Signature Aviation wins lease on unadvertised land at RSW

Lee County Port Authority commissioners approved a multimillion-dollar lease at Southwest Florida International Airport, but the parcel awarded was not the one originally advertised. It is raising concerns among rival aviation firms and legal experts about whether the process was fair. 

Port commissioners, who double as Lee County commissioners, voted 3-1 Sept. 4 in awarding a land lease to Signature Aviation for 27 acres on the north side of RSW. The land is the same size, but a different location from what was advertised more than a year earlier. In May 2024, the request for proposal, a solicitation of sealed bids, was issued for adjacent land but with different boundaries. 

Fixed-Based Operators provide services for private aircraft, including hangars, maintenance and, most importantly, fuel. 

Signature Aviation, the largest FBO with more than 200 locations around the world, won the bid. It is owned by Cascade Investments, Global Infrastructure Partners and The Blackstone Group, which combine to hold more than $1.2 trillion in assets. 

But Plano, Texas-based Atlantic Aviation, the second-place finisher, wants a chance to bid on land it wasn’t given the opportunity to consider. 

Atlantic Aviation questioned the process in a written statement provided to Gulfshore Business by Chief Development Officer Clive Lowe, who declined an interview. “We would expect to be invited to resubmit a proposal if the site location was changed from the original RFP and would be surprised if the site changed significantly and we weren’t invited to do so,” the statement read. 

Jim Hopkins, senior vice president of Signature Aviation, declined to be interviewed after the vote. 

The Port Authority issued a statement explaining the change in the land boundary.

“During the contract negotiations, airport staff believed it was better for RSW to shift the second FBO site east to abut the adjoining new cold storage site, which would then open a larger contiguous parcel of property between the two FBOs, which would be prime airside property to attract future aviation businesses,” Vicki Moreland, chief communications officer for the Port Authority wrote. “By shifting the site, LCPA would also not disrupt FAA equipment, including the wind cone, segmented circle and automated surface observing system.”

The RFP also had, in section A22, a legal loophole to change the boundaries. It says: “… The Agreement may or may not include all elements of the Proposer’s proposal or this Request for Proposals where alternatives provide best value, are desirable to the Authority, and the parties agree to such terms.”

“LCPA is legally able to modify the boundaries of the parcel leased based on Section A22 of the RFP, to allow an alternative which provides a better value and is desirable to LCPA,” Moreland wrote.

Private Sky alleges unfair competition 

Private Sky has been the only FBO at RSW since the company launched 25 years ago. Presidents George W. Bush through Donald Trump each flew in and out of RSW using Private Sky’s facilities, which also hosted the National Guard and dozens of relief flights before and after Hurricane Ian in 2022. 

Private Sky CEO Victoria Wolanin declined to comment, referring questions to the company’s attorney. Private Sky has filed two lawsuits — one against the Port Authority, arguing that RSW does not have enough private flights or fuel sales to justify a second FBO, and another against Signature. In the latter, the company claims Signature misled Private Sky into making financial disclosures that it “could use to destroy Private Sky,” according to the lawsuit. 

Those arguments are separate although related to this land lease issue, said Paul Thanasides, an attorney with Tampa-based McIntyre Law Firm, representing Private Sky. 

“If they had put out this parcel for this lease proposal, you can bet your bottom dollar that Private Sky would want to bid on it,” Thanasides said. “That is also a problem. That our client was precluded from bidding. Atlantic certainly has a dog in the fight and a bone to pick. But Private Sky also does. It feels extremely unfair to Private Sky … to not have bid on the actual lease that was offered to Signature.” 

Commissioner Cecil Pendergrass, who cast the lone ‘No’ vote on the lease agreement, cautioned his colleagues Sept. 4 to defer voting until after Private Sky’s legal complaints were settled. 

“Because of the pending litigation coming up, we should do our due diligence to make sure they’re being treated fairly,” Pendergrass told Gulfshore Business regarding Private Sky. 

FAA funding reason for ‘Yes’ vote 

Commissioners Brian Hamman, David Mulicka and Kevin Ruane voted ‘Yes’ to the lease agreement. 

Hamman deferred commenting on the land discrepancy to Port Authority Director Steve Hennigan, who declined to be interviewed. 

Mulicka deferred comment to County Attorney Richard Wesch, who did not respond to an interview request. 

Ruane did not acknowledge an email seeking comment. 

Before and after voting, Hamman and Mulicka said they wanted to foster a competitive environment at RSW, one that is encouraged by the Federal Aviation Administration. 

“We’re building multibillion-dollars’ worth of structures,” Hamman said during the meeting. “It’s upward of hundreds of millions of dollars that they (the FAA) could take back or not grant us in the future. We have the responsibility to open things up for competition, so we held requests for proposals. We took the bid. This company Signature won that process. They won the opportunity to pursue the lease from us. If we don’t accept this today, we might run afoul of the FAA, because we’re not allowing open competition.” 

Commissioner Mike Greenwell, who announced last month he has medullary thyroid cancer, was absent and did not participate. 

Moreland said the Port Authority wanted to change the land boundaries for practical reasons.

“The final site selected (Exhibit A) on Agreement and included in the lease is different from parcels A and B (shifted to the east),” Moreland wrote. “The RFP as advertised, originally identified parcels A and B for a total of up to 27 acres. In negotiations, it was determined that shifting the proposed site further east [while not exceeding the up to 27-acre parcel size that was advertised], to abut the cold storage site, was beneficial.”

Thanasides said the switch benefited only Signature Aviation.

“Let’s say I am a government agency that wants my favored FBO to lease property, but I am stuck putting the lease out for bid. How do I make sure my favored FBO wins the bid?” Thanasides wrote in an email. “What I would do is issue an RFP for an unfavorable parcel that requires expensive infrastructure changes while vaguely reserving the right to make changes to the lease terms. I tell my favored FBO — with a wink, wink — to submit a generous bid on the bad parcel without regard to its viability. When my preferred FBO submits the inflated bid, I award it the lease. Then I use my ‘reservation of rights’ to give my favored FBO a different, better parcel on better terms. That way no other FBO can have the opportunity to outbid my favored FBO on the better parcel and better terms.

“And there you have it, I have awarded my favored FBO a no-bid lease, while appearing to those who do not look deep enough that I put it out for bid. Superficially, I can say the lease was awarded after an RFP process, but in truth, the lease that is being offered to Signature was not bid on by anyone. Nobody had the chance. The Port Authority made sure of it.”

Wesch and Hennigan and his staff recommended that commissioners accept Signature’s lease agreement with the new boundaries at the Sept. 4 meeting. 

Signature plans to spend $27 million on building new facilities, more than the required $15 million in the RFP. 

“Airports are a fair market operation, if you will,” Hennigan said during the meeting. “We have people on staff whose sole purpose is to bring in new air service. It is up to the market to provide the best value possible. 

“The same thing happens on the north side of the airfield. If someone wants to compete to build a new structure that ultimately enhances the economy of the surrounding counties, then we, based on those assurances, cannot stop them. 

“It’s different if you don’t have room. Miami would be an example, where they don’t have enough room for more FBOs; RSW does.” 

Hennigan and Wesch said the FAA could cancel grant money for RSW if a second FBO wasn’t in place. 

“They will look at past grants and future grants, if they file against us,” Hennigan said. 

Juan Brown, an FAA manager in the Orlando office, which oversees RSW, could not be reached for comment. 

Colin Roopnarine, a Tallahassee-based attorney, said Atlantic Aviation could file a bid protest to resubmit its application for the new land in play. 

“In a bid protest, the runner-up usually will file a bid protest,” Roopnarine said. “And then it becomes like a case, where it could go to a hearing.” 

Michael Schofield, a Pensacola-based pilot and aviation attorney, isn’t connected with the Lee County Port Authority, Private Sky or Signature Aviation. He said the port authority could face further legal action having awarded a land-lease without proper competing bids for the land. 

“Airports and airport authorities often make mistakes,” Schofield said. “It’s not always nefarious. Sometimes it can be. 

“Unless someone comes forward and complains, they will enter into a lease. You’ll have two FBOs on the field. 

“Technically, the RFP should match what is being built on. Or they should reissue the RFP,” he said. “Just in general, you want the RFP to match. Because otherwise, you could have somebody filing a complaint. Then you are giving, essentially, a secretive lease.”