Eclipse Aerospace asks city for free rent

Posted at: 10/12/2009 9:06 PM | Updated at: 10/12/2009 10:38 PM
By: Joe Vigil, Eyewitness News 4; Matthew Kappus, KOB.com

Eclipse would offer this building in exchange for free rent

The new Eclipse Aerospace is asking the City of Albuquerque to waive its rent for five years, but it is offering something in return.

The five years of rent is worth more than $5 million. The company also hopes the city will forgive another $2.5 million in back rent from the old Eclipse.

City councilors who discussed the issue at a finance meeting appeared to be optimistic about Eclipse’s return and the deal being offered.

"I would hope they would be successful in this economy," said Councilor Ken Sanchez. “I do think they need some support and I think this is a way to do this."

“It looks like it's going to be a very good deal for the city, a very good deal for Eclipse,” Councilor Don Harris said.

The new Eclipse Aerospace was formed by former Eclipse executives.

In exchange for the city forgiving $7.5 million in rent, Eclipse would give the city a 42,000-square-foot building at Double Eagle Airport. It sits on 5,000 acres of land.

Sanchez says the building, which was supposed to be Eclipse Aviation’s headquarters, is worth about $8.2 million.

Harris says if the new company goes bust, the city still has the building.

"That's the real beauty of this potential deal--we get an asset that we wouldn't have had,” he said.

The City Council is set to vote on the proposal a week from Monday.

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