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HomeMy WebLinkAbout2003-04-29 MinutesMINUTES OF THE SPECIAL CALLED AIRPORT BOARD MEETING April 29, 2003 7:30 a.m./Airport Terminal MEMBERS PRESENT: Charles Wallace, Rick McKinney, Frank Sperandeo, Otto Lower, Dave Bowman, Bob Nickle MEMBERS ABSENT: Mike Andrews STAFF ATTENDING: Ray Boudreaux, James Nicholson, Louise Powers OTHERS ATTENDING: Dan Mouritsen-Govemment Channel TV ITEM#1: Welcome. Chairman C. Wallace welcomed those watching on television to the Airport Board's breakfast meeting which is a Special Called Meeting, explaining the rules require that at Special Called Meetings only the items listed on the agenda can be discussed, and this is a one -item agenda. ITEM #2: Hangar Lease for University of Arkansas. C. Wallace stated there are several things that make this lease unusual. R. Boudreaux explained the major part of the lease contains the same clauses as all the airport leases. The funding is unusual for us. Steve Davis, the City's Finance Director, has assured us this would be funded as a City of Fayetteville Capital Improvement Project through the City's Economic Development program. Funds would not come from the airport's reserve funds. R. Boudreaux explained the U. of A's rent for the hangar will be based on the cost of the construction of the hangar, amortizing the cost over twenty years at four -and -one-half percent (4 %: %) fixed interest rate. R. Boudreaux explained that what is important is the U. of A. has agreed to pay for the construction of the hangar and the hangar will belong to airport. The U. of A. has requested a clause stating the maximum rent would not be more than $2,600.00 per month. If the cost did run more that the $2,600.00 per month, we might have to extend the number of rental months. Their legal department has promised to have a new lease here today. C. Wallace had concerns that the lease they were looking at was not the lease that would go to the City Council, saying the Council expects them to send up items that are complete. An addendum to the lease was suggested, as well as a temporary lease for six months at a fixed rate. R. Boudreaux explained this is an important project for the City as it continues to show the City's support of the University. The City Council meets this afternoon for their agenda setting session. This .project involves two items for the Council. One is the Task Order for McClelland to design the hangar, which the Airport Board has already approved, and the other is the lease for the hangar to the U. of A. where they will pay for the cost of the 1 construction of the hangar, which is unknown now, through rental payments. The item is on the Council's Consent Agenda. The Council will need the Airport Board's approval of the item prior to the Council meeting or the item will be taken off their agenda, which will delay the project. B. Nickle raised the question of whether money would be set aside for maintenance on the hangar and asked if the airport should ask for $2,700.00 per month to cover maintenance items. R. Boudreaux said the Umversity had asked for four percent and we asked for the four -and -one-half percent. The one-half percent would come to the airport. The City may not require repayment, but this is a City Council decision. O. Loewer said the special nature of the project allows things to happen_that would nothappenif you werit to the bank. He also said we should have all up front, written, in case someone - should have amnesia sometime later. D. Bowman said he thought it showed the City's _ vote of confidence in the Airport. R. Boudreaux said.the-airport would pay for systems' repairs, heating system, a leak in the roof. The Universityynow has two planes and will buy.. more fuel. The more buildings going up, the more others will want to build. Responding to F. Sperandeo's questions whether this project would affect the "parity on the airport, it was explained the funds to build the hangar is not coming from the airport's funds. O. Loewer stated he would not be voting because of his connection with the University. D. Bowman commented that on page 1, at the bottom of the lease, forty years is spelled out and then in parenthesis 50 is shown, that needs to be corrected to 40. A motion was made for this lease to be forwarded -on to the City. Council, with the U. of A.'s modification, and that-Ray_will reach an understanding with the City about -the division -of -funds with no additional funds to be expensed by the Airport, with an amount to be set aside for maintenance for the hangar in the airport's budget. The motion was made by Bob Nickle and seconded by Rick McKinney. F. Sperandeo asked about insurance on the hangar. R. Boudreaux said the University will carry insurance on everything in the building and the City will cagy insurance on the building. Upon being put to the vote, the motion carried with: six ayes, no noes, and one member abstaining (Otto Loewer because of his position with the University). The meeting adjourned. `%_z�I-o Dave Bowmen Secretary. Date