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04-19-2001 Special Called Meeting PEACHTREE CITY AIRPORT AUTHORITY MINUTES OF MEETING April 19, 2001 A called meeting of the Peachtree City Airport Authority was held at the Aviation Center, Peachtree City-Falcon Field Airport, on April 19, 2001, at 1 :30 p.m. Those present were Chairman Catherine M. Nelmes; Secretaryffreasurer H.E. Buffington; Members: Jerry R. Cobb, and Douglas A. Fisher; Airport Manager James H. Savage and Authority Attorney Douglas B. Warner. The Authority has only four members at the moment. I. NEW AGENDA ITEM 01-04-04 Consider changes to commercial operator fees, both on and off the airport. ~ Chairman Nelmes gave a brief description of her recommendations regarding commercial fees for both on and off the airport. For on the airport commercial operations, she recommended that only certain areas of the airport be designated "commercial" areas, and that those sites would lease at a commercial rate, regardless of how the site was actually used. If a site was not designated "commercial," then commercial operations would be prohibited. For off the airport commercial operations, she recommended that all references to commercial operations, including the 2% commercial fee, be deleted from the Airport Access Agreement. Instead, she proposed an Airport Access Fee be established that would be based on the square footage of the Adjacent Owner's hangar and aircraft parking apron. She recommended that the fee be set at an initial rate of $.20 per square foot, and that it would apply, regardless of the aviation activity conducted "through-the-fence." Chairman Nelmes asked the Authority members for their comments, then gave the public an opportunity to express their views. Mr. Buffington stated that he generally supported Chairman Nelmes' ideas. Mr. Cobb reminded everyone that the "old" agreements, both on and off the airport, would remain in place unless the Tenant or Adjacent Owner wanted to modify their individual agreements. He supported the concept that "on the airport" fees should be different from "off the airport" fees, and that the Executive Storage hangars on the airport should not pay the same rates that commercial hangars on the airport would pay. Mr. Savage supported Chairman Nelmes' concepts and basic fee structure. 1 r Mr. Warner gave a brief history of how the 2% fee structure was developed originally and stated that he supports a change eliminating the 2% fee. Mr. Fisher supported the concept of using some logical basis for determining fees that was related to the actual movement of aircraft, or the amount of gross sales if it were a commercial operation. Given the apparent desire by the Authority members to eliminate the "2% of gross sales" as a basis, he felt that a fee based on square footage might be an acceptable alternative. Chairman Nelmes opened the discussion to the public gathered, who offered several different opinions on the concept, but generally agreed that a fixed fee based on square footage was more desirable than one based on 2% of gross sales. Mr. David Rossetti stated that the proposed $.20 per square foot seemed a reasonable fee for the area of the hangar, but he felt that the apron area should not be considered when calculating the fee. Others offered the idea that perhaps the apron area should be a lesser fee, perhaps half of the hangar area fee. Mr. Fisher moved to amend Paragraph 7, of the Airport Access Agreement to eliminate reference to aviation-related .business operations fees based on 2% of gross revenues and as~ociated minimum and m~)(ilTlum fees, and establish in its place an Airport Access Fee that is based on the square footage of the finished floor area of all aircraft hangars and all aircraft parking aprons built on the adjacent property. The motion called for a fee of $.30 per square foot for areas under roof and $.15 per square foot for aircraft parking aprons. The motion was seconded by Chairman Nelmes. After considerable discussion, the maker offered an amendment to the motion to set the fees at $.25 per square foot under roof and $.10 per square foot for the apron area. The seconded agreed with the amendment. Additional discussion followed and Chairman Nelmes called for a vote. The motion failed by a vote of three opposed and one in favor, with Mr. Fisher voting in the affirmative. - w , f I h k Mr. Buffington moved to amend Paragraph 7, of the Airport Access Agreement, applicable to future adjacent owners, to eliminate reference to aviation-related business operations fees based on 2% of gross revenues and associated minimum and maximum fees, and establish in its place an Airport Access Fee that is based on the square footage of the finished floor area of all aircraft hangars and all aircraft parking aprons built on the adjacent property, inclusively. The new motion called for a fee of $.20 per square foot for all such areas. Such fees w()uld be subject to an adjustment every three years based on the aggregate change in the Consumer Price Index (CPI) since the last adjustment. The CPI used for these agreements would be the same index used in current airport lease agreements. 2 ,..., The motion was seconded by Chairman Nelmes. " M i ~;. ,. During discussions, it was emphasized by the Authority Members that the new Airport Access Agreement would not affect existing "through-the-fence" agreements unless the Adjacent Property Owner wished to terminate its existing agreement and sign the new Airport Access Agreement applicable to future Adjacent Property Owners. Following additional discussion, Chairman Nelmes called for a vote. The motion passed unanimously. Following the action on fees for "through-the-fence" operations, similar discussions regarding "on-the-airport" commercial operations were held by the Authority. A motion was made by Mr. Buffington to eliminate all reference to commercial fees based on 2% of gross revenues in all future "on-the-airport" ground lease agreements, and in its place establish "commercial" hangar sites on the airport with appropriate lease rates based on the square footage of the leased area. Such lease rates would be established at the time the commercial sites were made available for lease, and would consider the cost of site preparation, infrastructure development, current land availability and other factors that the Authority might deem appropriate. The motion was seconded by Chairman Nelmes. ,...., , ~. Discussions followed during which it was emphasized by the Authority Members that this change would become effective with new lease agreements and would only apply to existinalease agreements after a "commercial" rate had been established by the Authority for a given commercial site and the lessee, after reviewing the new lease rate, had requested to change the lease agreement. Otherwise, existing agreements will remain unchanged. After a call for a vote by the Chairman, the motion passed by a vote of three voting in the affirmative, and Mr. Cobb abstaining due to a possible conflict in interest. Mr. Cobb leases land from the Authority for his private hangar. Chairman Nelmes indicated that on-the-airport commercial lease rates would be an agenda item at the next Authority meeting, scheduled for May 9, 2001. At 3:27 p.m., Chairman Nelmes knowing of no additional items to be considered in either regular or executive session, made a motion to adjourn. The motion w s seconded by Mr. Cobb and w s Passed unani ~1 \J - Attested by: Catherine M. Nelmes, Chairman 3