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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 1 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 2 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 3