Aircraft owner Tim Rice said losing planes that bring in income is bad enough but is not the only concern.
"Junction City's fire department, a department that to the best of my knowledge has no experience in dealing with airport incidents, will now be the first responder," Rice said, adding that the potential for property loss and death is enhanced.
Rice said the "domino effect" of companies deserting the airport has already begun, due to the 13 percent insurance premium tax.
"I've been told that some members of Junction's city council say companies are bluffing when they make this threat," Rice said. "Peterson Electric has removed both its planes. If this continues, the airport will be forced to close its doors."
Rice said if the annexation stands and companies leave, the airport - which is scheduled to receive a $1.7 million Federal Aviation Administration grant for runway widening and $700,000 for an administration building - could lose its funding.
"It would be difficult to demonstrate the benefit of funding the facility if the crafts move out," Rice said.
Harry Nickens, spokesman for Ephraim McDowell Regional Medical Center, said the tax issue was a factor in the medical helicopter service's decision to not offer full services here.
"It was not a deciding factor for them, but it was a factor," Nickens said. During subsequent conversations with other medical air services, the 13 percent insurance premium tax was a major issue, he said.
"They said absolutely yes this would be a factor. They would be storing $3 million worth of equipment there, and this would have a big bearing on their business decision of whether to come here or not," Nickens said.
Questions about annexation discussions
Aircraft owner Mike Perros said there was no due process in the annexation proceedings and asked Danville City Commission members if Junction City had discussed annexation with them. They said they had not been told.
"The city, county and airport board are all part owners, and no one received notice of the annexation?" Perros said. "And it's all been done under the guise of providing sewer service, starting back in 1992. Yet they sold that sewer system to Danville. They can't even offer the very service they say they're doing this for."
Perros said even though the case is pending in Boyle Circuit Court, more aircraft likely will move out of the airport.
City Attorney Ed Hays said he was unprepared to offer any advice and needed a chance to research the matter.
"To my understanding, it went into effect July 1, and aircraft owners are receiving tax bills at this time. The (airport) board received knowledge of the move by a newspaper article," said Perros.
"Junction said it had authorization by the property owners years ago to annex the land but could not provide the documents they said stated this," Perros said.
Commissioner Gail Louis said she was shocked at Junction's audacity to even attempt annexing another municipality, and she would like to hear a reason for the move.
"This is a money issue," said Commissioner Kevin Caudill, who was functioning as mayor pro-tem for the absent Hugh Coomer.
Commissioner Terry Crowley said the city needs to strongly encourage the county to work together with it on this, and both the city and county should meet with the airport board.
"We need to resolve this, put a stop to it," Crowley said.
The commission turned to Hays.
"I think I understand your message," Hays said. "I really don't know our jurisdiction here, and perhaps a political intervention would be best, but I don't know the answers right now."
