An airship company is suing the Navy for $65 million stemming from the 2013 roof collapse of a Navy blimp hangar in Tustin California – MCAS Tustin – that destroyed an experimental airship

Tustin, California –

An airship company is suing the Navy for $65 million stemming from the 2013 roof collapse of a Navy blimp hangar in Tustin that destroyed an experimental airship.

In a complaint filed Monday in federal district court, Aeros Aeronautical Systems claims the Navy knew 16 years before the incident that the roof of the massive wooden structure was unstable.

“They had not done anything done about it,” James Gallagher, a Los Angeles attorney representing Aeros, said Wednesday.

The Navy and the Department of Justice, representing the Navy in the lawsuit, didn’t respond to requests for comment.

Aeros leased a third of the 1,000-foot hangar in 2009. With funding from the Department of Defense and NASA, Aeros crews spent the next few years developing Aeroscraft. The rigid airship drew headlines for its buoyancy technology, which allowed the 266-foot ship to land just about anywhere, plus its potential for carrying heavier cargo than any plane or helicopter.

In early October 2013, Aeros officials say a piece of wood fell from the World War II-era hangar and engineers were called to assess the structure. A week later, a 25-foot chunk of the roof fell 17 stories, with some debris puncturing the aircraft.

At the time, officials said the cause of the collapse was unknown. The Aeros lawsuit alleges delayed maintenance was to blame.

The Navy built the hangar and a twin structure to the south in 1942 to store planes and blimps during World War II. Helicopters were also kept there during the Korean and Vietnam wars.

The Tustin Marine Corps Air Station was shuttered in 1999, with most of the land transferred to Tustin. But the Navy hung onto the hangars, with plans to eventually hand the north one off to Orange County and the south one to Tustin.

Through public records requests, Gallagher said his team learned the Navy paid a structural engineering firm to assess the roof of the hangar in 1997.

“They had come back with a report that said there was a certain area of roof that was in need of critical repair,” Gallagher said, recommending repairs be made within two years. In 2013, Graham said, “That is the precise part of the roof that collapsed.”

The Navy blocked access to the hangar for eight months, Gallagher said, fearful more of the roof might come tumbling down. When Aeros was allowed back inside, the company declared Aeroscraft a total loss.

Aeros filed a claim for damages, but the Navy denied the claim in December. No reason was given, Gallagher said.

“For the past 17 months, we have attempted to address damages arising from a clear dereliction of duty as quietly as possible,” Aeros CEO Igo Pasternak said in a statement. “However, the Navy’s unwillingness to resolve the issue in a timely manner is now delaying a long-sought airlift capability that holds promise to solve complex logistics problems, save significant taxpayer money and save lives following natural disasters.”

The lawsuit asks for at least $65 million in property damages, plus a portion of a $3 billion financing campaign Aeros claims was derailed by the roof collapse. Aeros says it hoped to fund a fleet of cargo-carrying airships to help with military, commercial and humanitarian efforts.

https://www.ocregister.com/articles/navy-653939-aeros-roof.html

Contact the writer: 714-796-7963 or [email protected]

Participation Certificates – Bonds – and the “Shadow Banking” System – Hocus-Pocus Financing – Demystified.

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks. Former Federal Reserve Chair Ben Bernanke provided a definition in April 2012: “Shadow banking, as usually defined, comprises a diverse set of institutions and markets that, collectively, carry out traditional banking functions–but do so outside, or in ways only loosely linked to, the traditional system of regulated depository institutions. Examples of important components of the shadow banking system include securitization vehicles, asset-backed commercial paper (ABCP) conduits, money market mutual funds, markets for repurchase agreements (repos), investment banks, and mortgage companies.” Shadow banking has grown in importance to rival traditional depository banking and was a primary factor in the subprime mortgage crisis of 2007-2008 and global recession that followed.[1]

https://en.wikipedia.org/wiki/Shadow_banking_system

A Participation Certificate (PC) (also known as a Certificate of Participation) is a financial instrument, a form of financing, used by municipal or government entities which allows an individual to buy a share of the lease revenue of an agreement made by these entities. It is different from a bond issued by these agencies since participation certificates are secured by lease revenues. Municipal and government entities use this instrument to circumvent restrictions that might exist on the amount of debt in other forms they are able to take on.

Participation certificates are a new form of credit instrument whereby banks can raise funds from other banks and other central bank approved financial institutions to ease liquidity. In this case banks have the option to share their credit asset(s) with other banks by issuing participation certificates. With this participation approach, banks and financial institutions come together either on risk sharing or non-risk sharing basis. While providing short term funds, participation certificates can also be used to reduce risk. The rate at which these certificates can be issued will be negotiable depending on the interest rate scenario.

On June 14, 2013, the city of Detroit announced, as a policy move to preserve cash during its financial crisis, that it would not be making payments [1] on a certificates of participation it had issued.

https://en.wikipedia.org/wiki/Participation_certificate

At its meeting on October 19, the Tustin City Council approved selling bonds in an amount not to exceed $45 million dollars to complete financing Tustin Ranch Road from Walnut Avenue south to Warner Avenue.

The bonds will have no financial impact on the City’s budget, as all
payments of principal and interest will be paid solely from revenues generated by development at Tustin Legacy. The bonds will also be used to fund other major infrastructure projects at Tustin Legacy.

Funds to complete the road will come from a variety of funding sources,
including these bond proceeds and funds from the City of Irvine allocated to mitigate traffic impacts from its adjacent development, the Irvine Business Complex. No monies from the general fund will be used.

https://www.tustinca.org/departments/citymanager/releases/releases/182.pdf

To provide for business start-up opportunities and expansion of existing businesses, the Tustin Community Redevelopment Agency provides access to a variety of financing programs authorized by either the federal or state government, as well as programs provided by other private, public and non-profit agencies. The Agency also provides technical assistance, educational support and other similar needs of a non-financial nature to the business community. A brief summary of the possible assistance and incentive programs that can be made available are as follows:
Zoning incentives to encourage economic development through:

Floor area ratio bonuses
Allowance for mixed use projects
Combining of public and private uses
Planned Unit Developments
Density bonuses
Assistance in land assembly:
Land banking
Eminent domain
Land swaps
Land write downs
Assistance with construction of infrastructure improvements.
Provision of technical assistance.
Provision of developer unique financing opportunities, consisting of:
Tax Increment Financing
20% Housing Set-Aside Funds
Special Purpose Financing Districts
1911, 1913, 1915 Acts
Mello Roos Community Facilities Act of 1982
Landscape and Lighting District of 1972
Revenue bonds
Lease Revenue bonds
Tax Allocation bonds
Lease Purchase financing
Industrial Development bonds
Certificates of Participation
Mortgage Revenue Bonds
Loans and Advances
Leases
Land Disposition Proceeds
Rental Payments
Participation in future cash flows

https://www.tustinca.org/departments/redev/busassist.html

Certificates of Participation (COPs). A form of lease revenue bond that permits the investor to participate in a stream of lease payments, installment payments or loan payments relating to the acquisition or construction of specific equipment, land or facilities. In theory the certificate holder could foreclose on the equipment or facility financed in the event of default, but so far no investor has ended up owning a piece of a school house or a storm drainage system. A very popular financing device in California since Proposition 13 because COP issuance does not require voter approval. COPs are not viewed legally as “debt” because payment is tied to an annual appropriation by the government body. As a result, COPs are seen by investors as providing weaker security and often carry ratings that are a notch or two below an agency’s general obligation rating.

https://www.emuni.com/glossary.php

A day after Angels owner Arte Moreno said negotiations with Anaheim over the Angel Stadium lease are going “backward,” a consultant to the club confirmed that the Angels met with Tustin officials about a new ballpark

A day after Angels owner Arte Moreno said negotiations with Anaheim over the Angel Stadium lease are going “backward,” a consultant to the club confirmed that the Angels met with Tustin officials about a new ballpark.
“We had an initial meeting with Tustin,” consultant Marie Garvey said Saturday. “It’s the very beginning. It’s the very early stages.”
Garvey, hired by the Angels to assist with lease negotiations, said the talks took place earlier this week. She did not specify what location in…

https://www.ocregister.com/articles/angels-601995-city-negotiations.html

“Baseball….Does anyone really care anymore?

I say this after I saw a SC clip of a Nats game that Strasburg (last years savior) was pitching…..The entire chunk of seating in view from the behind the pitcher camera was empty…

Couple this was tons of other games where there are huge chunks of outfield seats left empty…

Do the masses really care about baseball at all anymore?

Do you care about MLB anymore?

I can honestly say I have not watched a whole baseball game in about 6 years, and I don’t see myself doing so anytime soon.”

https://www.operationsports.com/forums/pro-baseball/552213-baseball-does-anyone-really-care-anymore.html

Hangar Fire - "Without Litigation" - City of Tustin Already On the Hook for $90 Million in Clean-Up Costs - "Not Including the Actual Hangar Property" - and Heading for a Billion Dollars - Developers Likely Not Off the Hook Either - Property Value Assessments Undergoing Official Review - Ask Yourself - Would You Buy or Rent at the Tustin Legacy - Remember there's "Another" Hangar Too
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