HomeMy WebLinkAbout11-28-2000 Airport Commission Meeting Minutes ri .,.
MINUTES
IOWA CITY AIRPORT COMMISSION
THURSDAY NOVEMBER 28, 2000â12:00 P.M.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT:Rick Mascari,Howard Horan, Mark Anderson, John Ruyle
STAFF PRESENT: Andy Mattews, Ron O'Neil
CALL TO ORDER:
Chairperson Mascari called the meeting to order at 12:00 p.m.
ITEMS FOR DISCUSSION/ACTION:
a. Building Kâ Tom Werderitsch, from Selzer Werderitsch Associates, said he had just
inspected the job site. He said that by December 1, 2000,the interior panels would be
replaced on seven of the nine hangars and they would be ready for occupancy. Mascari asked
O'Neil if all of the hangars were leased? O'Neil said that all of the hangars were leased but
because the completion deadline was passed, some of the leasees had already made
commitments elsewhere for the month of December. O'Neil said he would contact the
tenants to see how many could move in immediately.
Selzer said that in exchange for the Commission dropping any claim for liquidated damages
from the due date of November 17th,he would pay the December rent for all of the hangars
that could not be leased for the month of December. He said that if someone were to move in
during the month,he would hope to have the rent prorated.
Mascari asked Werderitsch if he ordered the building as soon as he received approval from
the City's insurance carrier. He said he was leaving for vacation when he received the
approval and did not order the building for another three weeks after receiving approval.
O'Neil said the November 17, 2000 deadline was adjusted by SWA to include the time delay
in reordering the building. Mascari said his concern was the fact that the Airport has been
losing rent since July.
O'Neil asked Werderitsch if the Building Department had conducted the final inspection on
the hangar? Werderitsch said he had not called for a final yet. O'Neil said a final inspection
would need to be done to make certain the building complied with the structure requirements
and he would need to inspect the building to make sure everything is operational.
Anderson asked why the interior panel material was not covered after the building collapsed?
Werderitsch said he did not think the oxidation could have been prevented by just covering
the sheet metal. Anderson also asked why SWA continued to install all of the interior panels
when they were informed after the first hangar section was completed that the Commission
would not accept the damaged panels? Werderitsch said he thought it was just a matter of
washing the panels down. He said they tried a couple of different products to clean the
panels, but it was not satisfactory.
Robert Downer,the attorney for SWA, said he has researched the question of liquidated
damages. He said it was his opinion that liquidated damages are only appropriate when
actual damages can not be calculated. He said in this case,actual damages, (i.e. lost rent,)
can be calculated and SWA has made an offer to pay some of those lost rents.
Horan made a motion to accept the proposal from SWA to pay December rents,plus one
day's liquidated damages. Downer said the law does not permit having to pay lost revenue
and liquidated damages. He said the liquidated damages would represent a penalty.
Werderitsch said he would pay$ 100 to show he had missed the November 17111 deadline.
Werderitsch said the building should be done by December 5 or December 6. There was no
second to Horan's motion. Ruyle made a motion to wave the liquidated damages in exchange
for December rents for all of the hangars that can't be leased. Anderson seconded the motion
and it passed 3â 1,with Horan voting against the motion.
b. Hangar lease-#34- O'Neil said the leases in Building G expire February 28,2001. The
tenant in#34 is trying to decide if he wants to move to Building K or stay in hangar#34. He
would like to stay in hangar#34 if the Commission would agree to maintain the current rent.
The current lease is for five years. Because Ruyle has a hangar in the same building,he
excused himself from any discussion. Mascari said he would not recommend holding the rent
for an additional five-year lease. He would suggest holding the rent for a two-year lease.
Anderson made a motion for a resolution to approve a two-year lease for hangar#34 in the
amount of$344.25 per month. Horan seconded the motion and it passed 3â0,with Ruyle
abstaining and Ellis being absent.
ADJOURNMENT:
The meeting was adjourned at 1:03 p.m.
Rick Mascari,Chairperson