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HomeMy WebLinkAbout2004-05-26 - Agendas - Final ,f • SPECIAL CALLED AIRPORT BOARD MEETING 2:30 p.m. Wednesday, May 26, 2004 Airport Conference Room 4500 S. School Avenue 1 . Welcome. 2. United States Postal Service Lease Agreement. Action Requested: Approval to submit Lease Agreement to City's Contract • Review process. 3 . Adjourn. • DALLAS FACILITIES SERVICE OFFICE UNITEDSTATES g POSTAL SERVICE RECEIVED MAY 2 6 2004 April 27, 2004 AIRPORT The Honorable William Yoes Mayor, City of Greenland P O Box 67 Greenland , AR 72737-0067 Dear Mayor Yoes: In my last letter dated February 2, 2004, 1 advised that the Postal Service planned to advertise for existing buildings and sites that could serve as the new Greenland Post Office. • Based on the results of the advertisement, the enclosed list of properties was reviewed by our Site Review Committee as possible locations. This list also includes properties looked at and rejected for reasons noted . In compliance with postal regulations, any member of the community or your office, may appeal this decision within the next 30 days. Letters should be directed to Vice President, Facilities, and addressed to my attention at the address shown in this letter. A response will be provided within 15 days. Since y, David Cleveland Real Estate Specialist Enclosure cc: Postmaster - NOTICE - Please date stamp and post in public lobby for 30 • days, then return to me. P.O. Box 867180 DALLAs, TX 7526&7180 214.819.7201 Fm: 214.819.7290 SITES CURRENTLY UNDER REVIEW 1 . Existing Building , Portion of Airport Terminal Building , Drake Field , 4500 S. School Avenue. 2. Vacant Site for Modular Building , just east of 621 Wilson Avenue. SITES REJECTED FROM FURTHER REVIEW • NONE. • • LEASE DATA SHEET TENANT: United States Postal Service ADDRESS: Main Post Office Greenland, AR 72737 PHONE: David Cleveland Dallas FSO, USPS33 214.819.7135 PROPERTY LEASED: 4500 South School Ave Suite P Fayetteville, AR 72701 USE OF PROPERTY: United States Post Office BEGINNING DATE: July 1 , 2004 . TERM OF LEASE: 10 year prime term OPTION TO EXTEND: Four five year options • RENTAL FEES: Annual amount: $ 19,200.00 Monthly amount: $ 1 ,600.00 Rent Increases: 20% increase each five years. SPECIAL CONSIDERATIONS : They have asked that we fix the entrance to the parking lot soon. DESCRIPTION: The Greenland Post Office lease near the Greenland school will end this fall at the beginning of the school year. Following a year of negotiations with the Post Office an agreement was reached where they would locate a facility in the Airport Terminal Building. The space would be the North end of the building where the car rental offices were once located. The space has not been used except for short periods of time since the Airlines left the airport. The USPS will build out the space to accommodate their special needs and expect to spend approximately $ 100,000.00 on leasehold improvements. The space will include post office boxes, parcel service, a service desk and all the regular services provided by the post office. Our building provides easy access and abundant parking. RECOMMENDATION: The initial area considered by the Post Office would have included a common lobby and • a small space that would accommodate the USPS service center and allow for an additional tenant next to the Post Office area in the common lobby. As the project took . shape, the need for space grew to accommodate anticipated growth. We encouraged the USPS to build a new center that could take pressure off of the downtown post office sometime in the future. Our incentive was to allow the additional space at much less per square foot to encourage them to take the additional area. It would have been very difficult to use the remaining space and being able to lease it would have been problematic. We eagerly worked with the USPS as they are a good anchor for the terminal building. The post office is a place where many people go every day. The 364 PO Boxes alone could generate more than 200 daily visits to the airport. The established price of $ 11 .00 per square foot for Terminal office space was previously established by the airport board and includes utilities. The utility cost for the building is approximately $ 1 .79/SF/YR. The airport staff maintains the building and would be responsible to maintain the lobby of the demised premises. The lobby would be smaller than it is currently. The restrooms are public restrooms now and would be maintained by the airport maintenance staff. The negotiated rate of $9. 14 per square foot and the rate of rent increases of 20% every five years, results in a rate per SF of $ 11 in years 6 thru 10 and to more than $ 13 per SF in years 11 thru 15. The airport incentive rate of $9. 14 per SF results in an incentive of $ 19,530 over the first five years which is minimal when comparing the initial investment and the increased activity the development will bring to our facility. • Staff enthusiastically recommends approval. • 1 MAY, 17. 2004 3 : 28PM DALLAS FSO USPS33 NO, 9584 P. 2 UNITEDSTATES � POSTAL SERVICE I FRE MAIN POST OFFICE (043663-002 ) Washington COUNTY I +++ CAEHNLAND, AR 72737-9998 Project ; G05686 E This LEASE, made and entered Into by and between CITY of FAYETSviLLE hereinafter called the Lessor, and th ! United States Postal Service, hereinafter celled the Postal Savke: r In consideration of the mutual promises set font and for other good and valuable consideration, the sutflclenty of is hereby ackwwledged, the parties covenant and agree as follow 1. The Lessor hereby leases to the Postal Service and the Posta Service leases from the Lessor the tt premises, hereinafter legally described In paragraph 8, in accordance with the terms and conditions described herd n and contained in the 'General Conditions to U.S. Postal Sepik a Lease,' Section A, attached hereto and made a pa I hereof. { Upon which is a one story rock and masonry building and which property/ contains areas, space to E Improvernents, and appurtenances es follows AREA SQ, FEET AREA SQ. FEET Net Floor Specs 2, 100 Joint Use/Common Areas: j Platform 70 Parking and Maneuver 50000 h parking and Meneuvelfng Entrance, est . walks 500 j Other,Driveway ! I Landscaping ; Sidewalks Joint/Common Use parking areas are an estimate for 11 parking spaces + 1 handicap f apace and drives that will normally be used by the post office out of the large joint use parking lot in front of the building. i I Total Site Area: 2 , 100 ' 2. RENTAL The Postal Servioe will pay the Le9SOr en annual rental of: $19, 200 . 00 *See Paragraph 6, F 2� ***Nineteen Thousand Two Hundred and 00/100 Dollar**** payable in equal instalhrrents at the end of_ each calendar month. Rent for a part of a month vAl be prorated. Rent checks shaft be disbursed as follows payable to: CITY OF FAYETEVILLE C/o AVIATION & ECONOMIC DEV 4500 S . Sohool Ave Suite F Fayetteville AR 72701-8016 unless the Contracting Officer Is notified, in writing by Lessor, of any change in payee or address at least sW (60) d, ysi before the effective date of the change. h 3. TO HAVE AND TO HOLD the said premises with their appurtenances: FIXED TERM: The term beginning 01, 2004 and ending 31, 2014 for a total of 0 years . RELWE1 (May 1999, v2A I . S . ' MAY. 17. 2004 3 : 29PN DALLAS FSO USPS33 N0. 9584 P, 3 � unrrrEvsraTes Leas 1 I+OsrdLSE7:vrtE 4. RENEWAL OPTIONS: The Lease may be renewed at the option of the Postal Service, for ( the following separate and consecutive terms and at the following annual rentals : i r4anrrnL EFFECTIVE ==RATION PER Alum ( oPTIoV DATE DATE RENTAL 1 /1/2014 /31/2019 $27 , 648 . 00 2 /1/2019 /31/2024 833, 177 . 60 i 3 /1/2024 /31/2029 539, 813 . 12 f1 4 /1/2029 /31/2034 $47, 775 . 74 i provided that notice is sent, in writing, to the Lessor at least 30 days before the end of the original lease term and each renewal term. All other terms and conditions of this Lease will remain the same during any renewal term unless stated 1 otherwise herein . 6. UnLMES, SERVICES, AND EQUIPMENT: Lessor, as part of the renes considerstion, shall furnish the i u5liom, services and equipment (see Lessor oMig� *10w" conmums (ply weft s9adKd addendum rardOdbm.) Beating System i Fuel, Air Conditioning Equipment 6 Power, Light Fixtures i Power, Sewerage System and Service, Electrical system a Electricity, Water System and Service, Trash Removal, Snow Removal, Lessor will provide daily janitor service to all areas where access is available . I 6. OTHER PROVISIONS: The Wowing additional Provisions, mo fi icatbns, riders, layouts and/or fomb `xere qM d1 upon prior to amoudon and made a part hereof i Maintenance Rider - Lessor (M-1 ) , OST Maintenance Rider - Lessor ( D-1 ) , The ! Postal Service shall accept the space in "as is• condition and shall provide the 1 interior construction and finish out of the space at its own expense . Lessor shall not provide adjacent space to entities majoring in the on-site consumption or direct sales of alcoholic beverages, i . e . , liquor store, bar, adult entertainment , etc . A restaurant serving beer and/or alcohol containing drinks asaoeiated with meals is acceptable . See Attached Addendum. *Rent shall increase to 823440 . 00 per annum beginning the first month of the aeobn 5-year period of the base term of the lease ( approx. 2010 - 2014 ) . 7. The undersigned has completed the 'Representations and Cert floations.' (See Section 13). , 8. LEGAL DESCRIPTION: The northern portion of the Fayetteville Municipal Airport Terminal Building, Drgke Field, Highway 71 South, Fayetteville# AR, as illustrated in the attached Page 2 (a) . RELEASEI (Mq 1994, v2.1) 2 . BOVE 2 : 25P9""'DALLAS FSO USPS33 NO. 9433„j. 2 r .,•moo- r , n RIF ° X � a . C Z lei � T g 0 x I N ro O ° r T-1, 6 S I wu 1oio12QF II Z d a g � I ARCHITECTUREPLUS INC. +•"—+. ;� � (preferred y rsio E: . "t �• 907 South 21st Street Fort SmRh, Arkansas 479/783-6395 - i • SCHEMATIC PLANS USPS GREENIAND, ARKANW PROJECT: 03-03.06 DALE: 04-22-04 DRAWING 5 OF 6 NO.: i NORTHWEST ARKANSAS TIME S• No WEDNESDAY — May 26, 2004 Post office might relocate to airport Drake Field one of two sites -being considered for new Greenland facility BYADAMWALLWORTH tion . of the terminal, where Nwhwestkua Tknes rental car_ oude�ts once were Whatever's best for the Postal Service is best for the post office. :located. The epotenflalrelocation ofe. But you never lmowwhat people inthe community willsay. Ray Boudreaux, aviation the Greenland post office tot director for the city, said the the Fayetteville Municipal draft version of the contract Airport at Drake.Field will be — Bill Yoes, with the U.S. Postal Service the topic of a special Airport Greenland mayor and postmaster, includes a lease of $20,000 Board meeting today. k? per year for the first five years, "It seems like a very inter- with a 20 percent increase esting use for the terminal every five years thereafter. d a good way to put ,more said, but the relocation would same time generate revenue An estimated $100,000 pace to public use — Beyond be beneficial in many ways. It for airport improvements. wouldbe spent on renova- the airport," said Charles Wal- would increase the ability of Board members are sched- tions to the section of the ter- lace, chairman of the board. . the airport to serve the public uled to tour the potential urinal that would house the There are several details in that portion of Washington location, which would yet to be worked out, Wallace County, he said, and at the encompass the northern por- See POSTAL, page A6 Postal ed traffic to the airport. Greenland Superintendent Passmore said he has been Greenland Mayor and Post- Tim Passmore said the school informed a larger post office is Continued from Al master Bill Yoes said he was district purchased the post needed to serve Greenland. In aware Drake Field is one of office building for use as a any event, the post office will two possible locations for the central administration build- be given ample time to find a office, Boudreaux said. The new post office but has not ing when the current lease suitable location, he said. section would be gutted and been notified of any decision . expires. "It's kind of a big deal, mov- transformed into a regular by the Postal Service. The Passmore, contacted at ing the post office," Passmore post office with a separate alternate location is on West home, said the relocation has said. "What ever they need to entrance, he said. Wilson Street. not been a high priority for the do for the people of Green- Boudreaux, who has been "Whatever's best for the district. land, we're not about to run working on the project for Postal Service is best for the "I'm not really sure about anybody out." more than a year, said the post office," Yoes said. "But the (length of the) lease," he location would offer a way you never know what people said. "That may go to show increase non-aviation relat- in the community will say." you how little thought we've actually put into it" QUESTIONS RAISED BY AIRPORT BOARD: Special Meeting May 26, 2004 1 . Q: Have we considered the. . . People of Greenland, the people of Fayetteville, the Mayor of Fayetteville, and the Mayor of Greenland? by Charles Wallace A: The USPS lost the lease on the current post office building in Greenland and contacted the Airport for a potential postal service center to be located in the airport Terminal. The USPS considered potential sites in Greenland as well. The USPS has asked for public comment for people to voice concerns to them in support or not of the potential sites. The airport has not had any comment from any quarter. Comments would be voiced to the USPS. We have talked with the Mayor of Fayetteville and the Mayor of Greenland to make sure that they know that the selection of a new post office site will be done by the USPS after considering all comments of all the public and the site that most meets their needs and the needs of the people they serve. 2. Q: What value would the post office be to the airport, to the County and to airport revenues? by Charles Wallace A: Over the 30 year period, the rent paid by the USPS would amount to nearly $ 1 million in revenue to the airport. The Post Office would create traffic to the airport. The restaurant would definitely benefit and the potential to house other businesses in the building is enhanced due to the increased traffic. I don't know what value there would be to the County. 3 . Q: How will the Post Office fit into the community? by Charles Wallace A: It would not detract but it would create activity around the facility. I foresee increased traffic as people from the south side of Fayetteville use this facility instead of the downtown facility. 4. Q: Are there suitable parking spaces? by Otto Loewer A: Yes. I have reviewed their plans for the parking. They have only one employee. Two handicapped spaces will be in front of the entrance at the oblique near the ramp. Most of the customer parking will be north of the building which is very near their entrance and allows for easy in and out. 5 . Q: Can we control the location of the drop box? by Bob Nickle A: Yes. 1 have discussed with them the location. It will be on the island West directly across from their entrance on the driver side of the car. 6. Q: Is there any additional liability associated with the PO? by Otto Loewer A: No. The USPS is self insured through the Federal Government. 7. Q: Would the airport be required to increase security for the PO? by Otto Loewer A: No. The USPS will install a security wall and be able to fully secure their space. They will be self contained and will not rely on the airport for security. 8. Q: Would the airport be required to pay for (possible) increased security for the PO? by Otto Loewer A: No. They do not have guards now nor do they expect to have guards in the future. The FAA Facilities Maintenance office increased security to their building that they lease from the airport. They requested our permission and after approval of the improvements they paid to have the improvements made. We would not be required to pay for security improvements or any other improvements made to their space. 9. Q: What would be the advantages of PO to the Airport? by Charles Wallace A: Activity, revenue, talk, interest in the building, and keeping the place alive. 10. Q: Can there be a gated door between the facilities? by Frank Sperandeo A: According to the USPS Regional Director, he would not want the connecting door as a security issue. 11 . Q: Are we willing to accept additional maintenance for the building and the parking lot and additional costs in utilities? by Bob Nickle A: Yes. We currently mow the grass and maintain the parking lot. The parking lot must be weeded because of the light traffic. With more traffic we might have less maintenance. We will maintain the public space, not the office as far as cleaning. I spoke with Shane Lanning of Green Anderson. He said that the increase in total building utilities might be 2.5% but no more. The building is over designed for its current purpose. Even the additional visitors will only impact minimally especially with the double doors. 12. Q: Will there be additional stress on the maintenance staff for snow removal? by Frank Sperandeo A: No. We remove the snow now and will continue to provide snow removal. a 13 . Q: Would we be able to expand the building to the North? by Janice Stanesic Questions raised by Airport Board: Special Meeting May 27, 2004 Page Two A: Yes. Their only concern would be to be able to get to the back side of the building to unload the trucks. 14. Q: Question of breaking out the rental: rent for space, and rental fee for utilities? by Otto Loewer A: They do not have a lease that provides for separate fees for utilities. They have total building leases and space leases. 15. Q: Put the questions of liability to the City Attorney again. By Bob Nickle A: I spoke again with Kit Williams and there is no additional liability with the USPS in the building unless you consider the increase as it pertains to the increase in traffic. More people, more liability. I'm not sure but that it is a good thing to have more people. 16. Q: Question of installing a separate HVAC system and separate utilities for the PO. by Bob Nickle A: Shane Lanning of Green Anderson did not think it would save or be more efficient than the system currently installed. 17. Q: What if parking lot restrictions are implemented by the PO, will we be required to enforce them? by Otto Loewer A: USPS officials do not foresee parking restrictions. Their comment was that the post office is not like the court house. The post office is a service agency that acts more like a retail establishment. The customer is the most important ingredient to the overall success of the organization. In any case, we are not in the enforcement business landside and would not be in the enforcement business with the USPS. 18. Q: DO we have to redo the entrance to the parking lot right away? A: No. They mentioned that they were concerned about the entrance during initial conversations. We offered that new entrance was in the capital program but that the board had not decided to do the construction. It is not part of the agreement with the USPS and is not a requirement should the Terminal be the selected location.