AUBURN — The winning bidders in the Auburn-Lewiston Municipal Airport online auction started picking up their goods Tuesday.
The auction of machinery, tools, materials and assorted goods abandoned by Elite Airways last year netted about $140,000 for the airport, after all auction expenses were deducted, including a 5% seller’s premium and $8,000 in set-up, handling and marketing expenses.
“This unexpected windfall will help defray the ongoing legal and utility expense on Hangar No. 5 associated with the eviction of Elite Airways for nonpayment of rent, as well as boosting the airport’s bottom line,” Robert McCarthy, vice chairman of the airport board, said.
Online bidders Monday saw value in a portable lavatory and some specialty tools, with a hydraulic swing beam shear — machine tools used for straight cuts on sheet metal — attracting a top bid of $19,750. Another metal forming machine went for $19,000. The lavatory sold for $11,500. There were more than 400 items or lots in the auction.
Tyler Walsh removes a fireproof storage locker Tuesday morning at the Auburn-Lewiston Municipal Airport on Airport Drive in Auburn. “I heard about the auction and bid on a few things,” he said. “This locker goes for two grand and I got it for a couple hundred bucks. It was a steal and worth coming down for.” The online auction Monday brought in $141,000. Russ Dillingham/Sun Journal
Airport board Chairman Jonathan LaBonte said the expenses incurred because of Elite’s departure put a $165,000 hole in the budget. The airport’s operating budget for the fiscal year was balanced by making cuts and planning on the auction providing $75,000. The extra funds will give the airport a bit of financial relief.
When Elite Airways stopped paying its rent last summer, it also stopped paying its utility bills, which the airport had to pick up in addition to the hangar lease. Hangar No. 5 has a foam fire suppression system installed that requires the building to be heated during winter months, so the airport cannot simply turn off the natural gas to reduce expenses.
The cities of Lewiston and Auburn loaned the airport the money to buy the hangar in 2014 and agreed to pay $115,000 a year back to the cities. That loan has now been extended by both cities until fiscal year 2036, because Hangar No. 5, the airport’s largest hangar, has been unavailable for lease until it can be cleared out of the personal property abandoned by Elite and just sold at auction.
The airport is still trying to resolve the status of the three jets, engines and associated parts that are in various states of disrepair, but require extensive documentation before being sold. LaBonte said he’s hopeful there will be a resolution soon. “The board wants to manage the airport to minimize risk and liability from operations. That means being cautious about how we execute any sale of aviation assets to another party.”
McCarthy said the airport has received some interest in leasing the hangar, but added it was too soon to say more.
Proceeds from the auction represent a positive boost in a year fraught with budgetary, organizational and personnel issues. “We had a very successful auction,” McCarthy said.
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