Commerce Park Commission Meeting Minutes – April 20, 2009
GROSSE ILE MUNICIPAL AIRPORT
AIRPORT COMMERCE PARK COMMISSION
GROSSE ILE TOWNSHIP 2ND FLOOR BOARD ROOM
Monday, April 20, 2009
REGULAR MEETING – 7:00 PM
PRESENT: Peter Kantz (Liaison), Chris Mans, Jim Weaks (Vice Chairman), Ron Moran (Chairman), Walter Stoll
EXCUSED: Gregg Barton
ALSO PRESENT: Derek Thiel (Airfield/Commerce Park Manager)
1. Pledge of Allegiance
2. Call to Order:
Moran called the meeting to order at 7:00 p.m. in the Grosse Ile Township Hall, 2nd Floor Board room.
3. Approval of Agenda – additions/deletions:
Kantz motioned to approve the agenda as presented with support from Weaks. All Ayes. Motion Carried.
4. Approval/Correction to Minutes – Meeting of March 16, 2009. Weaks motioned to approve the meeting minutes of March 16, 2009 as presented with support from Mans. All Ayes. Motion Carried.
5. Financial Reports:
March 2009 end of FY 2008-2009 Report
Thiel: Noted that invoices from March, received in April were in the FY 08-09 report. Revenues were 62.08% and expenditures, 82.6% with YTD expenditures of $1.3m, and revenues $1.0m. In report there is $269,000 in capital improvements, and that planned capital expenditures did not take place. Roughly $254,000 difference in revenue and expense, with total operating loss of $15,000. Fuel Farm, the revenues were less than expenditures by roughly $30,000, but does not factor in value of fuel in the tanks ($32,000) meaning profit of $2,000 for FY. Tennis center had capital expenditure that didn’t account for capital revenues.
Moran: Taking care of front of Tennis Courts?
Thiel: It is budgeted for this year.
Motion made by Weaks with support from Kantz to receive and place on file the Fiscal year 2008 financial reports as submitted. All ayes. Motion carried.
6. Manager’s Report:
a. Iverson Industries – Brokerage and Update
Thiel: Currently finalizing exit, ensuring place is cleaned up. Currently have outstanding DTE Energy bill, but have not received the bill, so it has not been paid, as well as outstanding rent, which will be paid on walk through. Brokerage company has shown building 63 to one tenant and we currently don’t know who, or how interested the person is. Brokerage company doing the marketing hasn’t stopped the airport from marketing, leading us to discussion with a possible tenant for front building.
Stoll: When will it be finalized?
Thiel: We will know at the end of the month
Stoll: Who gets to sign off on whether the building is move-in ready?
Thiel: Myself, and Township Treasurer will do a walk-through with the tenant and can use the $10,000 deposit to fix any issues or damages. The auction company has cleaned up the building except for minor outstanding things.
Moran: Do we control access to the building? Including if the Brokerage company needs to enter?
Thiel: Yes, Brokerage company has to go through me.
7. Action Items
a. Savvy Designs Lease
Weaks motioned that based upon the recommendation of the Airfield/Commerce Park Manager the Airport Commerce Park Commission hereby approves a new lease between Savvy Designs and Grosse Ile Municipal Airport based upon the terms outlined in the assigned lease from Savvy Designs dated May 1, 2009. Approval is contingent upon approval by the Township’s legal council. Support provided by Kantz. All Ayes. Motion Carried.
Thiel: Savvy Design has been a tenant for 2 years, occupied first floor of Hangar 2, south side, east wing.
Weaks: Is legal council necessary?
Thiel: If anything is changed on the lease yes, such as rent, start date, length, etc. Can eliminate legal council if wanted.
8. Sub-Committee Reports:
a. Grosse Ile Duathlon
Kantz: Preparations coming along, with support from tenants. Currently working on a trophy. Mans Lumber donated wood, and Al Anderson donated artifact. It will show first place in Men’s and Women’s. Currently putting together mailing list of potential participates, stands at 104. Setting up a booth at Island Fest to encourage sign-ups, and volunteers, offering free bike safety inspections, and after go-kart race, you can ride your bike on the runways. Last year had 120 participants, believe it is possible to double that this year. About 60 volunteers last year and Savvy Designs will be supplying shirts again this year.
b. Island Wide Open House
Kantz: Realtors brought up idea, wanted it to take place late April, early May, agreed on April 26. The Schools and Township would participate, along with Airport Commerce Park to provide information from 1:00pm to 4:00pm. Looking for volunteers.
9. Discussion Items:
a. Steam Tunnel Study-Lot Analysis
Thiel: Has been completed under budget. Brought up idea to use remaining funds for more thorough inspection of lots at Commerce Park. CPC want return money to Brownfield, or do further inspection.
Moran: Any benefit of doing it now or waiting?
Thiel: No answer at this time.
Stall: Money assigned to Brownfield
Thiel: Verified money is assigned to Brownfield.
Moran: No good reason to do further tunnel inspection unless some one interested in lot.
Thiel: Formal movement to take place next Brownfield meeting.
b. Building 70 improvements
Thiel: Discussed last meeting about getting out of the business of paying utilities for tenants. Cost passed on to tenant in building 70 is $1.00sq ft for utilities, costing us $1.45sq ft. Building 70 has 4 sections, one already split. Cost to split gas $5,500. Currently loosing $2,000 a year on utilities.
Moran: Will building always be divided into 4 parts?
Thiel: Yes
Mans: Lock in rate with utility company
Stall: How did you come up with $1.45sq ft?
Thiel: Took numbers from last year, divided by square footage.
Stoll: Could that be done on monthly basis.
Kantz: Utilities vary significantly between tenants. In favor of separate utilities.
Moran: Agreed
Thiel: Verify $2,000 losses are on utilities, bites into revenue from rent
Stall: What is the cost of separating utilities:?
Thiel: Electric $2,000, gas $2,500
Kantz: Issue with shared restroom
Thiel: Plan to give rate decrease to tenant who pays for utilities to restroom. Added, using DTE meter instead of In-Line meter may require more electrical work.
Stall: What happens tenant doesn’t pay bills?
Thiel: Bill goes with tenant
Weaks: If DTE shuts off one tenant, will it affect another?
Thiel: Possible
Moran: Discuss further next meeting.
11. Chairman’s Report:
Moran: Keep moving forward on discussion of privatizing the Airport
Weaks: Comparing two public, and two private airports on factors such as how they look, how many runways, service, and revenue stream. No clear cut answer.
Thiel: Agreed
Moran: Discuss further next meeting.
12. Public Comment:
None
13. Adjournment:
Motion to adjourn by Weaks with support from Mans at 7:50 p.m. All Ayes. Motion Carried.
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