Flying High On Government Funding: Biplanes and Bipartisanship

by Mrs Panstreppon

$300,000 Earmark for American Airpower Museum

The draft HHS appropriations bill lists a $300,000 earmark for the American Airpower Museum located at Republic Airport in Farmingdale, New York which is in Rep. Steve Israel's district.

Jeffrey M. Clyman, founder and trustee of the American Airpower Museum, and his wife, Jacklyn, have contributed a total of $5,750 to Steve Israel's campaigns, according to Campaign Money:

2002 - $2,500
2003 - $1,000
2004 - $2,000
2005 - $0
2006 - $250

The museum is in an airplane hanger owned by Long Island Jet Inc. The museum paid $139,200 in rent to Long Island Jet in 2004, according to the museum' s latest 990 available online at the Foundation Center's 990 Finder.

Long Island Jet is owned by William J. McShane Jr. who has contributed a total of $2,750 to Rep. Israel's campaigns since 2003, according to Campaign Money.

I'd say that there is a darned good chance that Rep. Steve Israel is the one who earmarked $300,000 for the American Airpower Museum.

But there's more to the American Airpower Museum story.

New York State Funding for Museum

According to a 1998 New York Times story available in the Museum's News Archives, Governor Pataki funded the founding of the museum with a $250,000 community enhancement grant in 1998.

The New York State Board of Elections does not provide campaign financing data earlier than 1999 so I don't know if Jeffrey M. Clyman contributed to George Pataki's campaign before 1999.

I do know that Jeffrey M. Clyman contributed $5,000 to Governor Pataki's campaign in 2002. In return, the museum received a total of $85,00 in contributions from New York State in 2003, according to the museum's 2003 990:

$10,000 - Port Authority of New York & New Jersey
$50,000 - New York State Urban Development Authority
$25,000 - State of New York

Anyone familiar with New York State politics knows that Charles A. Gargano, Bush pioneer, is the President of the Empire State Development Corporation (ESDC) and the Vice-Chairman of the Port Authority. The NYS Urban Development Authority is under the auspices of the ESDC.

Jeffrey Clyman's 2002 $500 contribution to Friends For Fuschillo should give Democrats a chuckle. The 2002 990 lists a contribution of $50,000 from the "Office of State Senator Charles Fuschillo". 

Clyman's Other Republican Contributions

In March 2006, Jeffrey Clyman contributed $2,500 to the Nassau County Republican Committee  and $300 to Friends of Fuschillo.

In April 2006, Clyman contributed $2,000 to Governor Pataki's 21st Century Freedom State PAC, based in Virginia.

In June 2005, Jeffrey M. Clyman donated $1,000 to the campaign of the beleagured Senator Conrad Burns of Montana. "Beleagured" because Senator Burns is under investigation in connection with the Jack Abramoff scandal.

Jeffrey Clyman lives at 1045 Park Avenue in Manahattan. Why would someone from the Upper East Side contribute a $1,000 to a senator from Montana?

Senator Burns is Chairman of the Subcommittee on Interior & Related Agencies. In 2002, the American Airpower Museum received a $200,00 grant from the Department of the Interior, according to the Citizens Against Government Waste pork database.

Maybe the museum was looking for a repeat of the 2002 Interior grant.

LOL - I think Jeffrey Clyman was a day late and a dollar short with his thousand bucks. In June 2005, Senator Burns was in the process of becoming "beleagured" as his ties to Jack Abramoff became public knowledge.

Then again, I probably should wait for the Department of the Interior appropriations bill before making any assumptions about Senator Burns.

Clyman also contributed $750 to Senator Charles Robb in 1999 and $500 to Senator Alphonse D'Amato in 1998.

More about Jeffrey M. Clyman

Since 1975, Jeffrey Clyman has been the owner and president of Avirex, Ltd., a Long Island City manufacturer of a men's clothing line geared towards aviation-style outerwear.

The museum gift shop is named the "Avirex Gift Shop" and presumably sells Avirex merchandise. In 2004, the museum had inventory for sale on hand of $607,127 and I'm curious about how much of that inventory was purchased from Avirex.

The 2004 990 listed the following trustees:

E. Cook Rand
145 East 48th Street
New York, NY 10017

Therese Robin (Jeffrey Clyman's mother-in-law)
444 86th Street
New York, NY 10028

Scott A. Clyman (Jeffrey Clyman's son)
1045 Park Avenue
New York, NY 10028

Helen  J. R. Clyman
1045 Park Avenue
New York, NY 10028

Jeffrey Clyman
1045 Park Avenue
New York, NY 10028

Eugene Grant
No address provided

The museum does not provide the names of the officers in its 990s or on its website.

Jeffrey Clyman personally contributed $185,000 to the musem in 2004 and $70,000 in 2003. His company, Avirex, contributed $6,000 in 2004. Evelyn Clyman and Eugene Grant contributed a total of $15,000 between 2004 and 2003.

In 2003, Pathmark Stores, Inc. contributed $10,000, Rubenstein Associates contributed $18,500 and Stop & Shop Supermarkets Co. contributed $45,000. Stop & Shop contributed another $40,000 in 2004.

In 2004, the museum held $565,778 of TBF, Inc. stock which represented almost 50% of the museum's net assets. I found a TBF Inc. which is The Bass Federation but somehow I don't think I have the right TBF Inc.

I am interested in TBF Inc. because I'd like to know if Jeffrey Clyman contributed the stock to the museum and, if so, what is the stock trading at now if it is traded publicly.

More to come.



Submitted by Anonymous (not verified) on Thu, 08/31/2006 - 11:38pm.
I wounder why Clyman founded the museum.
Submitted by Mrs Panstreppon on Fri, 09/01/2006 - 1:28pm.

Anon, I think Jeffrey Clyman would tell you that he was motivated by his love of flying to found the museum. He is a pilot and he does donate his time to fly vintage planes for the benefit of the museum.

Based on a Google search, he and his wife contribute generously to other charitable causes.

A major problem for the museum is that attendance is unlikely to ever reach the 40,000 annual visitors mark initially projected by Clyman.

According to the museum's 990s, attendance levels have remained static or even declined.

Based on numbers in the 2004 990, the museum needs to raise at least $340,000 annually just to cover rent, insurance and utility costs and that's before consideration of the recent jump in gas prices.

I noticed in the 990s that the museum does not appear to own the planes on exhibit. Does Clyman still own the planes and are they only on loan to the museum?

According to the 7/06 New York Times story about the museum, the value of the planes has increased significantly in recent years.

If the museum folded but Clyman owns the planes, Clyman will still substantially profit. His initial investment in the planes will have increased since the museum was founded.

Just as important, Clyman will have housed and maintained his investment at taxpayer expense.

I don't think Jeffrey M. Clyman's outlook on public financing is much different than Robin D. Hubbard's.

What is it with these people on the Upper East Side? Is this the kind of stuff you learn how to do in the Ivy League?


Submitted by Mrs Panstreppon on Fri, 09/01/2006 - 2:55pm.

This exercise is turning out to be a lot more interesting than I initially thought it would be.

Contributions in 2002 were from a variety of sources. Speaking of which, I wonder what is the source of the Clyman family's wealth.

Of course, the big contribution in 2002 was the $200k grant from the Department of the Interior.

Pathmark contributed $10k in 2002. 

Lawrence Kadish of the First Fiscal Fund Corp. contributed $100,000 in 2002. Kadish is a very conservative real estate developer who is affiliated with the Republican Jewish Coalition, Americans For Victory Over Terrorism (Like who it isn't?), Center For Security Policy, Committee for Security and Peace in the Middle East and the American Middle East Information Network.

The ABC, Inc. Foundation contributed $10k. I haven't checked but I assume the ABC Inc. in question is ABC Carpet & Home Stores.

Rubenstein & Associates, a public relations firm, contributed $7k.

A company named M-GBC LLC contributed $25k. According to Lexis-Nexis, MGB-LLC was only formed in October 2001. The address is c/o J. Burman, 2545 Hempstead Turnpike, Suite 401, East Meadow, New York 11554. 

Google search for M-GBC LLC turns up numerous interesting entrie for the company which appears to have something to do with supplying steam heat commercially and developing  470 acres at Enterprise Park in Calverton, formerly the Naval Weapons Industrial Reserve Plant which was operated by Grumman Corporation and previously owned by the US Navy.

That's enough information to keep me busy for awhile.


Submitted by Mrs Panstreppon on Fri, 09/01/2006 - 3:21pm.

According to the Senate lobbying database, the American Airpower Museum hired DC lobbyists, Dykema Gossett, sometime in late 2001.

According to OpenSecrets.org, Dykema Gossett gave a total of $5,500 to the Republican National Committee between November  2001 and September 2002.

As near as I can tell, the museum paid Dykema Gossett less than $10k which is a fabulous return on investment if the lobbyists assisted with the 2002 $200k grant from the Department of the Interior.

We should all get those kinds of ROI. Hmm...that's an idea. If we can't beat 'em, maybe we should join 'em.


Submitted by Mrs Panstreppon on Fri, 09/01/2006 - 4:33pm.

Last entry for the day.

Jeffrey Clyman registered the American Museum at Republic Inc. in 1995. I wonder if this is the entity that owns the vintage aircraft.

NAME: AMERICAN MUSEUM AT REPUBLIC,INC.

PRIOR-NAME: AMERICAN MUSEUM FOR THE PRESERVATION OF HISTORIC AIRCRAFT

STATUS: IN GOOD STANDING (ACTIVE)

DATE OF INCORPORATION/QUALIFICATION: 03/20/1995

PURPOSE: LIVING HISTORY MUSEUM

OFFICERS:

   
  JEFFREY CLYMAN (EXECUTIVE DIRECTOR) CEO
  THERESE ROBIN SECRETARY
  HELEN J R CLYMAN TREASURER

MAILING ADDRESS: % AVIREX LTD
                 33-00 47TH AVE
                 LONG ISLAND CITY, NY 11101-0000


Submitted by Mrs Panstreppon on Sun, 09/03/2006 - 10:33am.

LOL - Do I know how to pick an earmark or what? 

ABC News is out at the American Airpower Museum today and has already interviewed three WWII women pilots. Next up were the musuem patrons boarding a vintage cargo plane, all dressed like WWII parachutists.

I have to admit that I'd like to go up in one of those planes. It looks like fun! 


Submitted by Mrs Panstreppon on Wed, 09/06/2006 - 11:14am.

From a 3/6/2006 Star-Gazette (Elmira NY) story, "Museum Sells Prized Plane" by Jeff Murray:

Eagles Discovery Center is selling one of its most prized possessions.

But museum officials say the sale of the Consolidated PBY-6A Catalina flying boat to the American Airpower Museum on Long Island will be a much greater gain than it is a loss.

In December, the Wings of Eagles Discovery Center sold its centerpiece attraction, the Boeing B-17 bomber "Fuddy Duddy," to Martin Aviation, an aircraft maintenance company based in Orange County, Calif.

The sale enabled the museum to pay off its crippling $3.1 million debt.

The transfer of the World War II-vintage PBY to the American Airpower Museum will continue the museum's trend of focusing on smaller, more economical aircraft, said Wings of Eagles Executive Director Mike Hall.

"It fits in the same category for us as the B-17, which is a tremendous expense and not something we can prudently bear when you look at expense versus reward," Hall said. "We will continue to fly our collection of smaller aircraft, which are much more affordable and more economical to operate. The American Airpower Museum is on Long Island. They have a much different market and circumstance. It's a good fit from their standpoint."

The state provided the American Airpower Museum with a $250,000 grant. The Long Island museum used that money to provide an unspecified sum of cash to the Wings of Eagles Discovery Center in exchange for the PBY Catalina and other benefits.

The sale of the PBY Catalina, which was the museum's second most popular attraction behind Fuddy Duddy, will do more than save the museum some operating costs, Hall said. It will also help the two facilities forge an alliance that they hope will mean more attractions and more visitors to the Southern Tier.

"We've been trying for the last couple of years to develop some
upstate-downstate connections. There's obviously a huge market down there," Hall said. "This is a very positive thing for us. We can't sustain flight operations with those kind of aircraft on an ongoing basis. We can share with them so we don't lose the uniqueness of seeing those assets from time to time...

Gary Lewi, executive vice president of the American Airpower Museum, echoed Hall's sentiment that the transfer of the PBY downstate, part of a reciprocal relationship between the two facilities, will be as much of a benefit to the Wings of Eagles Discovery Center as it will be to his museum...

The American Airpower Museum was also set to buy the Fuddy Duddy when it first went up for sale in 2002. A $1 million state grant helped the local museum keep its centerpiece at that time..."


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