File photo Pictured is the Luscombe Light Sport that was to be built in Jamestown. The photo was posted in 2020 on the company’s website blog. The company’s assets were auctioned in December 2024.

The Chautauqua County IDA is suing a small aircraft manufacturer that had been renting space at the Chautauqua County Airport in Jamestown.

The IDA and the Southern Tier Enterprise Development Organization have filed a lawsuit in state Supreme Court in Mayville against Luscombe Aircraft Corporation, Stephen Young and Stephen Testrake, attempting to recoup loans the entities made to the aircraft manufacturing company. An auction was held in December 2024 by Starman Bros. Auctions that included the entire Luscombe Aircraft Corp. aircraft factory being sold as one package, including Type Certificate, STCs, jigs, shop equipment, tools, molds, new inventory, etc.,” according to General Aviation News. The website said the auction ended the plans of Steve Testrake and Stephen Young, who acquired the Luscombe assets in June 2019. They created the new company to manufacture parts for the Luscombe, as well as build new aircraft.

County and STEDO officials say Luscombe Aircraft has defaulted on its $125,000 loan from the IDA as well as a $197,000 loan and use agreement that was part of Luscombe Aircraft’s financing package to open an office in the Jamestown airport.

Collateral for the loan has been sold, but the IDA says it is still owed $265,455.98. The company also owes STEDO $290,222.95 of the $320,000 it borrowed.

The Luscombe Aircraft Corp. of Chino, Calif., was leasing Hangar A at the airport to build and refurbish airplanes. The company recently received a $322,000 low-interest loan from the county Industrial Development Agency that was financed with CARES Act money.

Luscombe acquired the rights to produce planes that resemble the former Legacy aircraft brand. According to an article by the Aircraft Owners and Pilots Association, there were about 1,600 registered Luscombe aircraft on the Federal Aviation Administration’s registry. Luscombe made two-seat, all-metal, tailwheel airplanes starting in the 1930s before stopping production in 1950. Luscombe planned to build two types of planes in Jamestown – a small general aviation aircraft and a sporty version of the same aircraft. Customers for the planes would include entry level pilots and flight schools, with a goal of making around 100 aircraft a year within five years after production starts. Additionally, owners of the remaining 1,600 older Luscombe planes could have new parts made in Jamestown from the original Luscombe jigs.

In addition to the local loans, the county approved an additional rent credit for Luscombe when repairs and renovation of the hangar the company was renting cost more than originally anticipated.