The Standard-Examiner is johnny-on-the-spot this morning, with an Ace Reporter Schwebke article describing Adam Aircraft's stockholder warning letter, a story we broke here on Weber County Forum two days ago.
Rather than suffer the indignity of acknowledging lowly WCF as his source, however, Mr. Schwebke dredged up this Wichita Eagle article from January 22, 2008 instead.
Alas, the Std-Ex continues to pretend WCF doesn't even exist -- except on those rare occasions when our home town newspaper slings mud. Doesn't the Std-Ex realize that WCF truly wants to be its best buddy?
We don't mind being ignored, however. It's OK if we remain the Mr. Schwebke's secret behind the scenes scource. The important thing is that the Std-Ex has now informed its general readership that Adam Aircraft's financial circumstances are considerably more dire than the Std-Ex originally reported.
Adam Aircraft's next drop dead date? Tomorrow, the Std-Ex reports.
All kidding aside, our favorite Ace Reporter did some additional sleuthing on this story. We were relieved to learn, for instance, that the State of Utah has not yet advanced any money to the Adams Aircraft venture. And while we were not at all surprised that Emerald City Economic Development Department Head Honcho Dave Harmer remains entirely unflustered by the latest Adams Aircraft developments, we do wish Mr. Schwebke had found out what Mr. Harmer has been smoking, and told us how we can get our hands of some of that too.
All in all a well written story. We recommend that our readers give it a read.
Update 1/30/08 12:55 p.m. MT: Subsequent googling has revealed an article which seems to put a finger on Adam Aircraft's current problem. According to the online journal Jets' RU, the end of month deadline stems from the demands of senior lenders, who've demanded full payment of $30.5 million in loans by January 31. It seems obvious to us that Adam probably has some "wiggle room" time-wise, unless the debt instruments provide for immediate surrender of Adam's assets in the event of default. Time will tell, we suppose.
And to all of those who've accused Emerald City officials of failing to do due diligence with respect to this financially pressed aircraft manufacturer, the article supplies this interesting paragraph:
On Jan. 18, three days after Wolf sent a letter to company shareholders, Headline Industry News reported that Adam laid off more than a third of its workforce. Nine days earlier on Jan. 9, the company said it was focusing its resources on its VLJ, to obtain type certification. The company insisted it was on "target for certification of the A700 in 2008." The company never let on how dismal its financial situation was.In all fairness, it's tough to properly vet a company when they're playing it so close to the vest.
Comments, anyone?
15 comments:
Rudi:
Gotta tell ya that newspaper editors hate, absolutely hate having to credit another in-state source for breaking news, especially if the story is a home-town one. Absolutely hate it.
In another life, many moons ago, I knew the editor of a daily in a town very much like Ogden [though it was also the state capital]. Nothing frosted him more than having to credit another in-state paper for a breaking state story, and if the story was a local one, he went ballistic. I knew if I picked up that paper and read about some breaking scandal and the first paragraph said in it "revealed in a copyrighted story in the Alexandria Town Talk," the newsroom staff was in for a very long and uncomfortable day. Particularly the reporters whose beat included any fragment of the local story he'd had to run credited to another paper. On occasion [we had lunch now and then in connection with something I was working on at the time] I caught him mid-rant:
"Why the HELL do they have the story and we don't? What the HELL am I paying reporters for? If all they're going to do is read the "Town Talk" and tell me what it says, I can get some high school kid to do that for a hell of a lot less. This happens again, somebody's going to be reporting the farm news from Bunkie... if he's lucky. Son of a BITCH, why the HELL didn't we have this first?" And so on. [This being a family blog, I cleaned up his language a bit.] He took him about five minutes and two bourbons to wind down.
If they can find another, earlier source, out of state, to credit, they will. But remember, Rudi, when Dan S. dug out the now infamous UTA/Godfrey Administration emails, and WCF published his work, the SE made the emails part of a lead editorial, and credited WCF. [They had no alternative source to credit that time.]
We need more Corporate Welfare here in this state. Republican Chief Senator Greiner, go write more tickets.
Rudi, this article is only a tip of the iceberg. I want to know what happens to the bonds that Godfrey had the RDA issue to benefit Adam Aircraft! Is he going to write those millions of dollars off also?!
Godfrey is betraying Ogden residents again with his new deal with the MidTown developoment. You'd be wise to obtain a copy of the Development Agreement for Midtown Village at the Junction Ogden City.
Curmudgeon asks in an earlier thread:
What in the world has happened in Utah?
A plea to put a cattle-prod to Boss Godfrey
By Curmudgeon
What in this world has happened to Utah? The Salt Lake Tribune reports that a Utah Congressman today told the Utah legislature "to prepare for less oil flowing to the country." And he told the legislators "now is the time to apply for federal transit money -- before a critical mass of other states begins lining up to seek the funds.... "The competition is going to get more intense..." he said. "Utah is trying to accelerate its transit plan, and I would submit to you that now is the time to accelerate that process before a lot of people get in line."
Sorry, Curmudgeon, a cattle prod won't phase Godfrey – he's back to his dirty little games and underhanded methods of screwing Ogden and the Council. We know that's he's insensitive to any other form of transit except the gondola. He is so determined that he will stick Ogden with this inadequate form of transit that he has included in the Midtown Village Development agreement this requirement: "The City understands and agrees that the Developer is RELYING on the location of the Gondola Stop AS A MATERIAL FACTOR in deciding to build the project." Looks like he has tied the Council's hands if they don't want to look like deadbeats and stop downtown growth. I sure wouldn't want to be in their shoes! Looks like the Ernst campaign of 2006 to discredit certain Council members all over again! What a rotten jerk we have for mayor! What a legacy Godfrey will leave! Sure he has started the revival of downtown business (which is good), but he will also leave a legacy of screwing Ogden and keeping it from obtaining a viable, dependable and much needed transit system that all of the population would use. Instead it will be shackled with a transit system geared for tourists (not residents) that only a select few Ogdenites will use. This action and his other nefarious deeds will far outweigh the good he has done and will be the legacy he gives to Ogden! How sad for Ogden! MATTHEW GODFREY GIVES DIRTY POLITICS AN EVEN BLACKER EYE!!
Curm: To clarify, the S-E published two news articles on the UTA/Godfrey Administration emails without crediting Weber County Forum or anyone else (having obtained their own copies of the emails directly from the city). Then they published an editorial (not a news article) crediting me, and the editorial contained a link to the scans of the emails on wcforum. They never came out and thanked wcforum.
Dan:
You are, as usual, right. Thanks for the correction.
"You'd be wise to obtain a copy of the Development Agreement for Midtown Village at the Junction Ogden City."
You mean this document? (big document; loads slowly)
Sit tight. We're still studying it, and we'll have an article coming up toward the end of the week.
Definitely some "red meat" stuff.
Little Mole:
He has included in the Midtown Village Development agreement this requirement: "The City understands and agrees that the Developer is RELYING on the location of the Gondola Stop AS A MATERIAL FACTOR in deciding to build the project." Looks like he has tied the Council's hands...
You have hit, I think, on a key point that may, in the end, have to be judicially decided. Who represents "the City" in the matter of development agreements and other agreements. Is the the mayor, exclusively? Or is the will of "the city" represented by the Mayor and Council? UTA got its fingers burned on this one, and seems [rhetorically at least] to distinguish now between "the Mayor" and "the City," to recognize that the Council on some matters speaks for the City every bit as much as the Mayor does.
What's the law on development agreements? Does anyone know? Can the mayor, exclusive of Council approval, commit the city via a signed development agreement? Or has the Council granted such authority to the Mayor? Or does the states municipal ordinances grant mayors such authority by right of election? I don't know. Be grateful for enlightenment on this if anyone does know.
The Mayor's office speaks routinely as if he represents "the city" in all matters. And clearly, on many matters, he does and should. But I'm not sure that list includes, or should include, development agreements arranged without Council prior or subsequent approval. I know the matter came up for some discussion in re: the now defunct "Peterson Proposal" but I'm not sure how it was resolved, or if it was, since the Peterson Proposal collapsed shortly after the discussion occurred.
If any one does know the limits on a Mayor's ability to sign binding development agreements sans prior or subsequent council approval, I'd like to hear from them. Or get pointed to an authoritative source on the matter.
""The City understands and agrees that the Developer is RELYING on the location of the Gondola Stop AS A MATERIAL FACTOR in deciding to build the project." Looks like he has tied the Council's hands..."
This language appears on page seven, para 2.9 of the above linked pdf doc.
I don't know which party is the most stupid in this ageement. The one one granting rights and acknowlegement for a ficticious gondola,(which it won't own) or the one predicating their whole involvement, including architecture, on a non exsistent sky- ride to nowhere.
Rudi, the City Council cannot be on the hook for some condition based in fantasy, I believe the ultimate destination must be firmly established, and operational before this can be concidered, the feasability also needs to be determined.
Well, the Republicans in Florida elected Comrade McCain, the Manchurian Candidate instead of the too- perfect- for- their- taste candidate, Romney, in the close race yesterday.
Interesting what a few large campaign contributions will get a guy.
As often happens here on the WCF a threat starts out on one subject and very quickly morphs into another. In this case the topic was Adam Aircraft with a subplot of the Standard ignoring the WCF.
Now it centers around the proposed development agreement between the city and the hotel developers.
As to the first - Adam Aircraft. It is not unusual for a new and struggling aircraft company to get foreclosed on by creditors. That does not mean the end of the world or the company product.
If The initial lenders do foreclose they will take possession of the Adam assets. Those assets for the most part consist of design work, contracts, specialized tooling and parts. Stuff that is only valuable as it pertains to building these two aircraft. Otherwise the assets are virtually worthless.
The foreclosing investors would have to keep the project going otherwise they would be guaranteed to lose all their money.
Therefore, a foreclosure will only result in new owners of the project, not a permanent shut down of the whole thing.
The question for Ogden then would become - will the new owners want to stay and build the airplanes here? The answer would depend on lots of things, including where the investors are from. So if some big Ogden money dude named Dave comes to the rescue, Ogden could very well become the home of the new "Dave" Aircraft company. On the other hand if somebody in Maine comes up with the cash we can kiss the whole deal goodbye. That is unless we can sic some missionaries on them, get them dunked and indoctrinated into the Godfreyite movement. That will be Matt's big assignment if that happens!
Incidentally it is not uncommon for small aircraft companies, especially start ups, to go through a succession of owners before they ultimately succeed or fail.
On the subject of the proposed hotel and agreement. The language "The City understands and agrees that the Developer is RELYING on the location of the Gondola Stop AS A MATERIAL FACTOR in deciding to build the project." seems potentially troubling on the face of it.
One interpretation could be that the City would be contractually bound to actually build a Gondola if it signs this agreement with that language. That of course would be a back door cats ass trophy of the first order for Godfrey to sneak his Gondola dream in like that. Being suspicious of the little dishonest prick like I am, that was my first reaction.
On the other hand it does say "Gondola Stop". That doesn't necessarily mean there has to be a Gondola, just that if there is one these guys are guaranteed the down town stop in their hotel.
As a minimum, I would hope that the RDA board clarifies this and demands more exact language.
By now they surely have learned to not trust Lyin Matt, haven't they?
Ah, Oz.... "gondola stop." I have this image of a hotel going up, with a gondola "stop" --- platform, ten yards of cable connected to nothing at either end.
Hey, a guy can dream, can't he?
Hey, Ogden all ready owns 2 used gondola cars. instead of the city forking over the cash for a sky walk from the hotel to the slip-n-slide, give em the gondola cars and a big long rope. This will satify all parties in the agreement. And being downtown, lying little matty will have his urban gondola. But instead of going nowhere, it'll go to the slip-n-slide. It could also become a world wide draw, the shortest gondola in the world.
HaHaHaHa
The shortest Gondola in the world dreamed up and executed by the shortest mayor with the shortest resume in the world!
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