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Home My WebLink About2000-02-24 Minutes• • • • MINUTES OF THE SPECIAL CALLED AIRPORT BOARD MEETING February 24, 2000 MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: OTHERS PRESENT: McKINNEY: LITTLE: RICK McKINNEY, TRUMAN SMITH, DON LYALL, CHARLES WALLACE FRANK BURGGRAF DALE FREDERICK, BRENDA MOSS, ALETT LITTLE, TONYA POSEY, LOUISE POWERS DR. DAVID HART; FROU GALLAGHER-FGC-3; TERRY COLLIER -TENANT; BARRY WEST -TENANT; MARILYN JOHNSON -CHAMBER OF COMMERCE; GEORGE ARNOLD- ARK. DEMO. GAZETTE; FRANK P SPRANDERO-TENANT; CARY ARRAGE; MARY RUTH HARRIS -(RETIRED) AWG; CHARLES VENABLE AND NANCY HENDRICKS-CITY OF FAYETTEVILLE; BILL KEATING-TENANT; DELNAR COODY; DAN COODY; JOHN KALAGIAS-ARK AIR MUSEUM; HEATHER A. DANIEL AND ROBERT E REYNOLDS -CITY COUNCIL MEMBERS; DON E BUMPASS-CITIZEN; CHUCK CHADWICK, MARK COURDIN, GARY COOK, AND PERRIN BLOUNT-FAYETTEVILLE AIR SERVICE; LEWIS JOHNSON - CITIZEN; LORENE MAGUIRE-CITIZEN; ANNE HANNA - CITIZEN; CHUCK ALLISON -THE MORNING NEWS; RANDY V. PARETTE-TYSON FOODS; LANITA McKINNEY-TENANT; PETE REAGAN-CITIZEN; GLEN SOWDER-SOWDER PROPERTIES; K.R. SCHOSSOW-WINGS AVIONICS; JEFF ERF ITEM #1: Call to Order ITEM #2: Discussion of proposed recreational facility at Drake Field Explained several organizations had come together and were interested in locating a multipurpose sports arena at Drake Field. These groups are made up of Questec Corporation, Nustadia Developments and Westem Professional Hockey league. An ice hockey team would be established and would provide one-third of the revenue. Other events would be scheduled to use the arena, such as concerts, speakers, and conventions. If approved by the City they plan to begin construction in June 2000, and begin the hockey season in the fall of 2001. • • • They have asked the City of Fayetteville to participate in a feasibility study by funding $200,000 towards the study. That amount, if approved, would come from Airport Funds. The Airport would benefit from the arena being located on the Airport from revenues generated. The selection of the Airport property comes from easy access to the highway, level site, utilities available, public access road and 900 parking spaces already established. The estimated value of the present improvements is around $3 million. The proposed multipurpose arena has the potential to generate approximately $1 million annually to the Fayetteville Airport, and has the potential to subsidize the Airport Fund and allow focus of the Airport to be general aviation. The way revenues to the Airport would be generated would have to be worked out later, possibly from a flat fee on ticket sales. The City would collect taxes and HMR taxes, also. An estimated seven acres may be needed. The proposed location is north of the terminal building on the landside, and south of the Air Museum. With this development on the Airport we would have a restaruant in the terminal and snack bars. South Fayetteville needs development and this would help. FREDERICK: The FBO building is not likely to be effected, nor is the area that has been selected for the Ray Ellis Museum. It hasn't been determined if the fuel farm would have to be relocated. It has been estimated it would cost $50,000 to relocate the fuel farm. Installation of the fuel farm was an estimated $700,000. If it was relocated there would be some design modifications. LITTLE: Explained other towns had been considered, St. Joseph, Missouri and Oklahoma City, and locally, they had liked this location because the land is already acquired and access is already developed. The $200,000 would be reimbursable if the project proceeds and bonds are issued. If bonds are used, one help would be the Public Facility Board. They have helped finance Hillcrest Tower and Butterfield Trail. The City would lease to the Public Facility Board and they would issue the Bonds. Answering questions from the Airport Board, if the hockey league were to go into default, the bond holders would sue and the bond holders would be responsible for the land debt. If all goes well the arena would become the City's property in thirty years. WALLACE: Asked that the feasibility study include the compatibility of the new enterprise to Drake Field. He also noted appreciation to the City Council members attending, and all of the others attending the meeting. • • • • LITTLE: LYALL: LITTLE: FREDERICK: CHADWICK: REYNOLDS: LITTLE: McKINNEY: BUMPASS: All revenue would be identified in the study. The City will own the study should the group decide not to locate here. The study could be used to work for other tenants. The idea of the arena had not been publicized at the request of the interested parties. Answering Ms. Darnel, the Airport is an Enterprise Fund and the Airport is interested in growing. There are less than 100 planes based at the Airport. Mr. Wallace has identified that 200 planes are needed to support general aviation businesses, and a marketing committee has been formed. The arena would help promote general aviation growth on the Airport. Said he thought the idea of the arena sounded good. Other events, including aviation related events could be held in the facility. The Airport needs a strong FBO, maintenance and fabrication shop, and charter service. Stated even with the construction of the Town Center, the arena could handle events such as concerts that couldn't be held there, youth events, toumaments and practice time on the ice. There would be seating for approximately 6,000 persons. The arena has been discussed with the FAA and there doesn't seem to be any problem there. Stated as a representative of the FBO, he was not comfortable with how fast the project was moving and the City should stop and consider how it will effect the Airport. In his opinion, he would be hesitant to spend $200,000 of the Airport's funds as the Airport's budget is tight. It seems like a lot to spend on a feasibility study. We can get the demographics, know the mean income, average age and the Western Hockey League should know the average age and income of those who would attend. He related the arena in Little Rock is averaging 3,200 in attendance, and that the Waco arena had shut down. Said he thought it would be good for Fayetteville and Northwest Arkansas and would draw traffic 1 to 1'/: hours away. The City is not giving away the money. They are receiving a product for the money. Three payments are scheduled for the stusdy. Proposed using 1/2 of City funds and %: Airport funds. Explained he came to the meeting to convience the Board to support the arena In other cities, this type of project is totally funded by the city. Stated he thought the arena and all the various events would be popular in this area -3- • • • • KALAGIAS: COODY: Stated he had been assured by those involved it would not come up too close to the museum and hoped they would compliment each other. The arena could book aviation trade show and aviation speakers and that would produce additional fly -in traffic. Suggested they look at other locations in the City for the arena. The arena might be good for the Airport, but there might be better locations in Fayetteville. LITTLE: Said the group had made it plain they wanted gifted land and the Airport is where they wanted to locate the arena. SOWDER: Explained he had lived in Seattle and had attended hockey games and they are better in person than on T.V. Said lets get it done. REAGAN: Said he was born and raised in south Fayetteville. He urged everyone to vote to support spending the funds for the study. McKINNEY: The following motion was made by Mr. Charles Wallace: That the Airport Board support further consideration of the sports arena, in other words the study, and that we request that the study test for us our serious intention that the proposed facility will be three things. (1). Compatible and synergistic with Drake Field Airport so that airport functions and services will be enhanced. (2). A direct and irrevocable revenue producer for the airport and by local commitment that surplus revenue from the operation of the arena be credited to the airport fund and used for airport development and operation. (3). A renewed effort to redevelop Drake Field be a part of the study seeking to have a viable general aviation airport. The motion was seconded by Mr. Truman Smith. The motion carried A motion that the Airport Board would request staff to explore the negotiability of the study and seek the best possible terms for the City and the airport was made by Mr. Wallace. The motion was seconded by Mr. Truman Smith. The motion carried. meeting adjourned at 3:15 p.m. Don Lyall, Secretary -4- Date