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HomeMy WebLinkAbout02-13-2007 Regular MeetingThe Fairhope Airport Authority met Tuesday, February 13, 2007, at 4:00 PM in the Conference Room at the Administration Building at 161 N. Section Street. Present: Colton Coile, Chairman; Chuck Zunk, Mike Baugh, Ken Knutsen, Charlile Bassett, Mike Ford. Betty Rivenbark, Secretary. Bob Young, and David Bagwell, Attorney. Absent: Joe McEnerney The minutes of the January 9, 2007 meeting were duly approved as presented by motion by Charles Bassett, 2Id by Chuck Zunk and unanimously carried. The Chairman recognized Bob Young of Frazer- Lanier who was here today to discuss with the members the $8,800,000 Airport Authority Bond Issue. He said this will cover the purchase of a little under 250 acres of land adjacent to the airport, repay certain notes related to newly built T-hangars and construct a taxiway to the T-hangars. He went through the outline he had prepared and said the proceeds will be financed from the proceeds of an Airport Authority bond issue. He went on to explain that the Airport Authority will issue the debt and in turn enter into an annual appropriation agreement with the City. And the city will agree to appropriate funds on an annual basis sufficient to pay principal and interest. He said that because this appropriation agreement is an annual obligation as opposed to a hard, long-term obligation, it is not chargeable against the debt limit. He said that appropriation agreements have been used extensively throughout the state to finance many things. He explained in order to secure the issue a bank's letter of credit (LOC) is needed. They in turn solicited quotes from several banks and Compass Bank, Regions Bank and Allied Irish Bank each submitted responses. He went through the bank proposals and said in evaluating they decided on AIB and suggested approval of their choice. The City Council will be meeting on February 19t" and Bob will again present this overview to the council with his recommendation. Further action will be taken later in the meeting. Requests for Special FBO status and end -cap leases — Chuck reported and said it is about where it was last month, we have approved SFBO status to Columbia Aircraft and they are interested in an end cap lease after the completion of the infrastructure of the new T-hangars and we have not heard anything further from John Ward. T-hangar and Taxiway Status — Chuck reported the City Council approved Volkert's recommendation of McConnell Contracting to do the taxiway work at a bid price of $269,527.04'. Colton said he is meeting with Volkert on Friday. It was mentioned there are no meters in the boxes in the T-hangars and Colton said he would call Riviera and ask them to install the meters. Airport Authority — February 13, 2007 Page Two Airport Authority By-laws — David Bagwell reported that he has put it on the back burner until he sees who is going into each slot. Festival of Flight 2007 — Colton said there was nothing to report at this time Transfer of airport to Authority — Chuck said that the authority needs to take title of all lands plus the new land now at the airport and that in doing so we will own and operate all of it. He said we have consulted with legal counsel and that the 2003 incorporation did not follow the Alabama Code so we are going to throw that out and start again. That the new paperwok is in the process and we will refile a letter of request for incorporation that will conform with the Alabama Codes. Then we will be able to take title of the land on the airport and the new land we are buying from Mason McGowin. Acquisition of land and financing The board discussed the steps we needed to take and Chuck Zunk moved to pass the first resolution needed, a resolution to incorporate, Ken Knutsen 2"d the motion and it carried unanimously as follows: RESOLUTION TO INCORPORATE Resolved, that the Fairhope Airport Authority apply for permission to incorporate as a public corporation under the provisions of Title 4, Chapter 3, Article 2 of the Code of Alabama (1975) (the "Act"); And further Resolved, that Charles E. Bassett, Michael A. Ford, and Charles R. Zunk as natural persons residing in the City of Fairhope, Alabama, make this application; And further Resolved, that the Fairhope Airport Authority request that City Council approve its application to incorporate; And further Resolved, that the Fairhope Airport Authority request that City Council approve its Certificate of Incorporation which shall include these Articles: 1. The Incorporators shall be Charles E. Bassett, Michael A. Ford, and Charles R. Zunk, each of whom is a duly qualified elector and owner of real property in the City of Fairhope, Alabama. 2. The name of the Authority shall be: "FAIRHOPE AIRPORT AUTHORITY". 3. The period of duration of the Authority shall be perpetual. Airport Authority — February 13, 2007 Page Three 4. The authorizing subdivision of the Authority is the City, and the permission and authority to organize the Authority has been granted by a Resolution of the City Council. 5. The proposed location of the principal office of the Authority shall be 8600 County Road 32, Fairhope, Alabama, 36532. 6. The Authority is organized pursuant to the Act, and the Authority shall have and exercise all of the powers and authority set forth in the Act, and such additional powers and authority as are now and may hereafter be provided by law. 7. The Board of Directors of the Authority shall consist of seven (7) members who shall be elected in the manner and for the term of office as provided by law, at least five of whom shall reside in the City and all of whom shall reside in the Fairhope Police Jurisdiction. One of the members residing in the City may be a member of the City Council. The Mayor of the City shall ex-officio be entitled to notice of each special or called meeting and shall be entitled to attend all meetings of the Board of Directors, but shall have no right to vote at any such meeting and shall not be considered in determining a quorum. Resolutions to enact transfer, land acquisition and financing. Having acted on that resolution Chuck presented a second Resolution To Establish and Operate and moved for passage of this resolution, Charlie Bassett seconded the motion and it passed unanimously as follows: RESOLUTION TO ESTABLISH AND OPERATE Resolved, that the Fairhope Airport Authority ("Authority") recommend to City Council the following actions to provide for the establishment of the Authority, and the operation of the H. L. "Sonny" Callahan Airport by the Authority: That the Mayor nominate and the City Council elect these persons to serve as Directors of the Authority: Name of Director Initial Term of Office Michael A. Ford 2 years Joe McEnerney 2 years Charles R. Zunk 4 years W. Colton Coile 4 years Airport Authority — February 13, 2007 Page Four Kenneth L. Knutsen 4 years Michael Baugh 6 years Charles E. Bassett 6 years That the City Council assign and set over to the Authority all properties, rights and entitlements of the Predecessor Operators under the control of the City, and that they ratify and confirm all acts taken by the Predecessor Operators in connection with the Airport as acts by and for the benefit of the City, all of which acts shall be deemed by the City to be for all purposes as if taken by the Authority. • That the City Council authorize and empower the representatives of any such Predecessor Operator, including persons named as directors and officers of such bodies, to take any actions necessary or appropriate, as may be requested by the Authority to dissolve, wind up or take any other action to fully vest in the Authority all properties, rights, entitlements and obligations of the City and/or the Predecessor Operators relating to the Airport. That Ordinance No. 1190 regarding safety and security procedures for the Airport, adopted by the City Council on October 27, 2003, be rescinded, the subject matter thereof being addressed by the Authority. That the foregoing actions become effective upon the incorporation of the Authority. Chuck said that the City Council meetings are February 26 and March 8th and that we have promised to give Mason McGowin his money by March 20th and that we need to have a meeting before each council meeting. He presented a third resolution, a Resolution To Fund and moved for passage of this resolution, Ken Knutsen seconded the motion and it carried unanimously as follows: RESOLUTION TO FUND Whereas, the Fairhope Airport Authority ("Authority") desires to improve the H. L. "Sonny" Callahan Airport by purchasing 250 +/- acres of land, by repaying certain notes related to t-hangars, and by constructing taxiways for those t-hangars; Airport Authority — February 13, 2007 Page Five And Whereas, the Authority and the City of Fairhope ("City") have issued a Request For Proposal ("RFP") to major banks for a Bank Letter Of Credit to fund these improvements in the aggregate amount of $8,800,000 (est); And Whereas, at least three of these banks submitted valid proposals in response to the RFP, and these proposals were analyzed by The Frazier Lanier Company on behalf of the Authority and the City; And Whereas, The Frazier Lanier Company recommends the proposal from Allied Irish Bank. Now, therefore, be it Resolved, that the Authority accept the proposal of Allied Irish Bank for an $8,800,000 Letter Of Credit, for the purpose of securing funding to purchase 250 +/- acres of land; to repay certain notes related to t-hangars; to construct taxiways for those t-hangars; and for legal, engineering, financial, and other expenses related to those aforementioned items; And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate the terms of an issue of tax-exempt bonds (the "Bonds") of $8,800,000 that will be secured by the aforementioned Letter Of Credit, for the same purposes; And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate an Appropriation Agreement between Authority and City in order to provide for the payment of certain amounts to the Authority by the City regarding the payment of principal and of interest on the Bonds, and that the Appropriation Agreement contain a condition that after five years the City has the right to take possession of the land or re -negotiate the appropriation amount for the land purchase if the Authority is not able to pay the increase in debt service anticipated to start in the sixth year; And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate a purchase contract to acquire an aggregate of 250 +/- acres divided in parcels on both the east and west side of the existing boundaries of the Airport; And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate the repayment of certain notes related to t-hangars; Airport Authority — February 13, 2007 Page Six And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate and execute contracts necessary to construct taxiway access to the t-hangars; And Further Resolved by the Authority, that its Chairman W. Colton Coile is authorized to negotiate for legal, engineering, financial, and any other professional services necessary to execute the aforementioned items. Mike Ford gave a report on Mason McGowin's land, we have a contract to purchase. The question of mineral rights came up and will have to be worked out. Negotiation of yearly lease for unimproved land — Colton said Eric Street had approached him about farming 85 acres on either side of the airport and paying $35 an acre for one calendar year. He said he has been doing this and is nothing different. Further discussion led to a motion by Chuck Zunk to approve this with the stipulation that the farming will continue only on property where farming has previously been established, Charlie Bassett 2"d the motion and it carried unanimously. Discussion was held on the need for holding two special meetings and Chuck suggested February 21 at 8:OOAM and March 6 at 4:OOPM. We may cancel the March 13th regular meeting but for right now it is still on the calendar. Rip -rap status — Mike Ford said he had talked to Jennifer Fidler and Austin Beasley and we promised to have Austin's land fixed by February 21 but Ken McGrew from Esfeller has not called her back. It was decided that whoever does the job, city or Esfeller, we need to make sure they don't just drive across the runway, we give them a definite route to take in getting to the site. Chuck reported on the real-estate development being planned close to the airport and said he had attended the Planning & Zoning meeting on February 5 and voiced his opposition to this on behalf of the airport and state as being inconsistent with the land use around the airport. He said 300 homes are being planned on the corner of Hwy 13 and Hwy 32 done in 3 phases. Phase 1 will contain 80 homes. He said the problem is it is County land and is unzoned. He said that he is not sure that they did their Airport Authority — February 13, 2007 Page Seven planning based on the new runway being moved east 300 ft. He said he has a meeting with Volkert on Friday to review height limit and noise abatement calculations. He said the Planning & Zoning Commission delayed any action for thirty days based on the issues that were raised. He suggested forming a study group to see what kind of development we wished to encourage around the airport, suggested as committee to get in touch with the developer and see if they could keep everything planned on Hwy 32 commercial and push their houses back. Treasurers Report — Ken Knutsen reported he and Joe had met with Nancy for over an hour last week and said she thinks she can extract the info the authority needs from her actuals and even do a spreadsheet for us thru city based software. The fire station on the airport was talked about and what the status of it would be once we acquired all the land. The bills were presented and on motion by Chuck Zunk, 2"d by Ken Knutsen were approved for payment as follows: RL Farmer $1600.00 Press Register 563.00 Affordable Plumbing 3,762.00 David E. Bagwell 1,000.00 Federal Express 101.40 Gaylord C. Lyons 1,750.00 Volkert & Assoc. 1,396.48 Compass Bank 5,154.24 Under new business, Colton Coile announced he would be submitting his resignation as a member of the Airport Authority, that he needs to devote more time to his business as he has found the airport business has taken up so much of his time that his business has been neglected. There being no further business, meeting was duly adjourned at 6:OOPM. wa°