Airport Water Installation Comm. Park
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MEMORANDUM
May 9,2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Request Reallocation FY05 CIP for Water Installation
Airport Manager Andrew Perry is recommending City Council approval to reallocate
$14,000 from the approved corporate ramp repair CIP to a Water Main Extension CIP
so that the water main can be extended to the Airport's Commercial Park.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Andrew D. Perry, Airport Manager
Dawn Lang, Budget Director
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DUBUQUE REGIONAL AIRPORT
11000 Airport Road + Dubuque, Iowa 52003
Tel: 563-589-4128
Fax: 563-589-4108
wwwflydbq.com
Airport Commissioners +
Steve Accinelli Doug Brotherton Teri Goodmann Dan Nicholson Jim 0 'Neill
May 4, 2005
To:
Michael C Van Milligen, City Manager
/
From:
Andrew D Perry, A.A.E., Airport Manager
Subject:
Request Reallocation FY05 CIP for Water Installation
cc:
Airport Commission
Dawn Lang, Budget Director
Introduction:
The Airport Commission is pleased to announce they have a signed a lease with Bradley Jo Charter
for the airport's Commercial Park. This retains 30 jobs in Dubuque considering surrounding
communities actively recruited Bradley Jo Charter.
Backe:round:
One issue of concern is the ability to provide water to the building. The Airport Commission
recommends that no new private wells be drilled on airport property. Therefore, we negotiated with
Bradley Jo Charter to up-front $30,000 in lieu of six years lease rents. This project requires the
airport to extend the water main approximately 1,300 feet at an estimated cost of$45,000. The Water
Department will assist the airport providing some fire hydrants, minor piping and fittings from their
inventory and assisting us in the purchase of other supplies.
Recommendation:
The Airport Commission respectfully recommends and requests approval to reallocate $14,000 from
the approved corporate ramp repair CIPOI0-954 to a Water Main Extension CIP to accomplish the
project.
IQI~l
DUBUQUE REGIONAL AIRPORT
11000 Airport Road + Dubuque, Iowa 52003
Tel: 563-589-4128 Fax: 563-589-4108
www.j1ydhq.com
Airport Commissioners
Steve Accinelli Doug Brotherton Teri Goodmann Dan Nicholson Jim 0 'Neill
MEMORANDuM
DATE:
April 21, 2005
TO:
Airport Commission
FROM:
/~r:
Andrew D. Perry, A.AE., Airport Manager
RE:
Bradley Jo Charter, Inc. Lease
Introduction:
Attached for your review is the Bradley Jo Charter lease for the airport
commercial park. The lease initiates one of the Commission long awaited goals
to increase airport revenues by developing the 26-acre non-aeronautical multi-
model commercial/light industrial park.
Backoround:
Bradley Jo Charters, Inc. is a non-scheduled bus chartering company. They
started with one bus a few years back and currently provide eleven busses for
charter and employ 30 local people. The charter operation does fit within the
new zoning regulations and Commission discussions for the park to offer multi-
model type industries.
They plan to build a 7,176 square foot Wick Building with five maintenance and
wash bays with a surrounding brick wainscot. The total cost of the project is an
estimated $350,000.
One issue of conCern is the ability to provide water to the building. Staff
recommends that no new private wells be drilled on the property. Therefore we
negotiated for Bradley Jo Charter to up-front $30,000 in lieu of six years lease
rents. This requires the airport to extend the water main approximately 1,300
feet at an estimated cost of $45,000. The Water Department will assist us by
providing some fire hydrants, minor piping and fittings from their inventory. Staff
recommends and requests approval to reallocate $14,000 from our approved
corporate ramp repair CIP to a water main extension CIP to accomplish the
project. Once approved by the Commission, staff will send a request to the City
Manager, Mayor and City Council.
As outlined in the lease on (page 6), the base rent will begin in the th year at
$.04 per square foot per year. It will increase a penny each year thereafter to the
$.10 per square foot per year. After the $.10 per square foot is reached then an
annual increase is accomplished by a yearly CPI-U adjustment.
The $.10 per square foot is used as a target for setting base revenue. This per
square foot was discussed in commission meetings. Staff identified the $.10 rent
by surveying airports around the state and the AAAE rates and charges survey.
This number seems to be a comparable lease rate for the industry. AS the
commercial park continues to develop this rate can be reviewed for future
projects.
Over the 30-year lease period (including the $30,000 for the water main
distribution), the total gross revenue not including CPI-U is $241,038.75.
Compared to the crop rate based on the new lease, three acres is $314.58 per
year. Over a 30-year period 3-acres of crop rent without any increases would
equate to $9,437.40. The total net revenue ofthe project for 30 years is
$231,601.35.
Recommendation:
Staff recommends the approval to reallocate the corporate hangar ramp repair
2005 CIP of $14,000, and utilize it for the water main project.
Staff recommends the approval of the lease contingent upon water main
extension funding and Bradley Jo Charter to attaining all appropriate City and
County permits.
Apr 2105 11:13a
Dale Junk
563-872-4402
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