Orange County supervisors Tuesday were skeptical of a plan from its fixed-based operator at John Wayne Airport to sell bonds to finance $120 million in improvements.
After a lengthy discussion, the supervisors voted to postpone any action on the proposal for another 90 days so staff and Clay Lacy Aviation Inc. could negotiate changes.
Usually, the sale of public bonds is done by a governmental agency, but the fixed-base operator has a plan to issue the bonds through the California Municipal Finance Authority.
Clay Lacy Aviation wants to construct a 6,500-square-foot customer terminal building and four hangars, including an office space. The county would own the new property.
Orange County Supervisor Don Wagner criticized the proposal for having the potential of encouraging the other fixed-base operators at the airport to ask for the same privilege. Wagner was particularly miffed that John Wayne Airport Director Charlene Reynolds had taken the day off for the county board’s first meeting in a month.
“The airport director had a meeting with me yesterday and she said she would say publicly I don’t like this deal, and she’s not here today,” Wagner said. “So, I’m very frustrated at that bait-and-switch. Does the airport support doing this? She said to me I do not support this.”
Board of Supervisors Vice Chairwoman Katrina Foley texted Reynolds during the meeting and reported that she said she wasn’t opposing the deal if the county “gets something in addition in return.”
Foley, who motioned to approve the proposal, said she was upset to get the news of Reynolds’ stance on the issue during the meeting.
“I’m hearing for the first time the airport director doesn’t support this,” Foley said. “She never said that to me and I’m miffed about that. We shouldn’t be hearing that for the first time in this hearing.”
Orange County CEO Michelle Aguirre said the county has had its issues with Clay Lacy, which was approved five years ago for 35 years.
“I communicated to the board that we’ve spent the last two years going back and forth with Clay Lacy,” Aguirre said. “We’ve had issues with working with Clay Lacy related to transparency and trust issues.”
But, she added, the company’s proposal “was something we were comfortable bringing to the board for consideration because we believe the risk is de minimis, if anything, to the county.”
Wagner agreed “the county is protected” if the company defaults on its payback of the loans. But he was reluctant to open the doors to a novel waiver that could draw other vendors seeking the same treatment.
“This is an easy no — we have a deal, let’s stick with the deal,” Wagner said.
Foley argued the county would own the improvements and the bonds would not “burden the taxpayers.” She added that business leaders support it.
But Foley later suggested clearer language in the agreement that if the company defaulted on the bonds that the county would have clearer authority to take over the operation and seek a new vendor.
The board on Tuesday also banned the sale of the kratom supplement, known by its nickname “gas station heroin.”
Supervisor Janet Nguyen proposed the ban on kratom and 7-hydroxymitragynine products in businesses in unincorporated areas of the county. Kratom, an herbal medicine, comes from evergreen tree leaves in Southeast Asia and has opioid and stimulant effects.
Authorities warn the drug can be addictive and lead to psychosis in high doses.
The county’s move joins Newport Beach, San Diego and Oceanside in a municipal crackdown on the supplement which can be found as an ingredient in energy drinks and other products sold in convenience stores.