HomeMy WebLinkAbout02-16-2005 Airport Commission r
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IOWA CITY AIRPORT COMMISSION
MEETING AGENDA
AIRPORT TERMINAL BUILDING
1801 S. RIVERSIDE DRIVE
IOWA CITY, IOWA
WEDNESDAY, FEBRUARY 16, 2005 - 5:45 P.M.
1. Determine Quorum
2. Items for Discussion/Action:
A. Aviation Commerce Park - Consider a motion to recommend to City Council that
the City should accept or reject the offer by Price Properties to purchase 21.76
acres in Aviation Commerce Park.
B. Airport Security Plan-Consider a resolution to approve the Airport Security Plan.
C. Airport Management-Consider a resolution approving an amendment to the
agreement with Snyder&Associates
3. Adjourn
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Prepared by: Susan Dulek,Assistant City Attorney,410 E.Washington St., Iowa City, IA 52240-319-356-5030
RESOLUTION NO.
RESOLUTION APPROVING AN AMENDMENT TO THE CONSULTANT
SERVICES AGREEMENT WITH SNYDER & ASSOCIATES, INC. FOR
TEMPORARY MANAGEMENT SERVICES.
WHEREAS, on September 14, 2004, the Iowa City Airport Commission and Snyder &
Associates, Inc. entered into a contract entitled "Consultant Services Agreement" to provide
airport management services on a temporary basis at the Iowa City Municipal Airport; and
WHEREAS, said agreement was amended on December 9, 2005;
WHEREAS, the parties wish to amend said agreement by increasing the fee amount by $10,000
for a total of$27,000; and
WHEREAS, it is in the Commission's best interest to amend said agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION THAT:
The Chairperson is hereby authorized to sign and the Secretary to attest to the Second
Amendment to Consultant Services Agreement, a copy of which is attached and incorporated
herein.
Passed and approved this day of , 2005.
CHAIRPERSON
Approv by
ATTEST: C�7� c)-(c-or
SECRETARY City Attorney's Office
It was moved by and seconded by the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Clay
Hartwig
Robnett
Staley
Williams
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SECOND AMENDMENT TO CONSULTANT SERVICES AGREEMENT
WHEREAS, on September 14, 2004, the Iowa City Airport Commission and Snyder &
Associates, Inc. entered into a contract entitled "Consultant Services Agreement" to provide
airport management services on a temporary basis at the Iowa City Municipal Airport; and
WHEREAS, said agreement was amended on December 9, 2005;
WHEREAS, said agreement, as amended, provides that it shall terminate "12 months after it is
signed by both parties or once the amount of fee paid ... has reached $17,000, ... whichever
comes first;"
WHEREAS, the fee to be paid is approaching $17,000;
WHEREAS, the parties wish to amend said agreement by increasing the fee amount by $10,000
for a total of$27,000; and
WHEREAS, said agreement may be amended in writing.
IT IS THEREFORE AGREED that:
The fee amount shall be increased by $10,000 such that the fee amount listed on the first page
of said agreement, as amended, shall read "$27,000," and not "$17,000."
All other terms of said agreement shall remain in full force and effect.
SNYDER &ASSOCIATES, INC.
Date
THE IOWA CITY AIRPORT COMMISSION
Randall D. Hartwig, Chairperson Date
Attest:
John Staley, Secretary Date
Approved by
aucy.) a--u oc
City Attomey's Office
Prepared by: Susan Dulek,Assistant City Attorney,410 E.Washington St., Iowa City, IA 52240-319-356-5030
RESOLUTION NO.
RESOLUTION APPROVING THE AIRPORT SECURITY PLAN.
WHEREAS, it is in the Commission's best interest to have an airport security plans.
NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION THAT:
The plan entitled "General Aviation Airport Security Plan - Iowa City Airport (IOW) January
2005" is approved.
Passed and approved this day of , 2005.
CHAIRPERSON
Approved by
ATTEST: b-4-Th c1-a`or
SECRETARY City Attorney's Office
It was moved by and seconded by_ the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
Clay
Hartwig
Robnett
Staley
Williams
sue\airportResApproveSecPlan.doc
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Prepared by: Sarah Holecek, First Asst. City Attorney,410 E.Washington St., Iowa City, IA 52240(319) 356-5030
RESOLUTION NO. 01-267
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK
TO ATTEST THE AVIATION COMMERCE PARK FINANCING AGREEMENT
BETWEEN THE CITY OF IOWA CITY, IOWA AND THE IOWA CITY AIRPORT
COMMISSION OF IOWA CITY, IOWA
WHEREAS, the Airport Commission, as the manager of an approximate 54 acre tract adjacent to
the Iowa City Airport, desires to develop said property to establish seventeen
commercial/industrial lots and two outlots; and
WHEREAS, to develop said property, certain infrastructure needs to be constructed and installed
to support the development, the costs of which exceed the annual operations budget of the Airport
Commission; and
WHEREAS, the City finds it is in the public interest to support this commercial/industrial
development in an effort to bolster the City's tax base and enable the Commission to become
financially self-sufficient from City property tax supported subsidies and the general fund; and
WHEREAS, the City and the Airport Commission have negotiated an agreement under which the
City will provide the Commission with funds for installation of the required infrastructure and the
Commission will reimburse the City from revenue realized from the commercial/industrial
development; and
WHEREAS, the Parties desire to memorialize the terms and conditions of their financing
arrangement into a written agreement.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,
IOWA, THAT:
1. The Mayor is authorized to sign and the City Clerk to attest the Aviation Commerce Park
Financing Agreement between the City of Iowa City, Iowa and the Iowa City Airport
Commission of Iowa City, Iowa.
Passed and approved this 21st day of August , 20 01 /.
6AYOR ,41
• oved by "
y�y' ��44
ATTEST: � 7J. ktr,t1 ,Pt
sr
CITY`CLERK City Attorn�rC Ir -
Sarah\airport\aviation commerce financing agreement res.doc
. • Resolution No. 01-267
Page 2
It was moved by 0' Donnel 1 and seconded by Champion the Resolution be
adopted, and upon roll call there were:
AYES: NAYS: ABSENT:
X Champion
X Kanner
X Lehman
O'Donnell
X Pfab
X Vanderhoef
X Wilbum
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AVIATION COMMERCE PARK FINANCING AGREEMENT
THIS AGREEMENT is hereby made and executed by and between the Iowa City Airport
Commission of Iowa City, Iowa(hereinafter "Commission") and the City of Iowa City, Iowa
(hereinafter "City"). The City is a municipal corporation organized under the laws of the State of
Iowa and the Commission is an authority organized under Chapter 330 of the Iowa Code and
vested with all powers granted to cities under the Iowa Code, except the power to sell the airport.
This agreement outlines the terms and conditions, and the relative rights and responsibilities of
the City, as financier/owner, and the Commission, as developer/manager, for development of the
Aviation Commerce Park(hereinafter"ACP"), a tract of approximately 54 acres owned in fee by
the City and managed and controlled by the Airport Commission.
WHEREAS,the Airport Commission desires to develop approximately 54 acres of northern
airport property to establish seventeen commercial/industrial lots and two outlots; and
WHEREAS, certain infrastructure needs to be constructed and installed to support said
commercial/industrial development, the costs of which exceed the annual operations budget of
the Airport Commission; and
WHEREAS, the City finds it in the public interest to support this commerciallindustrial
development in an effort to bolster the City's tax base and enable the Commission to become
financially self-sufficient from City property tax supported subsidies and general fund; and
WHEREAS,the City and the Airport Commission have negotiated an agreement under which
the City will provide the Commission with funds for installation of the required infrastructure
and the Commission will reimburse the City from airport revenue realized from the
commercial/industrial development; and
WHEREAS, the Parties desire to memorialize the terms and conditions of said financing
arrangement in a written agreement.
NOW, IT IS THEREFORE AGREED AS FOLLOWS:
1. Purpose The purpose of this agreement is to support commercial/industrial development,
bolster the City's tax base, and enable the Commission to become financially self-sufficient of
the City's property tax supported general fund through the development of the Aviation
Commerce Park. To effectuate the terms of this agreement and facilitate the project, the City
agrees to provide financial accounting and distribution services on behalf of the Commission
without charge.
2. Total Project Cost: Estimated and Final "Total Project Cost" is defined as all quantifiable
costs directly attributed to development of the Aviation Commerce Park, which includes the
costs of: drainage improvements, attorney fees, landfill tipping fees, design fees, debt service
principle, interest and fees, improvement construction, improvement inspection, construction
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contract administration, project design fees (current and expected), and marketing fees.
Estimated Total Project Cost is currently approximately$2,448,748.40 ($1,600,000 principal
and $848,748.40 interest). The parties contemplate that the Estimated Total Project Cost will
increase or decrease depending on fluctuations in the cost variables outlined above. Final Total
Project Cost shall be established by certification of all project billings to the project account by
the Iowa City Finance Department. Any dispute regarding the Final Total Project Cost shall be
resolved by third party financial audit, said third party to be agreed upon by City and
Commission. Final reconciliation and balancing of accounts between the parities shall be based
on the certified Final Total Project Cost.
3. Acceptance and Maintenance of Infrastructure. Upon completion of the construction and
installation of the public improvements included within the Aviation Commerce Park to City
engineering design standards, the City will accept said public improvements as part of the City's
public infrastructure. After acceptance of said public improvements, the City shall maintain said
public improvements as part of the public infrastructure, shall provide repair and replacement of
water and sewer mains, as necessary, and shall provide snow removal and routine maintenance
on public streets, as necessary. The Commission shall not be assessed or charged for the costs of
these services.
4. Leasing and Marketing: Raw Minimum Lease Rate and Market Minimum Lease Rate. The
"Raw Minimum Lease Rate" for each lot is defined as the estimated total cost of the project
amortized over twenty years and divided by the number of acres in each lot, or fourteen cents
($.14)per square foot. The Raw Minimum Lease Rate shall be adjusted in relation to the range
of existing commercial lease rates within Iowa City to establish the Market Minimum Lease Rate
for each of the lots within the Aviation Commerce Park. The Market Minimum Lease Rate for
each lot within the development shall be established by a letter of agreement between the
Commission and City Council, which agreement shall be negotiated and executed on behalf of
each entity by the Airport Manager and City Manager, respectively. Said letter of agreement
shall be reviewed, at minimum, on an annual basis by the Airport Manager and City Manager to
ensure the Market Minimum Lease Rate is competitive within the range of current commercial
lease rates and no less than current commercial lease rates. The letter of agreement establishing
the Market Minimum Lease Rate for each lot in the development may be amended by subsequent
letters of agreement executed by the Airport Manager and City Manager. The Airport Manager
and City Manager are hereby authorized and directed to negotiate and execute said letters of
agreement as contemplated above.
All leases and/or other agreements regarding lots within the ACP shall be negotiated by the
Commission's marketing agent, the Commission and the prospective Tenant. However, all
leases for lots within the ACP shall contain the following clause:
a. Lessee's interest under this lease shall terminate and all payments hereunder shall be
forfeited if Lessee does not complete construction of[the required minimum
improvements] within five (5) years of the date of execution of this lease agreement.
Lessor shall effectuate forfeiture of this lease by delivery of written notice of
forfeiture to the Lessee at the Lessee's address as noted herein by either personal
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delivery to the party to whom the notice is directed or if sent by certified mail,
postage prepaid, return receipt requested to the Lessee's address as contained herein.
5. Repayment of Final Total Project Cost: Distribution of Revenue Beginning with the date of
execution of this agreement, all lease payments and/or other revenues received by the
Commission from the lots within the ACP shall be paid to City on a payment schedule amortized
over twenty(20) years until the Final Total Project Cost is repaid. See Exhibit"A" for a sample
repayment schedule assuming a Total Project Cost of$2,448,748.40. Minimum required yearly
payments shall be calculated per the same assumptions indicated on the sample repayment
schedule, Exhibit "A", (i.e. $1,600,000 loan at 4.4848% with debt retirement on twentieth year).
If the Commission, during each fiscal year it is due, does not make the entire annual payment to
City, any shortfall under said schedule shall be carried over to the next fiscal year, and minimum
payments shall be adjusted accordingly for interest accruing on such shortfall*After payment of
any shortfall, plus interest, due under the repayment schedule for prior years, plus payment of the
minimum payment due for the current fiscal year, any lease payments and/or other revenues
received by the Commission from the lots within the ACP shall be credited to the Commission
for its use. For the purposes of this agreement, a fiscal year shall be defined as July 1 through
June 30`h, or any part thereof, after the date of the execution of this agreement by either party.
The parties acknowledge and agree that the sums outlined in Exhibit"A" are illustrative only, as
said sums are subject to change based on certification of the Final Total Project Cost per
paragraph 2 above and the rate of debt repayment by Commission. The intent of this paragraph
is that the Commission will maintain repayments consistent with a twenty(20) year debt
retirement scheduleprior to realizing any revenues from the ACP for its use. Nothing in this
agreement shall prevent the Commission from making advance payments and/or retiring said
debt prior to the passage of twenty(20) years. After final reconciliation and repayment of the
Final Total Project Cost to City, all lease payments and/or revenues received by the Commission
from the lots within the ACP shall be credited to the Commission for its use.
6. Outstanding Debt/Termination of Agreement Any and all debt outstanding under the terms of
this agreement shall be a continuing and perpetual obligation on the part of the Commission until
fully repaid to and released by City. Upon full repayment of all debt outstanding under the terms
of this agreement, all rights, responsibilities, or obligations of either party hereunder shall expire,
and this agreement shall be terminated.
7. Notices and Demands. Notices, requests, demands and other communications shall be in
writing and will be deemed sufficiently given for all purposes hereunder if (a) delivered
personally to the party to whom the same is directed, or (b) sent by certified mail, postage
prepaid, return receipt requested, at the addresses identified below; or to such other address as
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shall have been given in writing in accordance herewith:
The Commission: by notifying the Airport Manager, Iowa City Municipal
Airport, 1801 South Riverside Drive, Iowa City, Iowa 52246
The City: by notifying the City Manager, City of Iowa City, 410 E.
Washington Street, Iowa City, Iowa 52240
8. Entire Agreement: Changes or Amendments: No Other Intended Beneficiaries. This
Agreement represents the entire agreement as it exists at the time of the signing of this Agreement
between the parties. None of the covenants,provisions, terms, or conditions of this agreement to
be kept or performed by either the Commission or the City shall be in any manner modified,
waived, or abandoned, except by a written instrument duly signed by each of the parties. No
person or entity not a party hereto is intended to be a beneficiary of or to have the right to enforce
this Agreement.
9. Choice of Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Iowa. The parties acknowledge that the proper venue of any court action is in
Johnson County, Iowa.
10. Successors and Assigns: Assignment: This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. However, neither party
shall assign this agreement or any part thereof, without the other party's specific, prior written
consent.
11. Severability. In the event any portion of this agreement is found invalid, the remaining
portions shall be deemed severable and shall remain in full force and effect.
IOWA CITY AIRPORT COMMISSION CITY OF IOWA CITY •
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B : 47, BYs1��v+ "`_ L✓' Fra-•••^.-'---
Richard Mascari, Chairperson Mayor
2_
ATTEST: AL � l�` ATTEST: �' .0 a�SecreCity Clerk
Approved By: Approved B� / . 0
Jai Vat_ Cu���'jama-
irp. C�tIn Counsel • • .mey's se
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$1 ,600,000 Loan to Aviation Commerce Park
Interest Rate Annual
Year Principal of 4.4848% Payment $ 1,600,000.00
1 $ 50,000.00 $ 71,756.80 $ 121,756.80 $ 1,550,000.00
2 $ 55,000.00 $ 69,514.40 $ 124,514.40 $ 1,495,000.00
3 $ 60,000.00 $ 67,047.76 $ 127,047.76 $ 1,435,000.00
4 $ 60,000.00 $ 64,356.88 $ 124,356.88 $ 1,375,000.00
5 $ 65,000.00 $ 61,666.00 $ 126,666.00 $ 1,310,000.00
6 $ 65,000.00 $ 58,750.88 $ 123,750.88 $ 1,245,000.00
7 $ 70,000.00 $ 55,835.76 $ 125,835.76 $ 1,175,000.00
8 $ 70,000.00 $ 52,696.40 $ 122,696.40 $ 1,105,000.00
9 $ 75,000.00 $ 49,557.04 $ 124,557.04 $ 1,030,000.00
10 $ 75,000.00 $ 46,193.44 $ 121,193.44 $ 955,000.00
11 $ 75,000.00 $ 42,829.84 $ 117,829.84 $ 880,000.00
12 $ 80,000.00 $ 39,466.24 $ 119,466.24 $ 800,000.00
13 $ 85,000.00 $ 35,878.40 $ 120,878.40 $ 715,000.00
• 14 $ 90,000.00 $ 32,066.32 $ 122,066.32 $ 625,000.00
15 $ 95,000.00 $ 28,030.00 $ 123,030.00 $ 530,000.00
16 $ 100,000.00 $ 23,769.44 $ 123,769.44 $ 430,000.00
17 $ 100,000.00 $ 19,284.64 $ 119,284.64 $ 330,000.00
18 $ 105,000.00 $ 14,799.84 $ 119,799.84 $ 225,000.00
19 $ 110,000.00 $ 10,090.80 $ 120,090.80 $ 115,000.00
20 $ 115,000.00 $ 5,157.52 $ 120,157.52 $ -
$ 1,600,000.00 $ 848,748.40 $ 2,448,748.40