HomeMy WebLinkAboutAirport.Minutes.10-20-2010AIRPORT BOARD MINUTES
October 20, 2010
Special Meeting
Cape Aviation Conference Room
Members Present Justin Albright, Craig Bohnsack, Robert Cork, Fred Eggley, Rick Hetzel, Gerry Keene,
Brian Ozark, Mark Seesing
Others Present: Brace Loy, Airport Manager; Katrina Amos -Atkins, Administrative Coordinator; Ken
Eftink, Development Services Director/Assistant City Manager
L APPEARANCES
None
111. OLD BUSINESS
Airport Lease Discussion/Commander — Mr. Hetzel called the meeting to order and began with
asking Mr. Eftink to give an overview on how the City became involved with an aircraft
manufacturing facility. Mr. Eftink explained to the Board the timeline of events beginning with
Renaissance. He stated that the City signed a Memorandum of Agreement (MOA) with
Commander in 2005 that was formalized in to a new Sublease Agreement in 2007. Mr. Eftink
informed the Board that Commander has not made a payment since December 2007. In August,
2009, a MOA was signed with Mr. Ron Strauss, detailing a timeline for his intentions to purchase
the Commander facility and the ARCH facility from the City for $2,000,000.00, while also
paying the City $200,000.00 in back rent.
Mr. Eftink noted that the City has been looking at different options to make this situation better
and reiterated that the City Manager has asked the Airport Advisory Board to come up with their
preferred options that could possibly be presented to the City Council.
Mr. Loy summarized a variety of needs for hangar space at the airport, including aircraft storage
and two recent inquiries for airport land and hangar space proposed by the Missouri Slate
Department of Ewnomic Development (DED) through Mitch Robinson and Magnet, our
economic development support group located at the Cape Chamber. Additionally, Mr. Loy noted
that at least one local business at the airport had shown an interest in the ARCH hangar facility,
which is also a part of the Aero -Base MOA with Mr. Ron Strauss.
Mr. Loy informed the Board that he spoke with Mr. Ran Strauss, the potential buyer for
Commander, who said that he expects funds to purchase Commander to be made available soon,
if not within the next week. Mr. Loy said Mr. Strauss understands the skepticism regarding this
deal being it has taken so lung but asked for a little more patience. Mr. Loy stated Mr. Strauss
was very positive that the deal is going to happen but that he also admitted he has very little
control of the timeline because there are so many lawyers involved. Mr. Albright asked if it's
possible that Mr. Strauss' investors may be backing out because they may consider the
Commander aircraft as a "dying breed". Mr. Albright stated that, in his opinion, unless there are
major design changes with the aircraft, it will not be able to compete with other comparable
aircraft.
Mr. Cork asked how long the City will allow this situation to continue. Mr. Eftink stated the City
has had meetings with Commander to try and resolve this issue and would like to have other
options available should the MOA with Mr. Strauss fail. The Board agreed the issue is not with
Mr. Strauss, because, if the deal goes through; it would be good for the City and Commander.
Mr. Albright staled that if a deadline is set it may make Mr. Strauss speed up the process of
�.. purchasing Commander.
Mr. Hetzel asked the Board to think about what the objective is for the meeting and what options
they would like to present to the City Manager for City Council consideration. The Board came to
a consensus to draft the following two recommendations to the City Manager:
1) Set a deadline of April L 2011, which is the date the bonds are `called', to either complete the
sale of Commander with Mr. Strauss or start the eviction process with Commander.
2) In the interim request Commander to voluntarily move items and vacate 50% of the hannar
to allow utilization of the hangar for City/Airport use, including but not limited to, temporary
storage of aircraft and establish a reasonable monthly rental rate to be paid by Commander
for the continued use of the hangar for their service center.
Mr. Loy and Mr. Eflink agreed to research the legal and cost questions and ramifications of these
recommendations for the next regular Board meeting. Two items singled out by the Board were
the anticipated income form the aircraft hangar rental and the Commander Service Center
monthly rent. Mr. Loy agreed to submit minutes of the meeting for the Board's review and
comment. Based on those comments, the Board also agreed that Mr. Loy and Mr. Eftink would
draft a memo to the City Manager that will be reviewed by the Board at the regular November
Board meeting stating the options they came up with.
The meeting was adjourned until the regularly scheduled November, 2010 meeting.
IV. NEW BUSINESS
None
V. NON -AGENDA ITEMS
None
The meeting was adjourned at 7:10p.m.
Minutes prepared by:
Katrina Amos, Administrative Coordinator