[bouldercouncilhotline] Hotline: HOTLINE RESPONSE re: Item 3E

[kohls at bouldercolorado.gov]

Sender: Tim Head

From: Head, Timothy
Sent: Tuesday, August 16, 2011 8:43 AM
To: Kohl, Susan
Cc: Jacobson, Jody; Rait, Maureen; Winfree, Tracy; Sweeney, Michael; Barth, Andrew; Banuelos, Michael; Newcomb, Doug; Haddock, Kathy
Subject: RE: Item 3E

Dear Council Members,

In response to Council Member Becker's question below and to clarify Consent Item 3E:

All airport leases have language that allows the city to close the airport prior to a lease's full term.

The airport master plan was completed and unanimously approved by Council in 2007; the next update to the master plan is scheduled for 2017. Privately-funded construction and long-term leases were included in the 2007 master plan because they provide reliable, predictable income and reinforce the city's commitment to support local businesses.  The airport receives no funding from the General Fund and fully recovers its operational costs through leases such as these.  The Boulder Municipal Airport is one of a handful of general aviation airports in the state that is self-supporting.

The airport currently has four other long-term leases, with expiration dates of 2014, 2021, 2028 and 2029. The leases all have different start and end dates. To line these up to expire at the same time might be a possibility but could potentially be legally and resource intensive as it would require negotiating unfavorable conditions with the lessees and may result in a loss of business at the Airport.

Tim Head
Airport Manager
Boulder Municipal Airport
303-441-3108

-----Original Message-----
From: Becker, KC
Sent: Monday, August 15, 2011 2:59 PM
To: CAC; Winfree, Tracy; Rait, Maureen
Subject: Item 3E

I'd like Staff to address, and Council to discuss, a concern I have regarding Consent Item 3E:

The proposed term of the 20 year lease goes beyond the planning period for the 2007 Airport Master Plan.

Are we locking ourselves into a lease which is beyond the period that we've planned for? Is a shorter lease, even a 15 year lease, workable with this tenant? What does the Airport Master Plan say about leases and the long term plans for the airport? It doesn't seem wise to allow leases which extend beyond any plans we have the airport. Did Staff consider this?

I don't know if it's necessary to pull this Item from the Consent Agenda or not, but I do think a brief answer from Staff and discussion by Council is worthwhile. I do appreciate the fact that the existing lease has already expired and there may be a strong desire to get a new lease in place. But I'd like to know more about this topic. Are there any other airport leases which will expire around the same time as this one or which will be brought to Council with the same time frame in mind? Should we be thinking more comprehensively than one-at-a-time leases?

Sorry for the short notice on this.
KC Becker
Boulder City Council Member