HomeMy WebLinkAboutAirport.Minutes.08-19-1995AIRPORT BOARD MINUTES
Special Meeting - August 29, 1995
Airport "Business Service Center"
ATTENDANCE
Members present : Alan Maki, Dan Overbey, Bill Walker, J. Fred Waltz, Mike Wandrick
Members absent Steve Nester, Steve Robertson
Others present Eric Cunningham, Assistant City Attorney. Doug Leslie, Interim City :Manager,
Carol Peters, Administrative Secretary. Greg Chenoweth, Airport Manager,
Duane Beussink, President, MDI. Inc. d/b/a Prestige Air Services
Mr. Waltz called the special meeting to order at 4:05 p.m. to discuss the requested termination of
the current lease agreement with MDI, Inc. d/b/a Prestige Air Services and their assumption of the
current lease with Air Evac Aviation. Mr. Waltz asked Greg Chenoweth, Airport Manager, to update
the board members on the issue thus far.
Mr. Chenoweth reported to the board that Mr. Duane Beussink. President of MDL Inc., has been
working with Air Evac Aviation representatives in the purchase of their assets.
Mr. Beussink responded to various questions from board members reporting that they arc currently
doing an inventory and environmental site survey at Air Evac. Their plans are to close on the transfer
of assets on or before September 30, 1995.
Mr. Beussink further explained Prestige Air Services has several plans for marketing the facility and
their services. I le plans to locally market their flight training while targeting their maintenance
r services nationally and charter service on a regional basis. He plans to make some upgrades to the
existing building such as move a few walls for better traffic flow through the building.
When asked how Prestige Air Services would be different from the current FBO, Mr. Beussink stated
they would be targeting other market areas and expected their maintenance business to be increased.
When questioned by Mr. Waltz if the City had expended any money on Prestige's current lease, Mr.
Beussink stated he was told the City had spent approximately $ 8,000 in engineering fees for which
he has asked for backup documentation on. At this time, Mr. Beussink is not saying that Prestige will
pay back that money to the City, but is requesting backup documentation on those expenses.
Mr. Beussink explained they would prefer to just step into Air Evac's current lease agreement but
does not want out of their current lease it they cannot assume Air Evac's. Mr. Leslie added there is
no substantial differences in the two leases except for the infrastructure development terms. Mr.
Walker added an additional difference in the two leases is the provision of fuel to a second FRO terms
which is in the Air Evac lease.
Mr. Leslie questioned Mr. Beussink on the time frame anticipated for implementation of their
marketing plans and the services they will provide. In response, Mr. Beussink stated their plans are
to kick off an advertising campaign for flight school in January, holding back on that due to normal
winter weather conditions; everything else will be started on day one.
Airport Advisory Board Minutes
Special Meeting - August 29, 1995
Page 2 of 2
Mr. Beussink explained they will basically continue to follow a business plan which was tiled with
the City during the original lease negotiations. Marketing may change slightly to include promotion
of the restaurant since the location of the facility closer to the terminal and maintenance service will
be better due to acquiring the assets of Air Evac.
In response to Mr. Maki's question if Prestige will be keeping the employees of Air Evac Aviation.
Mr. Beussink stated they would be interviewing as soon as the inventory is completed and plans are
to keep the current employees.
Mr. Beussink relayed to board members his plans to negotiate fuel pricing contracts with Air Evac
and other businesses as well as plans to continue sub -leasing the area currently leased to Cape
Avionics.
Mr. Waltz explained to Mr. Beussink that Prestige Air Services has already been approved for their
ability to perform as an EBO. The task before the Airport Advisory Board is only to make a
recommendation to the City Council. Anv lease negotiations will of course, be with the City.
With no other questions for Mr. Beussink, Dr. Walker motioned the board move into executive
session to discuss and vote on the lease issues.
Upon returning from executive session, and a return to the normal agenda. as a Non Agenda item. Mr.
`...
Chenoweth queried the Airport Advisory Board as to a slight time change for the meetings from 4 pm
to 5 pm would be suitable for everyone. Mr. Chenoweth stated that the time change may more
adequately accommodate some members of the Board in attending the regular meetings. This was
generally agreed to by the Board members present.
With no further items for discussion, the meeting was adjourned.
Minutes Prepared by Carol Peters, Administrative Secretary
Minutes Approved by:
Chairman. Airport Advisory Board