Warnervale Airport: Councillor’s push to declassify Amphibious Aerospace Industries contract

It was supposed to be a $100 million project that would see Albatross planes built at Warnervale. But councillors tore up the 40-year lease before a screw was ever turned. Now there’s calls to declassify the reason why.

A notice of motion will go before council calling for the details of terminated lease agreement with Amphibian Aerospace Industries to be made public. Picture: supplied

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A 40-year lease on a parcel of land at Warnervale Airport for a subsidiary of an American plane manufacturer to build a $100 million hanger and Albatross production line was one of the biggest deals signed while Central Coast Council was under administration.

Within a month it was revealed the US-based parent company of Amphibian Aerospace Industries (AAI) had hardly turned a screw on the HU-16 and G-111 Albatross amphibian aircraft it had the licence to build.

A concept plan for AAI site at Warnervale Airport.

It was then revealed the first stage of the $100 million, 18,000m sq aircraft factory on 2ha of land that would create 240 direct jobs and thousands of ancillary roles, was a far more modest $2.8 million for a 27-job, 2760m sq factory on just 0.68ha.

At the time the deal was announced then Central Coast Council administrator Ian Reynolds said its was the culmination of more than 12 months of negotiations and was part of a wider vision to make the airport a hub for light to medium commercial general aviation.

Khoa Hoang, Amphibian Aircraft Group President, (right), signs an agreement with Rob Noble, Central Coast Council CEO, after the announcement of a new aircraft facility, Amphibian Aerospace Industries is to relocate its offshore manufacturing to the Central Coast. Picture: Peter Clark

“Having an anchor tenant like AAI at Central Coast Airport will help put our region on the aviation industry map,” Mr Reynolds said in September 2016.

But when a new council was elected, councillors voted to tear up the lease, leaving council liable for damages up to $40-60 million, according to council’s own legal advice.

The road at Warnervale Airport council built to accommodate aerospace company AAI but decided in a confidential meeting to rip up the contract and pay them out. (AAP IMAGE / Troy Snook)

Now a NSW State Government review of the Warnervale Airport (Restrictions) Act has recommended repealing the legislation, immediately scrapping movement caps and improve transparency around the airport’s business model, councillor Greg Best has raised a notice of motion at tonight’s meeting about “declassifying” the contract with AAI.

A concept plan for AAI site at Central Coast Airport.

The motion seeks a report on “what actions and legal mechanisms are available to declassify the confidential documents revealing to the ratepayers exactly how much the AAI contract extinguishment cost”.

At the time of the AAI announcement, council also had 17 formal Expressions of Interest (EOI) from other aviation-related businesses looking to base themselves at Warnervale.

Amphibian Aerospace Industries was going to relocate its offshore manufacturing to Warnervale but council terminated its lease.

Mr Best’s motion also seeks advice on how much “lost opportunity costs” were involved in terminating those EOIs.

In a CEO Response to Mr Best’s motion, Business Enterprise unit manager Janine McKenzie said such a report would “require seeking of legal advice and detailed consideration and analysis”.

Calls to AAI’s offices at Tullermarine Airport in Victoria were not returned.