FORCE THE TENANTS OFF THE AIRPORT

These are comments from the Jan 7^th  2013 meeting.

Mayor Blum stated you have before you 2009, 2010, 2011 and 2012 documentation, in front of you, that shows all revenue and all expenses. Mayor Blum stated the only thing we can determine is the fact that they want us to go out and physically open a separate checking account. Administrator Childers stated that is the only thing I can read into it, it is already maintained by a separately identified managed fund and noted by the auditor as a separate fund, and it’s as separate a fund as you can get and that doesn’t seem to be enough. Alderman Fuchs stated, so the auditor is approving this system and they are requesting that we maintain that facility with additional banking, additional bookwork, and additional staff time to manage this in a separate

account. Mayor Blum stated that is correct. Administrator Childers stated it’s possible they simply don’t understand anything about accounting and if we have it in a separate bank then maybe they will understand that. Mayor Blum stated maybe it is just their procedure.  Mayor Blum asked if there were any other items the Board would like to discuss, but it would be his recommendation to the Board that we once again do what they ask us to do, we have done this all along, and at some point there has to be foul cried on our part, we are doing everything they are asking us to do, including this here.

Let’s look at a letter from the city to MoDOT dated July 1^st 2008.  I refers to a letter from MoDOT dated June 13^th 2008. 

The city was told in 2008 to put the airport funds in a separate account. 

In 2013 Blum states;  Mayor Blum asked if there were any other items the Board would like to discuss, but it would be his recommendation to the Board that we once again do what they ask us to do, we have done this all along, and at some point there has to be foul cried on our part, we are doing everything they are asking us to do, including this here.

FIVE YEARS go by and the city finally gets it.  

Also in the letter. 

Mr. Arndt makes the statement that the airport is finally not in deficit.  It also refers to declining revenues.  Why would revenues decline? Vacancies caused by high rental rates.  Let’s look at what the city put in their “fact book”.

The City has no intention to expand the current level of these terminal area facilities and services, and the cost of those capital improvements to these areas that are absolutely required will be passed along to the tenants as increases in monthly rental rates and charges. All hangar leases at the Airport expire at the end of calendar year 2010; the lease with Air Evac Lifeteam extends to July 31, 2015. The net effect is that the based aircraft count at the Airport will decrease rapidly and will eventually fail to meet NPIAS eligibility criteria. The use of the

Airport by based and transient aircraft will similarly decline inasmuch as no ground services will be available and other area airports become more attractive for use.

Sounds like a plan to raise the rent a run off all the tenants.