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AlrDenton, Inc.
Rt, 10 Municipal Airport . t3enon, Texas, USA 18205 8114858.1200
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FEB -2W CITY OF DENTON
8 ANNUAL RECONCILIATION STATEMENT
FOR
i l9es
Below please find an analysis on monies paid to the City of Denton
for the year .1989 as
prescribed in Lease Agreement between the
City of Denton and AirDenton, inc. This reconciliation is in
accordance with Paragraph r of that Agreement.
FUEL PURCHASES
DATE INVOICE NUMBER
AM.. oy~fT
1-6-09
543632
1-12-89 $22893 5877,61
1-25-89 543908 3792468
2-1349 824133 5251,75
3-3.89 844445 4139,52
3.3-89 825661 $258.75
-20-89 544726 39600018
4-5-89 $27621 5194.80
4-1789 545214 $932628
825-$9 531167 $387499
5w26-89, 845835 5066.94
5
-13-89 $854058
6 F4106
6-1349 D32358 6429612
I: 6-30-89 4902*31
7-3w89 6'45106 6429.12
D33699
7-21-89 D34875 4889409
7-27-89 4$57453
6"46784
8-1189 6'47028 6392.2p
824-89 6457.28
9-1-89 D37375 4869.36
9-20-894765 6373.52
9-28-89 P47174 4904.15
10-6.89 P47428 6511.98
18-20.85 D37375 5635.51 ~
AvWl" sairvloN 6 4 6 2 ► 68
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ANNUAL RECONCILIATION
PAGE 2
P41599 5318.23
11-10-89 P48466 6490,43
11-28-89 P48737 6573.11
1.<14-89 D13377 5342,21
12-27-89 P44799 5756,12
0159443,66 X 38 a 04783.31
AMOUNT PAID TO CITY 4631,08
BALANCE DUE TO CITY $ 152.23 E
)I1ANGER/TIE DOWN COLLECTED
lief
DATE HANGAR COLLECTED TIE DOWN COLLECTED
JAN 56017,06 120,00
FBI) 6500600 573670
_ F
MARCH 5306043 285400
APRIL 6223,75 132,00`
MAY 4940,00 195600
JUNE 6109 go 158400
JULY 6035,0 15360+4
i AUG 5685000 90400
SEPT 5120.00 11780
OCT 5135,00 262,00
NOV 5220.00 120000
DEC 4650400 131000
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$67191.74 02326,70 X 101 $6951,84
AMOUNT PAID TO CITY $ 951.85
BALANOR TO AIRDENTONt;INC. $ .01
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BUDGET DENT 11 CAR
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8'EB 13.70 I
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ANNUAL RECONCILIATION
PAGE 3
MAR
APRIL 35.10
26.70
MAY 38.25
JUNE 38.25
JULY 38.25
AUG 38.25
SEPT 38.25
OCT 22.16
NOV 79.81
DEC 52.69
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$467.70 X lot $46.77
AMOUNT PAID TO CITY $35.67
I,
BALANCE DUE TO CITY $ 11.10 J
RECAP
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FUEL PURCHASES $4793.31
HANGAR/TIE DOWN $5951085
BUDGET $ 46.77
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TOTAL DUE $11781.92
AMT PO TO CITY $11618.60
f BALANCE DUE TO 1 x11Y $ 16302
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I hereby oertif,y that this`i~ true and aorr 4to 'ny knowledge
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MY of DEMO, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78201 / TELEPHONE (817) 604.8307
- ~ - T- Of ca of the Oty Mons#$r
November 10, 1989
Mr Jim Hutt
nirDenton
Routs 1
Airpvrt Road
Denton. TX 76205
Dear Mr, Huffr
The plans for your now hangar have been examined by this
{ ottioe, and they are approved, Currently, the 'plane are being
{ reviewed by Mr, Jackie Doyis in our :Building Inspections
Department. As soon as they have been approved, he will issue
a permit, and you may begin construction at the Airport.
l'
. ~ ~ you nep,d any t+.,~Cher information, please call at your
donvenienoo.
Sineiote y, k
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Lloy V, Harrell
I City Manager
LVHtbw
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ciryof DENrON, TlUCA8 MUNICIPAL BUILDINO / DENTON, TEXAS 78201 / TELEPHONE (817) 688.8307
- y~ OHfoe of the 00 Menaper
M E M O R A N D U M
TO: Lloyd V. Harrell, City Manager
PROM; Rick Svehla, Deputy City Manager
~ DATF;; November 2, 1984
I
I SUBJECT! New Hangar on Airbenton Lease
i III
At the last Airport Board meeting, AirDenton indicated that i
they would be proposing the construction of a new large hangar
(approximately 1001 x 1001). AirDenton, obviously, perceives i
increases) business at the Airport and the need for more storage I
for planes. in disouesions with Jim Huff, he said he thought
that the hangar would induce several new aircraft to locate at I
our facility. Obviously, this would mean more fuel revenues
for the City of Denton.
The Board reviewed tho proposed location. Sinco the Board
meeting, Plana were provided to us. We received the plans last
P'riday, and they are ourrently in the review prooeeb. we will
continue to review thosO as rapidly as possible,
1
Their lease agreement says that the building must be approved I
by the City of Denton. We have visited with Debra, and she had
indicated that if the Board would approve it and you would sign
off on it, then work on the building could begin, Of course,
the building would also be reviewed by the Building Inspection
Department and all applicable codes and ordinances would also
be met, 1
i Our Airport staff is currently reviewing the plans with I
Individual Airport Board membot4. At this time, it `appsaro
that they meet all of eu1; requirements, Idle expect approval by
the Board by sarly. next week, and we would ask that you sign
off so that <AirDenton oats place their order with the building
company to begin the manufacture of the building.
It you have any further questions, 1 would be happy to try and
answer em.
j
xi k avehla -
Deputy City Manager
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AixN AirDenton, Inc.
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r, Rt. 1, Muniolpal Airport Denton, Texas, USA 76208 817.898.1200
August 10, 1989
Rick Svehla
Deputy City Manager
City of Denton, Texas
nenton► Texas 76201
Dear Rick,
Joe Thompson has requested that I notify you of the
following change in our operation.
The flight training operation presently contracted out
to Dobransky tntarprises, Inc. d/b/a/ Denton Flight 't'raining
Centor, will be assumed by Ai.rgenton,_Tno. affective, Sept;. 1,
! I 1981. My reading of our Agreement with the City inddoates that
no action is required of any parties, but, we 'do want to keep
all parties e.avised. I
We are looking forward to expanding the scope of Airbenton's f'
I activities, and feel that our flight training operation will ;
! be a credit to the bont;on Airport,
j
1 i 5 ncerely,,
ames W. Huff, Jr.
cc: Lloyd Harrell
.
Joe Thompson
I -
Aviation Services
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AlrDenton, Inc.
At. 1, MunlolPat Airport • Denton, TOXAS, USA 76205 • 81T-898»t200
April 26r 1989
Airport Advisory Soard
City of Denton
Denton, Texas
E
I Re) possible remodeling of "North Hangar„
_ ~ penblemen~
Reference the previous discussion aonaex.,nine our questions
regarding the possible remodeling of the "North Hangar", be ,
i advised that our nvsstigations confirm the previous feelings
of many that suoh is not economically feasible,
i
j We arranged to have a structural engineer examine the
~ faailty, and based on his findings, have Ooncluded that the
testing and en#4neering necessary to &)teri ii.ne the soundness e
and engineer the required "fixeswould not be Goonomically
l f justifiable. The aost of a remodeled f'aoilityp including these
I large engineering cost, approaches the oost of new conettucbion,
Thanks for your willingness to look into the matter. We ,
are still interested in improving storafJo
f oapaoity and are
evaluating other potential alternatives,
inoarely#
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PHASE
BUSINESS PLAN
ACQUISITION and DEVELOPMENT
Of
ASSETS OF EXISTING FIXED BASE OPERATION WOO)
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MtGtrl,.lK31t~i~ ~41T
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DENTON, TEXAS
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I PmDF.NTON, INO
AUGUST 23, 1989
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PREFACE
The purpose of this Phase of the Plan Is to address the acquisition and
redevelopment of certain assets of the Fixed Base Operator) (Maverick Aviation)
located at the Denton, Texas Municipal Airport. Maverick Avlation Is presently
experiencing financial dlfficuides through default on several major financial obligations
and Involvement In litigation with the City of Denton regarding the current lease of
facilities, The present condition of Maverick Is a direot result of excessive debt
j acquired when Maverick assumed the business of its predecessor, Aerosmith Denton
Corporation, plus a continued deterioration of general aviation activity and lack of
professionalism In management and operations,
f This Plan addresses the formation and operation of a Fixed Base Operation
I (FBO) udlIzIng certain Maverick assets and Is based on a new lease with the City of
Denton which recognizes the need for a FBO to be financially successful. At the same
time It allows the City to maximize Its revenues from the airport it recognizes that the
environment must be mutually profitable for both the City and the FBO, as nelftr one
I can be truly successful In its endeavors without the other being similarly successful,
E~ The economio Justiflcatlon of an Investment In a FBO at Denton, Texas must
1 come from expansion opportunities which are In all probability avallabie, The pro
forma constructed (a" V, Miscellaneous, p,9) Illustrates that even with eliminadon CO.
debt, and Institution of prudent management, there is no appreciable return on capital
Investment, The avaltable possibilities will be addrsssW In Phase 11 and will be
supported by first and second year projeottons on a monthly basis and annual
r projection through year five,
a
N 11
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T'ABL.E OF CONTENTS
L ACQUISITION METHOD
1. Purchase of Ban's Interest
2. Acqu(altloo of Personalty by Asslgnment/Foreclosure
3, Acqulsitlon of "New' Lem by AsslgnmenWoreclosure (Appendix A)
E
11, OPERATIONS
1. Line SeMce
2. Publlo Service Areas (Lounge, Walting, Pllot Brlef ng)
3. Equlpment/Facflltles
4. Shop
I III. CAPITAL IMPROVEMENTS
1. Public Ames
2, Equipment j
3. Hangars
4, Roadways
IV. PROMOTION/MARKETINQ i
1 i Advertising
2. Service Image/Word of Mouth ;
V. MI-SCELLANEUUS
1, Pro Forme Based on Present Operatlons (Exhibit A B)
2. Prlnolpals
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ACQUISITION METHOD
1, Purchas_Q_4f_~ellk'sJ.l~t~s3
In order to stabilize the precarlous nature of the situation, the principals of
A€rDenton, Inc, purchased the pasltlon of United National Bank of August 12, 19W.
Since that time negotiations have begun to effect an agreement which would result In
the dismissal of all litigations between Maverlok, the City of Denton and United
National Bank (Its successors),
2. APQWs€Non Persoan l- t P"
It Is anticipated that AlrDenton will acquire the personal property owned and
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.r used by Maverick Aircraft Title to this property will be acquired by either sale and/or
foreclosure,
3. ~.lalti0.a_Qf_~sasehoJd Jr>1t j
4 is anticipated that a new lease, satisfactory to both AlrDenton and the City of
Denton, will be executed by Maverlok Aircraft and assigned to Alrponton
I t 1
simultaneously with the mutual release by Maverick, the City of Denton and Otho I
Henderson of any and all claims between Maverick, the City and Oft Henderson.
4. N-ft
The entity, AlrDenton, )no,, will have been created to hold the base agreement
r"rred to above,
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OPERATIONS
1. lz1!]~.~I~
Line service and fuel sales represent the primary profit center for the proposed
business, present ling service suffers from lack of professional Image caused largely
by absence of leadership, Repeated lack of produot (fuel) has contributed to this
Image problem. Immediate solutions to rever" this situation appear to be;
(a) Aggressive, on-site management
(b) Adequate supplies of fuel
(0) Improved, more professional uniforms
(d) Improved condition and planned replacement of fuel trucks
2, public Service Areas
The very Important first lmpresslon made upon a transient customer begins at
the transient parking ams and extends to the customer walling area, rest-rooms, and
pilot briefing room. Without exception, all of these highly Important areas are below
standard, Immediate action Is needed to correct thew defiolencles. Specifically, the
i following actions need to be a=mpllahed;
` (a) Creating and maintaining a Transient Arrival/DeparbAre area
In close proximity to the hangar/walting area,
(b) Remodeling the customer service area, walling room,
rest-rooms and rodlrecting entry to the rest-rooms by either
' I
( building a hallway alongside the waltng area to the rest-rooms
or by creating new entry to the rest-rooms from Inside the
waltng areas,
. ( (Q) Creating a pilot briefing room and a large open customer
service counter.
f.
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(d) Removing flight school activities to the school facilities on
the south side of the buliding,
3. "uIpment
The ability to gulokly and efficiently fuel, start, preheat, de-loe and move aircraft
are baslc service elements of a FBA. All of these services must be present to attract
business alrorafL The following actions need to be taken to atxomplish' these
functions.
(a) Overhaul/repalr fuel trucks, along with a program for planned
replacement. Overhaul/repalr of single point fueling equipment
f to facilitate fueling of turbine aircraft.
(b) Obtain ground
power unit (QpU) capable of both 14V and 28V i
I outputs.
(o) Obtaln preheat units for winter operations. j
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(d) Maintain small supply of glycol for winter operations.
4, f
Maintenance capabilities are a prerequisite for attracting and maintalni
rtp
I customers at a Fixed Base Operation. These oapablikles can elther be provided by {
the F80 itself or by an Independent maintenance organization,
As In most service operations, the secret to "success", Le., satisfied oustomers
and acceptable flnanolal results to the operator, depend upon the ability to manage
and oorttrol, The greatest perll Is expansion beyond your ablllty to manage, The
unfortunate tendency to be "all things to all people" should be avoided at all oosts.
Therefore, the F'BO should consider a malntonan oe organization of not to exceed three
(3) persons during its Prot year. One of those persons would be the Shop Manager.
mill AMR'
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III
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r CAPITAL I MPROVEM ENTS
f Capital Improvements are needed In several areas, In order of urgency they
E are;
;
(a) Public areas, such as wafting rooms, rest-rooms, eto whloh have
previously been discussed In It (2) and 111(3).
(b) Equipment, previously discussed In It (2).
1 (o) Hangars:
(1) "Main Hangar" - needs a general clean-up Inside and out In
addition to the remodeling preWously discussed. Removal of
debris, at,
(2) "T-Hangars" . need to be painted and cleaned of dirt
and debris inside, Many years of accumulation Inside the
.i ~
j hangars has left so much dirt on" floors that it is impossible ;
for customers to keep their airplane clean.
w (d) Roadways; the roadway In front of the maul hangar is In iced
condhioh and needs to be repaired before ' It becomes Worse. I
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PROMOTION/MARKETING
A Fixed Base Operatlon, like any other business, must market its services,
There Is really no "captive" markoti and the competition for business Is keen. A Denton
FSO, in comlOctlon with the City of Den=on, can market to three basto classets of
customers;
(1) Transients
(2) Bated Aircraft
(3) Special Interest Groups (GAF, EAA, Aerobatics, etc.)
j
i No attempt Is made herein to develop a Marketing Plan which should be
! produced as a separate endeavor. The purpose a this section Is simply to define the
need for marketing oft F130's services and to touch upon some of the elements of
such marketing,
I
Advertising must be directed to rin identified prospect due to the, small
proportton of the general public which Is a prospective user of Fat services, gireot 1
J mail advertising Is very useful due to the malting Ilsta which are available from Federal
j registration of
pilots and aircraft, It Is possible to target almost any desired
f use of such regl*atlon data, thereby rrnhancing the use of direct mat group
Trade journals are also helpful In marfetirtg the airport's services,
2.
As in many bualnesses, word of mouth Is one of the most
~ psrwaslve forms of
advertising. The can" aviation community Is rater h small, and the word of iperlor
Wvice or pocr service gets around quickly, The resent
p oper'Ation Is an exdwlent ~ .
1 example. The items dlacuswl In It (Operations), If aggreasively Implemented; will
consthuta an extremely effective, cost-a>"lolent form of advertising,
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MISCELLANEOUS
1. Po_rma P L Based do Current Operations
Included Is a Pro Forma Statement of Profit (Lou) based on recent levels of
s
business and projected exlvnses (Exhibit A). Even this pro)ectlon may be slightly
optlmistlc over the short run, as recent shortages of Jet fuel have resulted In a severe
loss of turbine business, it Is obvious that the proposed business Is at lees! a break-
.
i even at the present time. There Is no return on;capltal at the present time. Only
through additional capital InoWment and dillgent and aggressive managemont can
i profitability end return on an investment be attained,
2, Prl
The Print;Ipals In the operation of AlrDenton, Ira, are;
...E
(a) T4gyL Is a native of Denton, Texas, He graduated I
I from f)antan High School In 1960, attended North Texas I
;j
State University, and has an Assoclates Degree In Criminal
Justico from Cooke County College, Mr, Alley has
experience with the CKy of Denton Police bepArtn ent l
and In prlvats business. He currently owns and operates
a Bonded Lightning Protection Systems, Inc„ With offices
In Dallas, Houston, Austin, Ban Antonlo and New Orleans.
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Mr, Riley 1s a commercial pilot with multiengine and
Instrument ratings, He Is a foundltV member of the Taus
Pllots Assooiatlon (TPA) and the founder and first Prosidant
` of the Denton County Chapter of the TPPk He Is currently
the News Editor of the TPA and series on the Board of
+.+w..... f 1 ,i`. .f
Directors. In addition, he Is 8 member of the Board of
Directors of the United States Pilots Association (USDA)
and was honored by being selected the 1987 USpA
Member of the Year.
(b) 4maa-WA10 Is a hove of Dallas and has rftlded In
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Denton since 1976, He attended Southern Methodist
Unlvers
itY, receiving B8A and ILLS degrees, Mr, Huff
I has been flying since 1964, and has been active In
various farms of aviation since that time, He Is a `
member of the State Bar of Togas (Inactive) and has
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had Interests In real estate and retail sales. i'rsasentiy,
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Mr: Huff serves as president of Croup one, Ino., an
Irving, Texas based oonauf ing firm, Mr, Huff Is a
! commercial pilot with muldehgine, Instrument and .
Cat"edFlight Instructor (OFF) raffogs arld he will 4
be active In the dally management of Altrrtora, ;
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EXHIBIT A
A IRDENTONJNC,
PRO FORMA STATEMENT OFPROFIT (LOSS)
MONTH OF SEPTEMBER, 1988
REVENUES
Fuel Sale,$ (Net of taxes)
AvGas • 12,000 gallons 0 $1,69, $20,280
aet • 3,000 gallons 0 $1,45 4,350
Hangar. Rentals.. . 51000
Tie Dowxl Rt)ptala
Shop, Avionics, .school.. 1.250 1
TOTAL REVVIU88
39. 380
$31,380
EXPENSES
E costs` of (h)Ode sold
AvG1as $.9d/gallon..,... $10,800
Bret 0,$,"!5/gallon.' 2,250 13,050
4 bad Debt Expenso (1$ of Sales):. 344
Payroll (Rxhibit B)
1
9;308
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Rents '(City of Denton)
Fuel Flow 0$ of cost of fuel).,472 1
Hangar Commissions
(10$ 'Of T-Ran(Uar & Tie Dowry Rentals,) ..525 2,797
Employment Taxes,. .i 700
Wdrkmans Compensationi.....,,166,
lns4r0jcpe!f, Property & (jiabi"lity,.. , , 77.5
, . , i..
Ad VAloeem Taxes.. 10450
Facilities Maintenance, .i,i,,,,,,,,,, ; 250 i
9cuipment Expense) Fuel & Maintenance,'.....
500
750
RessvaforEquipment s placement (Depreciation) $00
Advertising & Promotion..,., 400
Office Supplies/ Postage/ Printing... 150
Employee BensEits,, 455
~ puss and Subscription,,, i.l.i..i. 50
' " hiisce],leneoua, ,
? TOTAL EXPENSES
l NET PROFIT (Before Tax) j
I
this Pro forma is base) on th,3 leve'k of sales prevailing in August,
1988) accordih6v to the best iuform+ltion available.
No allowance L9 made for amori;ization of investment in leasehold
improvements (oapital expenditurg4),
Rssorv0 for egulpmant replacantenta is approximately Euffiaiisnt to
fund fuel truck'tiaquirements over the life of such equipment,
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APPENDIX "Au
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Draft of New Lease To Be j
µ Supplied by City staff
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