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MANAGER’S REPORT TO: MAYOR AND CITY
COUNCIL 11.B City Park Concession Bid. You have a bid for this in your packet. (Lilac) 11.C Airport Apron Funding. Last year, probably around this same time, the city agreed to construct an expanded aircraft-parking apron at the airport. We had applied for and received federal funds to pay for the lion’s share of it. However, the initial scope of work came in at over $1 million in costs, and we had only $300,000 in federal funds. So, we negotiated down the amount of work, agreed to bank on another $150,000 from the feds, and considered a method to raise the balance of funds locally. I said then that we could proceed with a couple of options and I probably would be back much later on with a plan for a loan to pay any unfunded balances. (Blue) Our “gamble” that we could apply an additional $150,000 funds in grant money has paid off. The federal government did continue the funding program and so we now can apply that money. We didn’t consider that at serious risk, so we spent the money in anticipation of the grant program continuing—it wasn’t guaranteed but it was likely. That part is done. Our plan also called for the leasing of 12 hangar spaces at $13,000 apiece to generate $156,000 -- or to lease enough to be able pay back a loan of up to $156,000. That, along with the grants from federal and state government and our matching share, would make up the amount of money needed. We also said at that time that getting all of the leases signed during the first year may not be possible, but we could use of a share of the $15,000 the city has already been raising annually to pay off a loan to complete the project. The idea was to be able to complete the project, at the minimum feasible level, and not pass any additional cost to the taxpayer. The project has been completed and it looks good and we should start to see the private hangar construction start any day now. It is now time for us to settle up the costs. There have been five hangar leases issued, one with an advance ten-year payment of $13,000, the others with a lease agreement that has biannual escalator clauses. We are quite certain that, once things get settled both financially and on the ground, there will be more lease interest. We need to get our house back in order first. I am enclosing an airport apron expansion-financing plan. I am proposing that the city seek to borrow $131,000 and I have outlined the method to pay it back. Actually, I have obtained a bit more information since I prepared that sheet and will be tweaking the proposal a bit, to probably $145,000 to $150,000, by Tuesday night, but this will give you the basic idea. I think if you read down the list, it will be fairly self-explanatory and we can discuss it more Tuesday night. The leases are for twenty years, so the city will earn more money, probably for airport support, in the long run. 11.D Retail Zoning Issues. Wayne has a paper to give some structure to this long-standing issue. (Pink) 11.E Performance Center Feasibility Committee. The Council has agreed to have Mayor Hurley, Councilor Heberer and me to come up with a list of nominees for the Performance Center committee. We have met and considered different people; some have been contacted and some have not yet. Given what other activities have deterred us, I think we need a few more days to complete this. This will let you know that we are working on it, but I would ask that this item be tabled to the next meeting, so that we can submit the list of people to you in writing in advance of any votes. 11.G Executive Session for a legal matter. This is for a report and discussion of a pending legal settlement of a land-use dispute. There should be a formal vote afterward to authorize me to sign a settlement agreement. And, that’s it for this week. |
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