North Adams To Purchase Shamrock Hanger
NORTH ADAMS, Mass. — The city will use existing and borrowed funds from the Federal Aviation Administration to purchase and rehabilitate the Shamrock Hanger.
Peter Enzien, representing the airport's engineering firm Stantec, asked the Airport Commission last to vote to borrow $90,000 in Non-Primary Entitlement Funds from Gardner Municipal Airport to fully fund the Airport Improvement Program project.
"This is kind of a nice deal. The only thing you have to do is agree to pay them back in the next fiscal year," he said. "We have basically exceeded the project by around $60,000."
Enzien said the FAA annually gives the airport $150,000 in Non-Primary Entitlement Funds and with this year's funding and carryover from 2016, the city has $300,000 to play with.
The city was still short of the funds needed to purchase the hanger and rehabilitate it but the FAA allows airports to borrow funds from other airports as long as it is paid back in the next fiscal year. This means next fiscal year, the airport will use a portion of its Non-Primary Entitlement Funds to pay back Gardner.
"It is agreement between the two airports and it has nothing to do with the FAA or MassDOT," he said. "They agreed to let you borrow the money and North Adams will pay them back next year."
The hanger known as the Shamrock Hanger belongs to Liam Shirley.
Chairman Jeff Naughton said the hanger underwent an appraisal and review appraisal to find the fair market value that Shirley has agreed to. He said the purchase is still under negotiation but the city hopes to close at the end of the month.
Commissioner Trevor Gilman said there is no real plan for the hanger at this point.
"There is no plan. The city is going to own the building, rehabilitate it and rent space out," he said. "So how the space is determined and who is renting what space is up to the city. There is no determination on who is in there and what the space will be used for."
Pilot Michael Milazzo said he was concerned that Gilman's affiliation with Teamflys, a tenant in the hanger, creates a conflict of interest.
"I don't think it looks good that a commissioner is in control of his own rent somehow," he said.
Gilman said that is not the case because the city will oversee the hanger. Also, he has only helped manage the company over the years, has no financial connection and is not a corporate member – just an authorized signer.
Naughton said the entire acquisition has gone through the mayor's office and no red flags were raised and if there ever is a conflict of interest, the commission will remove it.
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