Hurricane Sandy notes from the 10-K:
Hurricane Sandy
Hurricane Sandy had its initial impact on the Downtown Manhattan Heliport (the “Heliport”) at approximately mid-day on Sunday, October 28, 2012. The brunt of the storm hit the Heliport full-force on the evening of October 28, 2012 and continued into the early morning hours of Monday, October 29, 2012. We did have the maximum allowable flood insurance for a building of this type and location, a claim has been filed, and proceeds have been received subsequent to year end.
The Heliport is a 2.5 story building constructed on a pier that sits above the East River. The building’s floors were oriented around separate sets of activity. The first floor is dedicated to the transit of passengers throughout the facility along with a number of the mechanical systems for the facility. The second floor contains critical operations facilities for Saker and its tenants. And, the third floor (a peaked roof, half-story construction) houses the remainder of the mechanicals for the facility as well as third party equipment, particularly cellular apparatus for various providers.
In addition to our own facilities, we host five independent permittees, all of which operate multiple helicopters in the delivery of sightseeing and charter services. Each of these five permittees maintained passenger counters and waiting areas on the first floor along with office space on the second floor.
Sandy’s surge infiltrated the first floor and reached a level approximately 4.5’ above floor level. All contents of the first floor were destroyed by the incoming surge of storm and river water or by the outgoing flow of same. The storm had minimal impact on the second and third floors of the facility.
The damage impact along with the rakish nature of storm-driven salt water and river water rendered the first floor off limits while remediation and reconstruction efforts were undertaken. At the time of this writing, it is anticipated that remediation and reconstruction efforts will extend through March 2013. The target date for full resumption of activities within the facility is April 1, 2013.
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In the interim, we erected a heated and lighted tent facility in the parking lot. All five permittees have assumed a minimal footprint within the tent and all passenger operations are occurring through that makeshift set up. The level of activity through the tent facility is necessarily minimized as compared to the full utilization of the facility. Resumption of this limited activity commenced on Monday, November 5, 2012.
Comparison of the Years Ended December 31, 2012 and December 31, 2011.
REVENUE
Revenue increased by 5.2 percent to $16,928,073 for the twelve months ended December 31, 2012 as compared with corresponding prior-year period revenue of $16,088,906. Hurricane Sandy depressed revenue results at the Heliport by at least $400,000. Fuel sales were eliminated for more than a full month and landings/passenger activity was eliminated by facility closure in the immediate aftermath of the storm and limited by physical constraints, as described above, throughout the remainder of the quarter.
AI
