A new lawsuit accuses Wichita and its airports director of fraud and civil conspiracy for its dealings at Jabara Airport.
A lawyer who filed the petition told the City Council on Tuesday that the city — through the Wichita Airport Authority — hasn’t followed its competitive bidding process at Jabara, instead making city business decisions based on friendships.
“This is a big problem in Wichita,” said Charles Wittmack, attorney for Midwest Corporate Aviation.
Wittmack is asking the Sedgwick County District Court for a restraining order against an agreement approved by Wichita’s City Council on Tuesday.
At issue is a land use agreement approved by the City Council on Tuesday. The agreement gives Clemens Aviation control of land the city already promised to Midwest Corporate Aviation through a public bidding process, according to the lawsuit.
The lease will allow Clemens to invest $4 million in new hangar facilities, offices and a customer service area.
The lawsuit is the latest in a dispute over fixed-base operations at Jabara.
Lawyers for Midwest Corporate Aviation, which provides hangar space, fuel and other services at Jabara, filed the lawsuit Tuesday morning in hopes the City Council would delay its approval. But the City Council pushed forward with the agreement in a split vote.
Mayor Brandon Whipple asked the council to delay the vote so the city could look at the lawsuit before proceeding with the deal, but his motion failed 4-3, with Council Members Jeff Blubaugh and James Clendenin siding with Whipple. The agreement passed 5-2, with Whipple and Clendenin casting dissenting votes.
The lawsuit claims Midwest Corporate Aviation invested millions of dollars in its Jabara operations based on promises made by the city.
But Director of Airports Victor White began “secretly negotiating” a deal with Clemens that threatens to “profoundly decrease the value” of Midwest’s recent investments, according to the lawsuit.
White spoke at the city council meeting and urged the council to approve the contract with Clemens, but did not address the allegations in the lawsuit. It is the city’s long-stated policy not to comment on ongoing litigation.
Wittmack, attorney for Midwest, told the City Council that all parties involved — Wichita, Midwest and Clemens — have a shared interest in the agreement approved Tuesday. Midwest wanted the delay so it could secure a written agreement with Clemens to make sure the two companies don’t have further conflicts.
“What makes that litigation awkward is that there really isn’t a dispute between any of us,” Wittmack said. “We think the interest of the city is the same as the interest of Midwest Corporate Aviation, which is also the same as Clemens Aviation. The problem here is one of how this process has unfolded.”
Midwest Corporate Aviation is the sole fixed-base operator at Jabara, and Clemens has announced plans to open its own fixed-base operation at the airport. Fixed-base operators are granted the right to provide services like fueling and storage at publicly-owned airports.
Chris McElgunn, attorney for Clemens, said the lease approved Tuesday would not be for fixed-base operations.
Barbara Autry, owner of Midwest, said she wants that in writing. She said she also wants any new future fixed-base operation to go on the east side of the runway, in accordance with the airport’s master plan, instead of the west side where Midwest is based.
Midwest told the city in 2017 that it was interested in expanding onto two small parcels at Jabara Airport, adding new hangars and other updates. White, the airports director, informed Midwest that it had received an “essentially simultaneous” proposal for that land from Clemens, initiating the city’s competitive bidding process.
When the city put the two parcels out for bid, only Midwest responded and the city told the company its proposal was accepted. Midwest has completed work on one of those parcels. But before it could develop the second parcel, White sent Autry a letter terminating the agreement.
That second parcel is what was leased to Clemens on Tuesday. There was no competitive bid for that parcel. Midwest’s attorney said it’s clear that the deal was hashed out behind closed doors.
“There have been two different channels,” Wittmack, Midwest’s attorney, told the City Council. “There had been a public process that Midwest Corporate Aviation was forced to pursue, and then there had been a separate process that was frankly just a conversation among friends.”
“It’s fun to do business with our friends. We want to do business with our friends, and that works great in business. It doesn’t work great with the city, because the city is at its best when it pursues its objectives consistent with its planning documents through a public process through transactions that occur at arms length,” Wittmack said.
The lawsuit claims that the city’s actions represent a “breach of the covenant of good faith and fair dealing” and will “destroy the right of (Midwest) to receive the fruits” of its contracts with the city.
It also claims the city fraudulently induced Midwest into investing at Jabara by making knowingly false representations “with intent to deceive or recklessly made with disregard for the truth.”
Midwest is seeking payment for damages and attorney fees and any other relief the court deems proper.
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