This week, U.S. Senator Charles E. Schumer called on Sikorsky Aircraft Corporation to immediately settle its obligations – on fair terms – with the Chemung County government and its Industrial Development Agency regarding the facilities it occupies. Returning full control of the facilities to locals will ensure that they can act swiftly to promote future use of the sites, specifically attracting new job-creating operations. Schumer noted this effort would also maximize eligibility for potential federal and other assistance.

According to Sikorsky’s sudden announcement in late September, the site located adjacent to the Elmira-Corning Regional Airport facility, which is owned by the Chemung County Industrial Development Agency (IDA) will be left empty by the first of the year. The 97,000 square foot facility at the airport is valued at $15 million. Additionally, $13 million in renovations were completed recently to the former Wings of Eagles Discovery Center, converting it into an additional 120,000 square foot facility for Sikorsky’s operations.

Senator Schumer immediately called Sikorsky President Mick Maurer upon hearing of the lay-off notices, and urged that the company reverse course and preserve jobs in Chemung County. Sikorsky refused. At the County’s request, Schumer is now urging Sikorsky to negotiate with the County in good faith, and in a manner that satisfies their obligations to the community and workers, to secure a prompt settlement that puts the County in the best position to market and attract new opportunities for the site. Specifically, Schumer suggested a settlement that enables full control of the facilities to return to locals hands ASAP, and ensuring, at a minimum, they suffer no financial harm as a result. Schumer noted that Chemung County might not be eligible for Economic Adjustment Assistance for the U.S. Commerce Department until an agreement for control of the facilities is reached.

“Sikorsky’s rash decision to cut 570 jobs in Chemung County was a slap in the face and showed a total disregard to both the dedicated workers and the community that welcomed Sikorsky to the region with open arms. Now, with no sign of a reversal of this unwarranted decision, the very least that Sikorsky can do is ensure that its old building doesn’t turn into an economic black hole,” said Schumer. “I’ve called the Sikorsky President Mick Maurer, and personally urged that the company work hand-in-glove with Chemung County and the IDA to settle quickly and fairly with the locals so they can, in turn, attract new job-creating operations to this site. Sikorsky must come to a favorable agreement with Chemung County to ensure that the County is in the best position to attract new potential owners to this new facility, so that the site can remain a positive force in Big Flats.”

“Chemung County entered into this in good faith. It was a big company to have in the area,” said Chemung County Executive Tom Santulli. “The County is hoping to be made whole for the commitment that the community made to this project including taxes, and hopefully finding a new tenant to provide jobs which we have lost.”

In his letter to Sikorsky Aircraft Corps. President Mick Maurer, Schumer highlighted that Sikorsky still owes approximately $25 million on the mortgage for the buildings, of which the taxpayers of Chemung County have contributed approximately $7.2 million as equity. Schumer highlighted that given the massive devastation of Sikorsky’s layoffs and departure from Chemung County, at the very least must work as proactively and cooperatively as possible to manage the future of Sikorsky’s three sites. Schumer suggested that Sikorsky should immediately pay off the remaining $25 million mortgage in one lump sum, rather than mothballing the facility with month-to-month payments, allowing the County to retain ownership of the facilities in which Chemung County taxpayers have invested. Regardless of the specific plan, Schumer urged that the negotiations between Sikorsky and the County and IDA must leave locals in the best position to move forward and market the site to new owners.

In light of Sikorsky’s infuriating decision, announced September 25^th, to cut about 575 employees in Chemung County, Schumer immediately called Sikorsky President Mick Maurer. Unfortunately, while Schumer urged him to reverse course, the decision was clearly non-negotiable. Therefore, in his letter, he stated that Sikorsky simply must assist the County on developing a plan to find new tenants for the space, to help bring jobs back to Chemung County.

Schumer continued, “Sikorsky’s rash decision was devastating, and I have called the President of Sikorsky, not only to express my great displeasure, but to tell them that they have an obligation to help the workers and Chemung County in every way possible.”

Schumer’s letter to Sikorsky President Mick Maurer appears below:

Dear Sikorsky President Mick Maurer:

I write to you today in regards to the Sikorsky facility in Big Flats New York, and the future of this site.  As I indicated in our conversation immediately following this decision, I am and remain frustrated and incredulous over the news that this facility will cease operation at the end of 2012. It goes without saying, that this decision by Sikorsky to shutter its doors in Chemung County, will have severe economic consequences for the community and its workers. The loss of these 570 jobs clearly present significant hardship for those workers families, and the economic multiplier that a lost $30 million payroll has for the region is significant. The impact doesn’t just stop with the workers of the facility and the loss of the associated spending power. Area businesses who do support work for Sikorsky, and those in the retail and hospitality industry that benefited from the influx of visitors to the community by way of Sikorsky will undoubtedly be hard hit in the coming months.  As I have stated previously I am shocked and disappointed by the decision and the manner in which it was arrived at. It is no understatement to say that your actions have significantly harmed this community.

The sale of Schweitzer Aircraft Corporation to Sikorsky in 2004 was far more than a business transaction. There was implicit trust and a belief that Sikorsky recognized the true value of what they were acquiring. It was more than parts and machines, nameless workers and a good location. Sikorsky bought a company that had grown and thrived by local hands with the help of local workers. It was the oldest privately owned aircraft company in the United States, and a source of local pride. Generations of workers had made their livings, and raised their families while helping grow the business they were a part of. Schweitzer Aircraft Corporation was a local institution, steeped with history and local connections. In 2004, the community welcomed you with open arms, local, state and federal leaders did their part to ensure Sikorsky became part of the fabric that made up the local community, that it had opportunity, support and in turn Sikorsky blossomed into a vibrant and success institution employing over 1200 workers at its high.

The abrupt decision to close the Big Flat site is unsettling. Perhaps what is most distasteful is the manner in which this decision was arrived at, that no warning was ever given to local leaders and economic development professionals, they were afforded no opportunity to prepare and make plans for how to address this major loss of jobs and blow to the region’s economy. This same community that gave you so much and the workers who faithfully came to work every day, helping build the facility into a large and bustling center deserved far better. While I would welcome an action by Sikorsky to reverse this course, and certainly stand ready to assist in any way possible, it is my understanding, based on our conversation and others with local leaders, that the decision to shutter this facility at the end of 2012 is resolute and unlikely to change. It is with that understanding I focus on the future of the facility, and submit my request.

It is my understanding that there are a number of potential arrangements with respect to the future of the facility that could steer this unfortunate turn of events back in a positive direction for the community.  According to local officials, Sikorsky has certain obligations to the County and its Industrial Development Agency through 2022. In particular, there is a mortgage on the existing facilities with some $25 million left on the promissory note. The taxpayers of Chemung County helped Sikorsky secure this mortgage with over $7 million worth of equity in recent years. It is my expectation that Sikorsky will not only fulfill these obligations but work with local officials to re-purpose this very unique aviation facility. At the suggestion of local officials, I would like to suggest two potential concepts in that vein.

First, Sikorsky could pay off the remainder of the mortgage and provide the County ownership or full control to market the facility to new tenants. A generous settlement now, will provide Chemung County with a springboard to make the site attractive, and create an environment that is conducive to attract and secure new opportunities for this site and the workers you have turned your back on. I ask Sikorsky to work closely with key Chemung County Leaders, and Economic Development Personnel to ensure the region doesn’t suffer any further and is on its way to writing a new chapter for the facility you will be leaving behind.