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| July 28, 2006 Barnstable Patriot |  |
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Rectrix files racketeering, obstruction suit against airport...
CONTINUED FROM PAGE A:1
tected jet fuel sales; intimidation
by airport commissioners;business
and contract interference; favorit-
ism for other, preferred operations;
illegal funneling of airport revenues
to support the general operation of
the town in violation of FAA regu-
lations; as well as violation of the
federalRacketeering Influenced and
Corrupt Organization (RICO) and
Sherman Anti-trust acts.
"Rectrixbringsthisaction to seek
specificperformance of its right to
dispense jet fuel to aircraft it man-
ages under its agreement with the
airport , to enjoin defendants from
harassing Rectrix by attempting
to evict it and to recover compen-
satory damages, as punitive and
treble damages, for defendants '
egregious misconduct ," the com-
plaint reads.
The focus of the racketeering
complaint is the revenue-sharing
between the airport and the town.
Startingwiththe monopoly position
onjet fuel sales, the suit alleges that
the airport and its representatives
engaged in a practice of protecting
that monopoly to illegally divert
airportrevenuesto thetown,inviola-
tion of Federal AviationAdministra-
tion regulations.Because the airport
provides written assurances to the
FAA regarding the disposition of
federal grantsthat it willbenefit only
the airport, the suit alleges that the
money transferred out of the airport
violates those assurances.
In an interview Wednesday, Rec-
trix's attorney,Marc E. Kasowitz of
Kasowitz, Benson, Torres & Fried-
man LLR said that airport-derived
revenues can be used to offset ex-
pense, incurred by a municipality,
but in the case of Barnstable it is
believed those amountsareinexcess
of actual expenses.
"We believe they are above and
beyond the value of those services,"
Kasowitz said of the funds provided
to the town.
The multi-million-dollar Rectrix
Aerodrome Center hangar sits on
a leased area of Barnstable Munici-
pal Airport. The company provides
private charterjet service aswell as
high-end ground amenities for pas-
sengers.Thehangarwasconstructed
in 2004-05,with a "grand opening"in
September of last year,but it hasyet
to move into full operations.
Focus on Fuel
In the "Factual Background" sec-
tion ofthe complaint,Rectrixalleges,
"Commencinginapproximately2000,
the BMAC and other defendantscon-
ceived and implemented aschemeto
fraudulently andunlawfullymaintain
a monopoly on the sale of alljet fuel
at the airport ..."
The lease signed by Rectrix in-
cludes a prohibition on "aircraft
refueling activities ... including the
resale of aviation and jet fuels."
The lease does refer to a section
of the airport'sminimumstandards,
which the claim states "expressly
contemplates that Rectrix had
the right to seek to expand its op-
erations, including to fuel its own
aircraft and to sell jet fuel to third
parties."
Rectrix alleges that a complete
copy of the airport' s minimum
standards was not provided by the
airport andthattwopagesof"bogus"
self-fuelingstandards wereprovided
instead.
In past interviews with Rectrix
CEO Richard Cawley, he said that
the application and plans for the
Rectrix Hyannis operation would
have been different had thecomplete
minimum standards been available
at the time the project wasfirst con-
ceived. Cawley has told the Patriot,
and the complaint reiterates, that
after receiving a complete copy of
the ininimum standards, which he
said was withheld despite repeated
requests, Rectrix's Hyannis opera-
tion was reengineered.
The complaint claimsthat airport
officials represented that the only
standards available were those
provided, the two-page refueling
standards and four pages relating
to allowed alterations.
The dispensing and sale of jet
fuel has been an issue between the
airport and Rectrix for more than
a year.
In that time, Rectrix has offered
to provide the airport a per-gallon
tariff on fuel it would sell.That offer
was declined.
The airport commission'sposition
in the past is that it retains a legal
monopoly on the sale ofjet fuel and
to allow one provider to sell fuel
would open the market to allservice
providers at the airport.
Rectrix won the right to self-fuel
jetsthat it ownsormanages,but the
complaint statesthat the airport has
acted to prevent the company from
fully exercising its ability to do so.
Despiteprovisionswithinamemo-
randum of understanding between
the commission and the company,
Rectrix said that the options out-
lined in that document were made
difficult by airport officials.
"The BMAC'sbreach of the MOU
has virtually shut down Rectrix's
businessand iscausingtremendous
damage to Rectrix's goodwill, and
Rectrix has no adequate remedy at
law," the complaint reads.
Within the counts against the in-
dividualdefendants,the complaints
alleges,"[T]he BMACandthose who
control it possess 'monopoly power'
in thejet fuel market at the Airport,
including the power to determine
the price for jet fuel."
Racketeering Alleged
The airport operates as one of
the town's enterprise accounts, a
funding mechanism under state
law that requires the operation
to be self-funding and not utilize
local tax dollars. It is the practice
of the town to recover administra-
tive expenses that go to support
its enterprise operations. These
chargebacks are detailed in the
annual town budgets and are pro-
jected at more than $700,000 for
the current fiscal year.
For the racketeering complaint,
Rectrix uses "enterprise" in a dif-
ferent context.
The defendants "constitute an
'enterprise' of individuals and enti-
ties associatedinfact" asdefined by
federal RICO statutes.
Named in the RICO claims are
Airport commissioners Michael
Dunning and Larry Wheatley, the
airport's outside attorney Bruce E
Gilmore, airport manager Quincy
"Doc" Mosby and assistant airport
manager Francisco Sanchez.
As the airport's counsel, Bruce
Gilmore, is named as a defendant
in the complaint , the airport is
arranging for other legal represen-
tation, which was not in place at
press time. Town Attorney Robert
Smith declined to comment on the
complaint.
According to a press statement,
because the lawsuitisbeingbrought
under the federal RICO statute,the
defendants could be liable for treble
damages in the millions of dollars.
BHS Astro Park takes shape ... of Greek temple
Mural work continues
through summer months
By David Still II
dstill@barnstablepatriot.com
LOOKING IN- With a copy of Homer's llliad inthe foreground,
the students in this mural jump to life on an Astro Park wall.
DAVIDSTILL I
I PHOTOS
TIME TO WORK - Though school is out, work continues on the Barnstable High School
Science Astro Park, dedicated to observing and learning about the heavens above. BHS
science teacher Mike Gyra works on the "human sundial" at the BHS Astro Park. Stand on
the name of the month, look for your shadow and know the time. Gyra is ever thankful for
the dozens of businesses and other contributors to the multi-year project and ever hopeful
for new opportunities to help complete it.
Glance over to Barnstable High School
from West Main Street and new visions of
blue appear above the front row of class-
rooms.
That's the first sign that something's
happening in one of the school's two quads.
Look a little closer and there are clouds and
ruins surrounding the lettering for the Cobb
Astro Park.
The colors and renderings are part of an
ongoing mural project to turn the Astro
Park into a Greek temple, if only in appear-
ance.
Artists Cris Reverdy and Jackie Reeves
of YellowHouse Studio have been working
the transformation this summer alongside
Mike Gyra, one of two BHS science teach-
ers behind the park.
The Cobb Astro Park is a multi-year
project to create a facility that will support
expanding astronomy research at BHS and
use by the extended Barnstable community.
Dozens of businesses have donated
materials, low-cost labor and money in
support of the project, which is still a few
years away from completion, depending on
availability of funds.
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