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HomeMy Public PortalAboutE Mail Requesting that assignment be pulledJohn Anderson From: Lindley Kirkpatrick [lkirkpatrick@mccall.id.us] Sent: Wednesday, October 21, 2009 10:10 AM To: John Anderson Subject: FW: Council Meeting Agenda Item - Commercial Lease at the Airport Page 1 of 4 10/21/2009          Lindley Kirkpatrick, AICP  City Manager  City of McCall  216 East Park Street  McCall, ID  83638  (208) 634-1003  www.mccall.id.us     From: Don Bailey Sent: Tuesday, October 20, 2009 6:12 PM To: Dan Scott; Bert Kulesza; Lindley Kirkpatrick Cc: 'Laura Scott'; Marcia Witte; Claudia Delaney Subject: RE: Council Meeting Agenda Item - Commercial Lease at the Airport     All, I agree with Dan Scott's comments and recommendations. We should pull the item from the agenda, if not already done so. Don Bailey    From: Dan Scott [mailto:dan@mccallaviation.com] Sent: Mon 10/19/2009 8:59 AM To: Bert Kulesza; Lindley Kirkpatrick Cc: 'Laura Scott'; Don Bailey; Marcia Witte; Claudia Delaney Subject: Council Meeting Agenda Item - Commercial Lease at the Airport  Bert and Lindley-     I would like to call to your attention an issue related to your agenda for this Thursday’s City Council  meeting.  There is an item on the consent agenda to assign a commercial lease at the McCall Airport.  I  do not believe that an issue of this importance (there are only 4 commercial leases, total, at the McCall  Airport) to both the airport community and the City in general should ever be on the consent agenda.    More importantly, however, is that the procedures required by the McCall Airport Minimum Standards  for Commercial Operations (and thus Ordinance 8-16-8) have not been complied with.  This lease  assignment is not the run-of-the-mill lease for a private hangar – it’s a lease allowing for full commercial  aeronautical activities at the airport.  As such the Minimum Standards require that the applicant for such  lease provide a number of items to the Airport Manager and the Airport Advisory Committee for their  analysis and recommendations to the City Council.  This has not happened.  I respectfully request that  you remove this item from the consent agenda and remand it back to the Airport Manager and the  Airport Advisory Committee for its recommendation per the requirements of the Minimum Standards  and Ordinance 8-16-8.   I have copied the relevant portions of the Minimum Standards below for your  review.  You will see that for a commercial leasehold of this significance, there are some important  aviation related issues for the Airport Manager and Airport Advisory Committee to consider prior to an  action by the City Council.  These same issues should also be addressed to the satisfaction of the City  Council (see the “Review of Application” section below).  By the way, the process below was followed (for the  most part), by Sawtooth Aviation earlier this year when it assumed the lease previously held by Granite  Holdings, and it was followed by my company 7 years ago when we went through this same process.  This is  important stuff, and should be given the consideration outlined below.     Lastly, the Agenda Bill for this lease assignment also contains an error related to the appropriate lease rates that  the City is to charge after the assignment and assumption of the lease.   Paragraph 37 specifically states that  upon assignment of the lease the rents will increase to the then current City published lease rates for the  Airport.    That rate is currently $0.35 per square foot.  The Agenda Bill contains an incorrect lease rate.    Some  might point out that this same paragraph states that the written consent (for assignment of the lease) will not  be unreasonably withheld by the City.  Requiring that the procedures outlined by the Minimum Standards, City  Ordinance, and the FAA, clearly does not constitute an unreasonable request by the City.        PART II APPLICATIONS FOR LEASES AND LICENSES Requests for leases of ground and/or facilities on the Airport or for licenses or permits to carry on any commercial, business or aeronautical activity on the Airport shall be made to the Airport Manager. The Airport Manager shall thereafter present the application to the Airport Advisory Committee and the City Council with recommendations. The applicant shall submit all information and materials necessary, or requested by the above, to prove that the applicant will qualify under and will comply with these rules and regulations. The application shall be signed and submitted by an owner of the business, a partner, if a partnership, or an officer or director of a corporation. Minimum Application Information The Airport Manager will not accept or take action on a request to lease land area or in any way permit the installation of a commercial activity until the proposed lessee, in writing, submits a proposal which sets forth the scope of operation they propose, including the following. · The name and address of the applicant. · The proposed land use, facility and/or activity sought. · The names and the qualifications of the personnel to be involved in conducting such activity. Supporting Documents If requested by the Airport Advisory Committee or City Council, the applicant shall submit the following supporting documents to the Airport Manager, together with such other documents and information as may be requested. · A financial statement including a balance sheet. · Credit report authorization. · An economic feasibility study. · Authorization for release of information from such persons as the City and Airport Page 2 of 4 10/21/2009 personnel shall deem necessary to determine the applicant’s qualifications to perform as set forth in the application. The applicant shall also provide a release for any information, which may be required under Federal or State law or regulation. Review of Application Upon the consideration of the application, the Airport Manager and the City Council, with the recommendation of the Airport Advisory Committee, shall determine whether or not the applicant meets the standards and qualifications as herein set out and whether or not such application should be granted in whole or part, and if so, upon what terms and conditions. In reviewing an application, the following factors will be considered. · Qualifications If the applicant meets all of the qualifications, standards and requirements established by these rules and regulations and the rules and regulations established by the F.A.A. · Safety Hazard If the applicant’s proposed operations or construction will create a safety hazard on the Airport. · Cost to the Airport If the granting of the application will require the City of McCall to spend Airport funds or to supply labor or materials in connection with the proposed operations to an extent which or at a time when the City of McCall is unwilling to enter into such arrangements; or the operation will result in a financial loss to the City of McCall. · Availability If there is adequate available space on the Airport to accommodate the entire activity of the applicant at the time of application. · Compliance with Master Plan Does the proposed operation or airport development or construction complies with the Master Plan? · Congestion Will the development or use of the area requested by the applicant deprive existing users of portions of their operation area? Will it cause undue congestion of aircraft or buildings? Will it unduly interfere with the operations of any present user by interfering with aircraft traffic or preventing free access to any other facility? · Misrepresentation Has the applicant interested in the business supplied the City of McCall or Airport Manager with any false information or misrepresented any material fact in the application or supporting documents? Has the applicant failed to make full disclosure on the application or supporting documents? · History of Violations Has any party applying or having an interest in the applicant’s business had a record of violating the rules and regulations of any other airport, Federal Aviation Administration Regulations or any other State or Federal statutes? · Prior Defaults Has any party applying or having an interest in the business defaulted in the performance of any lease or other agreement with the Airport or the City of McCall? · Poor Business Record Has any party applying for or having an interest in the business had a business record indicative of unsatisfactory business practices? Page 3 of 4 10/21/2009 · Ecological Considerations Will the operator comply with Environmental Protection Agency, Department of Environmental Quality, Valley County Health District and City of McCall Planning and Zoning requirements for the protection for the health, welfare and safety of the inhabitants of the City of McCall? · Performance Bond The City Council may require the applicant post a performance bond.    Thanks for your attention to this matter.     Regards,    Dan Scott  President, McCall Aviation, Inc and member of the McCall Airport Advisory Committee  Page 4 of 4 10/21/2009