ISOW maximum ) an don e duple x receptacl e (20A) . Limite delectrica l appliance s ar e allowe di n aspac e includin g portabl e fan s les s than 12" , televisions , coffe e makers , radios, smal l electrica l powe r tools , powere dto w bars , battery trickl e chargers , vacuu mcleaners , an dsmal l ai r compressor s les s tha n 3 hp . An y applianc e not havin g an explosion-proo f moto r mus t b e elevate da t

leas t eightee n (18 ) inche s abov e th e floor . Larg e tools , 60 A battery charger s o r larg e compressor s with atan k mus t b e operate di n conjunctio n wit h a gasoline-operate delectrica l generator , th e siz e an dmak e o f whic h mus t

b e approve di n advance , in writing ; th e generato r mus t b e fueledoutsid e o f

th e GA H property . Prohibite dappliance s include , bu t ar e no t limite dto , ai r

conditioners , evaporativ e coolers , refrigerators , electri c heaters , hot plates , hea t

lamps , electrica l o r

propan e heaters , washers , dryers , microwav e ovens , stoves , an d lamp s (excep t

asho p lamp , whic h mus t b e unplugge dwhe n no t

in use) . N o extensio n cord s o r appliance s shal l remai n connecte d t o an y electrica l leceptacl e whe n th e spac e i s not occupied . Floodlight s an dfixedsho p light s ar e not allowed . Permitte e shal l no t allo w us e o f

electrica l powe r

b y an y othe r

person . 17 . MOTO RVEHICLES . a . Short ter mmoto r vehicl e parkin g fo r

asingl e vehicl e i s allowe di n T-hangar s an dunde r covere dtie-downs whil e th e aircraf t i s out . Otherwise , vehicle s shal l b e parke di n designate darea s a t th e airpor t

RVs , boats , motorcycles , ATVs , gol f carts , bicycles , trailers , o r

othe r vehicles , excep t

on e whil e th e aircraf

t i s out , ma y not

b e store di n th e hanga r

o r shad e space . b . Permitte e mus t

registe r with th e Propert y Manager, eac h vehicl e that i s drive n ont o th e premises . c . Vehicle s shal l b e drive n o n th e aircraf t operation s are aonl y b y alicense ddrive r a t aspee dnot

t o excee dth e poste dspee d limit . Permitte e shal l maintamacceptabl e limit s o f liabilit y an dproperty damag e insuranc e o n it s vehicl e an dwil l exercis e al l control s an drestraint s necessar y a s t o it s employees , agents , an dinvitee s s o a s t o compl y wit h thi s permit , d . Vehicle s ma

y no t b e parke do n th e ramp o r in ftont o f ahangar o r shad e space . Fo r

short ter mparkin g whil e th e aircraf t i s i n th e space , Permittees shoul dpark thei r vehicle s i n th e publi c parkin g directl y wes t o f th e premises . Permitte e ma y par k
Initia l Dale Pag e 4 o f 4 

## CL0165 3registere dvehicl e in fron t o f permittee' s spac e briefl y whil e preparin g aircraf t for departure , unloadin g passenger s an dsupplies , o r loadin g passengers . Vehicl e mus t hav e aGA H deca

l o n th e rear

window . 18 . ENGIN

E OPERATION . N o aircraf t engin e shal l b e operate di n anegligen t manne r s o tha t th e propelle r

o r exhaus t blas t ma y caus e injur

y t o person s o r

damag e t o property . Aircraf t ma y no t b e starte do r

ru n i n ahanga r

o r shade . 19 . MAINTENANCE . Majo r maintenance , breakin g o f fue l lines , buildin g an drebuildin g activitie s ar e no t allowe di n any spac e a

t GAH . Al l aircraf

t maintenanc e i n aspac e i s prohibite dexcep t fo r limited , owne r

performe dpreventativ e maintenanc e a s define d an dauthorize di n guideline s establishe db y th e City o f Glendal e Airport

Rule s & Regulations . Othe r owne r performe d maintenanc e shal l b e undertake n onl y i n th e area s a t th e airport , designate dfor suc h use . N o tool s shal l b e store din aspac e excep t thos e require dt o accomplis h owner-performe dmaintenance . 20 . N O COMMERCIAL ACTIVrrV . N o commercial o r revenue-producin g activitie s slial l b e conducte do r permitte dfro man

y aircraf t storag e spac e an dth e premise s may b e use donl y fo r activitie s relate dt o th e storag e o f persona l o r

busines s aircraft . 21 . ASSIGNMENT . Th e spac e ma y not b e sublet , assigne do r

otherwis e transferre dwithou t th e prio r writte n approva l o f

GAH . 22 . ACCES S DURIN G SPECIA L EVENTS . GA H reserve s th e right t o restric t

acces s t o tiie tam p an dal l premise s durin g major event s hel dwithi n th e Wes t Valle y area , includin g bu t no t limite dt o footi}all , hockey , NASCA Ran dconcert events . 23 . AMENDMENTS.Thi s Permi t may b e amende donl y i

n writin g b y GA H o r

adesignate drepresentative . 24 . NOnC E O FUEN . GA H shal l hav e apossessor y lien , fro mth e dat e ren t i s unpai dan ddue , i n al l persona l property store d withi n th e aircraf

t storag e space . Property store di n th e storag e spac e ma y b e sol dt o satisf

y th e lie n i f

Permitte e i s in defaul t

I n orde r te provid e notic e o f

sal e t o enforc e Glendal e Airport Hangar' s possessory lien . Permitte e shal l disclos e an y lienholde r

o r secure dpartie s wh o hav e a n interes t i n any property tha t

i s o r wil l b e store di n th e storag e space , includm g th e aircraf t GA H ma y exercis e it s right s unde r

Arizon aRevise dStatues , Titl e 33 , Chapter 3 , Articl e 4 , Remedie s o f Landlord , b y cancelin g thi s Permi t an dcithe r removing o r

seizin g th e store daircraf t o r othe r persona l property i n th e hangar o r shade dspac e whe n ren t fo r an y quarte r ha s not bee n pai db y th e S*

^ o f th e sai dquarte r

whe n due . I f

th e ren t an dassociate dcharge s ar e not pai dwithi n sbct

y (60 ) day s afte r seizur e o f

th e propert y a s provide dby A.R.S . § 33-361 , th e propert y wil l b e sol da t publi c auctio n a s provide db y AJI.S . § 33-1023 . 25 . ATTORNEYS FEES . Th e prevailin g party i n an y actio n shal l b e entitie dt o a n awar do f it s reasonabl e attorney' s fee s an dcost s incurred . 26 . REMEMES . Notwithstandin g anythin g t o Ui e contrary herein, GA H shal l b e entitie dt o any an dal l remedies i n la w an di n equity , includin g but

no t limite dto , lockou t

o f Permitte e upo n Permittee' s breac h o f thi s Aircraf

t Storag e Permi t

Al l remedie s o f GA H ar e cumulativ e an dnot

exclusive . Agree dan dAcknowledged : Accepted : Glendal e Airport

Hangar s Permitte e Dat e B y Dat e Permittee' s Spous e Dat e Titi e



### p»gc3of s CL0165 4PERSONAL GUARANTY

I n th e even t

tha t th e Permitte e identifie dabov e i s acorporation , limite dliability compan y o r othe r lega l entity , th e undersigne dan d his^e r spous e (i f

applicable ) b y signin g belo w agre e a s follows : Th e undersigned , absolutel y an dunconditionall y guarantee s th e paymen t o f al l indebtednes s (an dliabilit y o f Permittee ) an d performanc e o f

al l obligation s o f

Permitte e unde r

thi s Aircraf

t Storag e Permi t GA H shal l no t

b e require dt o tak e an y actio n agains t Permitte e befor

e enforcin g thi s Persona l Guaranty . Thi s Personal Guaranty shal l b e enforceabl e agains t eac h perso n signin g thi s Guaranty. I f ther e i s mor e tha n on e signer , al l agreement s an dpromise s herei n shal l b e construe dt o be , an dar e hereb y declare dt o b e join t an dsevera l i n eac h an dever y particular , an dshal l b e fiilly bindin g upo n an denforceabl e against , either , an y o r al l o f th e undersigned .
Personal Guaranto r

(I ) Dat e Spous e o f Persona l Guaranto r

(1 ) Dat e Personal Guaranto r

(2 ) Dat e Spous e o f Personal Guaranto r

(2 ) Dat e

I , di e Permittee , hav e received , rea dan dunderstan dth e Glendal e Municipa l Airport rule s an dregulations . Initial s Dat e I , th e Permittee , hav e received , rea dan dunderstan dth e groun dleas e betwee n th e City o f Glendal e Municipa l an dRobert Ewing , whic h ha s bee n assigne dto Valle y Aviatio n Services , LLP . Initial s Dat e



## "''"" ' CL0165 5

# Exhibi t

2

### Marc h 28,200 3 Mr . Dea n Stryke r Glendale Hangar s & Shade s 663 5 N . Glen Harbor

Blvd . Glendale , AZ 85307 Dea r Dean : Pleas e b e advise dtha

t I have talke dwit

h Bren'd aKenned y an dhav e approvedher

reques t to operat e a n avionic s shop fro

mon e of you r rental hangars . I acknowledg e tha t thi s i s a waive r fro mth e standar

dairpor t rule s & regulations , bu t

I believ e having a

n avionic s sho p o n th e airpor

t wil l greatl

y benefi t th e base dan dtransient

pilots . As th e busines s grow s an dprosper , I ca

n envision th

e sho p out-growing. asingl e hanga r an dwhe n tha t tim e arrives , w e will then appl y th e appropriat

e rule s an

dregulation s an

dminimu m operating standards . Pleas e note tha

t thi s i s not

achang e i n rules , bu

t onl y aspecifi c waive

r applie dt o thi s particula r operation . Than

k yo u fo r inquirin g about

proper permission . I greatl

y appreciat e you r desir e to operat e the hangars within airpor

t guidelines . Sincerely ,
Mar k S . Ripley Airpor t Manage r 

# N

GLEN014 9 Cit yo f Glendal e Glendal e Municipa l Airpor t • 680 1 Nort h Gle n Harbo rBlvd. , Suit e 20 1 • Glendale , A Z 8530 7 • (623 ) 930-218 8 • Fa x(623) 872-127 8

# Exhibi t

3

### GLEND^ I

Mr . Dea n Stryke r Manage r Glendal e Hangar s an dShade s 663 5 N . Gle n Harbo r

Blvd . Glendale , A Z 8530 7 Apri l 24 ^ 200 1 DearMr . Strykn , I hav e reviewe dyou r

reques t i n you r lette r date dApri l 4 , 2001 , t o ren t th e smal l storag e area s locate da t

th e en do f

you r hangar s an dshade s fo r

non-aviatio n use . I agre e wit h yo u tha t ther e i s n o possibl e wa y tha t an aircraf

t o f an y siz e coul dfi t

i n thes e loc^ons . I hav e n o proble mwit h you r

reques t an dyo u hav e m y permissio n t o star t rentin g thes e space s a s the y ar e presentl y configured . ^ i n th e fiiture , thes e storag e room s ar e itaodifie dt o accommodat e an aircraft , yo u wil l n o longe r b e aUowe dt o hous e non-aviatio n items . Pleas e remembe r

tha t al l applicabl e rule s an dregulations , alon g wit h cit y fire an dothe r miscellaneou s code s appl y t o thes e renta l locations . Thes e area s wil l als o hav e t o b e mad e availabl e fo r

fire an dcod e enforcemen t inspection s whe n requested . Than k yo u fo r you r patienc e concernin g thi s matter . I f ther e i s eve r

anythin g I ca n d o fo r you , pleas e don' t

hesitat e t o ask . I loo k forwar dt o alon g an dprosperou s workin g relationshi p betwee n Glendal e Hangar s an dShade s an dth e Glendal e Municipa l Airpor t Sincerely,

Mar U S . Riple y Airpor t Manage r cc : Ji mBook , Transpoitatio n Directo r

Cit yO f Glendal e Glendal e Municipa l Airpor t • 680 1 Nort h Gle n Harbo rBlvd
. Suit e 20 1 • Glendale , A Z 3530 7 • (623 ) 930-218 8 '.Fa x(623 ) 872-127 8 "199 9 Airpor t o f th e Veai " 

## CL0186 4

# Exhibi t

4

## Valle yAviatio n Services , LLP 663 5 N
. Gle n Harbo rBrvd
. Glendale,.A Z 85307-370 4 

## (623)872-126 6 Februar y11,200 9 HAN D DELIVER Y Mayo rElain e M
. Scruggs Gt yo f Glendal e Glendal e Cit

yHal l 585 0 Wes

t Glendal e Blvd
. Glendale , A

Z 85301-259 9 BS l Th e cay' s lette rdate d Januar y 15.200 9 regardin g Glendal e Hangars
. Dea rMayo rScruggs : I too k ove rmanagemen t o f th e Glendal e Airpor t Hangar s i n 2003 , whe n m

y partner , Richar

d J
. Smith , passe

d away . I cam e t o Arizon a knowin g tha t Mr
. Smith , a highl y decorate d Ai rForc e Colone l an d fighte r pilot , had bee n fightin g fo releve n year s wit h airpor

t an d city management . H e didn' t trus t Ji m McCue , o rEd Beasley , that' s fo rsure . Still , h e coul d b e a toug h ma n t o dea l with , i suspecte d tha t par t o f th e laul t fo rth e poo rrelationshi p wit h th e city reste d wit h him
. However , I resoh^e

d t o chang e th e relationship
. I hire d professionia l manager s an d offere d Mar k Riple you rpledg e o f ful l cooperation
. I trie d t o reac h out , i n th e spiri t o f tha t cooperation , t o workvWit b th e City
. Wa allowe d Mr,-Ripley t o use ou r19-acr e ram p for-specia l events . 1 met-thtee times , acros

s sixmonths , wit h Joyc

e Clark , ou rGty Counclhvoman
. These wer e long , forma l meeting s wit h lunc h an d friendl yconversation , brokere d an d attende d by Jak e Starr , th e FBO
. W

e discussed a rang e o f business attematiyes , idea s an d program s designe d t o kee p ou rrate s low , suppor t ou rtenants , an d wor k

wit h th e cit y t o mak

e th e airport more profitabl e an d successful
. Unfortunately , Councilwoma n Gar k Informe d us I n 2004 , tha t sh e coul d no t ge t th e city manage rt o tak e anyinteres t I n ou rideas
. She wen t so fa ra s t o sa y tha t h e eve n refuse d t o mee t wit h us . I n 2005 , w e aske d ou rattomey , Erni e Baird , t o tr y a new tack : w e asked hi m t o mee t wit h th e Airport Manage ran d th e Airpor t Advisor y Commission , an d explore a "grass-roots ' approac h t o structurin g "win-win " arrangements wit h th e City
. Mr
. Bair d i s a forme rStat e Legislator , an d h e i s a patien t negotiato ran d communicator , an d a n excellen t listener
. We formulate d severa l detaile d 1|P5S> ' 

## CL0049 2 \

## Valle y Aviatio n Services , LL P plan s wit h hi s input , base d o n hi s knowledg e o f ou rbusiness , sinc e h e ha s represente d u s i n thi s investmen t sinc e 1992
. W e wer e willin g t o buil d ne w hangars o n ou rtw o empt yrows . W e wer e willin g t o tea rdow n th e covere d ti e downs , sinc e w e onl yha d 20 % occupancya t th e time , an d buil d ne w bo xhangars
. W e eve n researche d an d reporte d o n th e cost s an d buildin g cod e requirement s associate d wit h enclosin g th e covere d ti e downs , creatin g mor e T-hangars
. Mr
. Bair d me t wit h Mr
. Ripley , an d the ygo t alon g verywell
. Afte rtw o months , th e Airpor t AdvisoryCommissio n unanimousl yapprove d th e on e ide a tha t the yfoun d mos t appealing , an d tha t wa s t o allo w u s t o cond o th e hanga rrows , as wa s don e wit h th e Nort h En d hangars
. Mr
. Bair d wa s veryexcite d abou t ou rchance s o f givin g ou rtenant s th e optio n o f buyin g thei rindividua l hangars , wit h u s financin g eac h sal e an d keepin g P+ l installment s equa l t o ren t payments . However , w e wer e informe d month s late rb yth e Airpor t Manage rtha t th e cit ymanage rrefuse d t o take th e ide a t o th e City Council
. Al l o f ou rdiscussion s wit h Mr
. Riple yjus t simpl ydied ; h e tol d u s tha t ou rrequest s wer e "tabled " b yth e cit ymanager . Afte rsevera l attempts , Mr
. Bair d coul d ge t n o farthe ru p th e ladde r i n Gt ygovernmen t tha n Jamsee d Mehta , who , a s th e Transportatio n Manage ri n charg e o f th e Airport , tol d hi m tha t ther e woul d b e n o actio n take n relativ e t o ou rhangar s unti l th e ne w lO-yea r pla n wa s finalized
. Whe n briefe d o n ou racquisitio n o f a ne w Cessn a Citatio n XL S Jet , whic h w e propose d t o hous e a t th e FB O hanga ran d operat e unde ra FA R Par t 13 5 charte rbusiness , a t Glendale , i n a n effor t t o develo p additiona l revenu e source s an d kee p hanga rrent s low , Mr
. Meht a wen t s o fa ra

s t o saytha t th e Cit ymayno t eve n allo w jet s t o b e base d a t Glendale
. Thi s wa s i n lat e 2005 , afte rw e ha d alread ynegotiate d a leas e i n th e termina l fo roffic e spac e fo rth e ne w busines s wit h Mar k

Ripley
. A t th e time, th e FB O wa s servicin g man yjet s pe rda y- certainl ymor e dail yjet s tha n Rightpat h attract s today
. Mr
. Bair d eve n wrot e t o yo u o n Jun e 16 , 2005 , i n a n attemp t t o gai n approva l fo roperatin g th e airplan e a t Glendal e field , bu t receive d n o response . H e the n wrot e t o Michae l Bailey , Assistan t Cit yAttomey , o n Jun e 30^ , an d the yme t ove rlunc h t o discus s options
. Mr
. Baile yInforme d hi m tha t ou rsuggestion s wer e bein g deraile d befor e the ygo t t o th e Cit y Council
. No t conten t wit h ou reffort s throug h 2005 , an d stil l determine d t o cooperat e wit h th e city , ye t wit h n o avenu e t o ge t Mr
. Bair d befor e yo u o rth e Cit yCounci l wit h ou rideas , i n 200 6 w e retaine d the ' service s o f loca l attome yPau l Faith
. W e discusse d wit h hi m ou rprio refforts , an d mor e tha n twent ysuggeste d way s w e coul d wor k togethe rwit h th e Cit yo f Glendal e t o kee p rate s lo w an d gro w ou rbusines s a t th e airport , fo rth e mutua l benefi t o f tenant s an d th e City
. Mr
. Fait h i s th e attome ywh o represente d owner s o f th e Nort h En d hanga rassociations , i n negotiatin g separat e lease s wit h th e City , an d h e i s als o a tenan t ther e toda yan d a n officer/directo ro f th e Nort h En d Pilot' s Association
. W e hope d tha t h e woul d fin d a receptiv e audienc e a t Cit yHall
. Ye t h e wa s onl yable t o ge t meeting s wit h Deput yGt yManage rHorati o Skeete , an d Cit yAttome yCrai g Tindale , wh o informe d him , afte rlistenin g t o ou ridea s an d problems , an d talkin g wit h th e cit y manager , tha t ther e wa s n o interes t i n workin g wit h u s unti l th e ne w 1 0 yea rpla n wa s completed
. 2|r.. . 

## CL0049 3

## Valle y Aviatio n Services , LL P I n short , Mr
. Fait h reporte d tha t "th e Cit ydoesn' t lik e you, " an d h e tol d u s tha t w e ha d bette rfin d a differen t airfiel d fo rou rne w $12.6 8 millio n jet , which'w e too k deliveryo f i n June , 2006
. Mr
. Fait h know s fa rbette rtha n anyon e els e th e exten t o f th e Cit/ s discriminatio n regardin g th e enforcemen t o f rules , an d h e shoul d hav e bee n able t o a t leas t gai n a meetin g wit h th e cit y manager . However , h e informe d u s tha t h e coul d no t ge t a n audienc e wit h anyon e downtow n wh o wa s willin g t o wor k

wit h us . N o on e wante d t o discus s ou rrates , o rwor k t o mitigat e th e problem s an d financia l damag e bein g cause d b yth e escalatin g discrimination , i n July , 2006 , Mr
. Fa'rt h di d manag e t o ge t th e ED

C intereste d i n helpin g us , bu t w e wer e the n tol d b yTracySteven s i n Octobe r tha t th e cit yha d instructe d the m no t t o ge t involved
. W e spen t mor e tha n $57,00 0 havin g Mr
. Bair d an d Mr
. Fait h approac h th e City , t o explor e way s t o avoi d raisin g rates , an d t o pres s fo ra leve l competitiv e 'playin g field. ' Thes e ar e wel l respecte d men , an d the ykep t emotion , an d pas t animosity , ou t o f th e process . The ywer e professional , patien t an d courteous . The ybecam e friend s wit h severa l o f th e cit yattorneys , an d other s i n cit ygovernment . The yavoide d threatenin g o r'hardball ' tactic s a t al l costs . Ye t thei r effort s wer e t o n o avail
. W e teamed tha t al l willingnes s t o cooperat e stoppe d a t th e des k o f th e cit y manager . Nothin g wa s take n t o th e Cit yCouncil , no t eve n recommendation s b yth e Airpor t AdvisoryCommission , whic h ha d bee n formall yendorse d b yMr
. Ripley
. Bot h o f thes e attorney s wer e shocke d la

y th e city' s ha d fait h conduct
. I transferre d tw o o f ou rbes t managemen t employees , Lis a Alexande ran d Angel a Mayer , fro m Washingto n Stat e t o Arizon a t o manag e ou rhangars
. W e renovate d th e asset s an d trie d t o exce l i n providin g tenan t service , whil e w e resigne d ourselve s t o wai t fo rth e ne w 10-yea rplan
. Yet , whe n I contacte d Coffma n an d Associate s i n 2007 , t o fin d ou t th e anticipate d completio n dat e o f th e ne w 10-yea rPlan , I wa s informe d tha t th e cit ymanage rha d pu t th e projec t o n hol d "indefinitely. " Michae l Munroe , wh o wa s appointe d Airpor t Manage rafte rMr
. Riple yresigned , wa s simpl y impossibl e fo rthes e wome n t o wor k with
. H e wa s bein g use d b yth e cit ymanage ra s a blun t instrument
. H e wa s rude , insulting , an d arrogan t t o ou rmanagers ~ jus t as h e wa s t o hi s ow n staff
. I hav e bee n saddene d t o fin d tha t th e discrinilnatio n an d ba d fait h dealing s ar e eve n wors e tha n Mr
. Smit h reporte d t o me . i n recen t years , th e Cit yallowe d ne w hangars t o b e buil t b yothe rtenants , an d allowe d th e FB O t o mak e majo rrenovations
. Al l th e whil e tellin g u s w e ha d t o wai t fo ra he w 10-yea rplan
. W e hav e bee n hel d t o rigi d enforcemen t o f th e airpor t rule s governin g th e us e o f ou rhangars , whil e watchin g incredulousl ywhil e tenant s i n othe rhangars o n th e fiel d brea k th e rule s withou t consequence .



## ^"'' ' CL0049 4

## Valle y Aviatio n Services , LL P Eve n thoug h w e ar e th e oldes t tenan t o n th e field , an d eve n thoug h w e hav e pai d rent s an d taxe s i n exces s o f $ 2 million , o n time, an d neve ronc e late , w e hav e bee n systematicall yexclude d fro m th e plannin g process , an d denie d an yrol e i n definin g wha t i s bes t fo rou r20 0 renta l units
. Despit e m ydetermine d an d well-intentione d efforts , th e relationshi p writ h th e cit yha s no t improved , an d althoug h ou rLeas e ha s bee n legall yextended , an d accepte d b yth e City , throug h 2031 , wit h publi c notic e dul yrecorde d (se e attache d lette rfro m th e city) , w e d o no t expec t th e relationshi p t o improv e unti l Mr
. Beasleyi s gone , o runles s w e obtai n lega l relief
. Ou rstrateg y sinc e 200 7 ha s bee n t o ampl ywai t hi m out . We'l l b e her e foranothe r2 2 years . W e haven' t initiate d a fight. I n fact , w e hav e bee n a s quie t as possible
. Fo rth e pas t tw o year s w e attempte d t o simpl yco-exis t unti l Mr
. Beasle yi s gone . Then , an d onl ythen , w e felt , woul d w e fin d a receptiv e audienc e a t th e cit yleve l t o discus s ho w t o improv e ou roperatio n a t th e airport
. W e ha d decide d t o wai t hi m out . Thi s lates t mov e t o regulat e prices , however , necessitate s tha t w e mus t act . It' s ba d enoug h tha t we'v e ha d t o dea l wit h extremism , brough t abou t b yth e inexperience d an d wea k

managers , operatin g o n instruction s fro m th e cit ymanager . Fo rinstance , w e wer e force d b yMichae l Munro e t o cu t dow n te n tree s becaus e the yviolate d th e Airpor t Minimu m Standards , wher e th e FA A mandate s tha t n o tree s mayexcee d th e heigh t o f th e Improvements
. Whe n w e pointe d ou t tha t th e tree s a t th e termina l an d FB O fa rexceede d th e heigh t o f th e improvements , Mr
. Munro e informe d u s tha t h e wa s onl yconcerne d wit h ou rviolation
. O rmor e recently , w e ha d t o evic t a tenan t fo rhavin g on e motorcycl e i n hi s hangar , onl yafte rw e sen t hi m t o Jud ySkee n t o ge t permissio n t o kee p i t there
. Sh e refuse d t o gran t a writte n waiver , an d thi s tenan t i s no w i n th e nort h en d hangars , wher e h e ha s hi s motorcycle , tw o cars an d a dinett e se t parke d atongsid e hi s airplane
. We'v e bee n insulted
. Th e cit yspen t $500,00 0 landscapin g Gle n Harbo rBlvd
. as ^ ra t th e contro l tower , whil e lettin g weed s gro w t o a heigh t o f 2 fee t outsid e ou rfence , o n th e cit y maintaine d iarul
. Ou rtenant s fee t lik e th e cit ydoesn' t valu e them
. We'v e als o bee n harassed
. A t a meetin g attende d b yJak e an d Jessica Starr « a t Glendal e Aviation , Mr
. Munro e tol d u s tha t E d Beasle yha d informe d hi m tha t th e cit ydi d no t inten d t o rene w ou rleeise , whe n th e initia l leas e ter m expire d i n 2011
. Thi s i s th e sam e ba d fait h tacti c employe d wit h Glendal e Aviation , an d w e coul d onl ysurmis e tha t Munro e wa s sharin g thi s Informatio n wit h u s becaus e h e wante d t o establis h hi s authority
. Whe n Mr
. Star rpointe d ou t t o Mr
. Munro e tha t ou rleas e coverin g th e 19-acre s ha d alread ybee n extende d unti l 2031 , an d accepte d b yJamsee d Mehta , th e Transportatio n Manager , Mik e Bailey , th e actin g Cit yAttorney , an d Mar k

Ripley , th e formerAirpor t Manager , h e refiise d t o believ e it
. Tw o day s late rh e tol d u s tha t Mr
. Beasle yha d becom e ver yangr ywhe n h e discovere d tha t th e extension s wer e I n fac t a reality
.



## * I ' CL0049 5

## Valle y Aviatio n Services , LL P We'v e bee n treate dunfairly . We ha dJus t on e meetin g schedule dwith th e cit y manager , a 200 8 meetin g brokere db y Ric k Burto n o f Rightpath , bu t

jus t hour s befor e th e meetin g w e wer e informe db y Cath

y Gorhamtha t

ther e woul db e n o discussio n o f an y agend aite mexcep t ou r unconditional commitmen t t o tu mou r

ramp ove r

th e cit y fo r th e Supe r

Bowl . A t th e time o

f ou r schedule dmeetin g with Mr . Beasley , Rightpat h wa s offerin g t o pay u s mor e tha n $ 6 million for ou r Improvements , subjec t

onl y t o th e consen t

o f th e city , bu t

th e dt y manage r

refuse dt o allo w tha t transactio n t o proceed , o r t o eve n discus s It . Fo r th e pas t five year s I hav e hel dth e doo r ope n for meeting s with th e city , t o wor k togethe r fo r th e benefi t

of ou r tenants , th e airpor t

an dth e resident s of

Glendale . However , w e hav e littl e hop e of

fair dealin g b y Mr . Beasley . Sinc e h e ha s becom e cit y manager , h e ha s turne d airpor t managemen t

of th e airpor t

ove r t o astrin g o

f unqualifie dmanagers : Jamsee dMehta , Michael Munroe , Cathy Gorham , an dJud y Skeen . Al

l of the mhav e demonstrate dan inabilit y t o lea dth e airpor t

i n th e right

direction , an dth e discriminatio n agains t Valle y Aviatio n Services , an d ou r tenants , ha s increase dexponentially . Sinc e 2007 , I'v e bee n conten t t o wait , becaus e I presid e ove r man y companies , an dI a m willing t o jus t

si t o n thi s busines s unti l cit

y managemen t

changes . I'v e go t

plenty t o kee p rne busy . Yet , I f s shamefu l ho w th e cit

y discriminate s betwee n tenants , an ds o flagrantl y violate s th e FAA' s Gran t Assurances . I

n th e process , th e cit

y I s losin g privileg e taxe s du e t o ou r vacan t hangars . The cit y continue s t o operat e th e airpor t a t aloss , an dther e i s n o reaso n fo r tha t toda y excep t

ba d management . Th e photo s w e too k

o f th e damage dhangars , afte r th e fir e in January , whic h I enclos e for you r review , sho w ho w far

th e rul e enforcemen t

situatio n ha s deteriorated . Th e fire starte di n a bus , whic h shoul dno t

hav e bee n i

n astorag e hangar . Loo

k a t al l th e othe r

prohibite duse s in th e photos . Conversely , i

f yo u inspec t

ou r hangars , all yo u wil

l fin dar e airplanes . W e expec t

th e cit y t o dea l i

n goo dfaith ; w e expec t

th e cit y t o enforc e it s rule s an dprovid e fo r asecur e an dsaf

e environment , a s th e FAA , TS A an dHomelan dSecurity mandate ; an dw e expec t th e cit y t o hir e qualifie dmanagers , with aviatio n facilit y experience , t o manag e airpor t operations . To d o les s i s t o pu t

ou r tenant s an dou r

investmen t

a t risk . Seriously , ho w can th e cit y justif y appointin g Cathy Gorhama s th e manage r i n charg e o f

th e airport ? An

dwhy woul dsh e an dJud y Skee n rely upo n aone-yea r ol drea l estat e appraisal , writte n b y aloca l compan y wit

h littl e western US A genera l aviatio n knowledge , instea do f discoverin g th e facts abou t renta l condition s themselves ? Again , le f

s b e clear , the y ar e threatenin g u s wit h evictio n i

f w e d o no t

roll back smal l hangar price s t o 199 7 levels , an dthe y ar e citin g subsidize dCit y of Phoeni x rate s a s th e rationale . Thi s i s neithe r

smart , no r

defensible . W e hav e copie dyo u o n severa l letter s ove r th e years , an dyo u hav e faile dt o respon dt o them , o r ge t involved . Bu

t w e strongl y encourag e yo u t o assum e aleadershi p rol e now . Yo u can coun t o n ou r ful l support , i

f yo u interced e an dattemp t t o resolv e thi s conflic t

throug h negotiation . 5 I • . 

## CL0049 6

## Valle y Aviatio n Services , LL P Glendal e i s poise dt o adop t anew , officia

l 10-yea r templat e for

th e airport , bu t

I t i s aseriousl y flawedplan . I

n ou r opinion, an dth e 'final ' draf t bein g considere dread s mor e lik e aScottsdal e inspire dland-developmen t pla y tha n i t doe s areasonabl e genera l aviatio n solutio n fo r th e Wes t Valley . I n th e 2006-0 7 first

draf t o f th e plan , it

wen t s o fa r a s t o say tha t

th e Cit y owne dou r hangars . N

o on e fro mCoffma

n an dAssociate s ha s eve r talke dwit

h us . They referenc e tha t w e hav e mor e tha n 10 0 airplane s i n ou r unit s today , whe n i

n fac t w e hav e jus t

sixteen . Th e Cit

y o f Glendal e appear s t o b e sellin g ou t owner s of

smal l G A airplanes , an dtha t

i s far fro mth e charte r agree dt o whe n acceptin g Federal fonds t o buil dagenera l aviation , community airport . Glendal e wa s designe dfor

smal l airplanes , no t

th e Challenger

604 , Gulfstream , Boein g BB J an dGloba

l Expres s Je t

customer s no w bein g courte db y Rightpath . Whe n w e attempte dt o obtai n acop y o f th e Rightpat

h leas e fro mth e city , i

n orde r t o understan dth e draf

t 10-year plan , w e wer e tol di t

wa s non e o f

ou r business . Yet , year s ag o w e wer e assure db y bot h Dr . Marti n Vanacor , th e Cit y Manager , an dPete r

Va n Haren , th e Gty Attomey , tha t

Glendal e woul deventuall y buil dasecon drunway a t th e Airport . They represente d t o u s tha t thi s agreemen t

wa s aconditio n o

f th e origina

l airpor t lan dgrant . Thus , w e acquire dth e asset s wit h th e financial expectatio n tha t th e valu e o

f ou r busines s woul dincreas e ove r time, sinc e additiona l Improvement s woul db e limite db y th e lan davailabl e 'withi n th e fence, ' o n th e wes t sid e of th e fielda t

Glendal e Airport . W e no w discover , withou t an y notic e t o us , tha t

th e Cit y ha s lease d lan do n th e eas t

sid e of th e airport , wher e th e secon drunway wa s t o hav e bee n built , t o Rightpath , fo r th e constructio n o

f "500,000 squar e fee t

o f je t hangars. " Further , Rightpat h tell s u s the y obtaine da99-year

lease , withou t

aformal , publi c RF

P process . How can th e cit y manage r

legall y defen dsuc h behavior ? Th e Cit y Council recentl y approve dth e leas e fo r ane w hangar

for Lu x Air, actin g unde r

th e belief tha t th e focillty woul dbring areporte d25 0 ne w Job s t o th e airport . Yet , eve n a s th e vot e wa s bein g taken , Rightpat

h wa s awar e o

f th e fac t tha t Gulfstreamn o longe r

ha da n interes t

I n relocatin g thei r repai r facilit y t o Glendale . Nor

didthe y hav e th e fundin g availabl e t o buil dth e additional facilit y fo r turbopro p maintenance . Andt o date , man y month s afte r th e approval , Rightpat

h ha s no t starte dconstruction , an dha s no t starte dpayin g ren t

o n th e land . S o wh o i s managin g th e airport ? An

dwh y doe s Rightpat

h receiv e suc h deferentia l treatment ? Thi s lates t

deman dtha t

w e lowe r

ou r rate s i s Jus t

on e mor e exampl e o f

ba dfaith : no t

on e attemp t wa s mad e t o understan dth e economic s o r issues , fromou r

perspective , an dther e i s n o lega l basi s unde r

ou r Leas e fo r

aforce dpric e reduction . Th e Cit y think s tha t

w e shoul doffe

r subsidize drate s withou t

asubsidy ? Joyc e Clar

k ha s bee n aske dt o wor

k with th e Cit

y Council , an d you , t o com e u p with a"win-win " solutio n fo r th e pas t five years . Thi s i s no t

th e solution . An

di f s Ironi c tha t th e Gty cite s th e Gran t

Assurance s i

n forcin g u s t o lowe r

prices : th e focu s o n th e Grant Assurances , a t

atim e whe n th e Gty ha s abdicate dit s enforcemen t o f th e rules , securit y an dsafet y responsibilities , an ds o openl y discriminate s betwee n tenants , i s exactl y wha t attorney s pray for. 

## 61.)^ ^ CL0049 7

## Valle y Aviatio n Services , LL P W e wil l no t accep t thi s mos t recen t attemp t t o dictat e t o ru n u s ou t o f business
. Th e cit y ca n mee t wit h u s an d barigai n i n goo d foith, bu t i t canno t dictat e t o u s i n ba d faith
. No t i n Arizona
. Th e ren t leve l th e cit yi s mandatin g forth e smal l hangars i s th e sam e a s I t wa s twelv e year s ago . Give n th e increase s b yth e cit ydurin g tha t interval , i n th e groun d leas e rat e an d privileg e taxes , thi s i s hardl ya defensibl e demand
. W e observ e al l cit yrule s an d requirements , W e payou rren t o n time. Th e majorit yo f th e tenant s o n th e nort h en d cam e ou t o f ou rhangars , an d we'v e endure d hig h vacanc ywhil e th e cit y encourage d mor e tha n 10 0 incrementa l hangars t o b e buil t o n th e field - an d allowe d the m t o operat e unde ra differen t se t o f rules
. Absorptio n alon e ha s bee n a bi g reaso n fo rou rvacancies
. Then , base d o n a serie s o f sut)sequen t ba d managemen t decision s b yth e city , whic h w e hav e n o contro l over , ou rvacancie s gro w t o th e poin t tha t yo u dictat e tha t w e no w compet e o n pric e alone , compensatin g forth e undesirabl e smal l airplan e environmen t th e cit yhas create d a t th e airport ? Ho w woul d yo u fee l i f yo u owne d th e business ? A t a veryminimum , w e hav e th e righ t t o "quie t enjoyment, " a s afforde d u s b yth e Lease
. W e d o no t hav e a fiduciaryresponsibilit yt o th e citizen s o f Glendale , as Mr
. Beasle yclearlydoes , an d soone ro rlate rthos e citizen s wil l discove rtha t hi s conduct , an d hi s managiemen t o f th e airport , i s unacceptable
. Th e curren t land-develope rFB O wil l fail , th e ne w restauran t wil l fall , th e FA A wil l rejec t th e ide a o f Investin g anothe r$6 0 millio n I n th e propose d 10-yea rplan , onc e th e Glendal e fact s becom e known , an d Ai rSafetywil l fail , bu t w e wil l stil l b e here
. W e remai n read yan d willin g t o wor k wit h you , Mayo rScruggs , i f yo u wil l tak e th e lea d i n solvin g th e seriou s problem s a t th e Glendal e Airport
. Yo u ca n expec t ou rful l cooperation
. A negotiate d outcome , arrive d a t i n goo d faith , wil l b e th e bes t alternativ e fo ru s both
. Pleas e contac t m e i f yo u ar e willin g t o schedul e a meeting
. Than k yo u fo ryou rconsideration , 

## ^CMt.Qxi-^O'^ ^ Georg e G
. Va n Houte n Managin g Membe r



## ^'^''' ^ CL0049 8

# Exhibi t

5

### Messag e Pag e 1 o f 4 I . 

### Georg e Va n Houte n From : Georg e Va n Houte n Sent : Wednesday
. Octobe r04 , 200612:3 3 P M To : 'mmunroe<^lendaleaz.com ' Cc : Lis a Alexander ; Shaw n Bondy ; 'Jessic a Starr * Subject : FW : Emai l fo rTracyStevens
. Michael : 1 wante d yo u t o have a copyo f th e email s exchange d yesterdaywit h TracySteven s a t EDC , s o yo u wil l understan d what i s bein g said
. [I' m sorr

yabou t th e mis-spellin g o n you rlas t name , bu t 1 neve rreceive d a n announcemen t of you rappointment , o ra busines s card , o ra cal l fro m Mar k Riple yabou t hi s replacement. ] Yo u ma yno t hav e receive d m ylette ryet . We'v e alway s attempte d to b e straight-u p wit h ou rconcems . We ha d a n hones t understandin g wit h Ripley
. W e realiz e that w e have a smal l business , an d that n o on e a t th e Citycare s abou t it , bu t w e d o believ e ou rtenant s ar e bein g sol d short
. The yar e goo d people , an d the ylov e aviation
. Man yar e Glendal e residents
. We fee l a fiduciar yresponsibilitytowar d them , an d th e 130 + airplane s store d i n ou rhangar

s an d shades , eve n i f th e Citydoe s not . Actin g airpor

t manager

s have no t prove n t o b e effiactive agent s fo rchange
. T o ti e candid , yo u didn' t d o anythin g fo ru s th e las t tim e around
. Today , It' s no t tha t w e don' t wan t t o wori ( wit h you , bu t you'r e agai n inheritin g th e sam e systemi c problems
. It' s a lon g history
. Th e Cit

ywa s s o offensiv e t o wor k with , w e offere d t o sel l th e hangars , whe n E d Beasley , wh o the n worke d fo rth e CityManager , aske d u s fo ra pric e i n th e earl y1990's
. I personall yhandle d th e negotiations
. W e price d th e hangar s a t $1.2 5 million , whic h woul d hav

e yielde d th e Citya 10 % CAP , wit h ful l ownershi p of th e improvements
. I t wa s a vm ygoo d dea l a t th e time , b yan yinvestor' s standards , ye t Beasle yan d Cit yAttome yChri s War e quickl yresponde d tha t Ih e pric e i s obscene, ' give n th e fac t that w e onl ypai d $750 k t o th e RTC
. Re-readin g th e fil e correspondenc e yesterday , th e ol d realizatio n cam e bac k an d hi t m e again : fro m that momen t on , w e kne w Beasle ywa s no t a businessman
. An d h e ha s sinc e prove n tha t poin t tim e an d tim e again
. H e has bee n a hurdl e t o u s an d th e FB O hi s entir e tenur e a t Glendale , an d neve ra condui t t o makin g th e airpor i bette rfo r ou rbusinesse s o rou rtenants . H e an d Rut h Fishe rtrie d t o ru n u s off ; th e effor t achieve d feve rpitc h whe n Jame s McCu e too k ove ras Airpor

t Manager
. Beasle yha s orchestrate d th e policie s a t Glendal e Airport th e entir e time ; McCu e ha s sinc e apologize d fo rhi s behavior
. Beasleycontinue s t o stonewal l us , an d exacerbat e th e problem s b yhirin g inexperience d managers . Hav e yo u eve rattempte d t o tal k

wit h Jamshee d Meht a abou t th e airport ? H e tol d ou rattomey , Erni e Baird , tha t jet s ma ynot b e permitted , whe n w e aske d fa rhi s suppor t i n locatin g th e ne w Citatio n XL S a t Glendale ! Thi s a t a tim e whe n th e FB O wa s servicin g an d fuelin g mor

e tha n twent

yjet s a day , an d th e Stadiu m wa s unde rconstructton . A s a n interi m manager , yo u won' t b e abl e t o effec t

. meaningfu l change , Michael
. Sorry , bu t that' s ou rassessment . Neithe rwil l Coffman , wh o appears t o simpl yb e goin g throug h th e .plannin g motion s - du e t o th e Lon g litigatio n an d settlement
. How doe s a consultan t mis s th e fact tha t ou rhangar s ar e no t owne d b yth e City ? Ho

w doe s a consultan t forecas t storag e an d operationa l deman d numbers , withou t talkin g wit h u s abou t ou r anticipate d leas e rate s an d projecte d occupanc ylevel s ove rth e nex

t te n years ? Unti l BeasleyI s gone , w

e d o no t expec

t an ychanges , o rcooperation
. Ripleyunderstoo d ou rhistor ywit h th e City , an d ou rconcem s an d needs , ye t wa s neve rabl e t o accomplis h change s whic h woul d benefi t ou rtenants , o rou rbusiness
. H e trie d t o tu m a blin d ey e t o th e continuin g discriminatio n - th e unfai rcompetitio n - an d th e on-goin g violation s of th e FA A Gran t Assurances
. H e trie d t o regai n a measur e o f contro l ove rth e Nort h en d hangars , bu t i n th e en d h e electe d t o wal k away , withou t achievin g a leve l playin g field
. We'l l take ou rgrowt h elsewhere
. We'l l weathe rth e stor m a t Glendale , althoug h man yof ou rtenant s wil l not . I f yo u have a differen t rea d o n th e curren t situation , pleas e share i t wit h us . I n th e meantime , whe n ou rtenant s complai n abou t not bein g abl e t o wor k o n thei rairplanies , o rno t bein g abl e t o us e thei rhangar s lik e thei rbuddie s t o th e north , o rno t t>ein g abl e t o store a ca ro r RV , o rpayin g rate s highe rtha n lessee s a t Dee rValle yo rGoodyear , we'l l sugges t tha t the yvoic e thei rconcern s directl yt o th e City
. We d o wis h yo u wel l i n you rinteri m assignment
. Goo d luck
. An d w e wil l tr yt o wor k wit h yo u concernin g ou rtenants ' immediat e needs
. Tha

t i s wh yth e Cit

yneed s t o complet e th e surve yo f ou rram p boundaries , s o w e ca n avoi d th e nex t tenan t crise s i n January
. Th e Fiest a Bow l wil l b e her e befor e w e kno w it , an d th e Cit yshoul d no t harbo ran ydesign s abou t takin g ove rou rram p spac e fo rcorporat e Je

t parking
. Than k you , Greg
. CL0142 0 From : Georg e Va n Houte n 10/4/200 6

### Messag e Pag e 2 o f 4 Sent : Tuesday , Octobe r03,200 6 6:0 8 P M Td : 'Stevens , Tracy ' Cc ! Shaw n Bondy ; •pfaith@cax.nef ; 'Erni e BAIRD ' iSubject : RE : Emai l fo rTrac yStevens
. Hell o Tracy
. We don' t have confidenc e i n Coffma n & Associates ' Maste rPlan , a s yo u wil l se e i n m yrecen t lette rt o th e Interi m Airpor t Manager
. A s 1 suggeste d t o yo u thre e month s ago , we'r e bein g shelve d a t th e leve l o f th e Cit yManager , an d we'r e simpl yno t likel yt o get anywher

e worthin g wit h a n uninfonne d 3" ^ partyconsultant , o ra n interi m manager : change s a t th e Glendal e Cit yleve l n6e 6 t o com e fro m th e to p down
. Michae l Baile ytrie d t o hel p us , bu t coul d no t effect change
. Now he' s gone . Mar k Ripleytrie d t o hel p us , bu t coul d no

t effec t change
. Now he' s gone . I hav e n o doub t tha t yo u ar e tryin g t o hel p us , an d eve n thoug h we wan t t o encourag e that support , w e suspect tha t yo u canno t effec t chang e either , unles s tha t chang e i s firs t embrace d i n th e offic e of th e Mayor , o rthat o

f th e Cit yManager
. Pleas e don' t take offense , bu t w e hav e 1 5 years o f experienc e dealin g wit h th e City
. ' The ysee m dysfunctional : ou rCouncilwoma n doe s no t like th e Mayor ; th e Mayo rdoe s not lik e her ; an d neithe ro f the m appea rt o like th e Cit

yManager
. Th e airpor

t i s a nuisanc e t o Scruggs , Clar k an d Beasley
. o ra t best , a toy . Non e o f the m understan d aviation
. No

t on e o f the m care s abou t ou rtenants , tha t muc h i s certain
. It' s a mess . We welcom e you rvisit , bu t let' s no t invit e others a t thi s time , unles s it' s th e Mayor , and/o rth e Cit yManager
. W e ha d ou rCouncilwoma n ou t fo rthre e fonna l meetings , wit h writte n presentation s an d agendas , an d a gounne t lunch , an d neve rreceive d eve n th e courtes yo f a phon e call , a letter , a fax , o r a not e fo rth e effort
. Nothing
. Nada
. Zilch
. N o feedback
. N o suggestions
. N o help
. Noconcem
. Tw o year s o f silence...
. We have trie d t o effec

t change s whic h wil l benefi t ou rtenants , an d ou rbusiness , bu t we'r e th e onl yone s makin g th e effort
. Thes e pas

t thre e month s were critical
. W e neede d t o b e undenvaywit h ne w hanga rconstructio n thi s winter , i n orde rt o

. , accommodat e th e ne

w Cessn a Sovereig n je t i n 2007 , a s I mentione d i n th e Jun e email
. Thi s i s a bi g jet , wit h th e nee d fo ra 100 ' •x.160 ' hangar , an d a 28 ' door
. Th e hanga rmust contai n office s fo rth e charte rcompany , a food-grad e professiona l kitchen , state of-the-ar t maintenance facilities , an d conferenc e rooms. Constmctto n estimate s excee d $ 4 million
. W e canno t justifythi s expens e wit h onl y2 5 yean s remainin g o n th e lease , sinc e w e canno t depreciat e tii e Investmen t an yfaste rtha n 3 9 years . An d ou r underlyin g groun d leas e need s t o b e change d i n orde rt o eve n operat e a charte rbusines s i n thi s hangar , an d conduc t maintenance wor k

there
. True , w e coul d buil d a crapp yPascoe-typ e hangar , fo r$500k , an d fee l goo d abou t walkin g awa yfro m i t i n 2031 , bu t tha f s neithe rth e facilit yno rth e imag e th e je t charte rbusines s demands
. Scottsdale , Dee rValley , Chandler , Goodyear , Williams , an d eve n Buckey e wan t thi s je t an d th e charte ractivity
. The ywil l readil yallo w u s t o operat e a charte r busines s ou t of th e hangar , an d the yencourag e u s t o conduc t maintenanc e - an d emplo ymechanics
. Th e Glendal e Cit y Manager , ou rCouncilwoma n an d th e Mayo rexpresse d n o interes t whatsoever , althoug h w e too k step s t o mak

e sure the yknew o f th e opportunity
. Sad , bu t absolutel ytme . i f yo u wan t t o visi t Glendal e Airpor t Hangars , pleas e d o so . I'l l b e ther e o n Octobe r18^
. I n th e interim , pleas e infor m Coffma n & Associate s that th e Cit

ydoe s no t ow n ou r21 5 T-hangars an d shades
. Neithe rd o the yow n th e hangar s t o th e sout h o f us . Th e 'Phas e One ' repor

t i s incorrect
. Thi s singl e fac t ma yhave a significan t bearin g o n th e 10-yea rMaste rPlan , sinc e a larg e numbe r o f ou rtenant s ar e tellin g u s the yinten d t o tak e thei rairplane s of f ih e Glendal e fiel d whe n w e increas e leas e rates . Coffman' s forecast s fo rfuture us e an d cas h flow s ar e muc h i n doubt , unles s th e Cit ysomeho w build s an d subsidize s additiona l storag e i n th e nea rterm . Whe n w e purchase d thes e hangars , w e experience d > 70 % vacanc yfo rman yyears . W e ma yb e force d t o d o s o again , du e t o th e City' s intransigence
. Than k yo u fo ryou rtimel yresponse . Best , Gre g Va n Houten
. From : Stevens , Trac

y[mailh):TStevens@GLENDALEAZ.com ] Sent : Tuesday , Octobe r03 , 200 6 3:1 9 P M To : Georg e Va n Houte n Subject : RE : Emai l fo rTrac yStevens
. Hello , Mr
. Va n Houte n - Than k yo u fo rth e emali , whe n w e spoke i n June , I wa s followin g u p wit h yo u o n informatio n provide d t o m e byMichae l Bailey
. A t that tim e yo u an d I di d discus s th e proces s an d tha t i t woul d probabl ytak e som e time
. Th e reaso n fo rmycal l todaywa s t o le t yo u kno w - w e hav

e me t internall ywithi n ou rdep t an d have provide d you rreques t t o ou rConsultan t - Coffma n an d Associate s who m i s currentl yconductin g th e Maste rPla n fo rtfie Airpor t - s o timin g i s good
. W e als o have a ne w Airpor t Manage r- Michae l Munro e who m als o i s awar

e of you rreques t an d shoul d probabl yb e i n attendanc e o n th e 18th
. I understan d you rurgency , an d ^ appreciat e you rinteres t i n doin g busines s wit h Glendale
. I wil l tr yt o kee p yo u update d a s w e mov e close rt o th e maste rpla n 

## CL0142 1 10/4/200 6Messag e Pag e 3 o f 4

completion
. Th e 18t h wori<s fine fo rm e a s well
. Thank s —Origina l Message — From : Baricer , Joann e Sent : Tuesday , Octobe r03 , 200 6 2:5 0 PM To : Stevens , Trac

y Subject : FW : Emai l fo rTracyStevens
.

Joann e Barke r —Origina l Messag

e From : Georg e Va n Houte n [mailto:gvh@baronhokling.com ] Sent : Tuesday , Octobe r03 , 200 6 2:4 3 P M To : Business , Subject : FW : Emai l fo rTracyStevens
. I Tracy : I receive d you rvoic e messag e thi s affernoon
. Than k yo u fo rcalling
. I wil l nex t b e i n Glendal e o n Octobe r18* , an d I Invit e yo u t o com e t o ou rhanga roperatio n fo ra meeting
. Pleas e le t m e kno w i f yo u ar e available , an d pleas e propos e a ! • : time , i f so . I t ha

s bee n thre e month s sinc e w e sen t yo u thi s email , an d w e ha d n o response . Now , Mar k Ripleyhas I ' resigne d an d vacate d hi s positio n a s Airpor t Manager
. Ou rsituatio n a t Glendal e Airport i s deteriorating , an d w e are farce d i int o makin g har d chotee s abou t wha t w e must d o t o survive
. I believ e th e Mayo rand/o rCit yManage rwil l nee d to take a I lea d i n negotiatin g change , i f ther e i s t o b e any . We encourag e yo u t o ge t involved , ye t th e pas t practice s an d attitude s i we'v e encountere d sugges t tha t w e nee d t o gai n suppor t fro m th e to p down , no t th e botto m up . Mr
. Ripley understoo d th e I problems , an d wa s sympatheti c t o ou rneeds , bu t h e wa s als o poweries s t o effect change
. W e appreciat e hearin g fro m

you , an d invit e yo u t o com e t o ou rbusines s an d lear n wha t we'r e u p against
. Thanks foryou rinterest
. Regards , Greg
. From : Georg e Va n Houte n Sent : Friday , Jun e 30 , 200 6 1:0 6 P M To : 'business@giendaleaz.oom ' Subject : Emai l fo rTrac

yStevens
. Goo d afternoon , Tracy
. Than k yo u fo rth e phon e cal l yesterday , an d fo rtryin g t o promot e economi c developmen t a t th e Glendal e Municipa l Airport
. I attac h a copyof th e purchas e onje rw e place d thi s mont h fo ranothe rne w Cessn a jet
. Wit h move-u p clauses , w e expec t t o take deliver

yo f th e Sovereig n (N680VH ) i n mid-2007
. Glendal e los t th e opportunityt o gai n revenue fro m th e Citatio n XL S je t (N560VH , a pictur e o f whic h I attach , firo m ou rdeliver yceremonie s i n Wichita , las t May)
. Thi s aircraf t wa s ordere d two year s ago , i n anticipatio n o f havin g a Je t hanga rread ya t Glendale
. W e full yintende d t o hanga rth e aircraft a t Glendale , an d buil d th e airoraf t charte rbusines s there
. Al l w e aske d fo rwa s a n extensio n of th e curren t lease , fo rth e footprin t are a unde rth e ne w je t hangar , fo r1 5 additiona l years , s o tha t w e coul d depreciat e th e sizabl e investmen t i n a state-of-th e ar

t hangar
. Meri t Riple ytrie d t o hel p u s accomplis h ou rbusines s plan , bu t w e were eventuall ytd d tha t th e Cit y Manage ran d hi s staff woul d no t conside rit
. ff we ar e t o conside rbringin g th e ne w Sovereig n t o Glendale , w e woul d hav e t o commenc e constructio n o f a je t hanga r facilitythi s winter
. Unfortunately , w e seriousl ydoub t whethe rth e Cit ywil l permi t tha t t o happen , bu t w e encourag e yo u t o investigat e th e possibility
. Betwee n th e bran d new XL S an d Sovereign , w e have committe d mor e tha n $3 0 millio n i n new aircraft fo rou rcharte r business , fiv e Sta rAviation
. Th e related revenue s wil l excee d $ 8 millio n annually , fo rjus t thes e tw o aircraft ; ou r5-yea r pla n i s t o operat e a tota l o f fiv e aircraft
. W e ha d always intende d t o operat e ou t o f Glendale
. Th e compan yha s bee n formed , we'v e relocated employees , an d th e busines s i s underway
. Fo rth e pas t tw o years w e trie d t o negotiat e wit h th e City
. Bu t we recently cam e t o th e realizatio n tha t th e Cit yha d n o concer n fo rou rbusines s whatsoever
. The yran u s off , Tracy
. It' s Glendale' s loss
. At thi s point , we'r e waitin g fo rth e politica l proces s t o brin g abou t positiv e change , fro m th e to p down
. Th e Cit ywil l on e da

y wak e u p t o th e potentia l fo rth e airfield
. We'r e tti e oldes t an d larges t tenan t a t th e airport ; w e hav e 2 5 year s remaining

. unde rou rcurren t lease ; we'v e outlaste d five airpor t managers ; we'r e no t goin g anywhere
. We'l l b e controllin g th e 2 0 

### 10/4/200 6 CL0142 2Messag e Pag e 4 o f 4

acre s a t Glendal e Airpor t unti l 2031
. Thank s fo ryou rcourtesy , an d contact . Best , Greg . ** • eSaf e Gatewa ysceuuie d thi s emai l fo r maliciou s conten t ** * ** * IMPORTANT : D o no t Ope n attachment s fro munrecognize d sender s ** *



## CL0142 3 10/4/200 6

# Exhibi t

6

# Valley Aviatio n Services , LL P 663 5 N . Gle

n Harbo r Blvd . Glendale , A

Z 85307-370 1 (623)872-126 6 Octobe r 2,200 6 Mr . Kfichae l Monio e Interi mAirpor t

Manage r Glendal e Municipa l Airport 680 1 N . Gle n Haibo r

Blvd. , Suit e 20 1 Glendale , A Z 8530 7 Re : Glendal e Airpor t

Hmgar s Dear Michael : I t wa s apleasur e meetin g you . I enjoye dou r conversation , bu t

wa s disqtpointe dtha t

yo u didn' t as k asmgl e questio n abou t

ou r business . At Mar k Ripley' s continue durging , w e hav e bee n patient , an dhav e bee n attemptin g t o slowl y wor k

throug h Cit y dutnnel s t o effec t simpl e change s whic h woul dserv e t o benefi t ou r tenants . However , w e canno t affor dt o start ove r wit h ye t anothe r Airpor t Manager . We'v e bee n throug h fiv e already . Thi s wee k

w e decide dtiut

Mr . Ripley' s departur e meao s tha t w e mus t undertak e ashif

t i n strategy , an dcomplet e amajo r maintenanc e projec t

o n th e ron ^ an dhangars . Th e projec t will tak e severa l months . A ne w ter mleas e agreemen t wit h tenants , an dmajo r ren t increases , wil l li e implemente d iqio n th e conclusia n o f

eac h hangar

renovation . W e hav e no t

increase drent s fo

r mor e tha n seve n years , despit e thre e increase s i n ou r underlyin g Groun dLeas e b y th e City o f Glendal e ove r

th e sam e perio do f

time . W e hav e absorbe ddies e increases , an drisin g Lasurance , utility , employe e an dbusines s expenses : w e electe dt o hol dth e lin e o n rent , whil e attenq)tin g t o gai n cooperatio n an d concession.<] fro mdi e City , wit h th e goal o f keepin g rent s low , an di n th e spiri t o f passin g an y an dal l incrementa l leasehol dsaving s o n t o ou r tenant s —"dolla

r fo r dollar" . Thre e time s w e hel dformal meeting s wit h Joyc e Clark , ou r City Councilwoman , an dconveye dthi s commitmen t

i n writing . W e hov e als o trie dt o exten dou r busines s int o othe r

logica l an d profitabl e areas , suc h a s je t charter , s o tha t

w e migh t

b e abl e t o subsidiz e hangar rate s a t th e curren t levels . Ou r

repeate drequest s stal l at th e leve l o f

th e Cit y Manager , an dou r forma l attempt s t o gai n support

fmmth e Cit y Council , an dth e Mayor , g o unanswered .



## CL0079 0Octobe r 2,2006 . Glendal e Airpor t Hangars . W e hav e als o sough t

t o permi t

ou r tenant s t o us e thei r

hangar s a s othe r

lessee' s us e theirs , specifically , o n th e Nort h en do f th e field. Despit e repetis dencouragemen t fiomMr . Ripley , th e Cit y ha s refuse dt o amen dou r leas e t o penni t

suc h use s A leve l playin g fieldstil l doe s no t exis t a t Glendal e Airport . O n an y give n da y yo u ca n se e hanger s o n th e Nort h en dfilledwit h RVs , businesses , cars , retai l offices , an dal l manne r o f storag e - widiou t

a n aitplan e i n th e hangar . Further , tenant s routinel y conduc t majo r engin e maintenanc e (an deve n annua l tear-dow n inspections ) i n fiieir hangars . Yet , severa l times ove r th e pas t 1 5 year s w e hav e bee n serve dwit h lep l notice s an dthreatene dwit h leas e cancellatio n fo r

eve n th e slightes t

nonrconfbrmin g use . Ou r leas e H>A

A th e CU y mandate s tha t ou r hangar s ma y onf

y b e use dfo r

aircraf t storage , an drelate dparts . N o ears , n o genera l storage , n o RVs , n o hobb y shops , an dn o breakin g o f fue l line s o r

majo r maintenanc e acttvlile s ar e permitted . W e canno t allo w tenant s t o stor e flammabl e materials , no r

operat e abusines s o f

an y Idnd , W

e can' t allo w furniture . W

e can' t allo w tenant s t o wor k

o n automobiles . Eve n ou r storag e units , a t

th e en do f

hanga r rows , ca n onf y b e use dfo r

aircraf t parts . With relaxe drules , th e Nort h en dhangar s hav e attracte dawa y ou r bes t tenant s ove r

recen t years , an di t

i s clea r tha t thi s wa s astrateg y mgmeere db y aforme r airpor t manager , Jame s McCue , an dth e Cit y Manager . Neithe r Mr . McCu e no r

Mr . Riple y disput e thi s assessment . Wors e stUl , thi s discriminatio n continue s today . Startin g i n 2003 , w e engage dloca l attorney s Erni e Bair dan dPau l Faith , i n aspecia l effor t t o work with th e Cit y t o gai n support for th e Glendal e Airpor t

Hangar s operation . Mr . Bair d ha s representedu s sinc e w e purchase dth e hangars , an dunderstand s rea l estat e an dou r business ; Mr . Fait h ha s acomplet e understandin g o f th e othe r hangar s o n th e field, havin g represente dothe r

owner s i n negotiation s wit h th e City . Thes e lawyer s ar e excellent , an dtbe y understan daviatio n an dth e difficultie s i n woddn g wit h th e Cit y o f Qlendale . However , desfpit e mor e tha n $50,00 0 mlega l biUings , an dou r thre e forma l meeting s wit h Joyc e Clark , togethe r wit h numerou s meeting s wit h othe r Cit y officials , w e hav e no t receive d encouragemen t

o r acknowledgemen t

tha t th e Cit y i s willin g t o explor e avenue s t o allo w u s t o kee p ou r teata l rate s low , whil e levelin g th e conq)etitiv e environment . Further , ou r attorney s aske dth e Cit y t o allo w u s t o cond o th e hangars , sellin g tha n t o ou r presen t tenants , a s wa s don e with th e Nort h en dhangars . The y askedfor reasonabl e concessions , includin g a15

- yea r footprin t leas e extensio n o n th e J Row , s o w e coul dconstruc t an expensive , mode m hanga r for ou r ne w Citatio n XL S jet . The y askedfor hel p i n esqjeditin g th e length y Cit y revie w an dpermittin g process . The y aske dth e Airport t o conside r

takin g ove r

som e aspect s o f ram p maintenance , sinc e i t i s providin g suc h service s withou t fe e t o th e FB O an dal l othe r hangar s o n th e field. W e wer e quid c t o poin t ou t tha t Cit y revenue s woul dno t decreas e unde r an y o f th e proposals : i n fitct, w e forecastedtha t publi c ta x revenue s woul dincreas e dramatically , a s w e expanded , an da s w e achieve dhighe r occupanc y throug h continue dlo w renta l rates . Ou r

attorney s emphasize dtiiat th e Cit y o f

Phoeni x subsidize s hanga r rate s a t tiieir are aaiiports , an dGlendal e shoul db e takin g amor e activ e interes t mlikewis e promotin g economi c development , i f i t desire s t o tak e it s shar e o f growt h i n th e Phoeni x Metr o marke t

We'v e bee n tryin g fo

r th e pas t thre e year s t o mak e som e headway , Michael . W e hav e attende dmor e dia n twenty meeting s with Cit y ofScial s an dstaf f attorneys . Ther e hav e bee n dozen s o f

telephon e conversations , an dletten , an demails . Ther e hav e bee n severa l lunches . Al l t o n o avai l


## CL0079 1Octobe r 2,2006 . Glendal e Airpor t Hangars . We'v e los t

ou r onl y advocate , i n Mr . Ripley , an dw e mus t no w conclud e tha t

th e Cit y o f Glendal e ha s n o interes t

i n helpin g ou r

tenants , o r

fiicilitating inqnxjvement s t o ou r business . Th e Cit y Manager , ou r

Councilwoman , an ddi e Mayo r hav e mad e i t

apparen t tha t w e ca n esqpcc l n o siqjpor

t fi:omthem . W e canno t

affordt o wai t

for (he Cit y an y longer . W e ar e tol dasearc h i s underwa y fo r ane w Airport Manager . I n th e past , newl y hire dairpor t manager s hav e vigorousl y enforce dth e existin g City Groun dLease . W e mus t brac e for ye t anothe r manage r - an dacontinuatio n o f th e sam e un&i r

agenda . W e ar e als o tol dtha t

th e City i s preparin g ane w Airport Maste r Plan . Yet , despit e th e fac t tha t w e ar e th e larges t

an doldes t

tenan t o n th e field, w e hav e no t bee n contacte db y anyon e a t th e City abou t

ou r concerns , suggestion s o r futur e needs . N o on e ha s calle do r writte n t o u s (Aou t participatin g i n thi s plannin g process . Ca n yo n believ e that ? W e represen t th e interest s o f

tenant s move r

20 0 renta l unit s an dthei r aircraft , yet

th e Cit y o f

Glendal e ha s no t communicate dwit h u s i n an y wa y abou t ane w 10-year

jda n for th e airport . Recen t

litigatio n illustrate s tha t

th e Cit y i s woefull y ignoran t abou t aviatio n plannmg , an dsettiemen t impacts , I ye t

i t doesn' t fee l compelle dt o mee t

wit h us , o r

visi t ou r operation , o r

tal k wit h ou r tenants . ! Th e first draf t o f th e Pla n (Phas e One) , date dAugust , 2006 , whic h w e jus t obtaine dfromth e I FBO , eve n pronounce s tha t th e Ctt v own s ou r

hanears . Thi s illustrate s ho w siq>arficia i th e plannin g exercis e is . I t i s predicate do n ba dinformation . Tbi s shoiildn' t surpris e us , howeve r i n Qi e pas t w e haven' t

bee n consulted , eve n whe n event s lik e th e Balloo n Classi c wer e scheduled , o r

whe n plan s wer e bein g lai dfo r sportin g venue s whic h wil l routinel y clos e o r restric t us e o f th e airport

o n aregula r

basis . Ou r

tenant s ar e directl y impacted , an dtiieir inpu t coul dhav e helpe dminimiz e th e confiisio n an dth e problem s whic h hav e ensued . Bu t di e Cit y ha s ahistor y o f

actin g withou t

ful l mformation , consideration , o r du e process . Thi s i s wher e yo u findus , a s yo u tak e ove r you r temporar y assignmen t Ou r onl y remainin g optio n a t thi s time i s t o continu e t o enforc e stric t cornplianc e wit h City requirements , whil e positionin g th e hangar s fo r th e nex t 2 S year s —th e ter mo f

ou r extende d Lease . Thi s require s tiiat w e sta y ahea do f

ou r obligation s an drenovat e th e 20-acr e ram p are aan dou r

hangars , a t

ou r sol e expense . Accordingly , w e wil l hav e t o adjus t rate s t o nationa l marke t

level s whe n th e wor k

i s completed . W e ar e asmal l conpiny , an dwithou t an y cooperatio n o r

support b y th e City o f

Glendale , w e ca n n o longe r compet e wit h th e subsidiTe drate s establishe db y th e City o f Phoenix . Dee r

Valle y an dGoodyea r

will continu e t o grow . S o wil l Scottsdale , b y virtu e o f it' s wide-ope n determinatio n t o b e aje t center . W e foar

tha t man y o f ou r tenant s wil l tak e thei r

airplane s of

f th e Glendal e field, a s th e resul t o f ou r nee dt o sharpl y mcreas e leas e rates . B y necessity , du e t o stric t adherenc e t o th e Groun dLease , an dwit h n o abilit y t o expan dou r busines s cas h flows a t

Glendal e o r

buil d fully-depreciabl e jo t

hangars , ou r

resultan t T-hanga r leas e rate s wil l b e highe r tha n thos e a

t othe r Arizon aaiiports . If

ou r tenant s leave , it' s certai n tha t th e Cit y will los e ta x revenue , an dth e FB O wil l los e customer s for fuel , maintenanc e an dothe r services . Thi s coul dal l hav e bee n avoide dha dth e City participate dmameaningfu l dialogu e with u s abou t ou r proposals , oa t

tenants ' needs , an dway s t o wor k togethe r fo r th e benefi t

o f th e Airpor t

I t wouldn' t hav e cos t

th e City adime , o r

an y time . I n th e nex t

few days , yo u wil l hea r

tha t w e ar e providin g advanc e notic e t o hanga r tenants , i n orde r t o giv e the maminimu mo f 90-day' s notificatio n o f

tiieir nee dt o vacat e thei r

hangar s befor e w e start

repairs . We'r e givin g thi s staggered , advanc e notic e s o the y ca n mak e timel y 

## CL0079 2Octobe r 2,2006 . Glendal e Airpor t Hangars . plan s t o findothe r

accommodations . W e wil l star t wit h Ro w B , the n mov e thr u Ro w A , Ro w D an dRo w L I n keepin g wit h th e curren t Cit y Groun dLeas e restrictions , an dairport rules , w e ca n onl y provid e storag e fo r flyable fixed-wing aucraft , wit h curren t N-number s an d annua l inspections , an dwit h proo f o f insurance . I n fast , i n orde r t o maintai n stric t

lega l compliance , w e canno t

ren t hangar s t o ki t

builders , ultr alights , helicopters , owner s restorin g aircraft , aviation-reUte dbusinesses , o r hobbyist s i n nee do f

sho p space . I' msur e tha t yo u recogniz e th e fac t

tha t eac h o f thes e use s i s currenti y permitte di n th e Nort h en dhangars . I n fact , the y ar e eve n operatin g alarge-scal e fiunitur e compan y ther e no w I Whil e w e wis h yo u wel l i n you r ne w position , yo u shoul dunderstan dtha t w e hav e los t confidenc e mGt y managemen t an dgovernance . Notwithstandin g ou r

concern s an dopinions , w e ar e availabl e t o mee t wit h you , i f

yo u desir e t o lear n mor e abou t

ou r tenants ' needs , an dou r

busines s concerns . A t

th e very least . Airpor t Manager s shoul dimderstan dwha t th e Cit y need s t o do . Mr . Ridle y comprehende dth e problems , bu t

h e admitte dtha t

h e wa s powerles s t o effec t change . A t thi s time , ther e i s on e importan t piec e o f unfinishe dbusiness : Mr . Riple y agree dt o surve y th e comei s o f

ou r 19-acr e ran^ , s o tha t

w e migh t

ovoi daconflic t

whe n th e City host s th e Fiest aBowl , th e BC S game , an dth e Supe r Bowl . Sinc e w e ar e reduce dt o stric t adherenc e t o th e Groun dLease , yo u will not e tha t di e Qt y ha s n o righ t

o r abilit y t o interfer e with ou r us e o f th e legall y describe dram p area . I t jnus t remai n clear , an dunobstructed , an davailabl e for ou r unrestricte duse . A s I mentione dt o yo u las t week , w e ordere dasecon djet , aGtatio n Sovereig n (Seria l # : SOV-680-0194) , whic h wil l delive r i n di e fourtb quarte r

o f 2007 . W e wil l operat e th e aircraf t unde r aFA RPAR T 13 5 Charte r Certificate , an dprovid e supplementa l lif t t o Cessn a CitationShares . Thi s aircraf t wil l complet e mor e tha n 90 0 hour s o f charte r i n it s first

yea r o f service . However , withou t an y cooperatio n b y th e Cit y o f Glendale , thi s aircraf

t ha s bee n los t t o Scottsdale . Th e sham e o f i t is , n o manage r

a t di e Cit y o f

Glendal e understand s di e valu e o f th e los t opportunity . Th e taxpayer s o f Glendal e ar e no t

bein g wel l served , whe n i t come s t o th e Municipa l Airport . Than k yo u for takin g th e tim e t o rea dthi s letter . W e wis h yo u hic k myou r interu n assignment . Ver y trul y yours , GcLXCVy^-'rUi"*^-^ — Georg e G . Va n Houte n Owne r an dGenera l Partne r Valle y Aviatio n Services , LL P (dba : Glendal e Airpor t Hangars ) Cc : Erni e Baird , Esq . Pau l Faitii , Esq . 

## CL0079 3

# Exhibi t

C

## AFFIDAVI T O FCLAR E PRYK E
STATE O FARIZON A ) )ss . Count y o f Maricop a) Clar e Pryk e depose s an dsays : 1 . I hav e serve da s th e manage r o f the Glendal e Airpor

t Hangar s sinc e I v^^a

s hired Marc h 15,2007 . Judit

h Skee n ha s bee n the airpor

t manage r sinc e tha t date . 2 . I hav e sen

t mor e tha n twent y existing o

r prospectiv e tenant s t o the office o f Ms . Skee n t o obtain written permissio n t o us e their hanga r i n ou r facilit y fo r aus e othe r tha n thos e specificall y allowedunde

r ou r lease , or permitte dunde

r the 200 4 rule s an dregulations . I

n man y cases , I have mad

e th e appea

l t o Ms . Skee

n personally , o

r hav e accompanie dthe tenan t t o he r office . On e suc h tenant requeste dpermissio n t

o stor e amotorcycl e i n ahanga

r containing hi s airplane . Sh

e refuse dto giv e himwritten permission , an dafte r h e refusedto remove it , we wer e force dt o evict him . 3 . Anothe

r tenant requeste dpermissio n to brea k fiie l line s s o he couldreplac e a wing . Hi s reques t

wa s no t grante dan

dh e relocate dhi s airplane to anort h en dhanga r t o effec t the repair . 4 . I

n Septembe

r o f thi s yea r aprospectiv e tenan

t sough t permissio n t

o engag e i n the complet e renovatio n o f

a n olde r airplane , including the remova l andreplacemen

t of the engine . W e couldnot

allo w himt o us e th e hanga r fo r suc h purpose s when Ms . Skee

n refiise dto gran t specific permissio n fo

r th e heav y maintenanc e an

dbreaking of

fue l line s tha t suc h aproject entailed . 5 . W e ar e routinely aske db

y ou r tenant s i f the y ca n conduc t annua l inspection s of thei r aircraf t i n ou r hangars . Becaus e suc

h extensiv e maintenanc e ofte n include s th e necessit

y t o

## disassemble the aircraf t andbrea k fue l lines , we requir

e awritten varianc e t

o ou r lease , sinc e ou

r leas e specificall

y disallow s such activity , an di n eac h an dever y case , Ms . Skee

n ha s refuse

dt o gran t suc h permission . Consequently , sinc e I hav e joine dth e company , n o annua l inspection s have bee n conductedin ou

r hangar s o r coveredtie-downs . 6 . Ou r bigges t complain t b y tenant s i s tha

t they ar e no t allowe dt o engag e i n th e ful l rang e o f maintenanc e activitie s which the FA A informs the

mtha t they hav e th e right , a s owners , t o perfor mon their own aircraft . W

e tel l the mtha t we wil l gladly allo w suc

h maintenance , whic

h exceed s the limite dpreventativ e maintenanc e item s enumeratedi n ou r lease , i f the airpor t manage r approve s their

reques t i n writing . I

n thes e instances , we hav e no t askedMs . Skee

n t o chang e ou r lease , but rathe r t o approv e thes e limite dvariations , consistent wit h he r authorit y unde r the lease . However , I a

mnot awar e o f on e instanc e wher

e th e airpor

t manage r ha s give n suc h permission , despit

e th e fac t tha t I hav e sen t anumbe r o f tenant s to he

r office seeking suc

h forma l approva l fo r extende dmaintenance . 7 . Ms . Skeen' s refusa

l to mak e concession s i n writing , a s practice db y pas t airpor t managers , an

da s clearly require din the leas e agreement , i s continuing : a s recently a s Friday , Octobe r 23,2009 , she refusedto allo w atenant , Ala n Butler , who I sen

t to he r office , t o stor e a gol f cart , which i s not

aircraft-relate dequipment . Sh e decline dto giv e tha

t tenan t written permission t

o stor e thi s item , an

dw e subsequentl

y ha dto infor mhimtha t he ma y not stor e the golf car t i n hi s hangar . 8 . A t no time ha s Ms . Skee

n suggestedt

o m e tha t w e ar e permitte dto us e ou

r hangars i n amanne r inconsistent

wit h the rigi ddemand s place dupo n u s in th e leas e an dthe 200 4 rule s an dregulations . To b e exact , sh e ha s neve r tol dme , o r to th e bes t

o f m y knowledge , told ou r existing o r prospectiv e clients , tha

t the y ca n us e ou r hangar s or

shade dtie-down s fo

r non -

## complian

t use s o r purposes , i n violatio n of

the leas e o

r the publishe d200

4 rule s an dregulations . An y representatio n by th e cit

y o f Glendal e t o th e contrar

y i s fiction. Datedthi s 30t

h da y o f October , 200 9 ciarePryic I •M , 

## SUBSCRIBE D AN D SWORN T O befor e m e thi s 30

_day o f October , b y Clar e Pryke .

M y Commissio n Expires : OFFICIA L SEA L 

### i DIAN A L
. CUVR K<



### i Notar yPubli c - Stal e o t Arizon a \ MARICOP A COUNT Y % M y Comtn
. Expire s Ma

y14,201 2 % 

# \)iajM.£^(&J o Notary Publi c

# Exhibi t

D

## Valle yAviatio n Services , LLP 

# 1 663 5 N . Gle n Harbo r

Blvd . te©IgS^57Jll Glendale , A

Z 85307-370 4 lll)^^i^iS.\!/iS. \ (623)872-126 6 February 11 , 200 9 

## FEB 1 2 200 9 BY:

HAN D DELIVERE D Ms
. Jud ySkee n Airpor t Manager Glendal e Municipa l Airpor t 6801N
. Gle n Harbo rBlvd. , Suit e 201 , Glendale , A

Z 8530 7 Re : You rlette rdate d Januar y15.200 9 regardin g Glendal e Hanears Dea rMs
. Skeen : You rlette rdate d Januar y15,200 9 i s i n ba d faith
. I n orde rt o avoi d a declaratio n o f defaul t o f ou rLease , w e wil l temporaril ylowe rou r rates , effectiv e February15 , 2009
. However , w e hav e aske d ou rattorney s t o fram e a n appropriat e respons e t o thi s actio n b yth e Cit yo f Glendale , You rdeman d wil l resul t i n financial damag e t o ou rbusiness , a s w e wil l als o hav e t o lowe rou rcurren t rates , whic h ar e deeme d fai r an d reasonabl e b you rexistin g tenants . Pric e leve l i s no t th e caus e o f vacanc ya t ou rhangars
. Th e othe rhanga rassociation s a t Glendal e Municipa l Airpor t hav e highe rrate s tha n thos e yo u insis t tha t w e adopt
. Som e o f th e rent s bein g charge d b ythe m ar e amon g th e highes t i n th e State
. Tha t i s becaus e tenant s wil l pa ymor e fo rhangars o n th e nort h end , an d fo rthos e t o th e sout h o f us , sinc e yo u allo w the m t o ignor e th e Airpor t Rules , Regulation s an d Airpor t Minimu m Operatin g Standard s wit h impunity
. Th e city' s discriminator yenforcemen t o f th e publishe d rules , regulation s an d standards , whic h gover n al l airpor t tenant s equally , i s th e leadin g caus e o f ou rvacanc yrate . Yo u kno w this , Ms
. Skeen
. Th e Nort h En d Pilot' s Associatio n know s an d admit s i t too .


### 1 | GLEN022 1

## Valley Aviatio n Services , LL P Further , th e city' s force d placemen t o f a Scottsdal e land-develope ra s th e FBO , wit h aspiration s fo rcreatin g a je t cente ran d corporat e traffi c a t th e expens e o f smal l G A aircraft , ha s don e much t o damag e th e reputatio n o f Glendal e Airpor t amon g regiona l pisto n aircraf t owner s wh o migh t otherwis e ren t ou rT-hangars
. Glendal e i s n o longe rperceive d a s a grea t plac e fo rsmal l airplanes
. Rightpath' s fue l cost s fo rlOOL L aer o fue l hav e bee n unreasonabl y high , a t time s rankin g amon g th e highes t price s i n th e entir e nation
. Base d o n ou rcount , ther e ar e fewe rtha n 20 0 airplane s residen t o n th e field , no t th e much large rnumbe rclaime d b yth e city : th e FB

O play s a ke yrol e i n thi s reduction , havin g close d th e Cessn a Authorize d Repai r Facility , terminate d ne w Cessn a aircraf t sale s an d rentals , close d th e Cessn a approve d fligh t school , eliminate d staff , raise d prices , an d publicall ystate d it s Intentio n t o cate rprimaril yt o corporat e Je t trafFic
. Fue l pump s i n th e FBO' s fue l far m hav e caugh t fir e mor e tha n onc e i n th e pas t year , an d stoppe d working , du e t o lo w level s o f fue l inventory
. Th e FB O i s drawin g fue l fro m th e botto m o f th e tanks , instea d o f th e top , an d pilot s ar e concerne d abou t th e potentia l fo rbacteria-contaminatio n o f fue l as a consequence . Th e cit ytrie d t o forc e Individua l airplan e owner s t o remov e thei rsmal l pisto n aircraf t durin g majo revents , s o th e FB O coul d accommodat e je t parking
. Th e wor d ha s sprea d throughou t th e State
. Wit h Rightpat h installe d a s th e FB

O a t Glendale , interes t i n ou rhangars , whic h ar e onl ysuite d fo rsmal l pisto n aircraft , ha s waned
. Th e city-sponsore d expansio n o f Ai rSafet yhas create d a hazardou s situatio n fo r Glendale-base d aircraf t a s well , wit h a preponderanc e o f untraine d pilot s conductin g patter n wor k i n th e airspace
. Ther e hav e bee n severa l accidents , near-misse s an d incident s th e pas t year , an d thi s ha s cause d concer n fo rloca l aviators
. Aircraf t owner s hav e tol d u s tha t the yar e hesitan t t o relocat e t o Glendale , du e t o th e ris k the yassociat e wit h th e increase d us e o f Glendal e Airpor t fo rintensiv e foreig n pilo t training
. Ou rrate s ar e $395/mont h fo ra larg e hangar , an d $335/mont h fo ra smal l hangar , an d hav e bee n fo rmor e tha n si xmonths
. W e hav e ha d jus t on e pric e increas e i n 1 0 years . O n a percentag e basis , ou rhanga rrate s hav e increase d b ymuch (ess tha n th e groun d leas e adjustment s b yth e Cit yo f Glendale
. Indeed , sinc e 1998 , th e cit yha s raise d ou rgroun d leas e rat e fou rtime s —

wit h th e las t increas e i n 200 7 surgin g b y9.45%
. Ove rthi s sam e period , ou r rate s wer e flat , an d di d no t increas e once . Sinc e 1998 , throug h today' s date , ou rincrementa l ren t charge d t o tenant s ha s increase d b y$100/mont h fo ra larg e hangar , whic h equate s t o a 3.4 % annualize d increase
. I n ligh t o f change s i n th e U.S
. econom ydurin g thi s period , an d th e city' s escalatio n o f groun d leas e rates , that' s fai rpricing , laggin g fa rbehin d CP I adjustments , an d ou rrent s ar e deeme d reasonabl e b y ou rexistin g tenants . Ou rcost s fo rinsurance , utilities , managemen t salarie s an d benefits , service s an d material s hav e rise n drarnatically
. Plus , i n 200 7 w e spen t mor e tha n $300,00 0 2 1 GLEN022 2

## Valley Aviatio n Services , LL P renovatin g ou rasset s a t Glendal e Airport
. Ou rram p i s bette rmaintaine d tha n yours . Still , yo u hav e th e audacit yt o mandat e tha t w e lowe rou rhanga rrates . Sinc e 199 1 w e hav e monitore d hanga rrent s a t municipa l airport s i n AZ , NV , C A an d NM , an d ou rhanga rrate s ar e i n th e lowe rone-hal f o f rate s charge d fo rsimila rhangars ; moreover , ou rrate s ar e fa rlowe rstil l fo rT-hangar s a t comparabl e airport s I n majo rmetropolita n areas . W e updat e ou ranalysi s quarterly
. Ou rbusines s practice s ar e pruden t an d appropriate
. W e ow n 3 2 companies , an d w e tak e grea t pain s t o ru n the m professionally
. Th e Cushma n Wakefiel d "appraisal " appear s severel yflawed , relyin g heavil yo n rate s a t Dee rValle yan d Goodyea r- wher e th e Cit yo f Phoeni xsubsidize s annua l hanga rrate s b yth e infusio n o f severa l millib n dollar s pe ryea ri n use rfee s fro m Sk yHarbor , W e reques t tha t th e cit yprovid e u s wit h a cop yo f th e ful l report , sinc e yo u ar e referencin g i t i n forcin g u s t o reduc e ou rrates . Dee rValle yan d Goodyea rrate s d o no t belon g i n a competitiv e analysis , a s ther e i s a publishe d four-yea rwaitin g lis t t o obtai n on e o f thes e heavil ydiscounted , subsidize d units
. Ou rcovere d ti e down s hav e experience d onl ya n averag e 16 % occupancyrat e sinc e w e acquire d th e busines s o n Ma y29 , 1992
. The yar e buil t o n th e wron g bias , an d onl yprovid e shad e o n th e norther n hal f o f eac h row . Th e on e tim e w e achieve d 50 % occupancy , durin g 2007 , whe n ou rrate s wer e $90/unil/month , th e Airpor t Manager , Michae l Munroe , tol d u s tha t h e woul d fin d u s i n defaul t o f ou rleas e i f w e di d no t evic t derelic t airplanes
. Hi s actio n resulte d i n financia l losses , an d mos t o f th e 1 9 airplane s whic h fel l unde rhi s definitio n o f bein g derelic t ar e parke d o n th e city' s ram p today , wher e yo u hav e bee n collectin g ren t withou t regar d t o thei rcondition
. Th e realit yis , n o aircraf t owne rca n ren t a shade d ti e dow n o n a n annua l basi s a t an yairpor t i n thi s are a fo rles s tha n ou rcurren t rat e o f $295/month
. Ther e ar e non e available
. I f th e cit ydidn' t unfairl ydiscriminat e agains t ou rtenants , an d i f th e cit yenforce d th e rule s o n th e cit yramp , ou rcovere d ti e down s woul d ren t a t ou rcurren t rates . Whe n the ywer e utilized , yo u force d u s t o evic t tenant s withou t a lega l basis , an d th e cit yha s bee n accommodatin g the m sinc e ~ an d collectin g rents . Today , b yrequirin g u s t o unilaterall ylowe r ou rprices , o rfac e eviction , th e cit yi s escalatin g it s strateg yt o damag e u s financiall y~ par t o f a n ongoin g attemp t t o defaul t u s ou t o f ou rlease
. Yo u deman d tha t w e ren t th e covere d ti e down s a t below-marke t prices , i n orde rt o utiliz e them , althoug h knowledgeabl e aviatio n professional s comprehen d an d agre e tha t the y shoul d b e replace d wit h moder n hangars
. Afte rall , hal f o f our s don' t provid e shade
. W e ha d attorne yPau l Fait h explai n thi s t o Deput yCit yManage rHorati o Skeete , i n detail
. Base d o n recen t Directives , FA

A gran t mone ycanno t eve n b e use d t o buil d covere d ti e down s today
. Ou r shade s mak e littl e sens e i n today' s aviatio n marketplace
.

3 1 GLEN022 3

## Valley Aviatio n Services , LL P Th e cit yshoul d purchas e thes e covere d ti e downs , i f i t want s t o maintai n them , an d ren t the m a t below-marke t rates . Phoeni xfoote d th e bil l whe n i t electe d t o offe rsubsidize d hangar s an d shades , bu t Glendal e prefer s t o bull yit s tenants . W e pa yth e sam e groun d rent/squar e foo t fo rth e covere d ti e down s a s w e d o fo rth e hangars , althoug h hangars ren t a t highe rlevels , withou t seasona l fluctuations , an d w e hav e pointe d thi s ou t t o cit yofficial s o n man yoccasions
. Forcin g u s t o retai n th e covere d ti e down s i s a for m o f economi c discrimination
. W e explaine d t o Mr
. Skeet e tha t th e cit ywoul d mak e fa rmor e money , an d servic e airplan e owner s better , i f i t allowe d u s t o replac e th e covere d ti e down s wit h bo x hangars
. Ou rcurrent , highe rrate s fo rth e covere d ti e down s reflec t th e fac t tha t tenant s onl y wan t the m durin g tw o month s i n summer , an d tw o month s i n winter : a t al l othe rtimes , the y prefe rth e city' s ope n ram p -wit h you rdiscriminator ypricin g arrangemen t unde rwhic h som e tenant s pa yles s tha n others , an d wher e the yca n thro w fue l sample s o n th e ramp , leav e persona l propert yalongsid e thei rplanes , run-u p engines , conduc t majo rmaintenanc e an d reconstructio n project s (includin g th e breakin g o f fue l lines) , pain t an d san d thei raircraft , driv e acros s area s o f th e ram p whic h ar e close d t o vehicula rtraffic , par k thei rcars , was h an d wa x thei rairplanes , an d generall yignor e th e city' s rules
. Yo u ar e assumin g tha t you rcurren t tenant s wil l leav e th e cit yram p i n favo ro f ou rcovere d ti e downs , i f yo u forc e u s t o lowe rth e price
. Unles s yo u star t enforcin g th e airpor t rules , an d charg e al l tenant s th e sam e monthl y rate , the ywon' t leave , regardles s o f ou rprice
. Th e numerou s tenant s w e hav e sen t t o you , Ms
. Skeen , fo rpermissio n t o engag e i n a us e simila rt o othe rhangar s o n th e field , hav e al l bee n denied , an d everyon e o f the m i s no w residen t i n th e nort h en d hangars
. Yo u hav e eve n take n i t a ste p farther , however , informin g ou rtenant s tha t the ycanno t chang e th e oi l i n thei rairplanes
. Insid e ou rhangars
. Ever yairpor t manage rbefor e yo u ha s allowe d thi s practice , sinc e i t i s a righ t specificall ygrante d t o owner s o f aircraf t b yth e FAA
. Tenant s i n othe rhangars a t Glendal e Airport , an d thos e o n th e cit yramp , chang e thei roi l routinely
. Indeed , a t everyothe rhanga roperatio n i n KL , whethe rsprinklere d o rnot , includin g al l o f th e Phoeni xairports , a n owne rha s th e abilFt yt o perfor m FAA-define d an d approve d preventativ e maintenanc e o n thei rairplanes , i n thei rhanga ro rshade , an d i t i s specificall yallowe d tha t owner s ca n chang e thei row n oil
. Similarly , eve n thoug h yo u d o no t allo w th e breakin g o f fue l line s i n ou rhangars , owner s d o s o routinel yo n th e nort h end , th e sout h en d blu e hangars , an d o n th e cit yramp ; th e Phoeni xairport s allo w owner s t o brea k fue l line s I n non-sprlnklere d hangars , I f owner-performe d o rsupervise d maintenanc e I s bein g conducted
. W e als o not e tha t n o othe rairpor t i n A Z ha s establishe d separat e restrictiv e rule s fo rT-hangars , versu s bo xhangars
. Jus t Glendale
. W e hav e ha d ove r10 0 applicant s appl yfo ra hanga rwithi n th e pas t si xmonths , onl yt o hav e eac h o f the m elec t t o g o elsewher e whe n the y learne d o f ou rrestriction s a s t o use . Man yhav e opte d t o mov e t o hangars o n th e nort h end , 4 1 GLEN022 4

## Valle y Aviatio n Services , LL P wher e the yca n us e thei runit s withou t restriction
. Yet , ever ysingl e rul e w e enforce , an d every approve d use , i s derh/e d directl yfro m th e cit ylease , o rth e city' s Rule s & Regulation s (as Revise d i n 2004 , an d availabl e o n th e Airpor t we b site) , o rth e Airpor t Minimu m Standards , o r fro m pas t writte n directive s b yairpor t managers . Airpor t Manager , Jame s McCue , threatene d t o defaul t u s ou t o f ou rLeas e i n 1996 , fo r allowin g practice s whic h ha d bee n approved , i n writing , b yhi s predecessor , Bruc e Burrows
. I attac h a cop yo f hi s "Specia l Edition " o f th e Glendal e Airpor t Beacon , date d October , 1996 , whic h h e sen t t o ever yon e o f ou rtenants . Mr
. McCu e tol d u s tha t th e Deput yCit yManage r too k th e lea d i n forcin g rigi d compliance , an d h e ha d n o choic e bu t t o obe yth e directive
. W e wer e late rtol d b yMar k Riple ytha t thi s sam e individua l ha d directe d hi m t o forc e rigi d complianc e a t ou rhangars a s well
. I n fact , w e hav e man yletter s I n ou rfiles , fro m Airpor t Managers , fro m Rut h Fishe ri n 199 2 t o Michae l Munro e i n 2007 , requirin g tha t w e strictl y observ e th e rules , regulation s an d standards , eac h wit h th e threa t o f evictio n i f w e d o not . Yo u ca n understan d wh yw e observ e th e rules , an d wh yw e fin d you rlac k o f enforcemen t elsewher e t o b e suc h blatan t misconduc t an d discrimination
. I f yo u simpl yenforce d th e airpor t rule s consistentl ytoday , an d mad e eve n th e slightes t attemp t t o leve l th e playin g fiel d a t Glendale , w e woul d realiz e ful l occupancyi n les s tha n tw o year s a t ou rcurren t rates . As par t o f th e strateg yt o forc e u s t o lowe rrates , w e believ e tha t yo u personall ywis h t o mak e u s tak e Ai rSafet yint o th e shade d ti e downs
. A t lowe rprices , the ymayindee d wan t t o vacat e th e FBO' s ram p area , bu t a t Glendal e Hangar s the ywil l b e evicte d i f the ybrea k th e cit/ s rules : the ycanno t fue l unde rth e shades , the ycanno t was h aircraf t unde rth e shade s (o ro n ou rramp) , the ycanno t stor e persona l propert youtsid e th e aircraft , the ymus t agre e t o ou r leas e term s an d pa yrent s o n time , the ymus t provid e proo f o f insuranc e wit h Valle yAviatio n Service s name d as a n Additiona l Los s Paye e o n eac h airplane' s insuranc e policy , ther e mus t b e on e specifi c aircraf t - wit h onl yon e N-numbe r—assigne d t o an d residen t i n a specifi c numbere d space , the ycanno t operat e a busines s no rconduc t interactio n wit h client s an d customer s (no rpernii t th e us e o f ou rfacilitie s fo rbusines s purposes) , the ycanno t operat e engine s unde rth e shades , an d the yca n onl yleav e on e vehicl e i n th e space whe n th e aircraf t i s absent
. Ou rattorney s continu e t o advis e u s tha t th e Cit ywoul d hav e t o modif you rLeas e t o permi t u s t o allo w businesses , i f Ai rSafet yi s t o b e accommodated , sinc e w e hav e bee n methodicall yforce d t o evic t businesse s fo rth e pas t 1 7 years . Aircraf t mechanics , avionic s repairmen , upholsterers , detailers , fligh t instructors , servic e provider s an d marketer s hav e bee n force d ou t o f ou rhangars b yth e city
. Eve n i f Ai rSafet ywer e allowed , ou rhistor ywit h the m suggest s tha t the ywil l no t abid e b you rpermi t requirements
. Afte rthei rexperienc e i n dealin g wit h th e city' s la xrules , wher e the ywas h an d wa xaircraf t o n th e ramp , allo w high -

^ ' GLEN022 5

## Valle y Aviatio n Services , LL P volum e pedestria n traffi c acros s tax i lanes , driv e vehicle s throug h activ e fligh t operatio n areas , substitut e aircraf t i n assigne d space s a t will , fai l t o pa yren t whe n due , neglec t t o lis t th e FB O o n thei rindividua l airplan e insuranc e certificates , an d allo w thei rstudent s t o congregat e i n group s whic h mil l aroun d th e publi c portion s o f th e terminal , the ywil l no t likel yobe yth e rule s a t ou r facility
. Moreover , th e cit ycanno t forc e u s t o assum e th e busines s ris k o f rentin g t o anyon e wh o canno t mee t ou rcredi t criteria
. W e ru n credi t report s o n al l applicants
. T o th e exten t w e discove rtenant s wh o brea k th e cit/ s rules , we'l l continu e t o sen d eac h an d everyviolato rt o you roffice , t o reques t a writte n waiver , befor e eviction
. W e ar e I n ful l complianc e wit h th e Lease
. W e expec t th e cit yt o dea l wit h u s i n goo d faith
. O n Octobe r31 , 2005 , ou rLeas e coverin g th e 19-acr e ram p wa s legall yextende d unti l January27 , 2031 , an d accepte d b yMichae l D
. Bailey , Assistan t Cit yAttorney , Jamsee d Mehta , Transportatio n Manager , an d Mar k Ripley , Airpor t Manager
. A formal , publi c Notic e o f Leas e Extensio n wa s recorded
. W e hav e pai d mor e tha n $ 2 millio n i n ren t an d fees , an d hav e neve r bee n lat e wit h a payment . W e deserv e mor e consideratio n tha n w e receive
. W e hono rth e Leas e terms , an d w e wil l b e tenant s fo rth e nex t 2 2 years , occupyin g a ke y19-acr e trac t a t th e airport , ye t w e hav e bee n systematicall yexclude d fro m meetings , discussion s an d inpu t int o airpor t plans
. It' s obvious tha t w e shoul d wor k together , sinc e th e citizen s o f Glendal e hav e no t b e wel l serve d b yth e cit/ s refusa l t o dea l wit h us . Whil e w e hav e n o lega l fiduciar ydut yt o Glendal e citizens , cit yofficial s clearlydo
. A s I tol d yo u I n person , w e ar e willin g t o mee t wit h yo u a t an ytime
. Yet , yo u mad e n o attemp t t o tal k wit h u s abou t pricing : yo u jus t issue d a mandate
. That i s no t ho w partie s t o a contrac t shoul d behave
. Sinc e th e earl yyear s o f ou rownership , w e hav e ofte n trie d t o negotiat e wit h th e cit yfo r th e benefi t o f ou rtenants . Th e simpl e fac t is , th e cit yha s neve rbee n willin g t o simpl ylowe r ou rrent , o rhel p u s lowe rou rcosts , eve n thoug h w e wer e committe d t o passin g everydolla ri n saving s o n t o ou rtenants ; i n everynegotiatio n prio rt o Mr , Smith' s deat h i n 2003 , i n retur n fo r a ren t abatement , th e cit ywante d a percentag e o f ou rfutur e rents , o rshare d profits , o rmor e contro l ove rth e managemen t o f ou rbusiness
. A t n o tim e di d Mr.~Smit h fee l tha t th e cit ywa s bargainin g i n goo d faith
. Afte rh e died , i n 2003, 1 hel d thre e separat e an d forma l meeting s wit h Joyc e Clark , ou rCit yCouncilwoman , brokere d b yth e FBO , i n a n attemp t t o find way s t o hel p ou rtenant s whil e mutuall ybenefitin g th e city
. M ystaf f prepare d forma l presentations , askin g fo rth e Cit yt o cooperat e wit h u s t o find way s t o kee p ou rrate s low
. W e promise d ful l cooperatio n o n ou rpart , an d a n absolut e "dolla rfo rdolla rreductio n i n rents " fo revery concessio n th e Cit ywoul d make
. Short o f concessions , o rren t reductions , o rallowin g u s t o expan d ou rbusines s activities , w e clearl yillustrate d th e nee d t o rais e ou rrents , an d share d marke t dat a wit h Councilwoma n Clark
. A t tha t time , th e Cit yo f Phoeni xwa s subsidizin g Dee r Valle yan d Goodyea roperation s b ymor e tha n $ 4 millio n pe ryear . Ther e i s n o doub t tha t sh e 

### 6 1 GLEN022 6

## Valle y Aviatio n Services , LL P understoo d th e financial situation , an d sh e vowe d t o "se e wha t sh e coul d do. " However , afte r n o action , sh e concede d tha t sh e coul d no t ge t th e cit ymanage rt o conside rworkin g wit h us , an d tha t h e refuse d t o eve n mee t wit h us . Sh e reiterate d thi s statu s t o m e again , o n Novembe r 14 , 2007 , a t a n airpor t tenants ' meetin g hel d befor e th e Supe rBowl
. W e hire d tw o attorneys , Erni e Bair d an d Pau l Faith , t o mee t wit h othe rcit yofficials
. Ever yon e o f ou rsuggestion s an d request s hav e bee n rejected , withou t a n examinatio n o f th e merits , o ra publi c discussion
. Eve n thoug h I too k

ove rmanagemen t o f th e hangars i n 200 3 wit h a n ope n mind , an d trie d t o dea l honestl yan d professionall ywit h th e city , th e cit yha s no t bargaine d i n goo d faith
. I t i s ver y clea rt o m e tha t th e cit yha s n o regar d fo rou rbusiness , ou rtenants , o rou rright s unde rth e contract , an d you rlette runderscore s thi s belief
. Unti l 2007 , w e allowe d ou rfacilit yt o b e use d fo rairpor t functions , an d i n retur n w e wer e show n basi c courtesy . Mr
. Riple ywoul d occasionall yauthoriz e Richard Klin k t o swee p ou r ramp , o rh e woul d provid e securit yfo rou rtenants ' aircraft , o rmak e a n effor t t o clea n th e parkin g lo t an d maintai n th e cit ylan d adjacen t t o ou rfacility , o rsimpl yhel p u s resolv e a tenant' s problem
. However , Mr
. Munro e instructe d th e airpor t staf f t o sto p suc h activities
. We'r e Informe d b yyou rstaf f tha t yo u hav e sinc e ratifie d tha t instruction
. Consequently , ther e i s n o spiri t o f cooperatio n today
. Clare Pryke , ou rPropert yManager , has mad e numerou s attempt s t o wor k

wit h you , t o n o avail
. Yo u wil l no t eve n visi t ou roffice
. W e wer e willin g t o allo w th e cit yt o us e th e ram p fo rth e 200 9 Fiest a Bowl , an d th e NF L Championshi p Game , i f th e Mayo rwoul d mee t wit h u s t o discus s ou rconcerns . Ther e ha s bee n n o attemp t b yth e cit yt o schedul e suc h a meeting
. Pleas e b e advise d tha t w e ar e formin g a n Associatio n fo rou rtenants , s o the yca n gai n a voic e wit h FAA , TSA , Homelan d Security , AGFA , FBI , Fir e Marshall , Glendal e P D an d Maricop a Count ySherif f officials
. The ynee d representation , sinc e th e Nort h En d Pilot' s Associatio n ha s mad e a poin t o f sayin g tha t the yd o no t represen t ou rtenants . W e ar e veryconcerne d abou t th e Airport' s discriminator yrul e enforcemen t practices , astoundin g lac k o f securit yan d huma n safet yconcems , poo rmanagemen t o f th e FB O an d Ai rSafety , multipl e sustaine d violation s o f th e Gran t Assurances , flawed plannin g an d laxstandards , an d ou rtenant s ar e promptin g u s t o act . Unde rseparat e cove rw e ar e sendin g Mayo rElain e Scrugg s a lette routlinin g ou r concerns , an d illustratin g th e extraordinar ylength s w e hav e gon e t o i n orde rt o improv e th e situatio n a t Glendal e Airport , an d kee p ou rrate s low
. It' s clea rt o u s tha t sh e mus t ge t involved , o rth e citizen s o f Glendal e wil l hav e t o shoulde rth e burde n o f resolvin g th e conflic t yo u ar e precipitating
. Th e cit ymanage ri s clearl yfailin g whe n i t come s t o th e airport
. Jus t as troubling , rathe r tha n dealin g wit h th e seriou s problem s yo u inherite d fro m Mr
. Munroe , yo u see m inten t o n 7 1 GLEN022 7

## Valle y Aviatio n Services , LL P exacerbatin g them
. Byallowin g tenant s t o mov e bac k int o th e fire-condemned hanga rrow , b y turnin g a blin d ey e t o th e huma n safet yrisks pose d b ynon-aviatio n use s an d storage , b yno t workin g mor e closel ywit h TS A an d Homelan d Securit yt o impos e tighte rcontrol s a t thi s metropolita n airport , an d b yallowin g Rightpat h an d Ai rSafet yt o marginaliz e th e Airport' s reputatio n an d amenitie s - whil e no t payin g monie s whe n due , o robservin g thei rful l contractua l obligation s - i t seem s t o u s tha t yo u violat e eve n th e basi c dutie s o f you roffice
. I n thes e days o f terrorism , borde rdru g trafficking , an d increasin g theft , ou rtenant s tel l u s tha t the yexpect-heightene d securit ya t th e airport : thei rairplanes , an d lives , ar e a t risk
. Yet , non tenant s com e an d g o withi n th e fenc e withou t restriction , o rmonitoring
. Airpor t managers fo r te n year s hav e talke d abou t th e nee d t o instal l keypad-entr ydevice s o n th e walk-i n gates . Bu t yo u d o nothing , an d th e Airpor t end s u p wit h mor e negativ e new s coverag e du e t o th e lac k o f security
. I ca n assur e yo u tha t ou rpotentia l hanga rcustomer s watc h th e loca l news . Wors e still , i t appear s t o u s tha t yo u hav e adopte d a persona l animu s i n acceleratin g th e discriminator ytreatmen t agains t ou rbusiness : i t i s a fac t tha t yo u openl yallo w othe rhanga r owner s o n cit ylan d t o stor e boats , RVs , buses , constructio n equipmen t an d materials , movabl e fue l storag e tanks , utilit yan d trave l trailers , autos , motorcycles , disable d an d collecto rvehicles , tires , busines s records , exercis e equipment , persona l propert yan d furniture , an d score s o f prohibite d chemical s an d flammable items ; wors e still , yo u allo w non-FB O commercia l maintenanc e operations , non-aviatio n businesses , aut o racin g teams , hobb yshops , cabine t maker s an d retai l companie s t o operat e withi n th e fence , i n storag e hangars
. O n an ygive n da y w e ca n observ e th e unbridle d us e o f alcoholi c beverages , BBQ's , welders , full-tim e batter y chargers , an d indoo rfuelin g activities , al l o f whic h ar e prohibite d b yth e cit/ s hanga rstorag e rules
. Ai rSafet yoperate s a full-fledge d maintenanc e sho p i n multipl e storag e hangars , eve n thoug h th e underlyin g hanga rleas e prohibit s suc h use , an d th e cit yha s denie d u s th e opportunit yt o s o us e ou rhangars
. The yfull ydisassembl e engines , an d conduc t al l manne ro f repairs
. I n addition , ther e ar e airplane s bein g completel yrebuil t o rconstructe d b yothe r tenant s bot h t o th e nort h an d th e sout h o f us . Ther e ar e derelic t airplanes , unregistere d an d uninsure d home-builts , hangar s share d b ymultipl e aircraft , an d man yunit s completel ydevoi d o f aviatio n uses . Anyon e ca n se e tha t ther e i s no t eve n roo m fo ra n airplan e i n a larg e numbe r o f th e hangar s o n th e nort h end , becaus e substantia l non-aviatio n activitie s an d storag e occup y th e bul k o f th e hanga rspace . Th e cit yha s los t control
. N o airpor t manage rbefor e you , i n ou r experience , ha s s o completel yabdicate d th e cit/ s responsibilit yt o enforc e th e airpor t rules , althoug h thi s discriminator yenforcemen t has been , i n fact , occurrin g fo ryears . Al l th e while , w e hav e ha d t o rigidl yobe yeverycit yrule , regulation , standard , an d airpor t directive , an d yo u personall yhav e refuse d t o allo w ou rtenant s an ylatitud e i n thei rus e o f ou rhangars
. Ove rth e pas t 1 7 years , th e Cit yha s force d u s t o evic t mor e tha n 27 5 tenant s fo r practice s an d infraction s whic h ar e no w commonplac e i n hangars othe rtha n ours . W e doub t 8 1 GLEN022 8

## Valle y Aviatio n Services , LL P tha t th e Cit yo f Glendal e wil l accep t th e liabilit yo f you raction s today , whe n calle d upo n t o defen d them
. Yo u mus t b e ar e awar e o f th e fac t tha t th e Cit/ s 'inspections ' thi s mont h wil l resul t i n bu t th e momentar ypolicin g o f som e prohibite d uses , sinc e yo u publicall ywen t o n recor d sayin g yo u wer e onl yintendin g t o loo k a t fire extinguishers , extensio n cord s an d othe rflre-related safet yitems
. W e watc h th e dail yflow o f 'fle a market ' item s leavin g th e field, bu t the ywil l com e righ t bac k

unles s yo u embrac e a mechanis m fo rroutin e an d rando m inspections , an d enforcement
. We'r e takin g photograph s o f th e RV s an d buse s leaving , an d we'll.tak e photograph s whe n the yreturn . I n ou rcase , w e inspec t everyon e o f ou rhangars , everyweek
. W e insur e tha t ou rtenant s ar e i n ful l complianc e wit h th e Cit/ s rules , regulation s an d standards
. T o achiev e this , w e hav e t o insis t upo n usin g onl you rlocks , an d allowin g ou rstaf f unrestricte d access , sinc e th e Cit/ s pas t scrutin yo f ou rconduc t demand s th e policy
. It' s jus t on e mor e reaso n wh you rhangars wil l remai n vacan t unti l yo u enforc e th e rule s equally
. I n ou ropinion , t o gai n contro l o f th e situation , th e Cit yeithe rneed s t o hir e qualifie d an d competen t airpor t managemen t professionals , o ri t need s t o establis h a n Airpor t Authorit y whic h wil l d o so . Th e Cit yo f Glendal e ha s demonstrate d tha t i t i s incapabl e o f runnin g airpor t operation s o n a pa rwit h Sk yHarbor , Dee rValley , Goodyear , Scottsdale , Williams-Gateway , Chandler , Falco n o reve n Stella rwithi n FA A requirements , an d shoul d b e hel d accountable
. Th e day s o f runnin g thi s airpor t lik e Buckey e o rWickenbur g ar e lon g gone . An d Glendal e Airpor t Isn' t simpl ya priz e t o han d t o lan d developer s wh o pos t bond s fo rth e city
. W e wil l strongly , an d publicall yoppos e an yne w FA A grant s t o th e Cit yo f Glendale , unti l thing s improve
. You rstate d polic yt o you row n staff , t o 'no t look ' fo rviolation s o rproblems , i s simpl y no t goo d enough
. You rla xenforcemen t o f th e rule s create s a discriminator yenvironmen t tha t n o othe rairpor t manage ri n Phoeni xwoul d tolerate , an d w e ar e bein g damage d financiallyb y it
. Ou rhangar s ar e largel yvacan t becaus e o f it
. The yd o no t allo w RV s an d buse s a t Dee rValley : why_the n d o you , a t Glendale ? Moreover , i f yo u ar e goin g t o rela xth e rules , wh yno t openl ydefen d tha t decisio n wit h th e FA A an d appropriat e governmenta l agencies ? i f th e cit yha s decide d t o chang e th e rules , wh yno t chang e th e rule s fo ru s a well , i n writing , wit h Cit yCounci l approval , a s w e hav e requested ? W e hav e bee n subjecte d t o th e rigi d applicatio n o f th e airpor t rule s an d regulation s a t ou rfacility
. W e hav e abide d b yth e rules , bu t othe rhanga rowner s hav e not , an d yo u hav e no t force d the m t o comply
. W e hav e petitione d th e cit yt o allo w u s t o buil d ne w moder n hangars , t o offe r condominiu m hangars simila rt o thos e o n th e nort h side , t o operat e a ne w Citatio n XL S je t 

### 9 1 GLEN022 9

## Valle y Aviatio n Services , LL P unde ra Par

t 13 5 charte rcertificate , an d t o otherwis e allo w u s t o improv e ou rbusines s an d genera l condition s a t th e airpor t - al l o f whic h woul d hav e greatl yenhance d th e us e an d profitabilit yo f th e airpor t t o th e cit/ s benefit
. Man yo f thes e idea s wer e approve d b yth e Airpor t Manager , an d th e Airpor t AdvisoryCommission , bu t al l hav e bee n totall yignore d b yth e city
. W e eve n negotiate d a contrac t wit h Rightpat h t o sel l ou rimprovement s fo rmor e tha n $ 6 million , conditione d onl yupo n th e consen t o f th e cit y- whic h consen t wa s withheld
. Th e cit y manage rha s expresse d hi s inten t t o terminat e ou rleas e an d driv e u s fro m th e airport
. You r mos t recen t letter , n o doubt , wa s writte n i n furtheranc e o f tha t purpose . W e ar e disappointe d t o hav e t o plac e ou rrelationshi p wit h th e Airpor t Manager' s offic e o n a lega l footing , bu t yo u hav e mad e n o attemp t t o mee t wit h us , despit e bein g i n offic e fo r mor e tha n a year , an d you rmov e t o regulat e price s an d forc e u s ou t o f busines s leave s u s littl e alternative
. I n th e future , pleas e direc t al l airpor t correspondenc e fo rValle yAviatio n Services , LLP , excep t fo rroutin e matters , t o ou rlega l counsel : Dary l M
. Williams , Esq
. Bair d William s & Greer , LL P 622 5 Nort h 24 * Stree t Suit e #125 Phoenix , A

Z 85016-204 4 W e wil l wor k

towar d a meetin g wit h th e Mayo ra t th e earlies t opportunity , an d woul d welcom e you rattendance
. Than k you , 

## Ge^ c Georg e G
. Va n Houte n Managin g Partne r CC : Mayo rElain e M
. Scrugg s Dary l M
. Williams , Esq
. J
. Ernes t Baird , Esq
.



### 10 1 - GLEN023 0

# 1

yf^injijipyiiiltia B 

# QLENDAL

E AIRPOR T BEACO N Octobe r 199 6 4 Issu e 2 0 

## « SPECIAL EDITIO N » Thi s wil l b e aspecia l editio n o f th e Glendal e Airpor t

Beacon , whic h wi

U dea l witi j tw o item s whic h shoul db e o f interes t t o al l tenant s o n th e Airport . Th e first ite mwil l dea l with alette r fonvarde dt o ht^ga r

an dshad e tenant s b y Richar dSmith , th e owne r o f th e hanga r

an d shades , whic h contain s inaccuracies . W e wil l merel y presen t

fact s an dope n th e file s t o anyon e that

ma y wis h t o revie w them . Th e lette r i n questio n begin s b y sayin g tha t 'ove r th apas t tw o year s w

e hav e attempte d r o negotiat e wit

h th e City o f

Glendal e t o gai n understanding s an dconcession s whic h woul dlea dt o itabilize drenta l rates. " Th e fad; , ar e that

Mr . Smit h ha s mad e periodi c contact s with th e City , bu t h e woul dneve r agre e t o an y bindin g agreement whereb y saving s wyui db e passe de n t o tenants . Mr . Smith wante donl y imilatera l concession s o n rent . Also , \Ir . Smit h kne w exactl y wha t th e leas e tenn s wer e prio r

t o acquirin g th e lease . Suc h term s hav e neve r

change dsine s tha t acquisitio n an dMr . Smit h neve r discusse d modification s prio r

t o th e acquisido n o f

th e lease . Th e lette r the n state s tha t

''th e Airport Manager , Jame s McCue , ha s bee n directl y responsibl e for

implementin g th e followin g actions , eac h o f

whic h ha s ha danegativ e impac t o n income : I . Our lan dleas e wit h th e Cit y increase d 10.1% , to 599,79 2 pe r

year. " Tha t

statemen t i s tru e a s th e leas e payment s di dincreas e i n 1995 , I n fac t an y Manage r

a t th e Glendal e Airpor t woul dhav e don e th e sam e thing , a s ther e i s aleas e agreemen t i n plac e tha t clearl y state s a n adjustmen t wil l b e mad e ever y 3 years , base do ath e Consume r Pric e Index , Further , alette r

wa s forwarde dt o al l hangar an dshad e tenant s i n Jul y o f 1995 , wit h a n explanatio n o f

th e leas e agreemen t terms . Tha t

lette r i s attache dfor

you r review . 2 . "Ou r property ta x increase db y $3,21 7 pe r year. " W e asstim e tha t

i s true . I n general . Maricop aCounty propert y taxe s hav e increase drecentl y du e pranaril y t o increase s i n property valuatio n ove r whic h th e Cit>

- ha s n o control . I t

shoul db e note dtha t Glendale' s property ta x rate s hav e decrease d ove r th e las t 2 years . Also , th e City ha s no ^ contro l ove r

othe r ta x rate s i n Maricop a County , property valuation s mad e b y th e Count y Assesso r

o r th e tota l ta x assessments , du e froman y particula r ta x payer . 3 . "McCu e revoke dth e City' s lon g standiri g prio r approva l fordl . "othe r

tha n aircraf

t storage." * Fo r

whateve r reasons , th e hangar s wer e bein g operate dcontrar y t o th e term s o f th e leas e an dth e .Airpor

t Rule s an d Regulation s prio r

to 1994 . A t

th e directio n o f th e Aviatio n Advisor y Commissio n an d after consultatio n o f

th e Deput y Cit y Manage r an dth e Cit y Lega l StafT , i t wa s determine dtha t

th e appropriat e cours e o f actio n wa s t o requir e complianc e wit h th e leas e term s an dth e Rule s an dRejnilations .

GLEN023 1

### 4 . Ite

m# 4 deal s wit

h som e nebulou s item s liste das , "additiona

l administrativ e cos t require dby reporting , professiona l fees , inspection s andrecor

dkeeping. " Withou t furthe r explanatio n o r

bein g abl e t o revie w the book s o f

th e ovraer , th e Cit

y canno t respondmeaningftill

y t o th e allegation . 5 . Th e final itemdeal s wit

h Mr . Smith' s reques t t o us e the hangar s and/o r

shade s fo r use s othe r tha n aircraf t storage . Onc e again , the lease , a s the owne

r i s full y aware , clearly doe s no t allo w fo r other uses . I f tha t wa s a n ite mwhich Mr . Smit

h felt o f importance , i

t shoul dhav e bee

n discusse di

n 1992 , befor

e he mad e th e purchase . I n addition , the Airpor t Rule s an dRegulation s adopte db y the Cit y Council , prohibi t

th e us e o f the hangar s fo r the use s requeste db

y Mr . Smith . I n short , pape

r storag e an dauto parkin g doe s not relat e t o additiona

l aircraf t o n th e field, which i s the reason th e Airpor t i s here . I t was fel t tha t thes e fact s shoul db e aire dto user s of th e field, a s misstatement s ca n b e a confusin g issue . In closing , th e owne r make s one final statemen

t that , "w e wil l continu e t

o negotiat e wit h th e Cit y o f Glendale. " W

e wil l kee p everyone iofomie da s t o what , if any , negotiation s take place . Thos e report s will b e factual . Also , shoul danyon e desir e t o review an

y files concernin g thi s matter , a s iie y ar e publi c documents , ma

y certainl y d

o so . Th e City o f Glendal e i s oppose dt o th e proj'ec t a s wel l a s agrou

p o f homeowner s alread y i n th e area . W

e hav e me t

wit h an AOP A Representative , an dsh e wil l als o b e voicin g th e concer

n o f AOPA . Thi s wil l no w b e you

r chanc e t o voic e your opinio n o n thi s U

l conceivedproject . I n order to le t your voic e b e heard , yo u ma

y addres s letter s to : Th e Honorabl e £ dKing , Chairma n Maricop aCount y Boar do f

Supervisor s 30 1 Wes t

Jefferso n Phoenix , Arizon a8500 3 LETTER S D O COUNT ! andyour s woul d b e appreciated . Shouldyo u desir e any additiona l informatio n o

r hav e an y questions , pleas e fee

l firee t o contac t u s a t anytime . Than k yo u fo r you r assistance . Jame s J . McCue , A. A

. E . Airpor t Manage r Airpor t Administratio n

Th e secon ditemfo r thi s special editio n deal s wit h apropose ddevelopment

know n a s Camelbac k

Ranch . A grou p o f developer s are lookin g a

t a n are a jus t t o the sout

h o f th e Airpor

t fo r aprojec t know n a s Camelbac k

Ranch . Camelbac k Ranc h couldhav e u p to 200 0 home s constructe dove

r th e nex t coupl e o f years .

GLEN023 2

# Exhibi t

E

# t ?

OFFIC E O FTH E CTT Y ATTORNE Y Jkf ^ 585 0 Wes t Glendal e Avenue , Suit

e 45 0

_ _Glendale , Arizon a8530 1 n T7MK< T " C Telephon e (623 ) 930-293 0 ULJUNL-mj i Fa x (623 ) 915-239 1
Marc h 4,200 9 

### RECEIVE D Daiy l M . WiUiams , Esq . ^ Baii dWilliam s & Gieer , LL P HA K 0 6 20 1 622 5 Noit h 24"^ St , Suit e 12 5 Phoenix , A Z 85016-204 4 BW G Re : Valley Aviatio n Deal : Mc . WiUiams : I amwritin g t o yo u a t

Mi . Va n Houtcn' s instruction . I t i s necessary t o addres s som e o f Mt . Va n Houten' s statement s i n hi s recen t letter s t o Counci l Member s an dMs . Skeen . I hav e no t bee n involve dwith Valley Aviatio n t o any exten t i n th e pas t

bu t hav e no w gathere dsom e backgroun dinfotmadon . I t appear s t o m e that misstatement s an daccusadon s reflecte di n Mr . Van Houten' s lette r arc indicativ e o f

th e difficultie s diat th e Qt y ha s lon g experience dwit h hi man dhi s ptedecessoi . Befor e respondin g t o Mr , Va n Houtcn' s comments , le t m e clarif y di e purpos e o f

Ms . Skeen' s lette r

o f January 14 * t o Valley Aviation . Tha t leftc r addticssc s th e scvctie underutili2ati6 n o f Valley Aviation' s hanga

r facility sinc e mid-2067 . A t tha t time . Valley Aviatio n chos e t o increas e it s rate s t o aleve l tha t force dmos t

o f th e aircraf t previousl y house di n dios e hangar s tp.relocat e t o th e City' s publi c apro n area , wher e .the y remai n today . Thex e i s aclea

r coiuensu s amon g th e aircriif t owfier s dii t

Valley Aviation' s rate s ar e significantly highe r thai i marke t

rate s for thi s facility . Th e Cit

y ha s a n obli^tio n t o ensur e dia t Airpor t fadlitie s an d service s ar e mad e availabl e t o th e publi c o n afai r an dreasonabl e basis.,,Significan t public.fimds,hav e bee n use dt o develo p th e Airpor t t o it s cutrient

conditio n an dt o positio n i t t o provid e th e highes t

leve l o f servic e t o th e publi c an dth e aviatio n community . Businesse s operatin g a t th e Airpor t

mus t d o s o i n amanne r

tha t doe s no t diminis h thi s publi c investmen t Therefore , consisten t

wit h FA A policy , theCit y continuall y assure s dia t all Airpor t

facilitie s arc utilize da s full

y a s possible . Whil e marke t condition s for

th e variou s facilities ca n caus e fluctuatio n i n th e fee s charge dfo

r variou s fadlities, ther e remain s areasonabl e marke t rang e fo r thes e fees . Fo r

an y airport facilit y t o b e virtuall y unuse dfo r

man y month s for

n o othe r reaso n dia n th e fee s diale dunquestionabl y indicate s tha t th e fee s se t

fo r thos e facilities ar e no t

withi n th e reasonabl e marke t range . Suc h i s th e cas e with Valley Aviation' s facility. A s aresult, Valle y Aviation , a s indicate di n Ms . Skeen' s letter , woul db e i n violatio n o f it s Leas e Agreemen t

Th e Qt y understands , however , tha t Valley Aviatio n ha s no w correcte dthi s situation . I t i s th e City' s expectatio n tha t Valley Aviatio n will remai n i n complianc e througihou t th e ter mo f

it s Leas e Agreemen t Wit h respec t t o Mr . Vsk

n Houten' s letter , a s mentione dabqye , i t i s full o f man y inaccurat e statements . I d o no t believ e i t i s agoo dus e o f

anyone' s time t o addres s eac h accusatio n individuall y an dwil l merd y disput e the mi n thd r

entirety . However , th e Qt y hold s safet y a t if aAkpor t to i b e aparamoun t

responsibility . I t will , theriefore ; no t

allo w it s 'very goo dreputatio n for safely t o b e diminishci db y .baseles s accusatiqii s o r factu ^ fabriqations i T o tha t end , I wil l respon dt p Va n Houten' s accusatfon ^ relate dt o airpor t safety... . First , Mr . Va n Houten' s stateirien t tha t ther e hav e bee n fires at.th e FBO' s fiiel farmi s patentl y false . I woul dals o ad dtha t

th e fiidi n th e FBO' s tank s ar e monitored , drawn , an dotherwis e hancUe dpropedy . Ther e i s equally n o basi s for Mr . Va n Houten' s allegation s t o xh e contrary . 

## CL0051 3Dary l M . William s

Marc h 4,200 9 Pag e Tw o Similariy , Mr . Va n Houten' s assertion s rdate dt o Ai r Safet y Fligh t Academ y are completel y unfounded . Th e FAA , TSA , an ddi e Contro l Tower monito r th e air spac e capadt y a t

th e Airpor t

Th e patter n wor k flown by foreig n an dothe r pilot s wh o are trainin g with Ai r Safet y a t th e Airpor t

i s conducte dunde r

th e safes t conditions . Hier e hav e bee n n o report s o f near misse s o r othe r inddent s relate dt o Ai r

Safety' s operations . A s a n aside , Ai r Safet y i s aprivat e busines s an dha s devdope dit s clien t bas e withou t

assistanc e firomth e Qty . Whil e Ai r Safet y woul dlike t o expand , i n fact, th e Qt y ha s no t bee n abl e t o accommodat e tha t reques t becaus e o f

alac k o f spac e a t th e City' s terminal . Ai r

Safet y ma y hav e contacte dothe r

businesse s at

th e Airpor t t o secure th e additiona l spac e i t may nee dfo r

it s growth . Further , contrar y t n Mr . Va n Hauten' s assertions . Cit y staf f work s very dosel y with th e FAA , TS A an dothe r publi c agende s t o assur e continue dsafet y operatio n o f

th e Airport . I n fact, di e Qt y recend y secure dadditiona l FAA gran t fimding. A s with ai l aviation-relate dfacilities, th e Cit y consistend y work s wit

h th e TS A o n securit

y assessment s and , i t

migh t b e noted , tha t

Qt y staf f wa s honore db y th e TS A for it s effort s diidn g las t

year' s Supe r

Bow L I wil l briefly respon dt o Mr . Va n Houten' s complaint s abou t th e Qt y interaction s with Valley Aviation . Al

l rules , regulation s an dstandard s are applie dconsistend y t o eac h busines s operatin g a t th e Airport b y th e Airpor t

Administrator . Th e Qt y ha s no t disctiminatoril y denie dany reques t for service s o i allowanc e fo

r use s tha t hav e bee n mad e b y thes e businesses , indudin g potentia l subtenant s o f Valley Aviation . I n fact, th e Qt y ha s neve r denie dapotentia l subtenan t o f Valley Aviation . I t

ha s attempte dt o assis t

Valle y Aviatio n by providin g th e informatio n tha t woul db e require di n asublease , an da s o f thi s dat e onl y on e subleas e ha s bee n presente dt o th e Qt y for consideration . Additionally , attempt s b y Airpor t staf f t o mee t with Mr . Va n Houte n prio r t o th e 200 8 Supe r

Bow l were denied . Instead , h e insiste do n tyin g longstandin g issue s an dmisperception s t o unrelate ddiscussion s o f potentia l busines s opportunit y tha t woul dhav e pu t

unuse dAirpor t

facilitie s int o use , a t

leas t for ashor t time . Mr . Van Houten' s demand s furthe r demonstrate dhi s unwillingnes s t o compl y wit h th e FA A polldc s an d Leas e term s outline dabove . Finally , with respec t

t o Valley Aviation' s discussion s with Rightpath , th e Qt y wa s no t involve di n thos e discussions , o r

Rightpath' s consideratio ao f VaUe y Aviation' s position , t o any exten t whatsoever . Rightpath notifie dth e Qt y i n mid-January tha t adea l coul dno t

b e complete dbecaus e o f Valle y Aviation s unreasonabl e demands . I t i s m y understandin g tha t

ameetin g betwee n Mr . Baird , yo u an dm e ha s bee n se t A s I mentione d above , I hav e no t

ha dany direc t

dealing s with Valle

y Aviatio n an dMr . Va n Houte n i n th e pas t While : I a m willin g t o b e o f

servic e i n thi s matte r

i n an y wa y I can , I d o no t

pla n o n becomin g directl y involve dunles s a lega l issu e arises , whic h I hop e i s neve r th e case . I woul dprefe r

tha t dies e issue s b e handle dwith Qt y Airport staf f wh o arc veste dwit h th e responsibilitie s t o handl e Airpor t operations . Sincerely ,



## CL0051 4