City plans new airport agreement with Pan Am Flight Services despite questions by local bidder

ST. JOSEPH, Mo. (News-Press NOW) -- City councilmembers signaled their support for a new aviation service provider at Rosecrans Memorial Airport after initial plans with one Midwest operator were suddenly canceled amid concerns.

Tuesday's City Council meeting saw the approval of a resolution to negotiate a new lease and operating agreement with Pan Am Flight Services to provide fixed base operator services at Rosecrans Memorial Airport. FBOs are businesses selected to provide a broad range of services to support general aviation aircraft, including services like maintenance and refueling for local and visiting pilots.

Pan Am Flight Services, which includes businessman and investor Steve Craig, president of Craig Realty Group, told News-Press NOW it intends to build a new 40,000-square-foot hangar as part of its plan to boost aircraft storage capacity and create a premier service destination at Rosecrans.

"Right now, they have about a 15,000-square-foot hangar. This is a lot larger in terms of door widths and ceiling height, so it can accommodate the biggest general aviation planes," Craig said. "There’s also going to be a receiving lobby where a greater number of people can be serviced at the same time."

He said a combination of new amenities and advantages with the existing layout of the airport creates an opportunity to attract a greater number of travelers who seek efficient and high-quality aircraft services, including many recreational and business-related travelers.

Rosecrans is in the midst of an extensive effort to modernize and upgrade much of its infrastructure, including a new $28 million runway -- something Craig touted -- as well as an $8 million terminal and a $17 million air traffic control tower.

"Rosecrans also has one of the fastest turn capabilities, meaning someone flying across the country can plan their stop here because they can refuel, be back in the air and going again," Craig said. “You're in this business because you're buying time. So every way we can be efficient with time for our customers is really critical." 

Craig said the group plans to seek a 50-year lease for the FBO agreement. Local partner and longtime aviation veteran Gary Patterson, president of current FBO Express Flight LLC, is also expected to lend his expertise through the transition.

Pan Am Flight Services is one part of a revitalized and growing nationwide network of new Pan Am-branded businesses. Craig said they purchased the well-known aviation brand roughly a year and a half ago, decades after the original Pan Am World Airways ceased operations in 1991.

The network includes a new Pan Am Hotel by Hilton set to open in 2026 in Los Angeles, California, a project developed by Craig Realty Group, along with Pan Am Travel services and the unique Pan Am Experience.

“It's an extraordinary opportunity to utilize that brand in a number of things, to brand a Pan Am FBO here in St. Joseph and have the first one here in the United States," he said.

Councilmember Jeff Schomburg also voiced his support for the plan and the opportunities it could provide for further airport and revenue growth.

"Mr. Craig has a lot to bring to the table. He's done a lot for this community," Schomburg said. "I think this would be a great opportunity for our airport."

The decision by City Council to select Pan Am marks the latest development in a months-long situation that changed suddenly after Apex Aero Center, a leading FBO network in the Midwest, pulled out of its original FBO agreement with the city.

Craig had raised concerns just days before at City Council about reports that bids for FBO proposals were improperly scored and mishandled, calling on councilmembers to table a first reading for the agreement and to establish a commission to reexamine all of the proposals before proceeding.

Following Apex's announcement, a new measure instructing city staff to negotiate the agreement was added a short time later to Monday's agenda in the form of a resolution for adoption sponsored by Councilmember Kenton Randolph. The measure was approved by a vote of 7-0-2, with Mayor John Josendale and Councilmember Madison Davis abstaining due to conflicts of interest.

Prior to the vote at Tuesday's City Council meeting, lingering concerns about a lack of transparency with the selection process were echoed by Lute Atieh, co-founder of FlyTech Pilot Academy and key partner with St. Joseph Air Center, one of four groups -- two local -- who submitted proposals.

"The RFP process is set up and designed to promote fairness, transparency and a competitive environment for small and local business owners," he said to councilmembers. "To protect the credibility of the process, win or lose, we need to follow that process."

Atieh was the second bidder to claim that proposals had been allegedly scored on multiple occasions over a 10-month period, putting the selection process into question for a long-term agreement.

He said he was hopeful the latest process involved selecting the agreement that immediately scored second to Apex's proposal, something he's eager to look further into.

"I think we were all disappointed when an out-of-town company won the first time. But you have to respect the process, scoring, points. Having not yet seen how we scored, I certainly hope that theme was continued in tonight's decision," he said. “We'll find out when things become public to everybody. If we're not following the scoring, then I have trouble understanding how this is a fair RFP process for business owners and then the community to get behind."