NORWICH – Plans for not one but three businesses that would have generated much-needed revenue for Warren Eaton Airport have failed to take off.
Chenango County’s $5 million insurance liability policy, as required by the county’s attorney and insurance consultants, have scared the potential renters away, said Donald MacIntosh, the county’s airport administrator.
A local leather upholstery business, a mechanic that would have resulted from the upholsterer’s business, and a New Jersey-based environmentally-friendly paint-stripping business have all ended contract negotiations with Chenango County officials.
The Chenango County Board of Supervisors had stipulated a three-year lease on t-hangar rentals at a monthly rental fee of approximately $13,000 per year. For the $5 million for insurance, a renter would be obligated to pay an additional $18,000 a year.
The owners of the seven-year old upholstery business, which could ultimately have resulted in more aircraft traffic, fuel sales, a need for mechanical services and possibly more jobs at the airport, said they could afford only $1 million in coverage. MacIntosh said the paint stripping business never responded after learning the liability rate.