Oscoda Press
By Holly Nelson
OSCODA - The author of proposed legislation which could mean 500 plus jobs for Iosco County was in Oscoda on Friday. "The potential is exciting," said State Representative Andy Dillon (D-Detroit), who wrote the Jobs for Michigan bill. "This would mean jobs for the area once the hangars are built and even before that for the construction," said Rep. Joel Sheltrown (D-West Branch). Dillon was brought to Kalitta Air's Oscoda facility by Sheltrown, whose efforts have provided a vehicle within the proposed law to accommodate a Kalitta vision for more than doubling its current workforce. The two lawmakers were greeted and led on a tour of the Kalitta facilities by its Vice President/General Manager/Director of Operations D.C. Sanderlin, Oscoda Division General Manager Don Nolan, and Air Engine Shop Manager Richard Bray. Also assisting with the tour were Oscoda Township officials Rob Huebel and Gary Kellan and Iosco County Economic Development Commission representative Tom Ferguson. In one of the hangars was a 747 which Kalitta recently purchased for use in its freight delivery business. The jet was receiving an overhaul, which included installation of an engine. Each component is in the process of being inspected and, as needed, repaired or replaced, then subjected to a variety of tests before being put back in the aircraft. It is a process referred to in the industry as a C-inspection. Due to lack of facilities, other Kalitta aircraft must be flown overseas for similar inspections at a cost of about $1 million. If all Kalitta inspections could be done locally, Sanderlin said it would allow better control over the timing, work process, and would save the company a considerable amount of money. If it had the facilities, it could do more of its own aircraft and possibly others. "Right now we are too busy servicing our own aircraft to be able to maintain other companies' jets," Sanderlin said. "It's a need. There are a limited number doing it now." C-inspections and on-going maintenance of the rest of the Kalitta fleet currently translates to 454 jobs in Oscoda, according to Nolan, including 150 licensed air frame and power plant (A&P) mechanics who have to be brought to Oscoda from other areas. "We want to grow our own people," Sanderlin said. "We're working on a local program to do this." According to Sanderlin, an apprentice in this field is paid $10-12 per hour, with licensed personnel earning an hourly rate into the mid twenties. It is Sheltrown's vision that Dillon's Jobs for Michigan bill will build two hangars for Kalitta, allowing the company to expand its operation to maintain and overhaul aircraft for other companies, while also handling more C-inspections for itself. Each hangar would produce 250 jobs. Dillon said the legislation also contains provisions for establishing training programs, suggesting one could be developed in conjunction with a local community college. After the tour, the group sat down in the Oscoda-Wurtsmith Airport conference room to discuss the specifics of raising $25 million for the Kalitta project. The proposed legislation calls for leveraging the tobacco settlement, establishing a revolving fund which would aid small companies in acquiring funds for capital improvements. Presently it is difficult for these companies to obtain financing, Dillon said. Dillon, who was a financier prior to being elected to the House, said the bill would spread the tobacco money through the state in the form of loans and grants, with the state sharing the risk of the former with the private sector. Grants would be awarded for cutting edge technology and training, while loans would be underwritten for private sector endeavors to create jobs. Money would be distributed and overseen by private sector boards, as opposed to government. "At the end of the day, this is really exciting," Dillon said. "If well executed, it could really be a powerful tool for Michigan." He advised the group that this plan will need financial institutions to make it work, offering to come back to present the possibilities to local bankers. "The banks will really be the face of the program," he said. The group discussed the possibilities and problems with the financing of the hangars given the federal requirement that OWA own the land. Dillon said there are ways to address all of the issues, and voiced his willingness to lobby the governor to make it happen. He also suggested cutting edge inspection technology being developed at Wayne State as a possible tie in. Dillon called on the group of partners to obtain quotes for the hangars and discouraged Oscoda Township from spending money for a recently approved feasibility study which everyone appeared to agree to be unnecessary. Then, he said, a business arrangement could be developed between the airport, township and Kalitta to address concerns and issues of all sides. Both Sheltrown and Dillon said they envision ancillary business ventures establishing in the region once the Kalitta expansion is completed, further helping the economy. According to Sheltrown and Dillon, the Jobs for Michigan bill passed the Senate last week. Because the Senate made some changes, the House of Representatives must vote on it a second time. Not all of the changes are being readily accepted by representatives, putting the bill at a degree of risk. "But I don't think anyone can afford to let this go," Sheltrown said. "This would be good for Michigan." Sheltrown has already secured the governor's support for the legislation and said he plans to bring her to the air base in the near future. "If the bill is signed within the next month, the money would become available by the first quarter of 2006," Dillon said. "I definitely think we can make this happen," Dillon remarked.