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HomeMy WebLinkAbout09221982MINUTES OF SPECIAL CITY COUNCIL MEETING - SEPTEMBER 22, 1982 MEETING WAS CALLED TO ORDER BY MAYOR PAT FLOOD, JR. AT 4:30 P.M. PRESENT: VICE MAYOR EVERETT GASS, COUNCILMAN RICHARD VOTARKA, COUNCILMAN GEORGE SCHUM, MAYOR PAT FLOOD, JR., CITY ATTORNEY DANIEL KILBRIDE. (COUNCILMAN FRANK OBERBECK ARRIVED AFTER THE START OF THE MEETING.) MAYOR FLOOD STATED THAT THE PURPOSE 'OF THE MEETING WAS TO DISCUSS THE SUBLEASING OF GOLDSTAR AERO, INC. BY ROGER ROCK, COMPLETE HOMES CORPORATION. AT THE LAST COUNCIL MEETING THIS MATTER WAS DISCUSSED AND THE COUNCIL WAS CONCERNED BECAUSE THERE WAS AN ARTICLE IN THE PAPER THAT TWO HOUSES HAD ALREADY BEEN BUILT ON THE AIRPORT PROPERTY. MAYOR FLOOD TOGETHER WiTH ~R'. VAN ANTWERP AND MR. PALUCH MET WITH MR. ROCK THE DAY AFTER THE COUNCIL MEETING AND LEARNED THAT MR. ROCK HAD AN ARRANGEMENT WITH BLUE GOOSE PACKERS TO CONDUCT HIS BUSINESS IN THEIR BUILDING. HOWEVER, SINCE FRUIT CAME IN EARLY, THEY HAD TO MOVE. THEY HAD TWO HOUSES TO COMPLETE AND THIS THEY DID, BUT THEY WILL NOT DO ANY MORE WORK UNTIL THE LEASE IS COMPLETED. THERE IS NO PRODUCTION GOING ON AT THIS TIME. MR. GIL SWIGER, REPRESENTING MR. GOLDBERG, IN RESPONSE TO A QUESTION BY MR. KILBRIDE, EXPLAINED. THAT MR. ROCK HAS PURCHASED THE ENTIRE BUILDING AND PERSONAL EFFECTS. HE IS BUYING THE BUILDING AND ASKING FOR AN ASSIGNMENT OF THE GROUNDS. MR. SWIGER PROMISED TO PROVIDE MR. KILBRIDE WITH A COPY OF THE AGREEMENT. $30,000. DOWN, $170,000. MORTGAGE, TOTAL PRICE $200,000. 30 YEAR AMORTIZATION WITH A 5 YEAR CALL. PAID UP IN 5 YEARS. $1800. PER MONTH. FIR. KILBRIDE WANTED TO DETERMINE THAT THERE WAS SUFFICIENT CAPITAL INVESTMENT TO INSURE THAT MR. ROCK WOULD KEEP IT. MAYOR FLOOD ADDED THAT THE AIRPORT COMMITTEE GAVE TENTATIVE APPROVAL. THEY DID NOT HAVE A QUORUM AT THEIR MEETING AND ASKED THAT IT BE TAKEN TO THE COUNCIL ON A TENTATIVE BASIS. AT THE AIRPORT COMMITTEE MEETING MR. SWIGER AGREED TO CARRY A LETTER TO THE FAA ASKING THEIR APPROVAL. MR. KILBRIDE POINTED OUT THAT THE ORIGINAL LEASE WITH MR. GOLDBERG PROVIDED FOR A FIXED BASE OPERATION WITH A PERCENTAGE OF THE GROSS PAID TO THE CiTY FROM THE SALE OF GASOLINE, ETC. SINCE THIS IS A COMPLETE CHANGE OF USE, MR. KILBRIDE FELT THAT THE RENT OF $900. PER YEAR SHOULD BE DISCUSSED. THIS AMOUNT WAS SET IN 1979 - WHEN LAND VALUES WERE LOW, AND IT WAS ANTICIPATED THAT WE WOULD BE GETTING ADDITIONAL REVENUE FROM SALES. IT IS WORTH A LOT MORE TODAY BECAUSE THE TENANT ERECTED A BUILDING. MAYOR FLOOD REMARKED THAT HIS MAIN PROBLEM WAS THE ROAD AND THAT WE MIGHT HAVE TO PAVE IT QUICKER THAN WAS ANTICIPATED. WE SHOULD CONSIDER WHETHER HE WOULD BE WILLING TO PAY A PERCENTAGE OR WHETHER WE SHOULD INCREASE THE YEARLY RATES. THERE WILL BE A LOT OF HEAVY TRUCK TRAFFIC. MR. ROCK WAS OF THE OPINION THAT MAYBE IT WOULD NOT HAVE TO BE A PAVED ROAD, BUT JUST STABILIZE IT UNTIL SUCH TIME AS DRAINAGE FOR THE WHOLE AREA IS COMPLETED. THEY DO INTEND TO PUT UP MORE BUILDINGS. MR. ROCK STATED THAT PERHAPS THIS WHOLE DISCUSSION WAS POINTLESS SINCE IT ALL HINGES ON FAA'S APPROVAL. MAYOR FLOOD POINTED OUT THAT IF THE COUNCIL DID NOT GIVE IT APPROVAL, FAA WON'T ACT ON IT. MR. VAN ANTWERP ADDED THAT FAA HAS CERTAIN CRITERIA. ENOUGH RENT? IT DOES. THE RENT RATE IS STANDARD FOR NON-AVIATION. WILL IT INTER- FERE WITH AIR TRAFFIC? IS IT COMPATIBLE? THAT'S ARGUMENTATIVE, BUT HE DOESN'T THINK THE}' WOULD STOP IT ON THAT. ARE YOU DENYING THE LAND USE FOR AIRCRAFT? IT'S QUESTIONABLE, BUT THERE ARE PLENTY OTHER AREAS AVAILABLE. IF YOU APPROVE YOU ARE THEN ACTING AS HIS REPRESENTATIVE AND MR. VAN ANTWERP THOUGHT IT WOULD GO THROUGH. THEY MIGHT NOT AGREE WITH THE APPRAISAL AND THINK A LITTLE MORE OUGHT TO BE PAID. AS FAR AS RAISING THE RATES, IF HE DOES USE THE ROAD MORE THAN THE ORIGINAL INTENTION OF USE BY A FIXED BASE OPERATOR, THEN SOME WAY SHOULD BE SET UP TO ASSESS HIS FAIR SHARE OF IT. COUNCILMAN OBERBECK STATED THAT A PRACTICAL AMOUNT OF RENTAL WOULD HAVE TO BE CREATED, BECAUSE EACH NEW TENANT WiLL HAVE TO BE TREATED SO THAT THE COST OF IMPROVEMENTS WILL BE COVERED BY THE RENTAL BASE. COUNCILMAN OBERBECK SUGGESTED THAT A RENTAL FEE OF $300. PER MONTH WOULD BE A REASONABLE FEE. ~R. VAN ANTWERP STATED THAT MR. ROCK IS INVESTING $200,000. A LOT OF LANDOWNERS WOULD GIV~ HIM THE USE OF THE LAND FREE FOR THAT AMOUNT OF INVESTMENT. WHETHER OR NOT YOU'RE GOING TO LOSE A PARKING FEE, OR A GASOLINE FEE IS ARGUMENTATIVE BECAUSE YOU'VE GOT TWO OPERATORS THERE WHO ARE PUMPING ALL THE GAS AND TWO PLACES TO PARK AIRPLANES. IF ANOTHER FIXED BASE OPERATOR WAS THERE, HE WOULD SELL SOME GAS AND PARK SOME OF THE PLANES BUT THAT WOULD TAKE SOMETHING AWAY FROM THE OTHER TWO OPERATORS. IT WOULD BE FOOLISH TO THINK THAT YOU WOULD THUS GAIN ANOTHER $300. A 'MONTH. YOU HAD A LEASE WITH A FIXED BASE OPERATOR AND IT WAS MADE ATTRACTIVE TO GET HIM TO BUILD THE BUILDING. WE'RE TRYING TO MAKE IT ATTRACTIVE TO HAVE PEOPLE COME IN AND INDUSTRIALIZE THIS AREA. MAYOR FLOOD REPEATED THAT HIS MAIN PROBLEM WAS THE ROAD PAVING. SINCE THIS BUSINESS IS CREATING THE NEED FOR PAVING SOONER THAN EXPECTED, HE FELT THAT ANY OTHER BUSINESS COMING IN SHOULD NOT HAVE TO PAY AS MUCH AS COMPLETE HOMES FOR THE PAVING. HE HAD NO PROBLEM WITH INCREASING THE YEARLY RATES. FiR. VAN ANTWERP ADVISED THAT FAA REQUIRES THAT THE ANNUAL RATE SHALL BE 10% OF THE ASSESSED VALUE OF THE PROPERTY WHEN IT IS LEASED. WE HAVE AN EXISTING LEASE WHICH IS 3-4 YEARS DOWN THE ROAD. MAYOR FLOOD REMARKED THAT IF IT WAS ASSESSED NOW AT $20,000. PER ACRE BECAUSE OF THE BUILDING, THAT WOULD BE $2000. AN ACRE AND HE-DID NOT THINK MR. ROCK COULD ST'AND THAT KIND OF 'RENT. MR. MASTELLER, CITY ENGINEER, SUGGESTED THAT WHAT WAS NEEDED IS A SITE PLAN. YOU NOT ONLY HAVE A ROAD; YOU HAVE PARKING, A SEPTIC SYSTEM CAPACITY AND A FEW OTHER THINGS. ANY OTHER NEW BUILDING WOULD REQUIRE A SITE PLAN. MR. ROCK PROPOSED THAT HIS COMPANY ENTER INTO AN AGREEMENT TO MAINTAIN THE ROAD IN GOOD CONDITION, UTILIZING LIMEROCK OR WHATEVER METHOD WAS APPROPRIATE, UNTIL SUCH TIME AS THE AIRPORT COMMITTEE HAS THE FUNDS AND PAVES THE ROAD. THEY WOULD MAINTAIN AS THEIR RESPONSIBILITY. THAT WOULD NOT PUT ANY ACCELERATION CLAUSE ON THE COUNCIL OR ON THE COMMITTEE TO PAVE ANY SOONER THAN WOULD HAVE ORIGINALLY BEEN DONE. MR. ROCK SAID HE WOULD LIKE TO TAKE BACK THE LIMEROCK. HE WOULD MAINTAIN THE EXISTING ROAD AND MAKE IT PASSABLE. THERE IS APPROXIMATELY $28,000. EXISTING IN THE AIRPORT FUND AT THE PRESENT TIME. MAYOR FLOOD STATED THAT IF WE USED THE MONEY FOR PAVING AND SOMETHING ELSE CAME UP, THERE WOULD NOT BE ANY MONEY TO TAKE CARE OF IT. MR. VAN ANTWERP POINTED OUT THAT WHEN THE AIRPORT MASTER PLAN IS COMPLETED (IT IS NOW 90% COMPLETE), SOMEWHERE DOWN THE LINE MONEY WILL BE RECEIVED FROM NASP FOR IMPROVEMENTS AT THE AIRPORT AND THESE IMPROVEMENTS INCLUDE A PERIMETER ROAD. MAYOR FLOOD WAS OF THE OPINION THAT THE AIRPORT COMMITTEE SHOULD WORK OUT SOME KIND OF ARRANGEMENT WITH MR. ROCK REGARDING HOW TO MAINTAIN THE ROAD. THIS WHOLE THING NEEDS TO BE SENT BACK TO THE AIRPORT COMMITTEE ADVISING THAT THE COUNCIL IS AGREEABLE TO THE ASSIGNMENT SUBJECT TO A ROAD MAINTENANCE AGREEMENT IN WHICH THE NEW TENANT WOULD MAINTAIN THE ROAD IN AT LEAST AS GOOD A CONDITION AS IT IS TODAY. WHEN THE CITY IS IN A POSITION FINANCIALLY TO BUILD THE ROAD AND MAKE IMPROVEMENTS FOR DRAINAGE, THAT PART OF THE ASSIGNMENT SHOULD STATE THAT HE PAY HIS FAIR SHARE BASED ON ASSESSMENT. ONE POLICY THAT COULD BE USED IS THROUGH SPECIAL ASSESSMENT METHOD IN WHICH THE COST IS ASSESSED HASED ON FRONT FOOT 'AND SQUARE FOOT METHOD, SO IF HE HAS 3 ACRES WITH SO MANY FEET ON THE ROAD AND THE FORM~JZA IS THAT HE PAYS WHATEVER THE COST IS, THE CITY PICKS UP 50~ AND THE TENANT PICKS UP 50%, OR 752 OR 100%, BUT IT IS SHARED BY THE AMOUNT OF LAND LEASED BY THE TENANT. THAT WAY HE IS ASSURED THAT HE IS NOT GOING TO PAY MORE THAN ANOTHER TENANT. THIS FORMULA SHOULD APPLY TO PRESENT TENANTS AS WELL AS FUTURE ONES. - 2 - SINCE THIS IS A CONVERSION TO INDUSTRIAL USE, IF T~Y ~;JiL~ ANOTHER ~iLDING W~ WILL LOOK AT THE USE AND HAVE PARKING REQUIREMENTS~ ~TC~ NHiCH ~FI'LL REQUIR~ SITE PLAN APPROVAL. HOWEVER, THERE IS GOING TO BE SOME iMPACT ON THE L~XISTING FACILITY WHICH IS NOT DESIGNED FOR THAT USE, I.E., PARKING b-PACESw TOILET FACILITIES, SHOULD SUBMIT A SITE PLAN TO ZONING AND PLANNI~MG~ ~4R% ROCK STATED HE WOULD SUBMIT AN AS-BUILT SITE PLAN TO THE ZONING AND PLANNING COMMISSION AT THEIR NEXT MEETING ON SEPTEMBER 30.. THiS WILL BE CONSIDERED AGAIN AT THE WORKSHOP MEETING ON OCTOBER 6. TO SUMMARIZE, NEED MAINTENANCE AGREEMENT ON THE ROAD ~ A SITE PLAN FOR A FACILITY UP TO 30 PEOPLE, SEND TO ZONING AND PLANNING, AND TO AIRPORT COMMITTEE, AND TO SET UP AT WORKSHOP MEETING ON OCTOBER 6, ALSO AIRPORT COM~4ITTE bU~S TO APPROVE T~fE SITE PLAN. IF NO REPLY IS RECElq;ED FROM FAA ~Y THF, TIME OF REGULAR COUNCIL MEETING ON OCTOBER 13, A CITY REPRESENTATIVE SHOULD MEET WITH TH~M~ AT THiS TIME NOTHING WILL BE DONE ABOUT INCREASING THF~ RENT. ATTORNEY KILBRIDE STATED THAT THE LEASE SHQULD STATED THAT COMPLETE IfOMES IS PRE~ PARED TO PAY SPECIAL ASSESSMENT FOR CONSTRUCTION OF THE ROAD WEEN IT IS B~ILT, MR. VAN ANTWERP SUGGESTED THAT WE ENTER INTO A SUB-LET ARRANGAS~ENT FOR 30 DAYS~ MOTION BY COUNCILMA~ OBERBECK, SECONDED BY VICE MAYOR GASS~ TO AGREE TO SUB,LEASE ALL OF THE LAND PRESENTLY UNDER LEAgE TO GOLDSTAR AERO INC~ FROM SEPTEMBER 22 THROUGH NOVEMBER 20~ 2982, UNDER THE SAME T~RMS AND CONpITi'ONS OF THE MASTER LEASE, BUT THAT HE HAD PERMISSION TO USE IT FOR LIGHT INDUSTRIAL FURPOSES, ROLL CALL VOTE: AYES: VICE MAYOR GASS COUNCILMAN OBERBECK COUCIL~AN VOTAPK~ COUNCILMAN SCHUM MAYOR FLOOD NAYS: NONE. MEETING ADOURNED 6:08 P.M. - 3 -