HomeMy WebLinkAbout11-22-1993 Regular Meeting57
The Airport Board of the City of Fairhope met Monday, November 22, 1993
at 8:00 A,M. in the City Administration Building for a special meeting to
discuss further the meeting Robert Colling and Bill Payne had with
Mr. Clark.
Present: Chairman Sue Mason, members Andy Huggins, Robert Colling,
Jeanette Puckett, Bill Payne, Mike Baugh and Secretary
Betty Rivenbark
( Report of visit to Clark Aviation as per decision last meeting )
Buzz had presented a typewritten report(in file) of his and Bill's
visit. In essence they had asked him to respond by November 19th
and tell them what he could pay a month at the airport. He finally
called on the 20th, and said he had forgotten to call, and that the
amount he could afford to pay would be $2,000 a month, which will
not even meet our monthly debt. The report went on to say he
was very receptive, never nasty or disrespectful. He said he had lost
$200,000 last year and thinks he will probably lose that much this year.
It was suggested taking a hangar back and possibly reducing his monthly
rent and he responded that he was aginst this as the rent he receives
from the aircraft hangered in the hangars is what is keeping his head
above water. Jeanette questioned what he really does - the answer
being rebuilding engines, overhauling airplanes. Bill and Buzz said
his inventory is enormous. Sue said we have to start making our
debt service out there, it has to carry its weight, that the time has
come to do something. She said with the FAA project it will probably
be the Ist of next year before anything gets going but we are still high
on the list. She said Mr. Clark's deferred payments come due in 1994
and he is already way behind in payments for this year. She asked
for comments from the board. She said she chatted with the Mayor
and our debt service is $5100 and we are having at least a $3500
deficit monthly on debt service. The board discussed at length what
we should do, all felt we have given him every opportunity he has
requested to see if he could make it and nothing he has promised has
come to fruition. Mike asked if we would be out of line to ask for a
financial statement. Possibly have Buzz and Bill go back and request
an income statement. Sue said we would not be out of line at all.
She asked if the industry was picking up any, and he said not now
but down the road possibly. Jeanette asked what about us hiring
a manager and running it? Sue said that there is a possibility we
might be put in that position. Andy said we seem to be pushed as
far into a corner as we can go. That he feels we need to send him
a letter giving a definite date to respond with financial statement.
The board talked about the rent he is getting from the T-hangars
and the businesses that were suppose to come in. Mike said that
he feels we have reached the end of our rope - can't go any further
that we should start default proceedings as he has defaulted under
the terms of his lease and secure any property that could possibly
be used to lessen the city's debt. He futher made a motion to begin
default proceedings in order to terminate the lease and issue a restraining
order to protect the city's interest and secure any assets. Andy Huggins
seconded and motion carried unanimously. Sue said she would have to
go to the Mayor with this and get his opinion and if he says okey we
will have Tut Wynne the City Attorney go forward. All said this would
be fine.
There being no further business, meeting was duly adjourned.