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Min Special Meeting 032018BEVERLY REGIONAL AIRPORT MINUTES OF THE SPECIAL MEETING MONDAY, MARCH 20, 2018 LOCATION: Airport Administration Building, 50 L. P. Henderson Road, Beverly, MA, 01915 PRESENT. Commissioners Brean, Gentile, Nelson, Wadsworth, Dullea and Trefry OTHERS PRESENT. None ABSENT. None PUBLIC: A. CALL TO ORDER: Commissioner Trefry called the meeting to order at 6:00 PM. 1. Pledge of Allegiance 2. The Commission adjourned to a site to tour Building 45 and the Warehouse at 6:10 p.m. Motion: Dullea moved that the Commission adjourn to a site visit to tour Building 45 and the Warehouse to return to open session immediately following the site visit. Gentile seconds the motion. The motion carries. The Commission reconvened the meeting at 7:00 p.m. Discussion to Consider the Lease or Value of Building 45 and the Warehouse Parcel Lease Gentile states that the work that has been done in Building 45 is not what was discussed with the FAA and the former Commission. Trefry questions if the Warehouse parcel was mentioned in any of the documents. Snuck reports that the warehouse was in the appraisal done at the request of the BAC to determine the fair market value which was done on October 15, 2015. He also states that the agreement with the City was to lease the space for the Building Inspections and the Police Detectives and now they are backing out of the Building Inspectors portion of the lease. Snuck also recalls that the original lease was for Building 45 and the warehouse was a separate issue. The FAA requested two separate leases. Brean agreed noting that he had a conversation with Jorge Panteli of the FAA and he confirmed that Building 45 needs a lease with the terms and rates to be ironed out with the City and he would like to see two separate leases. Brean notes that the City has proposed two leases. Gentile states that the Warehouse is the last big piece of property at the airport and notes that he is concerned that a 20 year lease would be a hindrance to potential development if there were an interest. Brean notes that the City has indicated that they want a big economic impact for the BEVERLY REGIONAL AIRPORT MINUTES OF THE SPECIAL MEETING MONDAY, MARCH 20, 2018 airport and if there is an economic opportunity for the airport the City will back out of the lease if it is mutually beneficial to the BAC and the City. Trefry recalled that when he was appointed to the BAC the City indicated that they would like to see the airport get out of the habit of selling real estate. He notes that the City has proposed a kick out clause in the lease for their benefit but as proposed there is no option for the airport to terminate the lease. Snuck reported that the appraisal does not indicate a dollar amount for rent on the space and the Commission has to determine the value of an exchange in lieu of rent for a 10 year lease but notes that the original agreement has changed. He referred to page 2, #5 of the lease agreement talks about an amount of contributions to the improvements of the Office Parcel and explains the process the BAC and the City will use for reconciling contributions annually. Snuck recalled that the City Council appropriated $287,000 to be invested in Building 45. Trefry notes that the Warehouse is a separate lease and should be discussed separately. The Commission reviewed the cost analysis and the proposed renovations and work that has been done to date. Gentile stated that we need to get the building finished and questions if 20 years of free rent is justifiable compared to the amount of money spent on the work. Trefry suggests that the Commission have a provision in the lease to re- evaluate the terms of the lease after 10 years. Gentile expressed concern about giving the City a lease based on what they have spent and further notes that he does not see how the building will be finished with the remaining $111,000. Dullea suggests that he would like to see a time frame in a Memorandum of Understanding for the completion of the work on the building. Brean agrees and states that he will ask for an MOU and a cost estimate of the priorities for the use of the $111,000 remaining funds. He suggests that he would like to know what the City's commitment is and what is left for materials. He also notes that it is not clear what they are supposed to finish. Trefry notes that the original agreement was to fix the building in lieu of rent. He suggests that the subcommittee re- negotiate with the City. Gentile states that he does not think that the BAC can make a decision until the building is completed. Trefry states that we at least need something on paper that outlines what they will do. Dullea states that he will set up a meeting with the Mayor. 2 BEVERLY REGIONAL AIRPORT MINUTES OF THE SPECIAL MEETING MONDAY, MARCH 20, 2018 Wadsworth notes that the restaurant was not included in the work to be done during the discussion with the City at the last meeting. She recalled that they stated that the work would stop at the restrooms. Brean states that he will reach out to Kevin Harutunian to set up a meeting and request an MOU outlining the work to be completed, estimated costs and a timeline for completion of the work. ADJOURNMENT: Motion to adjourn made by Commissioner Dullea at 8:00 PM, seconded by Commissioner Trefry. Motion passed unanimously with all in favor. Clerk of Meeting: Eileen Sacco