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HomeMy WebLinkAbout12091982 GCMINUTES OF SPECIAL MEETING - AIRPORT ADVISORY BOARD - GOLF COURSE BOARD OF DIRECTORS - DECEMBER 9, 1982 e06N MEETING WAS OPENED AT 4:00 P.M. BY CHAIRMAN EDWARD PALUCH. PRESENT: AIRPORT ADVISORY BOARD - CHAIRMAN EDWARD PALUCH, JOSEPH BARBOLINE, FRANK DE JOIA, DEBORAH PALMER, RENE VAN DE VOORDE, KENNETH MEGUIN; EX OFFICIO MEMBERS: JOHN VAN ANTWERP, PAT FLOOD, JR., EARL MASTELLER. GOLF COURSE BOARD OF DIRECTORS - CHAIRMAN DANIEL MELIA, ARTHUR TROW- BRIDGE, DON LIVINGSTON.- DONALD VICKERS, GORDON CARLILE, CARROLL SIMES. CHAIRMAN PALUCH ANNOUNCED THAT FOR THE RECORD THIS MEETING WILL BE CLOSED TO THE PUBLIC. IT WILL BE CONDUCTED BY THE PEOPLE AT THE TABLE. THE PURPOSE OF THE MEETING IS TO DETERMINE THE COMPENSATION TO THE AIRPORT FOR THE GOLF COURSE LEASE. MR. VAN ANTWERP READ THE FOLLOWING CORRESPONDENCE: LETTER DATED JANUARY 21, 1980, TO STEVE NELSON, MIAMI AIRPORTS DISTRICT OFFICE FROM GILBERT SWIGER; LETTER DATED JANUARY 30, 1980, FROM STEVE NELSON TO GILBERT SWIGER; LETTER DATED APRIL 16, 1981, FROM STEVE NELSON TO MAYOR PAT FLOOD, JR. CHAIRMAN PALUCH STATED THAT WE MUST CLIME UP WITH A LEASE AGREEMENT AND GET IT APPROVED BY THE CITY COUNCIL AND FAA. IT WAS THE GENERAL FEELING AT THE INCEPTION OF THE GOLF COURSE THAT EVERY EFFORT WOULD BE MADE TO GIVE ALL THE ASSISTANCE THAT WE COULD TO THE SUCCESS OF THE GOLF COURSE. RULES HAVE BEEN BENT FOR ALMOST EVERY SINGLE LEASE TO FIT THE SITUATION AS IT EXISTED AT THE TIME FOR THE BENEFIT OF ALL PARTIES. WE MUST LOOK AT THE OVERALL PICTURE OF THE GROWTH OF THE COMMUNITY, THE AIRPORT AND THE GOLF COURSE. IN NO WAY HAS THE GOLF COURSE HURT, TAKEN AWAY FROM OR ENCUMBERED ANYBODY OR ANYTHING AT THE AIRPORT AND IT HAS INCREASED THE ASSETS IMMENSELY. IT IS UNDERSTOOD THAT THE GOLF COURSE IS IN POSSESSION OF APPROXIMATELY 190 TOTAL ACRES OF LAND, OF WHICH A CERTAIN PERCENTAGE IS VIRTUALLY UNLEASABLE TO ANYBODY FOR ANY KIND OF USE. THE FIRST AGREEMENT WE MUST REACH IS WHAT PORTION OF THIS TOTAL LAND WOULD BE A TANGIBLE PRODUCT FOR US TO LEASE TO ANY OTHER INDIVIDUAL OR WHATEVER. THE SECOND THING IS A DOLLAR AMOUNT PER YEAR. BECAUSE OF WHAT HAS HAPPENED IN THE CITY IN THE LAST 8 MONTHS, WE MUST HAVE AN AGREEMENT IN WRITING FOR THE PROTECTION OF THE CITY. ALSO, IF THE GOLF COURSE EVER WENT INTO RECEIVERSHIP AND WAS SOLD TO A PRIVATE PARTY, THE SALE WOULD BE BASED ON THE AGREEMENT OF THE LEASE. WHATEVER WE DECIDE, THE CITY COUNCIL WOULD HAVE TO MAKE THE FINAL DECISION. AN APPRAISAL OF THE PROPERTY WAS MADE IN CONJUNCTION WITH THE SALE OF PROPERTY ADJACENT TO THE AIRPORT - $2500. PER ACRE. IT WAS POINTED OUT THAT IN THE CORRESPONDENCE READ BY MR. VAN ANTWERP, ONE LETTER MENTIONED 190 ACRES WHILE ANOTHER MENTIONED 170. MR. VAN ANTWERP ADVISED THAT ALL ALONG THERE HAVE BEEN CHANGES FROM THE ORIGINAL ESTABLISHED AREA THE GOLF COURSE WAS TO BE PUT INTO. MR. PALUCH INTERJECTED THAT THIS WOULD BE DISCUSSED LATER. MOTION BY MR. LIVINGSTON, SECONDED BY MR. CARL•ILE, TO ACCEPT $2500. AS A FAIR MARY. F.. iJhLUE i'Yn' . ;:RE OF TI;E 10''AZ. 1'?ir'1!') ;N lfyt' Ai R:'�111C:�RIET:IIN?►�'�N,GUSLi'. MR. VAN ANTWERP READ THE APPRAISAL WHICH WAS MADE BY jOHN WILKES ON APRIL 4, 1980. -04 r MR. VAN ANTWERP ESTIMATED THAT 150 ACRES ARE' BEIAG`USED"BY: THE AIRPORT. MOTION BY MR. VICKERS, SECONDED BY MR. BARBOLINE, TO CONSIDER 150 ACRES OF eo*,N AIRPORT PROPERTY AS USABLY LEASED TO THE GOLF COURSE. MR. VAN ANTWERP STATED THAT WE HAVE A SCALED OUT SURVEY MAP AND RECOMMENDED THAT THE CITY ENGINEER WILL GIVE US THE ACREAGE IF HE, MR. VAN ANTWERP, MARKS OUT THE AREAS THAT ARE UNUSABLE TO THE GOLF COURSE OR ANYONE ELSE. MR. PALUCH FELT THAT THIS WOULD POSTPONE WHAT WE MUST DO HERE NOW TODAY. THIS FIGURE WAS USED FOR COVERAGE, FOR SOD, FOR FERTILIZER, BASED ON EXPERIENCE NUMBER FOR THE DISTANCE OF HOLES AND RATING OF A GOLF COURSE AND THIS SHOULD BE ENOUGH TO SUBSTANTI ATE .15 0 ACRES. MR . ' VAN ANTWERP FELT THIS WAS PRETTY ACCURATE BUT FELT THAT WHETHER IT IS DONE NOW OR NOT, THE BOUNDARIES OF THE GOLF COURSE SHOULD BE CLEARLY DEFINED FOR FUTURE USE. MR. MASTELLER SUGGESTED THAT 150 ACRES BE PUT IN THE AGREEMENT FOR NOW AND WHEN THE EXACT ACREAGE IS ESTABLISHED, CRANK IN A CREDIT OR A DEBIT. MR. BARBOLINE WITHDREW HIS SECOND, MR. VICKERS WITHDREW HIS MOTION. MOTION BY MR. VICKERS, SECONDED BY MR. DE JOIA, TO CONSIDER 150 PLUS OR MINUS -ACRES AS CORRECTED WITHIN SEVEN DAYS BY THE CITY ENGINEER. CARRIED UNANIMOUSLY. AT 150 ACRES APPRAISED AT $2500. PER ACRE YOU HAVE $375,000. WORTH OF PROPERTY AND THE AIRPORT WANTS 10% PER YEAR FOR THE FIRST FIVE YEARS. - $37,500. 10% IS THE MINIMUM FIGURE ACCEPTABLE TO THE FAA. ALL MONIES THAT THE AIRPORT GENE- RATES MUST, BY LAW, BE REINVESTED AT THE AIRPORT. IT WAS POINTED OUT THAT APPROVAL OF AN EXPENDITURE IS BEING ASKED FOR WHICH HAS NOT BEEN BUDGETED. MR. PALUCH STATED THAT THIS WAS REALIZED BUT THE FAA WILL NOT ALLOW US TO SAY THAT SINCE YOU DON'T HAVE THE MONEY THIS YEAR, YOU DON'T OWE US THIS MUCH RENT. loo� WHAT HE SUGGESTED WAS THAT IN NEXT YEAR'S BUDGET A PERCENTAGE WILL BE ALLOCATED OF EITHER THE GROSS OR NET. IT IS UNDERSTOOD THAT THE GOLF COURSE CAN SPEND EVERYTHING THEY MAKE ON MAJOR IMPROVEMENTS AND CONSIDER AS YOUR BALANCE, BUT SO MUCH OF SOME YEAR'S BUDGET DOWN IN THE FUTURE WILL START PAYING THE BACK RENT DUE AND THE PRESENT RENT DUE. MOTION BY MR. DE JOIA, SECONDED BY MR. BARBOLINE, THAT RENT FOR THE FIRST FIVE YEARS SHALL BE 10% OF THE APPRAISED VALUE OF THE LAND. CARRIED UNANIMOUSLY. MOTION BY MR. LIVINGSTON, SECONDED BY MR. MEGUIN, TO APPROVE 11% OF APPRAISED VALUE FOR YEARS 6 THROUGH 10. CARRIED UNANIMOUSLY. MOTION BY MR. BARBOLINE, SECONDED BY MR. LIVINGSTON, TO APPROVE 12% OF APPRAISED VALUE FOR YEARS 11 THROUGH 15. CARRIED UNANIMOUSLY. MOTION BY MR. CARLILE, SECONDED BY MR. LIVINGSTON, TO APPROVE 13% OF APPRAISED VALUE FOR YEARS 16 THROUGH 20. CARRIED UNANIMOUSLY. THE ABOVE PERCENTAGES HAVE BEEN APPROVED BY FAA. MR. VAN ANTWERP STATED THAT THIS IS A 40 YEAR LEASE AND THE FAA IS REQUIRING THAT THE RATE FOR THE SECOND 20 YEARS BE ESTABLISHED. 21-25 YEARS - 19� 26-30 - I5 31-35 - 16% 36-40 - 17% �+/►� M0710 � BY MR. TROWBRI DGF', S C0NT)E: FY MP . T T j/I rpt ..5.'U,4- , ?0 M INCREASE FOR THE SECOND 20 YEARS. - 2 - _410 MR. VAN ANTWERP STATED THAT IF SOMEWHERE DOWN THE LINE THE CITY DECIDES TO DISPOSE OF THE GOLF COURSE FOR ANY REASON WHATEVER, REGARDLESS OF. WHAT IS l� DONE, AT THAT TIME IT WILL HAVE TO COME UNDER THE GUIDELINES OF THE FAA AND HAVE THEIR APPROVAL AND THE CITY WILL HAVE TO TAKE ALL NECESSARY PRECAUTIONS TO INSURE THE DEBT SERVICE AND THE CONTINUATION OF THE PROJECT AND IF THERE ARE 30 YEARS LEFT AND THE COUNCIL DOESN'T WANT TO DO IT FOR 30, THEY CAN PUT IT ON THE MARKET AND SELL IT FOR 15 OR 20 OR 40 SO IF THERE IS ANY MAJOR TRANS— ACTION LIKE THIS, YOU WILL BE EFFECTIVELY RENEGOTIATING A BRAND NEW LEASE. MR. DE JOIA QUESTIONED THE FACT'THAT THE INCOME IS BEING BASED ON AN APPRAISAL THAT WILL BE 40 YEARS OLD BEFORE THE END OF THE LEASE. THERE OUGHT TO BE A REAPPRAISAL AFTER THE FIRST 20 YEARS AND MAYBE THE PERCENTAGES COULD BE CHANGED. MR. PALUCH REMARKED THAT IF AFTER 20 YEARS THERE WAS A GROSS INEQUITY ON WHAT WE DECIDE TODAY, THE DISCREPANCY WOULD BE REMEDIED. 5 YEARS FROM -NOW, IF THIS IS INEQUITABLE, IT CAN BE RENEGOTIATED, EVEN A YEAR FROM NOW. IT IS NOT A QUESTION OF WHO IS GOING TO PAY FOR WHAT. MR. DE JOIA ASKED IF IT HAD TO BE RENEGOTIATED IF ONE OF THE PARTIES DOESN'T WANT, AND IT WAS EXPLAINED THAT THERE IS ONLY ONE PARTY — THE CITY. MR. VAN DE VOORDE STATED. THAT WHAT MUST BE CON— SIDERED IS WHETHER OR NOT AT SOME POINT IN TIME THE CITY ESTABLISHES AN INDEPEND— ENT AUTHORITY. THEN YOU ARE TALKING ABOUT SEPARATE ENTITIES, EVEN THOUGH THEY ARE TECHNICALLY MUNICIPAL CORPORATION OR WHATEVER, THEY ARE IN EFFECT DIFFERENT PERSONS. MAYOR FLOOD POINTED OUT THAT IN FIVE YEARS IT IS MANDATORY FOR THE CITY TO GO BACK OUT ON THE BOND MARKET AND BOND THE GOLF COURSE AND WE HAVE TO HAVE FIGURES TO WORK WITH. THE CITY IS GOING TO HAVE TO BACK THE BONDS, NOT THE AIRPORT. MR. VAN DE VOORDE STATED THAT HIS VOTE ON THE MOTION IS BASED ON THE FACT THAT ewohl) HE IS RELYING, THAT WE'RE ALL RELYING ON THE CITY TO CONSIDER THIS IN THE EVENT OF A RENEGOTIATION THAT THIS VOTE, HOWEVER IT COMES OUT, IS BASED ON, AT LEAST ON HIS PART, ON THE ASSUMPTION THAT WE'RE DEALING WITH A CITY ENTITY AND THAT THIS WOULD BE HELPFUL IN THE BONDING PROCESS IF WE DO IT THIS WAY. MR.PALUCH ADDED THAT HE IS TRYING TO PUT ENOUGH IN SO THAT THE CITY WOULD BE PROTECTED IF THEY HAD TO DISPOSE OF THE GOLF COURSE. MOTION CARRIED UNANIMOUSLY. REGARDING THE EFFECTIVE DATE OF THE LEASE, MR. VAN ANTWERP STATED THAT FAA SAYS THAT WHEN YOU TAKE CUSTODY OF A PROPERTY, AT THAT TIME YOU SHOULD PAY FOR ITS USE. HOWEVER, SINCE THIS WAS A COMMUNITY PROJECT AND SEVERAL MONTHS IN PROCESS, HE DIDN'T THINK FAA WOULD HAVE ANY PROBLEM IF THE EFFECTIVE DATE WAS THE OPENING DAY — DECEMBER 12, 1981. MR. MELIA HAD A PROBLEM WITH THIS DATE BECAUSE THIS WOULD MEAN THAT TWO YEARS RENT IS DUE — $75,000. AND NONE OF IT IS BUDGETED. MR. PALUCH STATED THAT NOBODY SAID ANYTHING ABOUT PAYING IT. WE'RE JUST ESTAB— LISHING AN EFFECTIVE DATE. MOTION BY MR. BARBOLINE, SECONDED BY MR. MEGUIN, TO APPROVE DECEMBER 12, 1981, AS THE EFFECTIVE DATE OF THE LEASE. CARRIED UNANIMOUSLY. REGARDING METHOD OF PAYMENT, MR. PALUCH REFERRED BACK TO THE ORIGINAL LETTER TO FAA WHICH PROPOSED PAYMENT OF 3% OF GROSS UP TO $300,000. AND 10% ON ALL INCOME, OVER THAT. HE ADDED THAT THE AIRPORT WILL LIVE WITH WHATEVER THE GOLF COURSE CAN DO. . WE' ZIL HAVE TO COME UP WI7H A. LIVABLE SOLUTIO?' FOR A TRANSFER FROM CCLUI�:N A TO CCLUMN P IN THE CI T r ' S BOOKS. MR. VAN A": T WERP STATED THERE '""� fWERE TWO OPTIONS THAT COULD BE WORKED WITHIN THE FRAMEWORK OF THE CITY GGVERNMENT . FIRST, THE BUDGET THAT THE GOLF COURSE IS WORKING UNDER CAN BE REVISED IN SUCH A MANNER TO INCLUDE PAYMENT TO THE AIRPORT. SECOND, IF THEY WANT TO STICK WITH THE BUDGET, IT COULD BE REOMMENDED THAT IF THEIR INCOME EXCEEDS THEIR EXPECTATIONS, THAT COULD GO TOWARDS THE RENT, OR IF THEIR EXPENSE SIDE COMES BELOW WHAT THEY EXPECT TO SPEND THIS YEAR, THEY COULD PUT THAT TOWARDS THE RENT. NOW, AS FAR 3 - -r w EXPENDING ABOVE THE BUDGET FOR THE PURPOSE OF KEEPING YOUR INCOME TO ZERO, YOU WOULD HAVE TO GO BACK TO COUNCIL TO REVISE THE BUDGET. MAYOR FLOOD REMARKED THAT NO PRECEDENT WAS BEING SET. THE AIRPORT RIGHT NOW OWES THE CITY MONEY FOR MOWING AND MAINTAINING THE AIRPORT AND -FOR LIGHTS. WE WORKED WITH THE AIRPORT COMMITTEE WHEN THE DIDN'T HAVE ANY MONEY. WE SHOULD ALL WORK TOGETHER. WAIT UNTIL THE GOLF COURSE GETS INTO THE BEST PART OF ITS YEAR. MR. VAN ANTWERP ADDED THAT WE HAVE MET ALL THE REQUIREMENTS OF THE FAA AND THEY ARE NOT INTERESTED IN THE ACTUAL PAYMENT OF THE DEBT. THAT IS AN INTERNAL MATTER. THEY ARE ONLY INTERESTED IN THE PERPETUATION OF THE AIRPORT. SINCE THIS WAS NOT A BUDGETED ITEM, MAYOR FLOOD SUGGESTED THAT HE GET TOGETHER WITH THE CHAIRMEN OF THE AIRPORT ADVISORY BOARD, THE GOLF COURSE BOARD OF DIRECTORS, AND THE FINANCE COMMITTEE AND COME BACK WITH A REPORT IN JANUARY. WE KNOW THAT THE GOLF COURSE OWES $37,500. WE'RE GOING TO HAVE TO FIND SOME WAY TO PAY. IT'S GOING TO,HAVE TO COME OUT OF THE FINANCE COMMITTEE BECAUSE THE CITY IS ALSO IN'CHARGE OF THEIR BUDGET. THEY DO HAVE TO PAY OUT $60,000. EVERY 6 MONTHS, WHICH COMES BEFORE EVERYTHING ELSE. IT WAS AGREED THAT MAYOR FLOOD SHOULD SET UP THIS MEETING. MR. VAN ANTWERP WAS ASKED TO PREPARE THE LEASE WITH THE RECOMMENDATIONS THAT WERE APPROVED TODAY AND ALSO INCLUDE THE REQUIRED DISCRIMINATION CLAUSES AND PASS ON TO THE FAA AS SOON AS POSSIBLE. MR. VAN ANTWERP AGREED AND ADDED THAT HE WOULD CONSULT WITH THE CITY ATTORNEY FOR HIS INPUT. MR. PALUCH ANNOUNCED THAT THE AIRPORT ADVISORY BOARD MEETING SCHEDULED FOR DECEMBER 28 HAS BEEN CANCELLED. MR. VAN DE VOORDE REMINDED MR. PALUCH THAT MR. SCHMUCKER, TOTAL DEVELOPMENT, HAD REQUESTED A MEETING AND A MEETING WAS SET FOR DECEMBER 20 AT 4:00 P:M. MR. PALUCH STATED THAT THE MEETING HAD BEEN A PLEASURE ON HIS PART. MR. MELIA THANKED THE AIRPORT COMMITTEE FOR THEIR COURTESY. MEETING ADJOURNED AT 5:45 P.M. - 4 -