GROSSE ILE MUNICIPAL AIRPORT



GROSSE ILE MUNICIPAL AIRPORT

AIRPORT COMMERCE PARK COMMISSION

GROSSE ILE TOWNSHIP 2ND FLOOR BOARD ROOM

Tuesday, March 15, 2010

REGULAR MEETING – 7:00 PM

PRESENT: Peter Kantz (Liaison), Walter Stoll, James Weaks (Vice Chairman), Ron Moran (Chairman), Chris Mans

EXCUSED: Gregg Barton

ALSO PRESENT: Derek Thiel (Airfield/Commerce Park Manager), Jon Wycoff (Airport Intern), Tim Rooney (Department of Recreation Manager), Doug Morris (GIYRA Representative)

1. Pledge of Allegiance

2. Call to Order:

Moran called the meeting to order at 7:02 p.m. in the Grosse Ile Township Hall, 2nd Floor Board Room.

3. Approval of Agenda – additions/deletions: Kantz motioned to approve the agenda with support from Weaks. All Ayes. Motion Carried.

4. Approval/Correction to Minutes -

Regular meeting of February 16, 2010

Kantz motioned to approve the meeting minutes of February 16, 2010 as presented with support from Kantz. All Ayes. Motion Carried.

5. Financial Reports:

February 2010

Moran: We have concluded 92% of the fiscal year. Year to date revenues are $628,258 and expenditures are $673,268.

Thiel: In February the balance sheet had an outstanding expenditure that we planned on recouping for the sponsor’s share of our new tractor. You will see that we finally received that payment.

Thiel: You will notice on the past due rent summary the amount has decreased

Kantz: How much does Brooklyn Air regarding their past due balance.

Moran: With regard to the last 2 tenants on this list, why are the amounts so small?

Thiel: That the amount due beyond 60 days. I will provide the total due next month.

Weaks: These could be late charges?

Thiel: Yeah

Kantz: I’m suggesting that at the May meeting we get a better explanation of how cash reserves are being treated.

Motion made by Weaks with support from Stoll to receive and place on file the February 2010 financial report as submitted. All ayes. Motion carried.

6. Manager’s Report:

a. Building 63 Inside Storage Report

Thiel: After utilities and splitting the profit with the building’s management, the total profit to us is $1,524.83

Moran: We have a month to month summary of that for next month

Thiel: Sure

b. Building 75 Update

Thiel: I will have photos at the next meeting. The tenant is about 95% complete with their obligations to the lease. They will start paying rent at the beginning of April. They have put in new carpet, flooring, paint, fixtures, ceiling tiles, and added a new door to the back of the building. We are still going to have to install new heater units. I am waiting to hear back from Wayne County regarding funding.

7. Action Items

a. CPI Rental Rate Increase

Thiel: Commisioner Mans inquired about increases over the last few years, at the last CPC Meeting. The increases correspond to the published CPI index increases. As indicated the last t-hangar increase we had was in 2007. This is the third year without a t-hangar increase. We did have a slight increase in hangar 1 back in 2009. This year’s CPI is at –0.61%. Based on the CPI, I recommend a 0% increase in rental rates.

Weaks: Regarding lease renewals, we should make them “time-bound”.

Thiel: Thi is a good strategy to impose.

Based upon a recommendation from the Grosse Ile Airport/Commerce Park Manager, the Grosse Ile Airport Commerce Park Commission hereby establishes the rental rate increase for the following tenants for their respective lease terms in FY 10-11 to be 0%.

Gary Jones

Duckett/McMahon

Virga Air

Douglass West (Land and Building)

Cortis and Associates

Robert Rice

Island Metal Art

Gibraltar Bay Alpacas

Foliage Concepts

In addition, the Grosse Ile Airport Commerce Park Commission hereby approves no rental increase for Hangar rental for the fiscal year 2010-2011. Motioned by Weaks, supported by Mans. All ayes. Motion carried.

b. Meeting Schedule for FY 2010/11

Meeting dates are held the third Monday of each month (with the exception of November, January, and February 2011, which will be held on the following day due to a conflict with holidays and or staff scheduling.) All meetings will be held at Township Hall, Second Floor Board Room, at 7:00 p.m. (unless this room is being utilized by another Township sponsored meeting or event)

April 19, 2010 October 18, 2010

May 17, 2010 November 17, 2010

June 21, 2010 December 20, 2010

July 19, 2010 January 18, 2011

August 16, 2010 February 22, 2011

September 20, 2010 March 21, 2011

The Grosse Ile Airport Commerce Park Commission hereby adopts the following Meeting Schedule for FY 10/11. Further the Grosse Ile Airport Commerce Park Commission requests the televising of all regular Airport Commerce Park Commission meetings contingent upon room and Township staff availability. Motioned by Weaks, supported by Stoll. All ayes. Motion carried.

8. Sub-Committee Reports:

NONE

9. Discussion Items:

a. Recreation Department Lease

Thiel: The terms approved the CPC were presented to the Recreation Dept. Tim Rooney from the Recreation director is here to discuss those terms

Rooney: GIYRA is looking for a final destination for football, cheer, and baseball programs. To be compatible, they need parking, a place for future construction, some sort of shelter, an opportunity to work with outside resources in the community (GISA). They are excited about this lease opportunity and the Recreation Commission would like to support them. GIYRA has some concerns regarding the lease and that is why Doug Morris is here to talk to you

Morris: I have concerns with terms of the lease agreement. Item 2. We would like to see an annual term on the lease since we are investing so much money in the area, or at least a longer term notice to vacate. We don’t want to vacate in the middle of our season. Item 10 the term “permanent structures” what does it mean? We don’t want to build a building, but we would like to put up a fence. Is that considered a permanent structure? Item 11 concerning charging for using of property. We are worried the airport wants to keep part of our registration fees.

Moran: It is the opinion of the board to work the Rec Dept. and GIYRA to work out what is mutually agreeable but our priory is to take care of a revenue source in order to cover our expenses and long-term obligations. If a business comes along, we wouldn’t want to lose a pending deal if we have to act quickly. I think we could relax the 30 day notice, but we don’t want to lose a deal.

Weaks: I think 90 would be fine. The reality is in today’s environment you are safe with 90 days

Moran: I agree, at least in the short term. I don’t think you will have to worry about this.

Stoll: What is the critical point in your year?

Morris: August – January/February. I think we can live with 90 days.

Moran: Item number 10. If you were willing to demolish and clean up the site of the structure, I would be willing to allow permanent structure.

Kantz: No structures beyond a fence

Moran: To Thiel. Let’s put the word “fence” right into the agreement.

Thiel: What about goal posts?

Morris: They will be portable.

Moran: Item 11. We don’t want you to make a profit by leasing the land to someone else.

Morris: It will only be shared with GISA. It wouldn’t be a lease. We would just share.

Kantz: Tournaments, or charging to park back there might fall into that category. Anything beyond registration of soccer players is what we are trying to prevent. Or we could get into a business arrangement.

Moran: To Thiel. Can you take the agreement revise, clarify, and send it back to Mr. Rooney.

Thiel: To Tim. I will send it to and if the Recreation Commission okays it, we will draw up the formal agreement.

b. Hangar 1 Gun Range

Thiel: There is interest from the Police Dept. in using their forfeiture funds to revitalize the East side of Hangar 1 and put in a Fire Dept. substation. JS Vic is in the process of putting together a cost estimate (free of cost to us) for the township in order to determine if this venture is cost effective. They are also going to provide an estimate for demolition of the same part of the building.

Kantz: Some people want to use these funds to rescue the East end of Hangar 1. For the township there might be a better use for spending these funds. My concern is the structure isn’t efficient enough. To house a gun range and a garage I think that rebuilding isn’t cost effective.

Moran: To Thiel. I will you keep everyone informed as decisions are made.

Thiel: We have input on what we want our facilities used for. I will try to keep you as informed as possible.

Kantz: What type of lease agreement would there be? How do we get compensated?

Weaks: Whose initiative is this?

Kantz: Police and township. Police can only use the money on certain things. However, they are very restricted on what they can use it for.

Weaks: Can other municipalities use these facilities?

c. New Construction

Kantz: This needs to be looked at before the next meeting. We need a special meeting to talk about the best way to insure airport solvency. With the exception of the Iverson building we are at 100%. But the revenue isn’t enough. What can we do to increase revenue? Could we construct buildings that would be rentable? How do we get expenses to meet revenue? Info on new construction will help with that.

Moran: I think it’s time to do that.

Kantz: Right around April 14th

Stoll: Whose initiative is this?

Kantz: Derek and I

Thiel: This has spawned from interest and people that we have turned away.

Stoll: What kind of space?

Kantz: Shop space and storage, like building 70.

Moran: We will have a lot of discussion on this.

10. Chairman’s Report:

NONE

11. Public Comment:

NONE

12. Executive Session:

Motion to enter into Executive Session by Weaks with support from Mans at 7:56p.m. All ayes motion carried. (Regular meeting reconvened at 8:31p.m.)

13. Adjournment:

Motion to adjourn by Mans with support from Weaks at 8:32p.m. All Ayes. Motion Carried.[pic][pic]

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