Airport Authority 2/14/1990 Minutes MINUTES OF THE REGULAR-MEETING-OF—THE-BOARD OF
DIRECTORS OF THE SALINA-AZRPORT_AUTHORITY
FEBRUARY 14, 1990 - 8 : 00 A.M.
TERMINAL BUILDING - SALINA MUNICIPAL AIRPORT
Call To Order
The meeting was called to order at 8: 00 a.m. by Chairman Stephenson
Attendance
Attendance was taken. Chairman Stephenson, Directors Morrison, Roth
and Walker were present. Director Ott was absent. Also present were
Executive Director Rogers, Operations Director Kneubuhl. Tom Arnett,
Harrison and Arnett; Don Marrs, DMA Architects; Gerald Cook,
President, and Dave Antrim, Chairman, Salina Area Chamber of Commerce; '
Ed Pogue, Bank IV; Jack Mahoney and Gordon Fiedler were guests.
Minutes
Chairman Stephenson asked if the Board members had any additions or
corrections to the minutes of the January 10, 1990 Board meeting. In
absence of any corrections to the minutes as mailed, Chairman
Stephenson declared the minutes approved.
Financial Reports
Executive Director Rogers stated that there are several changes to the
financial reports for January 1990. One entry entitled "investment in
direct financing leases" accounts for our capital leases. Another
entry accounts for our FAA contributions. Tom Arnett stated he would '
recommend to the Board to take the lease income from capital leases
out of the Rental Income account. This would cause quite a reduction
in our rental income, but operating income would be better stated., It
was the consensus of the Board that the accountants make this
adjustment. Chairman Stephenson instructed that the financial reports
for the month ending January 31, 1990 be filed for audit.
1989 Audit Report
Chairman Stephenson introduced Tom Arnett, of Harrison and Arnett.
Arnett summarized the audit report for 1989. Arnett explained the
compliance reports that are done and explained what was done to
complete the audit. Chairman Stephenson suggested the Board review
the audit and management letter thoroughly and discuss further the
items listed in the letter at the next Board meeting. Arnett stated
that if the directors had any comments or questions after reviewing
the audit more thoroughly, they could call him at his office.
Director Morrison moved, seconded by Director Roth, to approve the
I
audit report as presented. Motion carried unanimously.
Salina Development Center-Kick-It
Executive Director Rogers stated one of the original prospects as a,
tenant for the Salina Development Center (SDC) was Mr. Dave Senger.
has an company called Kick-It, which manufactures soccer goals.
Senger has spent the last several months marketing his product, and
has been successful in obtaining a large government contract and
placing his product in several national catalogs. He is now ready to
take a space in the SDC and is interested in the north unit. The
proposed lease is for a three-year term with the option to renew for
additional three years. Mr. Gerald Cook stated that Kick-It has
the potential to outgrow the Incubator space and then move into a new
space within the community. Director Morrison stated he did hope we
were adequately protected in case of non-payment of rents. Executive',
Director Rogers stated we can clarify this part of the lease to make
sure we are covered in case of non-payment of rents. Director Roth
moved, seconded by Director Morrison, to approve the Lease Agreement
as proposed with the condition that proper legal terms allow us to
remove the tenant in case of non-payment of rents. Motion carried
unanimously.
Salina Development Center - CEM
Executive Director Rogers stated that Certified Environmental
Management has been another firm interested in space in the Salina
Development Center (SDC) . Discussions with Certified Environmental
have taken place over the past nine months. Rogers stated the initial
investment in each unit of the Incubator building was $75, 000 per
unit. CEM would require at least an additional $65,000 investment for
improvements for office space necessary to accommodate a testing
laboratory. Once located in the SDC, we would be limited to the type
of manufacturing we could locate in the building along with CEM.
Rogers advised there are presently two other manufacturing firms that
are prospects for the SDC. Rogers distributed a layout of the
facility CEM would need. Architect Don Marrs stated we might want to
look at a new Incubator building, building only one unit at a time, as
needed, and leasing to other non-manufacturing businesses such as CEM.
Chairman Stephenson explained the nature of CEM' s business will not
allow manufacturing in the same building and that CEM must go into a
new, clean building. Stephenson stated today we need the Board' s
recommendation to go forward with the project in order to continue.
Stephenson then introduced Brenda Tolson and Jerry Kackley, CEM
owners, and their attorney Ken Wasserman. Kackley explained the
nature of their business and number of employees, and their
projections . He explained they will need general office and
laboratory space in a new building. Their lab equipment would be
portable. Executive Director Rogers asked if there was any other
possible building space in Salina. Tolson stated they like the
accessibility of the airport location, and they have found nothing
else that has been suitable. Director Walker moved, seconded by
Director Roth, to authorize Executive Director Rogers to proceed to
negotiate with CEM for a building site that will fit their needs.
Motion carried unanimously.
Air Service Recruitment
Executive Director Rogers reported on air service recruitment. Roger,
reported he has been working with Continental Express, Mesa Airways (
United Express operator) and Air Midwest for possible air service to
Denver. Air Midwest is also thinking about offering flights from
Salina to Kansas City with the Jetstream and making connections with
US Air in Kansas City. Rogers advised he has received initial
interest from the airlines contacted to date.
1991 Air Race
Executive Director Rogers reported that a decision has been made by
the steering committee to postpone plans for a 1990 air show, but to
work out something with ARU for plans for an air show/air race in
1991 . A written agreement with ARU is presently being drawn up to
share in a percentage of gate receipts for the air race.
Hangar D-7 Lease
Executive Director Rogers reported he has received the signed lease '
agreement back on Hangar D-7 . Tom Belcher has signed the agreement:
A notice to vacate as of January 31 had been issued to Belcher.
Without a signed agreement by Belcher, we would have evicted him from
the hangar. The signed agreement was received on February 13 . Rogers
advised he will go ahead and sign the lease agreement. Belcher has
already sent a year ' s rent in advance.
Chamber Presentation
Gerald Cook expressed the Chamber' s appreciation for the assistance
received from the Airport Authority for preparations for Mrs. Bush' s
visit. Cook stated he had received a compliment from Mrs. Bush' s
staff that the Salina visit was one of the smoothest and nicest they
have had, and that everything went perfectly.
On a motion duly made, the meeting adjourned at 10:05 A.M.
Minutes approved at the March 14, 1990 regular Board meeting.
Secretary