HomeMy WebLinkAbout08-09-2001 Airport Commission Meeting Minutes MINUTES
IOWA CITY AIRPORT COMMISSION
THURSDAY AUGUST 9,2001—5:45 P.M.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT: Rick Mascari,Howard Horan,Mark Anderson, Alan Ellis,John
Ruyle
STAFF PRESENT: Sue Dulek,Ron O'Neil
CALL TO ORDER:
Chairperson Mascari called the meeting to order at 5:45 p.m.
APPROVAL OF MINUTES:
The minutes of the July 19,2001,Commission meeting were approved as submitted.
AUTHORIZATION OF EXPENDITURES:
Ruyle made a motion to approve the bills. Ellis seconded the motion and the bills were approved
4-0.
PUBLIC DISCUSSION—ITEMS NOT ON AGENDA:
No items were presented.
PUBLIC HEARING- National Guard lease- The public hearing was opened at 5:47 p.m.
There were no comments from the public. The public hearing was closed at 5:47 p.m.
PUBLIC HEARING- Hangar#35 lease-The public hearing was opened at 5:48 p.m. There
were no comments from the public. The public hearing was closed at 5:48 p.m.
PUBLIC HEARING-IOW Aero lease-The public hearing was opened at 5:49 p.m. There
were no comments from the public. The public hearing was closed at 5:49 p.m.
PUBLIC HEARING-Jet Air lease-The public hearing was opened at 5:50 p.m. There were no
comments from the public. The public hearing was closed at 5:50 p.m.
ITEMS FOR DISCUSSION/ACTION:
a. Aviation Commerce Park-
1. Iowa Commercial Realty-Tracy Overton presented a list of potential protective
covenants for the ACP. He said the Commission should start out by examining the
zoning for the area and then building on that for any other restrictions they would like to
include. He said the Commission should add to the list he presented and then have an
attorney draft a document. Dulek said covenants are sometimes recorded. She would
draft the covenants after the Commission gave her their ideas.
Mascari reminded the Commission that Chuck Hawkins,from the FAA,cautioned
against allowing a long line of buildings parallel to the proposed ILS or other precision
approach. He said it might deflect the signal. Other uses discussed by the Commission
included businesses that may want to include a communications tower or those that had
other transmission equipment. Horan and Ellis will meet with Overton and finalize a list.
Dulek said they should meet with other City staff,such as someone from the Planning or
Building Departments. Ellis said the Commission members should give their ideas to
Horan or him.
2. Lot#11 lease-Overton said he and O'Neil have been meeting with the potential tenant%r
Lot#11. He said if the Commission is in agreement on the terms,he would recommend
Dulek prepare a lease. Dulek said she has general lease almost completed. She said the
Council must approve the finance agreement and the final plat before the Commission
can move forward.
The Commission discussed the proposal from Rob Nickels. Mascari said he thought the
smaller lots were going to generate$20,000 to$25,000 annually. The proposal was for
substantially less than that. The main reason the offer is less is because of the easements
on the property. The tenant is offering less than market value for the part of the lot
encumbered by easements. Overton said he calculated the proposed lease rate in
comparison to a sale rate and the lease offer would be comparable to a sale rate of$4.00
per square foot. He said property around the area is selling for$3.00 to$4.50 per square
foot.
Overton said the tenant would like to move forward as soon as possible in order to begin
construction this year. He is evaluating other options in the event the Commission can
not meet his schedule. He would like to start site prep work if the Commission is in
general agreement to his terms. He knows it would be at his own risk to do any site
work.
Mascari said he is concerned about the development not making a profit for the Airport.
He said that at the rate proposed by the tenant, if carried out to the rest of the
development,would produce just a little more income than is needed to pay the
infrastructure loan. He said the value of the property as calculated by Overton is less
than that front the Cook appraisal. Ellis said there is more competition now than when
Cook appraised the property. He said that if the current rate calculated by Overton is
correct,the Commission should move forward and rent the lot.
Mascari said he would like to talk to Casey Cook again. He said he would like to see if
the situation has changed enough to change the value of the property. ONeil will contact
Cook and schedule a meeting.
Overton said if the Commission does not like the offer,they should counter-offer and see
if the tenant is still interested. Mascari said he could not support the offer until he talked
to Cook. He suggested waiting until meeting with Cook before a counter-offer is made.
Mascari would like a written report from Cook. ONeil said this is a busy time of year for
Cook and he doesn't know how soon he will get a response.
Overton presented a draft of some promotional material he was going to use. He wanted
to have a sign installed near the Riverside Drive entrance. The Commission reviewed the
material and told Overton to proceed.
3. Other issues- Mascari said he thought the Commission should discuss the finance
agreement with the Council. Mascari explained the repayment schedule. He said that all
revenue generated would go back to repaying the bond until the property generates
enough to get back to the payment schedule. Ellis suggested a couple of language
changes. The Commission agreed and O'Neil will discuss the changes with the City
Attorney's office.
b. Building K-final acceptance- O'Neil said the project to keep water out of the hangar has
been completed. Ellis said he was not comfortable accepting the building until he could see
how the new drainage system works during the winter. O'Neil said the alterations installed
by Selzer Werderitsch Associates were a possible solution to resolve the water problem
suggested by the City Engineer. SWA was informed that if this did not work, it would still be
SWA's problem. Horan made a motion for a resolution to accept Building K. Anderson
seconded the motion and at roll call vote,the motion passed 3 - 1,with Ellis voting no and
Ruyle being absent.
c. Fuel site-final acceptance- O'Neil said the project is not completed enough to accept the
project. This will be on the agenda at the next meeting. Blum said the Iowa Department of
Agriculture needs to certify the pump. Double Check stills needs to install the card swipe for
the self-fueling station. Written instructions will need to be posted at the self-fueling station
before it can be activated.
d. FBO services-
1. IOW Aero-Mascari said he and O'Neil had met with IOW to discuss the lease. He said
that a lease sent to IOW was a draft and IOW had responded with some suggestions.
Mascari reviewed the differences in the Commission's draft and the suggestions from
IOW. Mascari said IOW would like to readjust the hours that a line crew is available.
Ron Duffe,from IOW, said having a lineman on duty 12 hours a day when not much fuel
is sold results in a loss for them. Duffe said IOW would contribute$ 15,000 if a self-
serve Jet A fuel station were installed. He said he thought that would increase fuel sales.
Duffe said he would also like to initiate an overnight parking fee that would be waved if
the pilot bought fuel.
Duffe said he would like to lease all of the space in the Terminal Building and sublease to
Jet Air. He said he has discussed that arrangement with Jet Air and he said he would be
able to make that work.
IOW and the Commission discussed shorter hours for the FBO. If that can be arranged,
an arrangement would need to be in place to have the Terminal Building open during
regular business hours and during weekends. Blum, from H.R. Green,will check to see
what would be involved in installing a remote Jet A fuel station. Mascari and Ruyle will
meet with IOW Aero and negotiate the lease. This will be an agenda item at the next
meeting.
2. Jet Air- Mascari said he has not met with Jet Air. O'Neil said the Commission will need
to decide if they are going to have a separate lease with Jet Air or if Jet Air will sublease
from IOW. Mascari said he would prefer two separate leases. O'Neil will send a draft
lease to Jet Air and Mascari and Ruyle will meet with Jet Air to negotiate a lease.
e. Hangar#35 lease- The University of Iowa Engineering Department has requested to
sublease part of the hangar from Dennis Gordon. Gordon would like to change his lease from
a month to month lease to a five-year lease. The University has not confirmed their sublease
with Gordon. Gordon would like the Commission to defer this item to the next meeting. He
said he is waiting to hear from the University to confirm they want to sublease.
f. Iowa National Guard lease- O'Neil said the Guard leases approximately 28,000 square feet
of ground for vehicle storage. The new lease would be for three years,with a three-year
option. O'Neil suggested a 2%per year increase in the rent. The rest of the terms stay the
same as in the last lease. Anderson made a motion for a resolution to approve the lease for
the Iowa National Guard. Ellis seconded the motion and at roll call vote it was approved,4-
0,with Ruyle being absent.
g. Fly Iowa 2001-Anderson reported on the progress of the Fly Iowa planning committee.
Anderson said he only had concerns about two things, enough funding and enough
volunteers. There have been some last minute costs. Anderson said the budget is about
$29,000. He said it depends on how the Coke sales go. Part of the pop sales will be donated
to Fly Iowa. The Committee may need to hire people to direct traffic. O'Neil has hired
someone for security from 10:00 p.m. Saturday to 6:00 a.m. on Sunday.
Publicity was discussed, including appearing on the Dotty Ray Show and with Roy Justice.
Posters were posted and have been mailed to airports in Iowa. O'Neil said he has talked to
the tenants in Buildings J and K about moving their aircraft out before the venders set up. He
has talked to most of the tenants and will remind them again that if they want their aircraft
out,they will have to move them out before Saturday night.
CHAIRPERSON'S REPORT:
Mascari stated that he thought Anderson has done a great job on Fly Iowa. Anderson said he
thought the whole Fly Iowa 2001 committee has done a great job.
Mascari said he and O'Neil met with Ron and Deb Duffe concerning the FBO lease. He said he is
confident that a lease would be negotiated.
COMMISSION MEMBERS' REPORTS:
Ellis would like to see the payback schedule for Building F changed from 20 years to 30 years.
Mascari said he discussed extending the schedule,but did not express any specific time frame.
Ellis asked if there was a waiting list for t-hangars. O'Neil said there is a waiting list but there are
two or three hangars that will be available soon.
Ellis said the Commission should still pursue trying to have a localizer installed. Mascari said
there are some remote airports that are getting transponder approaches. He would like to see if
that is still possible for Iowa City. Blum said most transponders are only certified accurate up to
300 feet.
ADMINISTRATIVE REPORT:
O'Neil said the Commission needs to move forward with selecting a consultant for the obstruction
removal project. He said the IDOT does not require the same selection process that the FAA
requires. This will be on the agenda for the next meeting.
O'Neil said he received a phone call from Lee Utt, from the FAA, discussing Phase 1 of the
Runway 7 extension project. Relocating Dane Road will be the first phase of the project.
The Iowa City Flying Service fuel tanks were removed on July 24,2001. Part of the negotiated
deal with ICFS when the Commission let them out of their lease was that they would pay to have
their tanks removed, as long as they were removed before August 27. The money was escrowed
by ICFS's attorney.
O'Neil said there is federal legislation that may earmark CIP funds for Iowa City. This would be
for land acquisition.
SET NEXT MEETING:
The next regular Airport Commission meeting is scheduled for September 13, 2001,at 5:45 p.m.
ADJOURNMENT:
The meeting was adjourned at 8:53 p.m.
Rick Mascari,Chairperson