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HomeMy WebLinkAbout03212007 SpecialarvoF - - HOME OF PELICAN fSLAND SEBASTIAN CITY COUNCIL MINUTES AIRPORT BUSINESS PLAN WORKSHOP WEDNESDAY, MARCH 21, 2007 - 6:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Coy called the meeting to order at 6:00 p.m. 2. The Pledge of Allegiance was recited. 3. ROLL CALL City Council Present: Mayor Andrea Coy Vice-Mayor Sal Neglia (excused at 7:21 p.m.) Council Member Dale Simchick Council Member Eugene Wolff City Council Absent: AI Paternoster (excused) Staff Present: City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Airport Director, Joe Griffin 4. AIRPORT BUSINESS PLAN - 2ND DRAFT Principle Guiding Documents The Airport Director briefly reported on the successful Police Department sponsored G.R.E.A.T and DARE car show at the airport and commended all involved. He then briefly described the Principle Guiding Document and introduced Airport Consultant Dr. David Byers, AICP, CM who,document for Sebastian Municipal Airport. ,. ~~y~'a .`;,, ''J ° ,~ i City Council Workshop March 21, 2007 Page Two Dr. Byers gave a brief overview of each section of the second draft of the document. He stated that non-aero services are driving successful airports and recommended the City spend time developing non-aero; said in his opinion, the airport moratorium can be lifted at any time. He displayed a flow chart within the document that describes how the process of bringing in businesses would proceed. Mr. Wolff expressed a concern for how the confidentiality of a business plan could be maintained and the City Manager responded that most businesses don't start hitting the conceptual stage until they are ready and that negotiations would have taken place prior to disclosure of a business plan. The City Manager noted that the State of Florida is behind in the Economic Development game, where in other states people are being offered tax incentives and credits. He said we can offer incentives with rent payments and lease costs. The Airport Director said Indian River County's tax structure has an impact on airport tenants because of the tax on exempt properties. Mayor Coy advised that there will be an Economic Development Workshop on April 4m Ms. Simchick agreed we need to work on a business plan, and suggested the following: o General Provisions -Section 3.3 -Application Information -request for resume - suggested when there is no pre-existing resume, require one within a specific number of days after the establishment of the business o Rules and Regulations -Section 1.6 Fines and Penalties -add provision for a sign-off that they received the rules and regulations in full o Rules and Regulations -Section 2.5 -define "normal" business hours. Dr. Byers responded that this is covered in Minimum Standards for each type of use and that Fixed Base Operators are required to have someone there during those hours but for other types of businesses we really don't establish that requirement. The Airport Director noted there will soon be on-site security. o Rules and Regulations -Section 5.10 -asked if there is anything about clean-up of equipment in the event of an abandonment and Dr. Byers told her this was covered in the lease provision 12.4. The City Attorney advised that while there is no security imposed, abandoned infrastructure would become the City's property and as to other property such as vehicles, there is state law that governs this. Dr. Byers said environmental concerns are covered in the environmental insurance clauses. o Minimum Standards -Section 15 -questioned specific standards for non- commercial hangar and aviation fuel dispensing facilities and said she thought 5,000 square feet was rather large. Dr. Byers said this addresses corporate hangars and that 5,000 sf is really not large for this type of use. The Airport Director noted that the City Manager has discretion to negotiate any of the standards. The City Attorney said instead of "plus" the language should be "exclusive of in this section. 2 City Council Workshop March 21, 2007 Page Three Mr. Wolff made the following points: o Expressed surprise at how in-depth we are into a business plan and asked how much flexibility the City Manager had to negotiate these provisions. Dr. Byers said with minimum standards we are trying to prevent someone working out of a van. o Thought that two jets for a charter jet business might scare someone off o Said that fair market values are subjective and asked for comparisons with other areas. Dr. Byers said every airport has a different rate structure and it is somewhat subjective. o Wanted to be sure the value doesn't prohibit small businesses and perhaps we should look at quarter acre parcels as well. The City Manager responded that one acre is not excessive for small business when you factor in all that needs to be in place and Mr. Wolff responded that if we raise the bar too high the deep pocket guys can hang on and we should be sure not to create an artificial situation. The Airport Director said there is latitude in place to the size of the structure and land. o Said in year 25 an appraisal is done again and this may cause a tenant to stop doing anything to keep the value down and perhaps we need an incentive to keep people there. The Airport Director suggested a 10-15 year option done at the front of the lease whereby someone could renegotiate the lease. The City Attorney cautioned if you put in a binding option you are going to violate the City Charter which sets leases at 30 years so suggested instead leases could be reappraised and renegotiated which with the adjustable sliding lease payments would not make a significant difference and he also cautioned against setting unrealistic minimum standards that you are going to waive and instead adopt standards you can live with. He further said exceptions should be rare and if not then we should change the standards. Dr. Byers used Sebring Airport as an example of success with non-aviation business and incentives and said they may be coming out with a handbook for small airports. Mayor Coy called recess at 7:21 p.m. and reconvened the workshop at 7:34 p.m. All members were present. Vice Mayor Neglia was excused at this time due to illness. Curt LoPresti, owner of LoPresti Speed Merchants, a Vero Beach aviation related business, and Vero Beach Airport tenant for 18 years, expressed a desire to work with the City in seeking a new location for a consolidated east coast sales and distribution facility to include building, training and inspection. He said Sebastian airport is a gem and commended the Airport Director and City Manager. Kerry Firth, said she had exercised an option on five acres and recommended lifting the moratorium. Gabe Farrar, Hutchinson Island, suggested reducing the minimum square footage for hangars and commended the Airport Director. City Council Workshop March 21, 2007 Page Four Scott Baker, Velocity Aircraft, said he was encouraged by hearing Council concerns about small business owners and urged them to keep the airport friendly and affordable and perhaps do something with smaller lots and buildings for people on fixed incomes with a passion for flying. He asked if there is standard for hangars without fuel. The Airport Director said they were concerned for a proliferation of fuel facilities we thought it prudent to set the minimum square footage at 5000 and one acre lots where fuel is involved. Mayor Coy recommended outlining minimum standard exceptions in the plan and not getting haphazard. The City Attorney suggested charging a different rate for those who don't provide stormwater. Mr. Baker questioned the $1,000 liquidated damages for administration and Dr. Byers said this is provided to accommodate excessive staff time. Mr. Baker strongly recommended that Sheltair be required to provide its own dumpsters since their tenants were using his dumpster. The Airport Director apologized for this and said he will speak to Sheltair again about this matter. John Van Antwerp, J & S Aviation, questioned Rules and Regulations Section 4.18 Aircraft Washing being required at a City-owned wash rack, and the Airport Director said this idea has been deferred at this time, and will be revised. Discussion continued about environmental concerns with runoff and it was noted there are berms in place. Mr. Van Antwerp suggested allowing people to construct their own wash racks. Then Airport Director said it was his intention to have a wash rack built, that it would be a revenue source but would be expensive. Mr. Van Antwerp said Rules and Regulations 10.6 should be optional, 10.7 should read "aircraft that are equipped with such radio". Dr. Byers responded that this could be a hand held radio. The Airport Director said his big concern is when someone is towing an aircraft and though it is rare now it may not be in the future. Dr. Byers noted the provision states "should" not "shall". Ms. Simchick suggested adding "if equipped." Mr. Van Antwerp cited Rules and Regulations 10.10, suggesting adding a longer time for non-operating aircraft to be allowed on site before notifying the Director, and questioned what is anon-operating aircraft definition. Dr. Byers read from the definition. Mr. Van Antwerp closed by recommending that the airport remain friendly and available to local and small businesses and asked what is the price of progress. Mr. Wolff thanked the public for their comments, stated that action needs to be taken about Sheltair tenants using Mr. Baker's dumpster, said there is a fine line between being friendly and being professional and that this airport can be implemented in a friendly way and in a spirit of cooperation and not use rules and regulations to harass people. He also thanked the Airport Director and Dr. Byers. 4 City Council Workshop March 21, 2007 Page Five Ms. Simchick recommended keeping the airport friendly and affordable, that local residents need to be afforded opportunities at the airport, and said this is a good document. Mayor Coy thanked all involved in the creation of the document. She agreed we want to to keep the airport friendly and though we don't want to drive local users away we must plan for the future. She asked if Council would like staff to bring options back regarding minimum standards. The City Manager clarified what he thought Council wanted to look at again as the wash rack, minimum standards, and comparisons on leasing in other areas. Dr. Byers again reviewed standards for various uses, and recommended they stay as written. The City Manager read through the aviation uses that have specific standards in place and noted that standards for other types of uses are negotiable. City Council agreed they are ready to move forward on the guiding documents. The City Manager said he would bring back the document for approval on April 11 to 5. Being no further business, Mayor Coy adjourned the Workshop at 8:33 p.m. Approved at the April 11th, 2007 Regular City Council Meefing. Andrea Coy, Mayor ATT ST.• ~~ ~~_ _- r Sally A. Maio MMC -City Clerk 5