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HomeMy WebLinkAbout09-13-2001 Airport Commission Meeting Minutes MINUTES IOWA CITY AIRPORT COMMISSION THURSDAY SEPTEMBER 13,2001—5:45 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Rick Mascari, Howard Horan, Mark Anderson, Alan Ellis STAFF PRESENT: Sue Dulek, Ron O'Neil CALL TO ORDER: Chairperson Mascari called the meeting to order at 5:47 p.m. APPROVAL OF MINUTES: The minutes of the August 9, 2001, Commission meeting were approved as submitted. AUTHORIZATION OF EXPENDITURES: Mascari suggested the Commission do something as a group to acknowledge the events that happened in New York and Washington. Horan suggested doing something in conjunction with the Veteran's groups at the memorial plaque by'Old Jet'. Anderson said tomorrow was to be considered an official national day of mourning. Anderson 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. ITEMS FOR DISCUSSION/ACTION: a. Aviation Commerce Park 1. Iowa Realty September report-Tracy Overton,from Iowa Realty,presented marketing information concerning the ACP. He said the Commission needs to complete work on the generic lease and the CCR's. The signage and landscaping needs to be completed on the Riverside Drive end of Ruppert Road. He said his marketing sign would be ready in a couple of weeks. ONeil said he would work with Lisa Mollenhauer on the limestone entrance sign. O'Neil suggested that Mascari contact the Mayor and schedule a "grand opening" ribbon cutting ceremony. Horan suggested the Chamber of Commerce be involved. O'Neil said the Council and Commission should be involved. Ellis suggested inviting Tom Bender because of the preliminary work he did on the project. Overton said he has had calls from potential tenants that are wanting information on the project. Ellis asked if the area was eligible for TIF or urban renewal financing? He said this was mentioned in one of the Council/Commission subcommittee meetings. Ellis said it was his understanding that the Commission would need to request these financing options from the Council. 2. Lot# l 1 lease-Mascari suggested the lease be discussed with a subcommittee that would make a recommendation to the Commission. Mascari and Ellis will meet with Overton at noon on Friday to discuss the lease. Mascari asked if Overton and Cook had resolved the differences in their appraisals. Overton said their main difference was what would happen to the capital improvements at the end of the lease. Overton said he determined the lease value based on the assumption the improvements reverted to the Commission at the end of the lease. Cook based his appraisal on the assumption that the tenant would be able to sell the improvements to the Commission or another tenant. Cook's appraisal was based on full list price for all the square footage. He did not allow for property that would have to be discounted because of the easements the Planning Department wanted for access on some of the lots. Anderson recommended some of the easements be vacated. O'Neil said he discussed the easements with Karin Franklin and she said her staff felt strongly that the easements should not be vacated. Overton said he would recommend accepting the offer for lot#11. O'Neil said if the Commission would like to accept the offer,they would need to set a public hearing on the lease. Horan said the Commission needs to address the CCR's for the development before they would be able to offer a lease. Horan and Ellis will work with Overton to generate an outline for Dilkes to draft guidelines. Ellis said he would check with the Johnson County Recorder's office to see if he could find some examples of CCR's. The consensus of the Commission was to accept the basic business terms for Lot#11 and to move forward to finalize a lease. O'Neil will publish the notice of public hearing for 9:00 a.m. on September 26. 3. Council/Commission Finance agreement- O'Neil said the agreement has been approved by the Council and would also need to be approved by the Commission. Ellis said he had a couple of language changes. He objected to using the term"subsidizing" in relation to the Airport budget. He said the Airport is a City department and should be supported like other City departments. He said the Council doesn't refer to the Parks Department,or Fire Department,or Police Department budgets as subsidies. Anderson made a motion for a resolution to accept the finance agreement. Ellis seconded the motion. Mascari said it would have to go back through the Council if there are language changes. Ellis also had questions about setting the minimum market lease rate. He said he does not agree that only the City Manager and the Airport Manager should review it. At roll call vote, the motion passed 3 - 1,with Ellis voting no and Ruyle being absent. 4. ACP land use request-Harry Hinckley- O'Neil said Harry Hinckley, owner of the Alexis Park Inn,would like to have the use of the outlots south of his property. He would not pay any rent but would mow the grass and otherwise maintain the lots. Hinckley said he thought there should be some fill added so he could extend his front parking lot to the south and add a road to his west parking lot. Mascari stated to the Commission that he thought the property was purchased as a safety zone for the future precision approach. O'Neil said the Master Plan shows the area as being reserved for the primary surface for Runway 25. O'Neil suggested the Commission design the entrance to the development before any commitments are made. Hinckley said he would not want to do anything until after the Commission developed the entrance. He would want a permanent easement for the driveway to his west parking lot. Anderson said the landscaping would probably not be done until next spring. O'Neil will work with Overton on a landscaping plan. Overton said he would suggest any easement have a termination cause. Mascari asked Hinckley if he would put a plan together on what he wanted to do. Hinckley said he would rather the Commission put a plan together and he would try to incorporate his ideas into the Commission's plan. 5. Other issues -Not other issues were presented. b. Fuel site-final acceptance -O'Neil said Blum, from H.R. Green, said there was still a punch list and he would not be able to recommend acceptance. Ellis wanted to know if fencing was needed around the fuel tanks. O'Neil said he did not think additional fencing was needed because the fuel site was within a fenced in area. This will be on the next agenda. c. FBO lease 1. IOW Aero lease-O'Neil said IOW have withdrawn their offer for FBO services and would like to rent Building D,two offices in the Terminal Building and hangar#32. They would pay$ 550.00 per month rent. O'Neil said that if the Commission wanted to entertain their proposal, a new public hearing would need to be conducted. O'Neil said a proposal is on the agenda later for leasing hangar#32 for$450.00. Anderson asked how Jet Air fit into the FBO plans. Mascari said he contacted Mr.Timmons and Jet Air is not prepared to be the full-service FBO at this time. They are still interested in leasing an office and having charter service and aircraft sales on the field. Mascari said discussion of hangar#32 should be included with the IOW discussion. O'Neil said the hangar#32 lease would also include permission to offer mechanic services to the public. Mascari said his interpretation of the IOW lease was that they would provide service on a month to month basis after the original lease expired on September 15. Mascari said written notice was received and IOW would provide services until October 15. Horan said he and Ellis had met with IOW two days ago and thought the terms were agreed to in general that would enable IOW to continue to provide FBO services. Horan asked Ron Duffe,from IOW,what happened to their agreement? Duffe said he discussed it with his partner Jim McCrabb and they were not certain what the Commission expected from an FBO. Duffe said he did not like some of the terms in the lease. McCrabb said the fuel sales would not cash flow. Mascari said IOW knew what the fuel flowage was when they put in an offer to be the FBO in July. McCrabb said there was no clause that would allow them to get out of the lease. O'Neil said the lease would then only be as long as the notification time required for termination. McCrabb said he left the previous meetings with the impression that IOW was really the Commission's second choice. McCrabb said they would like to continue to do what they are doing but would like direction from the Commission on what the future is. Mascari asked McCrabb if IOW was still interested in being the FBO? McCrabb said they were still interested in being the FBO. Mascari said then it goes back to the terms of the contract. Mascari asked McCrabb if he thought the Commission and IOW could come to terms? Mascari said that several weeks ago the Commission agreed to select IOW as the service provider. He said he thought this was clear direction from the Commission that they wanted IOW as the FBO. Duffe and McCrabb said they would like to operate as the IOW Club. They would continue to operate as they have the past six months until the Commission found another FBO. McCrabb said there is a lot of"excess baggage" incorporated into the FBO lease. He said he thought the Commission is punishing a future FBO for things that have happened with a bad situation in the past. He thought the agreement was too vague and one-sided in favor of the Commission. Horan said he would entertain IOW's current offer,not to include hangar#32. McCrabb said he needs hangar#32 to use as a mechanics shop. He said Building D would be difficult to heat enough for a working environment for the mechanics. McCrabb said they are offering to use the same facilities as they are using now,pay the utilities, but not additional rent. They would do this until an FBO was found if the Commission could not negotiate terms for them to be the FBO. O'Neil said there were several scenarios that have been offered. One is for IOW to continue on as the FBO and occupy Building E and F,paying utilities only on Building F. Another possibility was to continue on as an areo club, leasing Building D,two offices in the Terminal Building,and hangar#32, for a total monthly rent of$ 550. There was an original offer of continuing as a club, in Building D and two offices in the Terminal Building for$ 500. There was the possibility of being an FBO,using Building D and two offices in the Terminal. O'Neil asked the question of what the Commission and IOW Aero wanted to do on a short-term basis? Ellis said he would suggest that IOW stay where they are in Building E and F and move forward on negotiating an FBO lease. McCrabb proposed IOW provide FBO services for one year, starting September 15, occupying the same space as they occupy now. If the Commission finds another FBO services provider,they would give IOW 90 days notice. During the one-year period, an FBO contract would be negotiated,either with IOW or some other company. Horan made a motion to accept IOW as the FBO for one year,with a 90-day termination notice for either party. The same services they are now providing, including charter, instruction, rental, mechanic services, and fueling services,would be continued. Building D and hangar#32 are not included. The business agreement for the aero club continues. McCrabb said that no additional rent would be paid, other than the utilities for Building F. Horan said if that was the case,he was withdrawing his motion. (Mascari called for a five-minute break.) Duffe said they would offer$ 300 per month in addition to the other terms discussed. He said he would like to look at other communities to see how they structured their FBO contracts. O'Neil suggested they use airports that are similar in size and numbers of operations as Iowa City. He suggested Ankeny, Ames, Council Bluffs,and Davenport as comparative airports. Anderson suggested a three-year lease, with a 90 day out, $ 900 per month rent, and shortened hours. The fueling situation was discussed, including installing a self-service Jet A fuel station. O'Neil said the fuel flowage should be$.04 per gallon and a least$.06 per gallon usage fee for the fueling equipment. Duffe made the proposal of a one-year lease, at$300 a month,providing the same services as they now provide,with approximately the same hours of operation. During the one year time period, a three-year lease will be negotiated. Horan made a motion for a one-year lease, at$400 rent per month. There would be fueling, line service, flight instruction, rental, charter, and mechanic services. IOW would use buildings E and F and pay the utilities on building F. The hours and the fuel flowage fee will remain the same. Anderson seconded the motion and it was passed 4 -0. A three-year agreement will be negotiated as soon as possible during the one-year period. 2. Jet Air lease-Mascari said there was nothing to report at this time. This will be on a future agenda. d. Hangar#35 lease- O'Neil said the only change in the lease was from a month to month term to a five-year term. The University wanted a longer commitment from Gordon if they were to base their synthetic vision project at the Airport. A public hearing was held for this lease at the August Commission meeting. Horan made a motion for a resolution to approve the lease with Gordon Aircraft for hangar#35. Ellis seconded the motion and at roll call vote,the motion passed 4 -0,with Ruyle being absent. e. Hangar#32 lease-Darrell White said he is in partnership with Keith Roof and they would like to provide mechanic services from hangar#32. It would be a two-year lease and the rent would be$450 per month,with Iowa City Aircraft Repair paying the utilities. Duffe, from IOW Aero, said he would support this arrangement. Dulek said the insurance language would need to be restated. White said he would like a 90-day termination clause in the contract. Ellis made a motion to accept the lease. Anderson seconded the motion and it passed 4-0, with Ruyle being absent. f. Dane Road relocation project- O'Neil said this is a project that should be coordinated with the construction of Mormon Trek, south of the Highway 1 intersection. Although the Public Works Department has a contractor for the project, O'Neil suggested the Commission have a consultant from the Airport work with the PW contractor to make certain all regulations are met to enable the City to use the FAA funds. Mascari made a motion to hire Jerry Searle and Snyder and Associates as a consultant for the project. Anderson seconded the project and the motion passed 4 -0,with Ruyle being absent. g. Obstruction removal project- O'Neil said the Commission would need to select a • consultant to implement the project. It is a State grant and the criteria is not the same as selecting a consultant for a Federal grant. O'Neil said he thought the Commission should interview two or three consultants and select one for the project. The Commission directed O'Neil to schedule interviews with two or three companies. h. Fly Iowa 2001 - fmal report-Anderson said he had a final meeting last Saturday. There are still a few outstanding bills but it appears there will be a surplus of funds. There was a very positive response from the weekend event. O'Neil said several thank you letters should be sent out. Anderson and O'Neil will decide whom to send letters to. Horan asked how many operations there were at the event? O'Neil said there were around 400 that the tower counted, but there were a couple of times they were so busy they didn't have time to count the aircraft. CHAIRPERSON'S REPORT: Mascari was at the Council meeting when the finance agreement was discussed. He said the Council was very positive and supportive of the Aviation Commerce Park. COMMISSION MEMBERS' REPORTS: Anderson said he thought the gate codes should be changed. O'Neil said he has some repairs to do on the south gate and the parts are on order. The code will be changed sometime in October. Anderson commented on the number of geese in the area. O'Neil said this is an increasing problem and there is a permanent NOTAM concerning waterfowl in the area. Anderson said that eventually,when RW 18/36 closes,he would like to see the Commission explore the idea of an aviation residential development in the south quadrant of the Airport. Ellis said he would still like to see if the FAA would fund a localizer. O'Neil said it is on the ALP,but the FAA does not consider it a priority. Ellis wanted to know when the last time was that the t-hangar rents were increased. O'Neil said it has been several years. The Commission directed O'Neil to have this as an agenda item at the next meeting. O'Neil suggested the Commission have a public hearing before they raise the rents. Ellis said he would like the Commission to request the Council designate the NCA as an urban renewal district. Mascari will send a letter to the Council. Ellis said he would like to see the City of Iowa City install a sidewalk on South Riverside Drive. O'Neil said a gravel walk was installed on the east side of Riverside Drive last week. Ellis said he would like to see a bus stop at the Airport. O'Neil said there is a bus stop at the entrance. Ellis was very concerned about a safety incident that occurred during Fly Iowa 2001. The Commission discussed the issue and Mascari will contact FSDO and report back to the Commission at the next meeting. ADMINISTRATIVE REPORT: Dulek said she thought the soccer facility would be a good first tenant. Dulek said she will do what she can to facilitate a lease with IOW. O'Neil said a grant had been received for the final payment for the land acquisition project. The final grant was for$ 1,059,539.00. The next project would involve the relocation of Dane Road. O'Neil said he had received a letter from the FAA concerning the relocation of Dane Road. There would be$ 670,701 programmed for Iowa City Airport to relocate Dane Road. O'Neil said he is working with Public Works to try to use the FAA funds in conjunction with the extension of Mormon Trek to the south. The budget would be on the next agenda. O'Neil said he would try to get information to the Commission as soon as he receives it. The Commission should be considering projects they think should be completed in the next fiscal year. Several newspaper articles concerning Fly Iowa 2001 were included in the Commission's info packet. • O'Neil said he received a letter from the DNR concerning the removal of Iowa City Flying Services underground fuel tanks. The DNR is requesting a Tier 1 report. O'Neil will contact a certified groundwater specialist to prepare the report. A letter from SWA concerning Building K was included in the information packet. A list of the certified Council candidates was included in the information packet. Dave Larsen,who works with John Dane, questioned if and when the Commission was going to request annexation of property on the west side of the Airport. The consensus of the Commission was that this would be looked at in the future but is not a priority right now. O'Neil said there has been a request from the tenant in hangar# 10 to have the Commission install a concrete floor in the hangar. The Commission indicated they would share the cost as in the past and directed ONeil to negotiate with the tenant. ONeil said the parcel of property in the RPZ for Runway 12 was back on the market and the sellers wanted to know if the Commission was interested. This will be discussed at a future Commission meeting. ONeil said he thinks it will be beneficial in the long term for the City to own that piece of property. The Iowa Aviation Conference is scheduled for October 10 and 11 in Ames. Mascari and Ellis expressed interest in attending on one of the days. SET NEXT MEETING: The next regular Airport Commission meeting is scheduled for October 11, 2001,at 5:45 p.m. ADJOURNMENT: The meeting was adjourned at 10:28 p.m. Rick Mascari, Chairperson