County approves loan to helicopter company

Red Willow County commissioner Leigh Hoyt made the motion Monday morning to approve a $300,000 loan for a Colorado firm that wants to start a helicopter kit company in McCook, then smiled and said, "And I want a ride in the first one built."

Hoyt and fellow commissioners Earl McNutt and Steve Downer unanimously approved the loan to Pawnee Aviation following testimony during a public hearing and discussion during their regular session.

"If you approve the loan, everything's ready to go," County Attorney Paul Wood told commissioners. Wood said he had requested quite a number of documents from Pawnee Aviation, and that between Pawnee Aviation officials, Rex Nelson, director of the McCook Economic Development Corp., (which oversees the county's revolving loan fund), and Nelson's staff, all his requests had been fulfilled within a week's time.

Nelson told commissioners he has committed two months -- more than 100 hours -- to researching Pawnee Aviation. "They have a certificate of good standing with the state of Nebraska ... their principals are trustworthy," Nelson said. "This is a solid, solid project ... a solid, solid company."

Dick Trail of McCook, who himself flies, told commissioners he visited Pawnee Aviation's operation in Longmont, Colo., and was impressed. "They're using proven components," Trail said, including a 350 Chevy engine "that any hot-rodder can work on," and a 9-inch Ford race transmission.

Trail said Georgia Tech has helped the company engineer the rotor. "It's quite a design," he said. The company has lots of time, energy and money involved in this project, he said.

Granting of the loan requires the creation of 10 full-time jobs within the first year. Trail said, "Ten new jobs in this community -- that's awesome."

"I see great potential in this project," Nelson said. "The people around (owner) Ron Willocks think very, very highly of him."

Nelson continued, "The 10 jobs we're talking about -- that's the first year. We're looking at 40 jobs in five years."

Willocks visited McCook Dec. 6 and 7, and has agreed to lease the roundhouse and warehouse south of the Burlington Northern Santa Fe switch yard along A Street. The building is owned by Peacock Industries of Saskatchewan, Canada, which had planned to develop a pesticide there, but then moved the operation to Canada.

Nelson said the next step for Pawnee Aviation is to build its own plant, which, he said, will be predominately self-funded. Nelson said the MEDC would like to purchase the roundhouse and warehouse, and, after Pawnee Aviation moves into its own building, use it as an incubator for another project.

Nelson admitted some people have expressed reservations about the process moving so quickly in McCook. He said, however, the company has been involved in a extensive site selection process for quite some time.

Company officials are also wanting to start production so that a kit can be taken to an air show for kit aircraft in Florida in April.

"We want them to succeed," Nelson said, explaining the MEDC staff has done all it can in helping the company meet its April deadline.

McCook resident Robert Chambers asked Nelson about liability issues with the homemade helicopters, and whether that liability is the company's or the community and county backing it. Nelson told Chambers an official from the Federal Aviation Administration certifies each completed helicopter, ensuring it is air-worthy.

"The person who builds it holds the liability," Nelson said. "That's typical in the kit aircraft business."

The operator must have a pilot's license, Trail said.

Chambers said he was concerned that "a terrorist gets ahold of something like this -- it could be a problem." Nelson told him that a major market for the kit 'copter is, in fact, law enforcement, which is attracted to the small single, two- and three-seat aircraft, because their cost of operation is so much less than that of the military surplus helicopters that are available to them.

Commissioner Earl McNutt said he has been impressed with Pawnee Aviation's willingness to work with commissioners and the MEDC. Nelson said Willocks and Pawnee Aviation officials have never been defensive about questions regarding their operation.

Both Hoyt and McNutt said they were disappointed that more people did not speak -- for or against -- or ask questions at the public hearing. Both said people questioned them during the last two weeks -- about the quickness of the process, about liability, about marketing -- and then did not attend the public hearing. McNutt said people need to attend the public hearings to ask their questions.

Hoyt said, "Rex has answered all our questions and has done a tremendous amount of research. As far as I'm concerned, this project's a go."