Redmond agrees to one-year deal with Butler Aircraft

A year-long legal dispute over aviation services at the Redmond Municipal Airport took another big step toward resolution Tuesday night.

Mayor George Endicott said the city council agreed to enter into a one-year probationary period with Butler Aircraft and KC Aero, which subleases services to Butler, to keep them on as the fixed-base operator, providing fueling and other aviation services at the airport.

A team of councilors and principals of the two businesses met two weeks ago to propose the deal, Endicott said.

The dispute arose when the city updated its minimum fueling standards for aviation-service providers, to meet FAA standards, and Butler objected.

After a tour of Butler’s facilities, councilors in late April had unanimously extended a deadline for Butler’s departure, from May 26 to June 30.

In February, after Butler and KC Aero filed breach-of-contract lawsuits against the city, councilors gave 90 days to stop providing aviation services. The city already had spent more than $140,000 in attorneys’ fees, and also had agreed to spend almost $350,000 for new gas storage tanks, in expectation of operating its own fueling service.

“As the cease-and-desist order was extended to June 30, the details will need to be worked out by then,” Endicott told NewsChannel 21 by e-mail, adding, “We see no problems to meeting that deadline.”