AvCraft deadline
for jobs extended Contracts led to
confusion on date By Travis
Tritten The Sun
News
The county has eliminated a Jan. 15 job-creation deadline for
AvCraft, an aircraft company offered $750,000 in public incentives
and reduced rent to set up operation at Myrtle Beach International
Airport.
The deadline, which required AvCraft to create 80 new jobs, was a
mistake and should never have been part of the agreement with the
company, Airport Director Bob Kemp said.
Local leaders said attracting the company was a victory for the
local economy, and Gov. Mark Sanford gave a speech on job creation
in front of an AvCraft plane at the airport in 2003. The Air Force
Base Redevelopment Authority, which offered the $750,000 over four
years, is charged with managing and privatizing the former air
base.
AvCraft missed the deadline in the county's contract - it created
65 jobs by Jan. 15 - and would have lost a portion of its first
$187,500 incentive payment. The company now has until June to create
80 jobs.
The county contract required 40 jobs by July 2004; 80 jobs by
Jan. 15, 2005; and 200 jobs by Jan. 15, 2009, Kemp said.
However, the Redevelopment Authority has a written agreement with
the company that says job creation will be judged based on the date
AvCraft began business, Kemp said.
"There was a discrepancy between documents," Kemp said. "If I had
known that's what [the county's job creation deadline] said, I
wouldn't have signed it."
AvCraft agreed to move into the airport in December 2003 but said
it did not begin business until June.
"Those two agreements were not the same. That kind of creates a
loophole per se for not reaching those benchmarks," said County
Councilman Marion Foxworth during a county Administration Committee
meeting Monday.
Foxworth questioned Kemp over the future of AvCraft's only
product, the 30-seat Dornier 328 airplane.
Industry analysts say the market for the plane is bleak. AvCraft
recently bought the Dornier from a German company that went bankrupt
after losing ground to larger regional jets in late 1990s.
For now, the Dornier is the only plane the company works on and
stores. AvCraft's Myrtle Beach operation is now storing 47 of the
210 total Dornier propeller and jet planes produced.
"I had not heard that we had invested ... aviation money into the
equivalent of the eight-track tape player," Foxworth said.
The company has performed above and beyond expectations, said Joe
Woodle, president of Partners Economic Development Corp.
"I would hope that [AvCraft owner Ben] Bartel wouldn't invest in
anything like that," Woodle said. "I think the company has so far
showed very good leadership."
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