News from the Factory III

[dedrekon]

Re: News from the Factory III

City to decide fate of Taylorcraft debt
By Chris Mahon — The Brownsville Herald
April 17, 2007 - 12:26AM
The city of Brownsville is poised to write off more than $120,000 in bad debt owed to the airport at today’s City Commission meeting. The bulk of that money — $111,760 — comes from one account: Taylorcraft Aviation LLC.

If the item passes, Brownsville taxpayers will be the biggest losers, since there will be a cash transfer from the city’s general fund to the airport, to make up for Taylorcraft’s year and a half of rent-free existence.

The move is provoking the ire of some airport board members, who say there was no discussion of the write-off at the last board meeting on April 12.

“Hell yeah (this should have been discussed),” said one board member, who asked to remain anonymous. “None of the financials were discussed at all.

“I do not want to be recognized with saying that I agreed with this write-off. I don’t think it’s the way business should be done here at the airport.”

Airport Director Larry Brown confirmed that the board members did not discuss the write-off. However, Airport Board President Charles Hamilton said that “the board has recommended several times that there be a timely write-off” of uncollectable debt.

Including the amount that may be written off today, uncollected debt at the airport is $258,279. Some of the tenants that owe money are major American companies: Budget Rent A Car owes $4,457 and has been sent three collection notices, while Continental Airlines owes $5,920. The Houston-based airline is on its second collection notice, according to city documents.

Other indebted entities to the city are, ironically, the city. The Department of Public Works owes $2,666 to the airport and has been sent three collection notices.

If the City Commission agrees to the write off, “the cash gets transferred to that (airport) fund.” said Finance Director Pete Gonzalez.

For taxpayers, that will mean approximately $120,000 less in the city’s general fund, which supports general government expenses, police and fire department budgets, infrastructure upgrades and other expenses.

Since this represents .15 percent of the $80 million general fund, Gonzalez didn’t foresee a tangible impact on the city’s operations. Nevertheless, “It would have been nice if we’d collected that amount.”

Taylorcraft was lured to the city by the Brownsville Economic Development Council nearly two years ago with no background check. The company billed itself as an airplane manufacturer, yet had no licenses to make airplanes, according to the Federal Aviation Administration. Additionally, it had no business license to operate in the state of Texas.

[stormman]

Re: News from the Factory III

:goodpost: When people ask me why i love that Jarrent guy i point out dozens of reasons in the daily discussion thread . But this time he really hit the nail on the head

[Hank Jarrett]

Re: News from the Factory III

I don't know why everyone wants to see new taylorcrafts made again. There is not enough market to support production and a half dozen owners over the last 20 years have proven that fact. When we were a dealer in the mid 80's when the factory was in Lock Haven, we tried to tell them to concentrate on just parts and service the market already out there along with doing factory restorations when contracted instead of building airplanes. They did not listen then, and Harry didn't listen when I told him the same thing. Everyone is so mesmorized with building new airplanes, very few realize it will cost millions to build a handful of airplanes for a market that is already saturated. Overhead could be cut by 75% just concentrating on parts and a market that already exists for parts for 2500 aircraft in the field. I don't know if even that would be enough to support a business without diversifying some.

Mike

I think you hit it Mike. We must respond to the matrket, not our hearts. If we could get the legal RIGHT to build them we could make parts in a "distributed" manufacturing system where final inspection could be done at a central location (again, PARTS, not airplanes). Build the parts that are in demand as needed and paid for and don't expect to make any money, just keep us all flying and restore a plane once in a while. Once a full suite of parts is available you could package them up in a LSA kit for a homebuilt that was pretty much exactly the same as production (like the Cub guys have). The kit parts could be less expensiver since they wouldn't need to be "finished" parts and the final welds and detail manufacture would be up to the builder. That broadens your base a little more (and creatres a cadre of people who know how to finish the basic parts). If the market will support it you can then start real manufacturing with a base of parts suppliers and a good customer base to keep you in beans while the company grows.
The fun part would be doing the tooling design so a NEW Taylorcraft with the "little wider" and "little taller" and "better seats" and newer engine" ......
could be designed in while using the same basic tooling. There could be some REALLY nice homebuilt Taylorcrafts flying and that kind of business plan could actually work.
Remember the part at the front of this! You ARE NOT going to make money, at least not in the near future.
Hank

[dedrekon]

Re: News from the Factory III

Taylorcraft’s hot check qualifies as felony
City asking DA to investigate $15K note returned for NSF

By Chris Mahon
The Brownsville Herald

January 23, 2007 — The district attorney is being called in to deal with a $15,000 hot check written out to the city by Taylorcraft Aviation LLC.

“We will turn it over to the DA to be handled as he would any other hot check,” City Attorney Jim Goza said Monday. “I expect the matter to be sent to the DA’s office this week.”

Goza said a criminal investigation is possible after indebted Brownsville airport tenant Taylorcraft passed the bad check. According to the Texas Penal Code, writing a hot check for more than $1,500 is a state jail felony.

On Friday, city officials attempted to cash the $15,000 check from Taylorcraft President Harry Ingram. The amount was to cover a portion of rent and past due bills.

Ingram had no comment on the city’s plan or about the incident in general. “I’ll have a prepared statement at the end of the week,” he said.

City Manager Charlie Cabler said the city would provide the District Attorney’s Office with more information than just proof of a bounced check.

“We’re going to offer them all the information we have to see if they can assist us (because) … he (Ingram) owes us back rent,” Cabler said.

The airplane manufacturer owes the city more than $100,000, according to public records.

After the check was stamped for insufficient funds, the city locked up the property that Taylorcraft occupies at the airport.

Airport director Larry Brown said businesses have already started contacting him about leasing the Taylorcraft hanger.

The Greater Brownsville Incentives Corp. and the Brownsville Economic Development Council lured Taylorcraft to Brownsville in mid-2005. The company and Ingram already had more than $250,000 in court judgments and tax liens at that time.

It also had no licenses from the Federal Aviation Administration to make airplanes or airplane parts, according to federal officials.

In addition to not paying the city rent for a year and a half, the Greater Brownsville Incentives Corp. gave the company $47,000 in incentive money in late September. The most vocal supporter of Taylorcraft at that meeting was board member Bill Hudson, who later resigned when it was revealed that he was drinking beer during the public meeting.


TALK BACK
The city’s recent action on Taylorcraft debt: Too little too late or just in time?

[VictorBravo]

Re: News from the Factory III

Didn't Chet Peek's book mention something about pre-fab aluminum houses being built by Taylorcraft at the end of the war??

[high time cub]

Re: News from the Factory III

I don't know if even that would be enough to support a business without diversifying some.

Mike

Yup....http://www.newsday.com/community/gui...ory-navigation

[Ragwing nut]

Re: News from the Factory III

crap them basterds but then again now is the chance to build it back up with better people and i tell you what if i had the money id do it in a heart beat tcrafts are beautifull aircraft perfect for sport planes in fact ill ask around maybe i can do something about it i think thats what aviation need the good ol days pre ww2 when the records fell just as soon as the were put up and when aircraft were cheap

I don't know why everyone wants to see new taylorcrafts made again. There is not enough market to support production and a half dozen owners over the last 20 years have proven that fact. When we were a dealer in the mid 80's when the factory was in Lock Haven, we tried to tell them to concentrate on just parts and service the market already out there along with doing factory restorations when contracted instead of building airplanes. They did not listen then, and Harry didn't listen when I told him the same thing. Everyone is so mesmorized with building new airplanes, very few realize it will cost millions to build a handful of airplanes for a market that is already saturated. Overhead could be cut by 75% just concentrating on parts and a market that already exists for parts for 2500 aircraft in the field. I don't know if even that would be enough to support a business without diversifying some.

Mike

[tim]

Re: News from the Factory III

crap them basterds but then again now is the chance to build it back up with better people and i tell you what if i had the money id do it in a heart beat tcrafts are beautifull aircraft perfect for sport planes in fact ill ask around maybe i can do something about it i think thats what aviation need the good ol days pre ww2 when the records fell just as soon as the were put up and when aircraft were cheap

[dedrekon]

Re: News from the Factory III

Here's the write-up from Aero-News:


Taylorcraft Aviation HQ Chained Shut
Mon, 22 Jan '07

Company's $15K Rent Check Bounces
It appears it's all over for Taylorcraft Aviation, which at one time intended to reintroduce the venerable two-seat high-wing aircraft to the light-sport segment.

The Brownsville (TX) Herald reports the city has chained the doors at Taylorcraft's facility at Brownsville Airport, after the company apparently passed a hot check to the city for back rent.

"As far as I’m concerned, our relationship is over with," said City Manager Charlie Cabler. The Herald reports that check -- for $15,000, or one-month's rent -- did not make a dent in the more than $100,000 the company owes in back rent. A check from Taylorcraft in December, also for $15,000, cleared.

Cabler says the city is now considering legal action against Taylorcraft, and company president Harry Ingram.

Problems for Taylorcraft had been on the horizon for some time. As Aero-News reported in September, Ingram was hit with over a quarter million dollars in judgments and liens. The company lost its corporate charter in 2004 because of a tax lien, so Ingram may be personally liable for the debt.

Things appeared a bit brighter in mid-2005, when Brownsville officials lured the planemaker to the city... but that didn't last for long. An investigation by the Herald soon revealed the city didn't perform a background check on the company -- and worse, Ingram's company was not licensed by the FAA to manufacture either parts or aircraft under the Taylorcraft type-certificate.

The struggling aircraft manufacturer filed for Chapter 11 bankruptcy on October 13, 2006. As recently as last November, a majority of Brownsville City Commission officials voted to allow the company to stick it out... if it promised once again to start paying rent. Brownsville Mayor Eddie Treviño Jr. was among those who backed the plan.

Those opposed to granting Taylorcraft that one last reprieve say those who supported Taylorcraft have some explaining to do.

"Anybody that voted to keep them, knowing their past history and all that we learned ... they should be held accountable. They should feel responsible," Commissioner Charlie Atkinson said after news of the bounced rent check.

Whatever the legal situation... it is sad to see yet another storied nameplate fade away. The basic Taylorcraft aircraft first flew in 1936.

[alwaysoar]

Re: News from the Factory III

The FAA was "in" where looking into alleged strut failures? In Brownsville, at Barber's? Is it definite that Harry has alleged that strut failures were occuring? Doesn't someone know more about this? How do you know, Forrest, that the FAA is looking into alleged strut failures?

Ed@BTV VT
TF 527

[Tom G]

Re: News from the Factory III

FYI Everyone

http://www.aero-news.net/LinkToArticle.cfm?ContentBlockID=dd7c0406-0258-4546-bacd-0d0ae7accf62

[tabranch]

Re: News from the Factory III

When I asked Diana about the web site a couple of weeks ago she said that they were having server problems and it was being worked on. Of more concern is the fact that their phone has been "temporarily" disconnected. I called the Brownsville Herold and talked to Chris who covers airport stuff and he was not aware of any new information about Taylorcraft.

[Acroeric]

Re: News from the Factory III

Has anyone been able to get on the Taylorcraft factory website recently. . . .might be my PC but it seems it is gone.

[dedrekon]

Re: News from the Factory III

Boarding up more than 20 percent at airport
By CHRIS MAHON
The Brownsville Herald

December 14, 2006 — Boardings are up 20.76 percent at the Brownsville-South Padre Island International Airport so far this year.

That’s a total of 151,307 residents, tourists, businessmen and other travelers who have passed through the facility since January, Airport Advisory Board members were told Tuesday.

But potentially bad financial news was absent for the second month in a row.

Airport Director Larry Brown said he would provide statements of revenues and expenditures at the taxpayer-funded airport at the January meeting. From then on, he said, the airport would only disclose its financial health quarterly, instead of monthly “for the ease of bookkeeping and (because of) the amount of work going on.”

Figures from November show that back rent and other bills owed to the airport totaled $281,436.39.

Since the City Commission recently voted to let Taylorcraft Aviation LLC stay at the airport and that company paid its rent this month for the first time in nearly a year and a half, that amount could remain the same.

However, because the airport did not calculate its current losses this month, it is impossible to know if the amount of uncollected debt is growing or decreasing.

[cpirrmann]

Re: News from the Factory III

Kind of look for something at next inspection and if found, replace within the next 10,000 hours ?