Extra Aircraft official: Deal appears ‘hopeless’

By William Woody
Friday, April 15, 2011

MONTROSE — Montrose County officials’ time to finalize a lease with Extra Aircraft may boil down to today or never, according to the Germany-based manufacturer.

Errol Bader, head of corporate development for Extra in Denver, said Thursday a deal to bring its manufacturing facility to Montrose appears “hopeless,” based on a proposed lease rate by the county. Bader said the company expects a county response today that includes a reduced price to rent existing hangars at the Montrose Regional Airport.

Bader said Extra negotiated a price of 18 cents per square foot to use county-owned buildings, but the county, after missing an April 4 deadline to finalize a lease, responded with a lease offer of $4.78 per square foot.

“When they returned to us with that price, it seemed like they were telling us they didn’t want us here,” Bader said Thursday.

Airport Manager Lloyd Arnold, County Manager Jesse Smith, County Attorney Bob Hill and County Commissioners Gary Ellis, Ron Henderson and David White met in executive session all day Thursday. County spokeswoman Kristin Modrell said Montrose Economic Development Corporation Executive Director Sandy Head and Paul Gray, executive director of Region 10, also met with the county officials to discuss the deal.

Ellis said Thursday the county is working to lower its price in a new proposal.

“We are moving as fast as due diligence will allow,” Ellis said.

Ellis said he expects negotiations to continue through today.

“We haven’t closed the door yet,” he said.

Extra publicly announced in July its selection of Montrose for a manufacturing plant. Extra said at that time the facility could employ as many as 200 workers assembling two different models of aircraft.

“We should haven been training people and building planes by now,” Bader said, adding the company sold out orders for the EA500 and 330LT aircraft models through the remainder of 2011.

Since the Aircraft Owners and Pilots Association reported that Extra may not land in Montrose, Bader said his phone has been “ringing off the hook” from other communities across the nation. Bader said these other locations are guaranteeing the company “a much smoother process than what’s going on in Montrose.”

Earlier this month the financial review committee for the Colorado Office of Economic Development and International Trade delayed a $1.02 million dollar Community Development Block Grant loan for Extra until the company obtains a Federal Aviation Administration certification for its 500 series aircraft.

“I’m anticipating our certification any day now,” Extra Aviation CEO Ken Keith said earlier this month. “I am so confident that there is really no risk to us.”

Gray said previously even if the Extra facility is “bare bones” in terms of employees, 61 jobs would be created with an average annual salary of $42,000, and that would generate $15 million toward the local economy.

“It’s like they (Montrose County) won the lottery, but didn’t care to look for the ticket,” Bader said.