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03-20-2008 APM+HUTCHINSON AIRPORT COMMISSION March 20, 2008 5:30 p.m. Airport Arrival/Departure Building Minutes Members present: Dave Skaar, Chuck Brill, Doug McGraw; Members absent: Dick Freeman, Joel Schwarze Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Others present: Brent Reiner, AJA Aviation, LLC; Richard Heidecker, Westside Storage; Several tenants were also present. Meeting called to order at 5:30 p.m. There was a quorum of members present. 1. Approve Minutes of February 21, 2008 meeting Motion made by Brill, second by McGraw to approve minutes. Unanimous approval. 2. Review Updated Hangar Assignments Commissioners were presented the latest map, with updates. 3. Operational Issues Crosswind Runwav — Olson informed the Commission that the City Council approved inclusion of a crosswind runway on the Airport Layout Plan (ALP) update. Runwav Extension (Double Displacement) — Olson informed the Commission that the City Council did not approve inclusion of double displacement runway extension on the ALP update. City, state & federal staff and Lyle Kratzke, TKDA had met to review options. Because of the zoning issues, Mn/DOT Aeronautics indicated that it would be best to engage in an airport master planning process to ensure we have appropriate facilities for the region. The master planning process may be approved as early as this spring, but will likely end up being a FY2009 item. Fixed Base Operator agreement — Olson reminded Commissioners that the City Council has extended the FBO contract for six months, as requested at a previous. The request for proposals advertisement was approved at the February Airport Commission meeting. The request for proposals will be advertised on March 25, with closing date of Friday April 11, 2008. Olson noted that dates on the attachment copy of the advertisement should be corrected. 4. Other Discussions/ New Business AJA Aviation LLC (Brent Reiner, Pres.) — Olson reported that the City Council approved drafting documents to allow AJA Aviation, LLC to pursue construction of a private commercial hangar in the area south of the Civil Air Patrol building. Tuesday night of this week, the Planning Commission approved the Conditional Use Permit to construct private commercial hangars in the area identified on the attached map. Olson reported that a meeting had been held with Mr. Reiner regarding conditions for construction of the hangar. Olson indicated the average and high lease rates from the 2004 Minnesota Council of Airports survey available from Mn/DOT. After discussion, it was identified that AJA Aviation, LLC would incur higher than traditionally expected costs related to installation of water and sewer utilities resulting from the distance between these utilities and the location of the proposed hangar. Airport Commission Minutes March 20, 2008 Page 2 A motion was made by Brill to establish a lease rate of $0.20 per square foot. The motion died for lack of a second. A motion was made by McGraw to establish a lease rate of $0.068 per square foot. The motion died for lack of a second. A motion was made by Skaar to establish a lease rate of $0.108 per square foot, second by Brill. Pursuant to discussion, the motion was amended by Skaar to establish a lease rate of $0.104 per square foot, second by Brill. Unanimous approval. Westside StoLgge —Mr. Richard Heidecker presented before the Airport Commission to discuss the potential for a mini- storage business on airport property, west of the back entrance to the fairgrounds. Olson indicated that the airport has the land leased for agriculture. Also, private operations are allowed in the minimum standards only if they are aviation related. Discussion indicated that an alteration to the minimum standards to allow private operations that are not aviation related would need to be drafted and forwarded to the City Council for approval if the project were to be considered. Also of concern was the proximity of the proposal to the end of the runway. There was general concern for the potential safety implications of buildings in the area near the end of the runway. A motion made by Skaar, second by Brill to table this proposal. Staff was directed to determine what alternatives there may be for the proposed project and report at the April meeting. At 7:00 p.m., a motion to adjourn was made by McGraw, second by Brill. Unanimous approval. NEXT MEETING: regularly scheduled for April 17, 2008