HomeMy WebLinkAbout10-17-2001 Airport Commission Meeting Minutes r
MINUTES
IOWA CITY AIRPORT COMMISSION
WEDNESDAY,OCTOBER 17,2001-11:15 AM.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT: Rick Mascari, ,Mark Anderson, Alan Ellis,
STAFF PRESENT: Andy Matthews,Ron O'Neil
CALL TO ORDER:
Chairperson Mascari called the meeting to order at 11:40 p.m.
PUBLIC DISCUSSION—ITEMS NOT ON AGENDA:
ONeil said the Police Department has asked that a memo be included in the next hangar invoice
to remind aircraft owners to be cautious about any unusual activity around their planes.
ITEMS FOR DISCUSSION/ACTION:
a. IOW Aero FBO lease- O'Neil said he had sent a letter to IOW Aero concerning the
verbal agreement they were working under from the September 13,2001 meeting.
McCrabb said it looked all right. Mascari said the long-term lease being offered by IOW
was to continue with the services now being provided,with rent for Buildings E and F
being$400.00 per month. Building D would be rented for$ 500.00 per month. Mascari
said he did not think this was an acceptable offer. He said it was well below market
value. Ellis agreed that it was not an acceptable offer.
McCrabb said he thought the Commission was missing the point. The only revenue the
FBO could generate would be from the shop. There would be a small amount of income
from the fuel operation. He said the$400 is not a market value for the buildings. Itis
the amount IOW can pay and still provide the other services. He said cities are paying
FBOs to be on the field. He said his FBO income has ceased to exist since September 11.
Mascari said IOW had once offered$2000 a month. McCrabb said that market is no
longer there. Anderson said the termination notice in the verbal lease was based on
ninety-day termination for cause. Anderson asked McCrabb what his definition of
"cause"was? McCrabb said cause was any event that makes it impractical or impossible
to operate at a profit. Even if IOW were to only pay$400 per month,if,in the long
term,it was not profitable,that would be reason enough to terminate. Matthews said the
Commission can use IOW's definition for cause but it is somewhat nebulous as to what is
practical or impossible to make a profit. Anderson said he just wanted to make sure what
IOW wanted cause to be. O'Neil said his interpretation from what was said at the last
meeting was that each side has an out if it wasn't working for them. McCrabb said he
thought that was fair. Mascari said that was his understanding.
Anderson said he felt the Commission has a fiduciary responsibility for paying off the
buildings. He said the Commission needs to maximize the income for the Airport. He
said he does not want to put an FBO in a position where they have to pay so much that
they can not make it. O'Neil said the income for the Airport would be less this year
because of the uncertainty of the FBO since March.
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Mascari said he feels the Commission needs to see if there is someone who will give the
Commission more money. He said the Commission needs to make sure they do
everything in their power to maximize the income for the Airport. He said that might end
up being only$400 per month.
McCrabb said that,based on the verbal agreement, IOW committed to leases for the fuel
trucks for five years. McCrabb asked if the Commission is giving IOW a ninety-day
notice? Mascari said he thought the Commission needs to see if someone will give them
more money. McCrabb said the Commission has never given IOW a bottom line
number. Mascari said that when he met previously with McCrabb and ONeil,the rent
per month that was discussed was between$2000 and$2500 per month. McCrabb asked
if the Commission was giving them a ninety-thy termination notice? Mascari said it
would have to be voted on,but he thought that's what the Commission should do.
Ellis asked if IOW would be willing to offer the$2000 per month they offered earlier?
McCrabb said it would not be possible. Ron Duffe,from IOW Aero, said there is no one
else out there to provide services. Anderson made a motion to give IOW Aero the
ninety-day termination notice and reject the final offer of$400 per month from IOW
Aero. McCrabb said he thought the Commission is beating up on the only candidate they
have. There has never been anything from the Commission giving IOW a final number.
Matthews said that does not mean the Commission does not have interest in IOW. They
just need to try to confirm what the bottom line is. Ellis seconded the motion and it was
approved 3 -0.
SET NEXT MEETING:
The next special Airport Commission meeting is scheduled for October 23,2001,at 12:00 p.m.
ADJOURNMENT:
The meeting� was adjourned at 12:15 p.m.
,CSX
Rick Mascari,Chairperson