HomeMy WebLinkAbout01-06-2003 Airport Commission Meeting Minutes MINUTES
IOWA CITY AIRPORT COMMISSION
MONDAY,JANUARY 6,2003—12:30 P.M.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT: Rick Mascari,Michelle Robnett,Mark Anderson,Alan Ellis
STAFF PRESENT: Sue Dulek,Ron O'Neil
CALL TO OIiDER:
Chairperson Anderson called the meeting to order at 12:30 p.m.
PUBLIC DISCUSSION—ITEMS NOT ON AGENDA:
O'Neil said that that the Commission should request a definite answer from the Council on if they
will support the Commission hiring someone to assist with the business/strategy plan. O'Neil
said that Anderson and Robnett will be at the Council meeting tomorrow night and the issue may
be discussed. Mascari asked when the Council would be discussing the sale/lease agreement?
O'Neil said it is on the agenda for January 7. O'Neil said he would attend the meeting.
Anderson said he was going to tell the Council that the Commission has changed the policy on
the meeting room and it is available to be rented. He said he was also going to report on the FAA
meeting in Kansas City. He said he will remind the Council that the Commission still needs a
response on their request for a TIF district.
ITEMS FOR DISCUSSION/ACTION:
a. Aviation Commerce Park—Sales/Lease agreement- Mascari said he did not see
anything in the agreement that said all the money for the sale or lease of the property was to be
used for the Airport budget. Anderson said that is understood. O'Neil said that is specifically
addressed in the Council/Commission finance agreement. Tracy Overton,form Iowa Realty, said
he did not think that is something that would normally be addressed in a sales agreement. It is a
tri-party agreement.
Mascari asked if the Commission is required to go out to bid for this? O'Neil said the
Commission asked for proposals originally when they selected Iowa Realty. The major addition
to the agreement is to allow for sales and that is a Council decision. Dulek said the Council is not
required to go out to bid for consultant services.
O'Neil said the main difference between the draft agreement he sent to the Commission and the
one Dulek sent to them was the addition of Exhibit C. After review by the City Attorney's office,
City Attorney Mikes wanted to add an exhibit that defined the procedures for leasing the
property. It would require review and a recommendation from the Council on a lease offer. The
Commission would have the final decision. Mascari said it was his understanding that the
Commission has the final approval of leases and the Council has the final approval of sales.
O'Neil confirmed that is the way the agreement is written.
Ellis said he did not think Exhibit C should be part of the agreement. He said the document was
suppose to define what would happen with sales,not leases. He thought the Commission should
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approve the agreement without Exhibit C. He said there does not seem to be any basis in law
about the procedures outlined in the exhibit.
O'Neil said he did not think Exhibit C should be included in the agreement. He asked the
Commission how important it was to have it removed from the agreement. He said the agreement
that the Council will review tonight and act on tomorrow night will include"C". Mascari asked if
the Commission would have the option of taking the remaining lots off the sale market after
enough lots were sold to pay the bonded Airport debt? Ellis said that is something that should
have been negotiated through the Council/Commission subcommittee. He said that subcommittee
did not meet to discuss this.
Overton reminded the Commission that this is a one-year agreement. The Commission could
change the agreement at that time. Mascari said he is very concerned that the proceeds from the
sales go to the Airport. Anderson said a letter could be sent to the Council to remind them of that
fact. Robnett said she thought that the agreement was complete in spelling out the lease and sale
procedures. Mascari said his other concern was that the Commission might not want to sell all of
the property.
Robnett said the agreement requires a recommendation from the Commission before a sale could
be completed. If the Commission votes against a sale offer,the Owner is required to meet with
the Commission to discuss the offer. Ellis said he wanted to know who specifically is considered
the owner? Dulek said the owner is the City Council. Ellis asked if the Council could delegate
their responsibility to meet to someone else? Mascari asked what the value of the property was?
Overton said the entire subdivision should be worth about$5.1 million. Mascari said that the
Airport owes about$2.5 million. If half was sold,the Airport would be debt free and the Airport
could hold the rest until it had someone to lease it. Ellis said all of this should have been worked
out through the subcommittee. Ellis wanted to know if the Council could delegate the City
Manager to discuss sales offers? Mascari said there might be an advantage to doing that.
Anderson said the Commission was getting off track. It is a sales agreement with the Council and
Overton. O'Neil said it is an agreement that allows for sale of the property. The Commission's
previous lease agreement is included and procedures for sale or lease of the property. Overton
said if this agreement is approved,it will supercede the old lease agreement.
Robnett made a motion for a resolution to approve the agreement. She did not think including the
new lease procedures was enough to reject the whole agreement. Mascari asked Overton how
long it would take to sell 40%of the property? Overton said it is hard to speculate,but that in the
next three to four years, at least 50%of the ground should be sold. He said it is difficult to
predict.
O'Neil said the agreement is a three way agreement between the Council,the Commission and
Overton. No individual party can unilaterally change anything in the agreement. It is a one-year
agreement. Anderson said the Commission still has final approval over leases. Ellis said he does
not know why the Council is being inserted into the lease process? O'Neil said this was at the
suggestion of the City Attorney.
Ellis said he thought the agreement should be passed without Exhibit C. O'Neil said there was a
motion on the floor that needed to be seconded on or retracted. Mascari seconded Robnett's
motion. Ellis said the Council is being involved in a lease process that they are not in now.
O'Neil said having the exhibit was a matter of fairness. If a sale by the Council required a
recommendation by the Commission,she felt a lease by the Commission should require a
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recommendation by the Council. Ellis said he does not think it is an issue of fairness. The
Council is not involved in leases now. Robnett said this should improve communication between
the Commission and the Council.
Mascari asked where the Commission stood with the FAA? O'Neil said he has sent all the
information requested by Nicoletta Oliver and he would anticipate a response soon. The
agreement is written to be contingent upon FAA approval. Ellis said he thought the Commission
was rushing the issue. He said he also has not heard anyone from the Council requesting to be
involved in the leasing agreement. He said that was the City Attorney's idea. Ellis said he also
wanted to know who would meet with the Commission if there was a disagreement and could the
Council delegate that responsibility. Dulek said the agreement was between the Council and the
Commission.
Ellis said he wanted to emphasize that this agreement should have been negotiated through the
subcommittee. He was disappointed that the subcommittee never met to discuss this before it was
sent to the Commission and the Council. Mascari asked Overton about the fee. Overton said the
fee is standard and he charges the same fee for all commercial property.
At roll call vote,the motion passed 3— 1,with Ellis voting in the negative and Thrower being
absent.
ADJOURNMENT:
The meeting was . journed at 1:12 p.m.
MI
Mark • .erson,Chairperson
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