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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