DRAFT
Berlin Airport Authority
June 29, 2010
Present were: Chair Grenier, Commissioners Danderson, Landry, Rozek, and Pozzuto
Others present included Blandine Shallow, Eric Kaminsky, Patrick MacQueen, Bob Goddard, Lou Drobney
Minutes
Commissioner Danderson moved to accept the minutes of the April 1, 2010 meeting; Commissioner Rozek seconded and the motion carried.
Financials
Mr. Kaminsky reported the latest financial information to the Authority. The Water Works will not be using sand until the new fiscal year and then they plan to use it regularly. He indicated that at the end of the year, the budget will be close to even though there are items such as the land and equipment sale that will not happen every year.
Chair Grenier established that Jet A Sales are off. Mr. Kaminsky note that transient jet traffic is down.
Commissioner Danderson moved to accept the financial report; Commissioner Landry seconded and the motion carried.
Lease Status Report
Mr. Kaminsky established that Malcolm Shute no longer wants to lease the vacant piece of land near his hangar; however Jim Ottolini has expressed his interest in writing. Commissioner Danderson moved to lease to Mr. Ottolini; Commissioner Rozek seconded and the motion carried.
Mr. Kaminsky informed the Authority that the lease for the land on which the Wausau Building sits has not been paid. He further explained that Wausau Papers came to an agreement to sell the building and transfer the land lease to Dalsco Air (L. Drobney). Mr. Drobney has an issue with size of the lot and feels the lease amount is too much. Chair Grenier confirmed that the lease amount is $555.00. Mr. Kaminsky explained that he measured the area and square footage in an effort to justify the amount of the lease and he came up with footage that was close when the paved areas that Wausau put in were added in. Commissioner Pozzutto asked if the pavement is exclusive to the building and Mr. Kaminsky responded that its purpose and intent was for the building and its use by others is very limited.
Bob Goddard who introduced himself as Mr. Drobney’s business consultant maintained that the reception building is 20.8 x 30.8 which is 651square feet. He stated that Mr. Drobney purchased the building and wants to lease the property from the BAA but why would he need or want to pay on a paved area when he does not need it. He is the only one that has the scenario. He is asking that the lease be based on the size of the building which is customary.
Commissioner Danderson commented that he thinks all leases at the airport are ridiculously low and Berlin’s taxpayers are subsidizing the airport. Commissioner Landry confirmed the lease has not been paid. Chair Grenier noted that there is footage around the building that is leased as well. Commissioner Pozzutto stated that the purpose of the building is not to store aircraft but it is an office and that is what was purchased. If this is not how he chooses to use the building now, that was the lease that was purchased and it ought to remain at the price set. When it was bought, that is what it was. Commissioner Danderson agreed saying that the next step would be to move to eviction and building removal.
Commissioner Landry commented that fuel sales are low and the airport needs assets. He knew what he was getting into and if he doesn’t want it, there should be the opportunity to have someone in there who does want the building.
Chair Grenier stated that he could see lowering the price to $505.50 which agrees with the square footage calculation that Mr. Kaminsky came up with.
Commissioner Danderson moved to reduce the lease to $505.50 or .10 per square foot and if it is not paid to move forward with eviction in 60 days; Commissioner Landry seconded and the motion carried. Chair Grenier voted against.
Mr. Kaminsky reported that leases for the airport are due September 1 and have been in 5 year increments. The end of a five year increment is August 30, 2010. Commissioner Pozzutto asked about closest comparable airports and what they charge for leases. Mr. Kaminsky indicated that there is no consistency. Laconia is at .10 psf and if an fbo .15; Whitefield is .11 psf; Bethel is .20 psf; Freyburg is .31. Commissioner Landry confirmed that some are calculated differently. Commissioner Danderson suggested affirming the leases for two years and keeping the amount at .10 psf.
Commissioner Danderson moved to continue with leases at .10 psf for two years; Commissioner Rozek seconded and the motion carried.
Commissioner Rozek established that the airport’s goal is not to be an additional tax burden on the citizens of Berlin. Most citizens from Berlin are not benefiting from the airport. Chair Grenier noted that if not for the sale of a finite resource, taxpayers would be subsidizing $25,000 for the airport.
Mr. Kaminsky defended the airport saying that it is a tremendous asset to the whole of Coos County. Brown Company, ISSI, Car Freshner; Berlin City Dealership; DART and emergency services all use the airport and its importance to the community should not be discounted. Commissioner Pozzutto agreed that it is an asset; however one that needs to be managed.
CIP Update
Mr. Kaminsky explained that the CIP project has not been funded yet. There have been a few issues with the grant in that the FAA is strictly enforcing the Buy America clause and the truck is not fully built in America. The engineering firm is working on a waiver. Commissioner Danderson moved to accept the update; Commissioner Rozek seconded and the motion carried.
Airport Manager’s Report
Mr. Kaminsky stated that there would be an open house at the airport on August 14 in conjunction with Old Home Days. Different ideas are being worked on including a display by the State Police; DART; and WWII Aircraft.
The fuel truck has been experiencing transmission problems and it won’t stay in first gear. The plan is to remove the transmission and have is serviced.
The Robin Hood Road Rally brought in fuel sales and safety issues were worked out.
Chair Grenier asked about the status of the White Mountain Flyers and Mr. Kaminsky said that there has not been a meeting for a few years. John hertz is the point person. Chair Grenier confirmed that Ray Godbout, Norm Dupuis and Ron Hamel are flying on a regular basis.
Commissioner Landry moved to accept the manager report; Commissioner Danderson seconded and the motion carried.
Public/Pilot Comments
Bob Goddard, 154 High Street commented that he is a Berlin resident, pays taxes and does not fly. He said that the airport is a worthwhile investment. He took exception to the Wausau building being called an office when it is a reception building. He advised that if there is a budget issue, deal with the budget. He went on to say that nobody asked why the Drobney lease was not paid. The lease was paid until September of 2009. There are 20 hangars on the field and only one is paying for a piece of property that no one else is paying for.
On another issue of Hangar #17, Mr. Goddard said that Mr. Drobney sent a letter to the Airport Authority on November 4, 2005 pointing out that the building measures 75 x 100 or 7500 sf. The property has been leased since 2004 and the lease has been $7,800. Mr. Drobney asked why it is extra and did not get a response. Everything needs to be consistent.
Chair Grenier indicated that parking may have been included in the first lease which then gets passed down. He added that the spaces at the airport get proper maintenance and services are provided.
Commissioner Danderson confirmed that interest is not charged on delinquencies; he added that though there is a dispute, the bill should not just go unpaid. He suggested charging interest.
Commissioner Pozzutto proposed that a future agenda include the subject of interest on delinquencies and a consistent area surrounding each building to be worked into the leases. Lessees need to have access to maintain their structure and there needs to be a reasonable distance from the side of the building; what would that distance be?
Commissioner Rozek suggested having the next meeting at the airport.
Chair Grenier asked the City Manager to review the eviction process with a lease that is past due so that the process can begin. It likely starts with the Sheriff’s Department.
Mr. Goddard questioned whether the building can he demolished. Chair Grenier replied that it can be and the land would given up to the Authority. Commissioner Pozzutto commented that a demolition permit is needed from the Town of Milan before proceeding.
Commissioner Rozek moved to adjourn; Commissioner Pozzutto seconded and the motion carried. The meeting ended at 7:40 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
| 
