FBO Agreement Signed


 

With the execution of an agreement by the Montrose County Commissioners and Majestic Skies on July 2, over 508,000 square feet of space at the Montrose Regional Airport has officially been leased to Majestic Skies for the purpose of operating a second Fixed-Base Operator.

Majestic Skies now has 90 days from July 2 to present detailed plans and specifications for phase 1 of the FBO construction to the county, and 36 months to begin construction on the project, assuming all permits and assessments are completed.

In what was a highly controversial decision last month, the Montrose Board of County Commissioners, by a vote of 2-1 (Gary Ellis dissented) approved the contract agreement with Majestic Skies to operate a second FBO at MTJ. The agreement, effective for 20 years (plus two additional ten-year extension options), contains up to $5 million in credit reimbursements from the county for costs associated with developing ramp-and-fuel-farm infrastructure at the airport. The approved agreement does not, however, allow Majestic Skies to be exempt from the airport’s set of Minimum Standards at any time during its start-up period, and mandates that as an FBO, it must comply with the county’s $250,000 per year minimum fuel flowage fee. All other rent and fees, adding up to a minimum of $350,000, will be exempt during Majestic Skies’ start-up period.

As promised, Montrose County has released the proposal Majestic Skies submitted to the county during last year’s request for proposals period. With the county’s refusal to release that proposal to the public until the agreement’s execution, the proposal itself was at the center of swirling controversy, and triggered Colorado Open Records Act litigation between the county and Jet Center Partners, operators of the Black Canyon Jet Center FBO.

According its October 2013 proposal to the county, Majestic Skies is “committed to ensuring that customers will have the ‘best FBO experience’ when visiting Montrose.” Majestic Skies plans to provide a full-service FBO including services, facilities, fuel, line services, ground support, hangar space, shop space, office space and tie-down rentals for a “fair, reasonable, appropriate, and competitive price.”

To build the needed facilities to run the FBO operations, Majestic Skies stated in its proposal that it would invest approximately $4.5 million for needed infrastructure and capital improvements.

Based upon its own fuel sale estimates, Majestic Skies plans to operate the FBO with 16 full-time employees during its first year of operations, and extend that number to 19 by its third year of operation.

Larry Danielle, Majestic Skies business investor, will serve as the the new FBO’s chief operating officer. Danielle, who owns a home in Placerville, sold his self-serve auto-salvage business in Florida in 2012. According to the proposal, he is now focusing on the aviation industry, including the buying and selling of aircraft and developing the new FBO at MTJ.

Matthew Franzak, owner of the Pompano Beach, Fla.-based Majestic Jet, will service as the FBO’s chief executive officer. New Jersey-based Big Boyz, LLC owner Dirk VanderSterre will serve as the FBO’s executive general manager, and Richard Cantalupo, who made a brief appearance at one of the commissioners’ FBO hearings earlier this year, will serve as operations manager at the FBO. Cantalupo previously held the position as deputy director of aviation for the Illinois Department of Transportation’s Aeronautical Division.

It is unclear when Majestic Skies plans to begin construction and when it will ultimately open the FBO for business. Phone calls to Danielle were not returned as of press time. The Majestic Skies agreement and its proposal to the county can be viewed at MontroseCounty.net.

New FedEx Facility Approved


There was no doubt Tuesday that the Montrose City Council would approve the sale of undeveloped land to be used by Federal Express for its new facility on the north side of the city, as the building’s contractor was already in town from Colorado Springs.

By a vote of 5-0, Council approved Ordinance 2337 on second reading, which authorized the sale of two parcels located in the Airport Industrial Park totaling 5.57-acres to be developed as a new 22,840 square-foot Federal Express sorting facility.

The Montrose Economic Development Corporation purchased the property with private investment dollars in 1989 and quick-claimed the property to the city in the early 1990s as a way of avoiding real estate taxes. The sum listed on the deed at that time was $10. With approval, the city will quick-claim the property back to MEDC for $20.

Tuesday’s vote was merely procedural, to fulfill a provision from the city’s charter that states if council is to approve the sale of public land it, it must create and adopt an ordinance.

Ground is expected to be broken at the FedEx location in coming days; earlier this week, T-Bone Construction Inc. of Colorado Springs began delivering equipment to the site.

T-Bone is the contractor hired by Setzer Properties, a company that works closely with FedEx on building new facilities. According to the city, Setzer paid for the building permit last week.

The question that still looms over the transaction is who will receive the proceeds from the sale: the city, or the MEDC? Both parties reluctantly agreed to hold the money in escrow until the issue is resolved at a future meeting.

Mayor Bob Nicholson said the city and MEDC both had “skin in the game,” and that he hopes a future meeting between the two parties “is productive.”

During the hearing, supporters and critics of MEDC exchanged views on MEDC’s history in Montrose.

“MEDC does not have the full respect and trust in this community,” said resident Dennis Olmstead, describing what he said was a lack of transparency from the organization that receives taxpayer funds.

Others wondered if MEDC had moved away from being an economic development company to become a land company. Over the years the city has made improvements to the area proposed for FedEx and now will quick-claim the land, with those improvements, back to MEDC. One critic told council the city was “spending too much and receiving too little from this organization.” Another said all city-controlled MEDC-owned land needed to be returned to MEDC as soon as possible.

Resident Roger Brown said he wants the city and MEDC to split the sale’s proceeds. Last week, during a special meeting, supporters of MEDC said the city had no authority over the land because it was purchased privately by investors of MEDC. They said the city should quick-claim the deed back to the MEDC with no strings attacked.

A representative of Ek Horn Painting, who are house painters Castle Rock, told council the purchase of the mill by Wyoming-based Neiman Enterprises would not have happened without the help of MEDC. He said the mill, with its its 80-or-so jobs, pumps millions of dollars into the local economy, impacting services like fuel sales and housing.

Resident Curtis Robinson, an investor in MEDC and former board member, told the council he was offended by comments that MEDC has done little for the community.

“Just go back and take every business that MEDC has brought to Montrose and add it up, and tell the community what it is so that these people — who imagine they know what the hell they are talking about — could maybe be informed,” Robinson said.

Resident Jim Anderson said the city and MEDC need to work together more ethically, with honesty and transparency,  to keep the Montrose area growing, and that back room, hand shake real estate deals need to be eliminated.

Anderson said economic development in Montrose is growing, thanks to the increased openness of city staff, “in ways that have never been done before.”

The council agreed with Anderson. Mayor Nicholson’s statement that details of future deals between the city and MEDC need to be disclosed, with “nothing hidden” and a clear chain of title, drew nods of support from MEDC representatives attending the meeting.

The sale price of the land has yet to be disclosed, but will be made public once the paperwork reaches the county clerk’s office.

There has been no word of when the city and MEDC will discuss proceeds from the sale.

Snowmaking Gets Bigger


After laying 16,000 ft. of steel pipe last summer and an additional 22,000 ft. of pipe being installed this summer, the Telluride Ski Resort’s once antiquated snowmaking capabilities are becoming vastly more efficient and will now bring better snow conditions to more places on the mountain in a shorter period of time.

Simply put, the new system will enable snowmaking crews to use the same amount of water as in the past, but in a more powerful way, meaning more runs will be open earlier in the season. And all this will be accomplished, using less energy.

The infrastructure upgrade is big and expensive (close to $3 million over the last two years), but Telluride Ski and Golf Co. officials say it will properly lay the groundwork for future snowmaking expansions on the Town of Telluride side of the resort.

“Once this is built and built right, we are setting ourselves up for success,” Jeff Proteau, Telski Vice President of mountain operations and planning, said last week.

Telski’s Manager of Snowmaking Brandon Green, the designer of the ski area’s multi-year infrastructure upgrade project, works closely with the renowned snowmaking engineer firm, Torrent Engineering and Equipment. Last summer, crews replaced 16,000 ft. of steel pipe around the Lift 4 area. The old  antiquated pipe often froze, and caused major snowmaking delays while crews were called to fix the breakage. That old system also contained dead ends and one-way legs that held back snowmaking crews back. If there was a frozen pipe or a burst pipe, the entire system had to be shut down until it was fixed.

The new pipe system laid last summer was designed with a loop and various shut-off valves, so if a pipe does freeze, the entire system won’t have to be shut down.

The new infrastructure also has the ability to bring water at a higher pressure, up to 800 p.s.i, which is needed for  60 new low energy Snow Logic snowmaking guns. These new guns, along with the higher pressure, make it possible to begin snowmaking at a higher temperature (anywhere below 26 degrees Fahrenheit) than the previous system.

READY FOR WINTER – Along the new line, between the top of Lift 4 and the bottom of Lift 5, there will be 38 new hydrants where new Snow Logic guns will be located. Pictured is one of the new hydrants thats now ready for a new snowmaking gun.

The improvements made to the snowmaking system had a big impact on the ski area’s snowmaking ability last year, at the same time dramatically reducing its energy consumption.

“We basically finished making snow on Dec. 23,” Green said, adding that many longtime snowmaking employees in Telluride hadn’t had Christmas off in years. “This year they had Christmas off. It was a huge change.”

Green also said the improvements saved the ski area energy costs by about 30 percent.

“It’s all about reducing our carbon footprint and snowmaking is the place to do it,” Proteau said. “There are so many things you can do to improve snowmaking and, so far, we are really proud of what we’ve done.”

Telski didn’t stop there. This summer, even more improvements are taking place. Currently, there are seven track-hoes, three dozers and approximately 30 workers excavating, welding and installing 22,000 ft. of steel pipe from the top of Lift 4, down Boomerang, to the bottom of Lift 5. It is in this trench that three new steel pipes are being installed. One will carry pressured water for snowmaking. One will carry high-pressure air to operate about 38 new Snow Logic snowmaking guns this winter. A third pipe will be used to fill either one of Telski’s two water reservoirs near the top of Lift 4.

The snowmaking system it replaces used one pipe for both snowmaking and reservoir-filling needs, which slowed down snowmaking efforts.

The new line will carry 38 new Snow Logic guns along the route, a major boost from the previous 12 old guns that were operated along this line. With the energy efficient Snow Logic Guns in place and the ability to move water where it’s needed while snowmaking is in progress, the new system will, Green says, allow his crew to be more selective about when and where snow is made.

“We’ll have 38 new snowmaking locations instead of 12,” Green says. “This is really going to speed up our process.”

The new pump line is dedicated to keeping reservoirs full and, upon completion of future upgrades at the the base of the gondola, will enable crews to fill those reservoirs with San Miguel River water. Upgrades also include a new gravity feed line down to the Meadows, Double Cabins and the Peaks where snowmaking capabilities will be increased.

Each winter season, Telski uses between 90 million and 110 million gallons of water for snowmaking purposes; the new snowmaking infrastructure will consume no more water.

“We won’t need more water, but we will have the ability to move more water more efficiently,” Proteau explains. “In the past, we had to make snow whenever we could. Now Brandon can be more selective about where the water needs to be. As soon as the temperatures get right, he can light the place up with snow.”

Proteau says it has been and will always be the ski resort’s policy to open easy runs into the Mountain Village base area first, because skiers and riders of all abilities can use them. But as soon as they are open, they will move the snowmaking to the front side of the resort to give skiers and riders access to Telluride as well. All of this new snowmaking infrastructure will help ensure the front side gets access sooner than it has in the past. In addition, the new work between Lift 4 and 5 will enable crews to open connector runs more quickly, which means upper portions of the mountain can be opened more quickly.

And what about upgrading the front side’s snowmaking infrastructure? That leg of the big picture project is still in the works but both Green and Proteau said the current projects need to be completed first.

A LONG SECTION of steel pipe was laid into a trench last week. Both Proteau and Green gave a lot of credit to Telluride Ski Resort owner Chuck Horning for his willingness and vision to move the ski area forward with the needed infrastructure upgrades.

“It’s been great to have an owner like Chuck who listens to us on what needs to be done to improve the ski area,” Green says. “This is a fun project to conceptualize, see it through and then finally turn it on.”

This summer’s installation is expected to be completed by Aug. 20.

Ray’s To Remain Open


Jerky Business Plans New Store in Ouray

MONTROSE — An early morning fire on Sunday caused about $40,000 in damage to the Ray’s Good Stuff jerky store south of Montrose, but the owner has vowed to press on with a new location in Ouray.

At approximately 5:04 a.m. Sunday, firefighters with Stations One and Two of the Montrose Fire Protection District were dispatched to Rays, located at 20413 U.S. Highway 550.

Upon arrival at 5:10 a.m., firefighters observed smoke and flames coming from the north side of the building, according to Montrose Fire Protection District Chief Tad Rowan.

FIRE AT RAYS - An early Sunday morning fire at Rays Good Stuff jerky store south of Montrose caused an estimated $20,000 in damage. The business has moved to Ouray. (Photo by William Woody)

FIRE AT RAYS – An early Sunday morning fire at Rays Good Stuff jerky store south of Montrose caused an estimated $20,000 in damage. The business has moved to Ouray. (Photo by William Woody)

“We did not determine an exact cause of the fire, but we were able to determine the exact origin,” Rowan said.

Rowan said the fire originated at a corner on the building’s north side, and that an investigation is ongoing.

About $20,000 worth of damage was inflicted on the building and another $20,000 worth of equipment inside was also destroyed.

Rowan said there was a significant amount of inventory in the store that was undamaged. Other parts of the store suffered heat and smoke damage. Firefighters left the scene at about 8:24 a.m.

A sign on the front door of the store said the business was closed but urged customers to visit its new location at 710 Main Street in Ouray.

Attempts to contact owner Ray Valentine were unsuccessful as of press time Wednesday. On Facebook, Valentine said he was appreciative of all the support he has received since the fire.

“Many thanks to my family, friends and neighbors who have lent a helping hand or a kind phone call and keeping things positive. So Very Appreciated…” Valentine wrote. “Weather permitting we will try and be outside at the picnic table for you die hard jerky lovers!”

Ray’s Good Stuff was founded in Ridgway in 2002. The company’s vast menu of products are sold in 250 stores throughout the region.