HomeMy WebLinkAboutMinutes 04/23/96
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
PUBLIC HEARING
APRIL 23, 1996
Present: George "Bud" Gates
Johnnette Phillips
James Johnson, Jr.
Sara J. Fisher
Chairman
Corrmissioner
Corrmissioner
Clerk to the Board
This being a scheduled Public Hearing the following items were presented
to the Board of County Commissioners for their consideration:
The Board convened as the Eagle County Local Liquor Licensing Authority.
Splendido's
Earlene Roach, Liquor Inspector, presented a Manager's Registration for
David Walford, Vista Hospitality, Inc., dba/Splendido's. She stated the
Sheriff's Office reports Mr. Walford to be of good moral character. An
inspection was made of the premises and all was in order. The establishment
had eight bad bottles of scotch which were voluntarily discarded. Staff
recorrmended approval.
Commissioner Gates asked how she knew about the bad bottles.
Ms. Roach explained you look into the bottles with a flashlight.
Corrmissioner Johnson asked Mr. Walford how long he has been in food and
beverage.
Mr. Walford stated twenty two years.
Commissioner Johnson asked Mr. Walford where he has worked in Eagle
County and about TIPS training.
Mr. Walford explained they conduct classes at the beginning of each
season.
Commissioner Phillips moved to approve the Manager's Registration for
David Walford, Vista Hospitality, Inc., dba/Splendido's with extended hours.
Commissioner Johnson seconded the motion. The vote was declared
unanimous.
Coyote Cafe
Earlene Roach presented a renewal of a Hotel & Restaurant License with
Extended Hours for Diamond Five, Ltd., dba/Coyote Cafe. She stated this
a~plication is in conformance with all rules and regulations governing Liquor
Llcenses. All fees have been paid. An inspection was made of the premises
and all was in order. Staff recommended approval.
Jeff Forbes, applicant, was present for the hearing.
Commissioner Johnson stated they have done a really good job up there as
there had been some concerns with the clientele. Because there have been no
reports from the sheriff r s office, they seem to be doing a better job.
Corrmissioner Johnson moved to approve the renewal of a Hotel and
Restaurant License with Extended Hours for Diamond Five, Ltd., dba/Coyote
Cafe.
Corrmissioner Phillips seconded the motion. The vote was declared
unanimous.
Paddy'S
Earlene Roach presented a renewal of a Hotel and Restaurant License with
Extended Hours for Eagle-Vail Restaurant Group, Ltd., dba/Paddy's. She
stated all documentation was in order and all fees have been paid. An
inspection was made of the premises and all was in order with the exception
of a minor warning sign not being posted. The applicant stopped by and
picked up three signs to post the same day. Staff recommended approval.
This establishment had three bad bottles vermouth and one bad bottle scotch.
1
All were voluntarily discarded.
Chairman Gates asked if Mr. Nichols has extended his occupation into
other areas. Mr. Nichols stated he is spending more time at home.
Commissioner Phillips moved to approve the renewal of a hotel and
restaurant license with extended hours for Eagle-Vail Restaurant Group, Ltd.,
dba/Paddy's.
Commissioner Johnson seconded the motion.
In discussion, Commissioner Johnson commended Mr. Nichols on the efforts
they have made at their establishment.
Chairman Gates called for the question on the motion. The vote was
declared unanimous.
Blue Moose Cafe
Earlene Roach presented a renewal of a Hotel & Restaurant License with
Extended Hours for Pocatico Pizza, dba/Blue Moose Cafe. She related all
documentation is in order and all fees have been paid. An inspection was
made of the premises and a minor warning sign was not posted. The applicant
posted the sign later the same day. The applicant is out of town and could
not be present for this hearing. Ms. Roach stated Staff has no concerns with
this application, if the Board would like to renew the license though the
applicant is not at this hearing.
Chairman Gates asked how long they have had their license.
Jeff Forbes stated for one year. He stated Mr. Nolan is a partner in
the Coyote Cafe and related the Blue Moose is mostly responsible for wine and
beer service and they concentrate on food service rather than alcohol.
Commissioner Phillips moved to approve the renewal of a Hotel and
Restaurant License with Extended Hours for pocatico Pizza, dba/Blue Moose
Cafe.
Corrmissioner Johnson seconded the motion. corrmissioners Phillips and
Johnson voted yes and Corrmissioner Gates voting no.
commissioner Johnson moved to adjourn as the Local Liquor Licensing
Authority and reconvene as the Board of County Corrmissioners.
Corrmissioner Phillips seconded the motion. The vote was declared
unanimous.
Abatements
Allen Black, County Assessor, presented a petition for abatement,
schedule number R034020, Vail Building Arts. He stated this is for tax year
1995. This is a warehouse building and this is correcting an error in
classification. The abatement is in the amount of $2172.20.
Commissioner Phillips moved to approve the petition for abatement,
schedule number R034020, Vail Building Arts.
Corrmissioner Johnson seconded the motion. The vote was declared
unanimous.
Allen Black, County Assessor, presented a petition for abatement,
schedule number P024085, Park Western Leasing, Inc. Mr. Black stated the
bulldozer is actually located in Garfield County and has been assessed there.
The amount of abatement is $1279.01 for 1995.
Commissioner Johnson moved to approve a petition for abatement, schedule
number P024085, Park Western Leasing, Inc.
Corrmissioner Phillips seconded the motion. The vote was declared
unanimous.
Allen Black, County Assessor, presented a petition for abatement,
schedule number P022565, Vail Mountain Flutes. The petitioner is askin;J for
abatements for 1994 and 1995. The petitioner stated they did not turn In
their tax declaration for those years. The Assessor's office is recorrmending
denial.
Mary Jo Berenato, Deputy County Attorney, stated she questioned whether
the petitioner was operating her business at that time and the applicant haserelated she was not
2
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
Commissioner Phillips moved to deny a petition for abatement, schedule
number P022565, Vail Mountain Flutes because they failed to file their
declarations and are not present today.
Corrmissioner Johnson seconded the motion. The vote was declared
unanlmous.
Allen Black, County Assessor, presented a petition for abatement,
schedule number 024718, Darrell & Shirley Havener.
Ms. Berenato stated the petitioner has asked this be tabled until the
next available date.
Commissioner Johnson moved to table the petition for abatement, schedule
number 02418, Darrell & Shirley Havener.
Corrmissioner Phillips seconded the motion. The vote was declared
unanimous.
Cordillera & Squaw Creek Metro Dists.
Keith Montag, Director of Community Development, presented the first
amendment to the service plans for Cordillera and Squaw Creek Metropolitan
Districts. He explained the amendment to the Board. He stated the sole
pUrJ?ose of this amendment is to include recreation in the service plan. He
remlnded the Board the file was tabled by the Board after first bein;J denied.
Mark Avery, representing Cordillera and Squaw Creek Metro Distrlct,
reviewed the history of this file. He stated the desire is to provide
recreational powers to the metro district. They surveyed the voters and 95%
agreed to this as did the owners who are not registered voters. They
contacted WECRD who were also supportive of this application.
The request to make a certain number of the stalls available to the
public was addressed.
Mr. Avery responded they would do so for a fee after the home owners are
serviced. He discussed his conversations with WECRD. They stated they have
no desire to run the equestrian facilities but they did agree that they would
never provide that service within Cordillera and Squaw Creek Metro District
area. Mr. Avery stated the legal issues specified by Ms. Berenato indicate
these type of lGA's are not legal. Their council believes them to be legal.
He questions them not having been questioned or taken to court. He believes
that to be a good thing.
Ms. Berenato stated their position is not that the lGA's are illegal but
they are not provided for in the statutes. They have no guidance because
they have never been challenged. Their belief is they will not hold water.
Commissioner Johnson suggested the concern was less with the functioning
of the lGA but WECRD giving up their authority and responsibility for a
portion of the district.
Mr. Avery again reiterated until these things go to court, they will not
go away. They are a generally accepted form to provide services. Mr. Avery
introduced 80 letters into the record from homeowners supporting this
amendment.
Chairman Gates asked if the home ownership has been verified.
Mr. Avery responded yes.
Commissioner Johnson asked how many letters were sent out.
Mr. Avery responded 300 and 80 have been received back so far.
Commissioner Johnson asked about the other 220.
Mr. Avery stated he did not recommend their public support to attend but
introduced the letters which were accepted by the Chairman.
Mr. Avery addressed Corrmissioner Johnson's previous request to come up
with a better or another way. He did try to do so and believes this makes
the best sense.
Chairman Gates asked for the attorney's position.
Ms. Berenato stated Cordillera has been very cooperative and has done a
good job in working with their office. Their position is the same, that
WECRD cannot give away some of their responsibilities within a specific area
and continue to provide the same service elsewhere. Their opinion is this is
not a legal transaction. Ms. Berenato stated these are not like districts
such as one water district to another. This is a recreation district to a
3
roads and maintenance district. They again do not believe these types of
transactions are legal. Questioned then as to whether it is illegal, the
attorney's office stated they do not believe this to be a legal amendment to
the service plan without WECRD abdicatin;J their ability to provide the
service anywhere else within their distrlct boundaries.
Mr. Avery stated the County has no liability or risk and if they
indemnify the County, they will hold no responslbility.
Corrmissioner Phillips asked for the written documentation from Dee
Weiser.
Mr. Avery stated he will get that from him.
Ms. Berenato stated the fear is not that they will be sued but this
Board has the authority to precede over these amendments. The fear is not
being sued but the precedent they may be setting.
Corrmissioner Johnson asked if they vote to deny this amendment do they
still have the option of going to district court.
Ms. Berenato stated they can appeal to district court through a 106A4.
Chairman Gates asked what they do in a situation as such to provide the
service to the residents of these districts.
Ms. Berenato stated Cordillera is taking the approach by attempting to
change litigation. The homeowner's can also take over this function. Ms.
Berenato stated if this is approved, they will be subject to all land use
regulations.
Mr. Avery stated they will subj ect themselves to any and all regulations
as required.
Commissioner Phillips reiterated at the last meeting WECRD stated they
have no problem with this. The homeowners understand they will be subject to
additional dues.
Mr. Avery stated that 95% of the voters passed this. He stated their
public don't understand why it can't get done.
Corrmissioner Phillips asked if there was anything done to inform the
district members that these services would be provided by another district.
Chairman Gates asked if this is questionable to the legality of the
district, then how can it be subject to the Land Use Regulations.
Ms. Berenato stated if you want to approve it and make it subject to
conditions, the Board has that power.
Commissioner Johnson stated the Planning Commission voted to deny 3 to
2. The recommendation of Community Development is that it can and could meet
their requirements.
Mr. Monta;J stated if the Board is going to take action they must also
state the condltions and findings.
Ms. Berenato stated she has not heard from Mr. Dalton and has asked for
their legal councils input.
Mr. Avery stated Matt Dalton, at the last hearing, clearly stated their
opinion.
Ms. Berenato stated the case law referred to was not relevant to this
matter and that is why they asked for a letter from bond council.
Mr. Avery stated if the Board is so inclined to approve that could
certainly be a condition. Mr. Avery stated he sees no problem getting a
letter from Dee Wiser.
Commissioner Johnson stated he has the same concerns as last time. The
attorney's office does not feel this will be a legal amendment to the service
plans of the two special districts. He understands both of the districts
have the power to purchase this parcel of land and then they can contract to
have the services provided.
Mr. Avery stated a special district cannot contract with a private
entity.
Ms. Berenato stated you can legally contract with a private contractor
to provide services.
Mr. Avery stated he does not see the benefit. Mr. Avery sU;Jgested it be
tabled if they think a letter will provide them further informatlon and there
is. ar: opportunity for approval. Mr. Avery stated he will get them a legal
oplnlon.
Commissioner Phillips moved to table the First Amendment to the Service
Plans for Cordillera and Squaw Creek Metropolitan District.
Commissioner Johnson seconded the motion for discussion.
In discussion, corrmissioner Johnson stated he has a problem with setting
precedent. He is also concerned that a special district, a governmental
4
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
entity, needs to provide services to all the public. By approval of this,
they will be allowing a public entity providing private membership. He
stated SB216 did the same thing.
Commissioner Phillips suggested the public does have the right to use it
by paying the appropriate fees.
Commissioner Johnson stated this sounds like the Sonnenalp's
public/private golf course.
Mr. Avery stated there are different rates and he will submit that to
the attorney.
Ms. Berenato stated their office will reschedule this for the Board if
done so in less than 45 days.
Chairman Gates called for the question on the motion. Corrmissioners
Gates and Phillips voting yes and Corrmissioner Johnson voting no.
ACCEPTANCE OF FAA GRANT
Corrmissioner Gates called the meeting to order. He stated the first
item of business this afternoon was acceptance of an FAA Grant for additional
air carrier parking apron at the Eagle County Regional Airport. He set the
ground rules for discussion and passed a sign in sheet for ~ublic input.
Jim Elwood, Airport Manager, explained the need for thls grant and
explained some of the adverse conditions that have effected passenger
service. Mr. Elwood referred to a chart and explained the layout of the
apron. He explained that funds had been budgeted in 1983 budget. The match
amount is about $8,600 more than was originally budgeted.
Corrmissioner Johnson asked how much over budget.
Mr. Elwood responded the 10% match would be approximately $8,600.00.
Commissioner Phillips asked if there is budgeted money for the
expansion.
Mr. Elwood responded yes.
Commissioner Phillips asked when it will be completed.
Mr. Elwood responded this summer. The contractor is holding the price
from last season.
Commissioner Phillips moved to approve the acceptance of FAA grant of
$1,086,810.00 for an additional air carrier parking apron at the Eagle County
Regional Airport.
Corrmissioner Johnson seconded the motion. The vote was declared
unanimous.
AGREEMENT, AMERICAN AIRLINES
Jim Fritze, County Attorney, presented an agreement with American
Airlines for a ten year lease in the new County terminal. He stated this
presentation is divided into various parts. One is the history of the
airport, secondly to have Mr. Elwood talk about the proposed County terminal,
and thirdly to discuss the business deal with American Airlines. Because of
his longevity with the County, he discussed the history of the Airport.
In 1982 the airport be;Jan. In 1986 the new runway was under
construction and they soliclted proposals from new FBO's. Howard Air Service
was chosen. At that time there was no corrmercial air service and none was
initially contemplated. The ori;Jinal lease contemplated a general aviation
terminal. Prior to the FBO openlng the facility they did indeed get
corrmercial service through Royal West. The County maintained the airport in
a modular. Then the existing general aviation terminal was used to meet the
needs. The County provided all furniture and fixtures for the operation.
Royal West went out of business. The facilities were then not used but the
County paid rent to the FBO operator. Both due to improvements to the
airport and service available, the FBO suggested they run the facility. They
did so to service America West. In 1990 the service took off and there was
need for expansion. George Gillette was the only stock holder of Howard Air
Service. He said in essence, let me take care of the needs for terminal. As
part of the 1990 agreement, many of the concessions given to the operator,
the County stated they intended to operate the terminal. Mr. Fritze referred
to the fourth amendment of the Counties intentions on a flip chart. Mr.
5
Fritze stated this was the deal from November 5th, 1990 and made in writing.
Mr. Fritze stated the current operators purchased the FBO with this
agreement in place and sets the screen for where we are today. In addition,
there has been a desire to have more adequate facilities and in the long
haul, to pay for itself. Mr. Fritze referred to the public meetings held
last year and instructed staff to pursue the construction of a new terminal
and or to work with the FBO to see what could be worked out. With the change
in staff at the airport, it became his duty to pursue the building of a new
terminal. They explored and had meetings regarding the passenger facility
charge for a new terminal. The results were three of the major airlines
consented to a passenger charge. Northwest obj ected but did not attend the
meetings. continued discussion with the airlines who were meeting as well
with the FBO signed leases with the FBO. American Airlines conceded they
would rent space in a terminal the County would build.
Jim Elwood, Airport Manger, uncovered the layout of their proposed
terminal and explained the layout of the facility as it is now and will be.
He explained this project includes all sewer work, parking, commercial and
personal. People would enter as they do now and enter in on a very wide
roadway. They would exit onto Cooley Mesa Road. The road is designed to be
one way.
Mr. Elwood referred to a implement chart and shared the figures with the
Board. He stated in 1997 they are anticipating continued growth. He stated
the current operator would continue to board at a higher level than they are
now. He stated the layout would be a modified H terminal building. The
lobby area would house the rental car, van company and airline ticketing.
There will be opportunity for additional expansion. He explained the hold
rooms, baggage claim, and the artists rendition of the proposed building.
Mr. Fritze put the chart up again to show the increased demand and to
show that contrary to some of what has been said, they are not proposing in
any transaction to put the FBO out of operation and two they will still have
a substantial terminal business. He explained when directed by the Board to
pursue this it was to be able to provide more adequate facilitles. In the
long run to ensure the airport would pay for itself and lastly a structure
that would minimize the risks to the tax payers. The purpose of the non-
profit corporation would allow for debt to be incurred without a liability to
the public. The transaction was structured as such. This would not become a
liability to the tax payers. The worse case, the piece of property leased
would become the property of the bond holders. Mr. Fritze further explained
the financials stating the principal would be paid by the PFC's. American
Airlines agreed to backstop a PFC for this building. They agreed to pay
$450,000 a year to do that which is more than is required by their
projections. That is a total payment of $4,500,000.00.
Commissioner Johnson asked for clarification.
Mr. Fritze stated American Airlines has agreed to pay up to $750,000 a
year in direct rent to the County per year of 7.5 million dollars over the
lnitial ten years of the lease. In addition there has been agreement with
American Airlines re;Jarding terminal concession that pays for any related
expenses to the termlnal. Any excess would be divided 50/50 in direct
proportion to the number of deplanements. The document talks about a
building of approximately 9 million dollars. Having this terminal would
allow for expansion of the sewer system and will then make it closer for
other entities to tie into as well as the FBO.
Corrmissioner Phillips asked for clarification of the figures. She asked
where maintenance monies would come from.
Mr. Fritze stated the $750,000 interest would be paid first. After that
interest payment monies would go to operation and maintenance of the
building. If that did not cover it, first concession monies would be used.
Mr. Fritze introduced Jack Gardner, Jim Flour and Gre;J Isbell as well as
Terry VanSant, the County's architect. Steve Horden lS a legal consultant
with Airport Consultants. He has done the feasibility work. Mr. Monty Pasko
was whom attempted to have negotiations with the Jet Center. Mr. Fritze
asked for more questions. Mr. Fritze explained this transaction and the
negotiations have been delayed. He stated in order to meet the needs of the
County there will be additional space in place for next season. The
completion date is November 25, 1996. If unable to do so, the County must
provide temporary facilities. Substantial completion would be May 1997.
Other dates are provided for and contemplates the need to proceed with the
6
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
proJect and American's proposal.
Mr. Fritze stated he was contacted by the summer air service committee
to include a statement about the County and American Airlines to use their
best efforts to bring year round service to the County. Mr. Kennedy of
American stated they would be in agreement with some sort of statement to the
public in this document. Mr. Fritze asked the Board for questions, of
himself or any others present.
Commissioner Johnson questioned looking at this as an OlD airport. He
asked what the difference would be. He stated he does not see it being that
much different only that there are not people changing planes. He asked if
this would be like having two concourses at the airport.
Mr. Fritze stated there are two sides to the terminal in Denver and
three separate concourses.
Commissioner Phillips referred to the time table and stated it is very
very close. She asked if there is anyone who would help if the airport is
not corrplete by the time the planes are ready to land.
Mr. Fritze stated it is the County's responsibility.
Terry VanSant, County Architect for the project, stated they have been
in significant discussion with American and they are very agreeable to a
phasing process. The hold rooms could be phased at a later date and the
first portion of the terminal could be corrpleted. There are many options
available for a terrporary facility including a bubbled shell, which is a
terrporary dome much like the covered tennis court.
Commissioner Phillips asked about American's responsibility to finish
out the terminal. She suggested additional wording be added to #10 making
American responsible for the additional touches.
Mr. Fritze explained the intent by American is the space will be ready
for them. They will provide the ticket counters, signage, computer equipment
etc. but the rest should be completed by the airport. Mr. Fritze stated they
are not in a position to require more than what is in the document.
Mr. VanSant stated the list in the document has been reviewed numerous
times. What they want is a turn key facility.
Mr. Fritze stated American will buy the security equipment as well as
the baggage devices. Mr. Fritze stated this agreement contemplates a much
longer period. Until that point there may be more documentation required.
Commissioner Phillips asked if the maintenance costs will be coming out
of the vendors fees. What happens if there are no others who service the
building.
Mr. Horton stated you'll be creating a facility that handles
approximately 100,000 there in the first year. with that many passengers,
there will be plenty of demand for space by rental car corrpanles, van
companies, food service, etc. He sees no trouble in getting the space
rented.
Mr. Fritze questioned how the amount of rent compares to the
expenditures and stated they have corresponding figures.
Mr. Horton stated in the first year they are anticipating $400,000 in
concession revenues. He stated this is a high demand airport and much higher
than on a national basis. That corrpares with about $200 to $240,000 to cover
operating and maintenance expenses for a five month year. As far as the
principal payments go, at this point the structure of the debt will be fixed
payments. He further discussed the figures and explained how they would
compare.
Mr. Fritze asked how much is available from the rent to pay operational
and interest expenses.
Commissioner Johnson asked about the Counties activities during the
bankruptcy .
Mr. Fritze explained the results of those negotiations.
Chairman Gates stated the County was not in financial shape to purchase
the whole thing at that time and they were not able to negotiate.
Jeff Ross, with the Vail/Beaver Creek Jet Center, stated they only
learned of this meeting yesterday. He stated he saw the American proposal
for the first time yesterday. He referred to Commissioner Phillip's question
and what would happen if the facility is not finished. Mr. Ross stated he
spoke with American yesterday and they discussed if the facility is not
7
available they could stay at the current facility. When asked what the rent
would be he was told it would be comparable to now. They did explain they
intend to lease his space and American may not enjoy the same space they have
now. Mr. Ross asked about the numbers as presented by Mr. Fritze. He
suggests if there is more detailed information it be made available. Mr.
Ross discussed his view of the fi$llres, including insurances, utilities,
maintenance, etc. Mr. Ross did Ilst the taxes they will be paying and the
County will not. He believes they must make sure the expenses can be met.
He questions where the deficit comes from if there is a shortfall? He stated
this building costs 50% more than anticipated. He discussed the net revenue
sharing arrangement and asked about the figures.
Mr. Fritze stated the County is the existing owner/operator of the
airport. Their risk is not greatly increased, however, there is provision
for those kinds of expenses. Mr. Fritze referred to Mr. Elwoods experience
and the airport consultants are in the business of looking at these things.
He believes the figures have been conservative. A surplus is predicted from
year one. By law, the revenue generated at the airport with remain in the
airport. The excess revenues of the FBO can stay but can also ;Jo back to the
shareholders. Mr. Fritze stated the transaction with American lS structured
so that out of the $750,000 rent, interest is paid. OUt of the PFC or the
PFC backstop the principal is paid. Mr. Fritze touched again on the fact
this transaction or the offer received by the Board was consummated after
business hours on Friday. Notice was given to the news media on Sunday.
This issue was debated in the newspaper, so it is not a new issue.
Mr. Ross stated he wished he would have gotten a phone call over the
weekend. Mr. Ross stated last Mayor June they approached the County and
wanted to expand the facility but they were denied. Now they are being
ridiculed for not doing so. He stated had they been able to they might have
been able to keep American Airlines. He feels it is unfair when the County
is acting as the expansion authority as well as the competitor. While he
acknowledges the forth amendment language, this was more than they
contemplated when they originally received approval.
Chairman Gates asked about the expansion that took place this last
sumner.
Mr. Ross stated they had asked for permission to expand the hold area
and the septic system and those were denied.
Chairman Gates clarified the record there was a building approved for
expansion.
Mr. Ross stated there are three alternatives. The first is the Jet
Center's being prepared to do expansion and indeed construction of a new
facility. Mr. Ross stated their facility has one very important feature and
that is it would be paid for 100% of private money. A second alternative is
their response to a request to sell the facility. They offered to sell at a
price approximately $2,000,000 less than what they thought was fair market
value. Mr. Ross stated the County's response was unnegotiable. The third
was a proposal of a lease modification. It increased the County's
anticipated revenues by approximately $300,000 per year and helped to pick up
the matching funds. It was a large one way adjustment in the lease
agreement. Mr. Ross referred to the chart presented by Mr. Fritze. He
stated he disagrees with the figures a little but does agree the trend is up
and it is increasing. One of the reasons is because of the ski resorts we
have to offer. Another is the opening of DIA. Eagle County, or any other
investor thinking about entering into the current market must contemplate the
moment and be sure there will be no falloff. Mr. Ross talked about the two
basic types of municipal bonds, and revenue bonds. He referred to them as
moral obligation bonds and while Eagle County can legally give the facility
to the bond holders, it would be very hard to walk away from the moral
obligations. That is different than a legal resource obligation. Mr. Ross
discussed the PFC. He does not think in this case PFC's are appropriate. He
stated they are applied to all airlines using the airport. All airlines will
be burdened with the costs to help pay for this facility. As a result of
that they have written the FAA and will pursue this objection. The other
airlines, they believe will agree. Mr. Ross questioned the total cost of 8.2
million. He asked if that figure included the cost of the sewer system.
Mr. Fritze stated it does include the sewer. He stated the difference
in numbers comes from the Jet Center usin~ the ski season and the County
using year round numbers. As to the PFC lS expanded capacity. He disagrees
8
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
with Mr. Ross in that the other airlines will be provided with additional
space in their terminal. Again the County's shared revenue will benefit all
airlines. Otherwise they would not have agreed to the PFC being imposed.
Mr. Fritze stated they have had specialized airport council review this
and believe they have taken care of this if no PFC's are approved. Mr.
Fritze stated airlines don't commit to long term leases but are willing to do
so to a ten year lease.
Chairman Gates stated the Board has canceled their meeting in Basalt so
this hearing can continue.
Corrmissioner Johnson asked Mr. Ross a couple of questions. He stated
the largest investment made was the Lake Creek Affordable Housing valued at
$25 million. He stated that since he has been on the Board he has asked the
Jet Center to negotiate the lease and the response was why should we do that,
it is a good lease for us.
Mr. Ross stated they paid 6.3 million dollars for the benefit of that
lease. If it was to be modified it should have been so for both partners.
Commissioner Johnson stated he wanted to make clear the County did
attempt to renegotiate. He stated the expansion plans were not presented by
the FBO until the County came forward to build their facility.
Mr. Ross stated once they realized a second terminal was being
contemplated they responded.
Commissioner Johnson asked Mr. Fritze about the insurance.
Mr. Fritze stated right now the Connty is insured at the airport. The
higher risk items are owned by the County and the County has the greatest
liability.
Commissioner Johnson stated because the County is insured at the airport
does it reduce the insurance rate of the FBO.
Michael Caccioppo, a resident of Eagle Vail, stated he believes it is
appropriate for 90vernment to own the airport. As the taxpayers are at a
zero financial rlsk, he believes this agreement to be in the best interest of
the tax payers. He read his statement into the record. He referred to the
County's agreement signed in 1990. He stated time is of the essence and
encourages the Board to sign the a9reement with American Airlines.
Chairman Gates asked for publlc comment.
Stevan Stockmar, member of the year round task force, stated they have
been engaged in study and there is sufficient evidence to conclude that year
ronnd air service will be provided. He read his position into the record.
He stated they recognize the need for expanded air service and they need
lar;Jer facilities. They have no bias for or against any organization but
belleve the objectives must be met in a timely manner. They have ~roposed
the County include in it's letter of intent to the Airlines they wlll attempt
to provide year round air service to Eagle County. The year round task force
will share the information and research they have done. He urged whomever to
move quickly in providing year round service.
Ted Kenny, Eagle County Businessman, municipal bond investor, and a
private citizen, stated he came here today to understand what is going on.
He understands both points of view and understands the County getting into
this. He does not understand the loggerheads created here. He thinks the
situation has to be clarified. Either the County gets into the landlord
business or the terminal business. He suggested letting American build their
own terminal or buying the Jet Center. He suggests when people buy municipal
bonds they want stability. The confusion of having two terminals lS not
suitable. 9 million dollars is a large number and it is the responsibility
of both parties to revisit this and ask what is good for the people of Eagle
County.
Chairman Gates stated this didn't happen yesterday, they have been
negotiating for 2 to 3 years. He suggested they have not received all of the
facts.
Mr. Kenny asked if there is any other airport in the Country that has
100,000 deplanements and has two terminals run by two different entities.
Mr. Fritze stated this Jet Center is unique.
Greg Isbell, Isbell Associates, stated in Grand Junction it did and does
exist.
Mr. Kenny asked about the dialogue with American Airlines. Mr. Kenny
9
asked how there is hope to get a construction project of this size done and
completed by November.
Mr. Fritze stated a contract has not been let but they have spoken with
a number of large contractors and it is feasible under the conditions now to
complete the facility. Steel was the biggest issue.
Mr. Ross stated he has never met Mr. Kenny but he likes him. He stated
the Jet Center will sit down and negotiate a price. They were offered 30% of
the fair market value and they turned it down.
Chairman Gates stated they have hired negotiators and Mr. Fritze was
considered biased as was the previous County Manager.
Commissioner Johnson stated they have experienced stalling factors by
the Jet Center who has now introduced legislation as well. He said if the
offer had been made a while ago, they would have negotiated with them. They
received an independent appraisal of the terminal to be able to get this done
by November.
Gary Barker stated it would be a waste of County money to buy the
existing building. He has worked there for five years and it does not meet
the needs of those who use the facility.
Peter Cummings, an Eagle County resident and Executive Director of the
Beaver Creek resort association, stated he feels the County has done a
disservice advertising the monies the Jet Center has earned and the Jet
Center has not negotiated fairly. The issue is the need for a I;>roper
facility, enough space for airlines to function. American Airllnes thinks
the growth is going to be there and they are willing to step to the table.
Although there is a terrible history, the outcome is positive. He questions
the County running the terminal and whether that makes sense. Competition is
good. Mr. Kenny has asked for time but there must be resolution. Mr.
CUrrmings does not see the need to build a new terminal and buyout the lease.
On behalf of Beaver Creek Resort Association he asks they proceed with this
timely.
Arm Waller, representing Airport Shuttle, questioned who will be able to
occupy the spaces. She understands it to be the law, that all entities
should be allowed.
Mr. Elwood stated they would have to bid for the positions.
Ms. Waller asked about the number of rental car corrpanies.
Mr. Elwood stated the number of people who want to rent cars will want
to rent them whether the cars are available or not.
Commissioner Johnson asked what difference it will make with one or two
terminals.
Mr. Fritze stated most of those leases were based on percentage.
Ms. Waller suggested there are facts that have not been shared with the
public.
Claudia Manzaneres, a Red Cliff resident and candidate for County
Corrmissioner, stated she does have some questions and believes the public
should have the information. She stated she has heard from some newspaper
people that this is not an important issue. She questions information not
;Jetting to the people. If the facts have not been received, a quick decision
lS not justified.
Jeff Shroll, a Gypsum resident and Manager of the Town of Gypsum, stated
at this point they have no position but ask that both parties keep them
informed of any and all decisions and maintain the good working relationship
they have with Eagle County.
Steve Jones, area resldent, stated he knows most of the individuals
involved in this and it is a shame it has gotten this far. He would be glad
to ~articipate on a task force and related there are enough concerned
citlzens in this room that might be the answer. He doesn't think American
Airlines should be in the terminal building. He gave $5,000 last year to
support them for sumner business. Mr. Jones stated the skier numbers are
getting flat but the County is continuing to grow because there are more
people living here. Mr. Jones suggested if the County continues to do this
they hold American Airline'S feet to the ground to provide year round
service. He believes they ought to continue negotiations. They are all
business people and somewhere there is a means to make it one terminal.
Jim Pollitt, an Eagle resident, pilot and mechanic, stated he believes
the County went into a bad agreement when they bought out Howard. He stated
he is not so thrilled with the County getting into the business but he is not
so thrilled with the Jet Center either. He believes the need is for year
10
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
round operations. He has reviewed the agreement with American Airlines and
questions the negotiations of lower lease levels if there are other year
round lessees. He questioned the participation of American Airlines in the
revenue streams to be seen. Mr. Pollitt stated the negotiations he has had
with the County are still being negotiated.
Ross Palmer, an Eagle Vail resident and person who does negotiate with
the Jet Center, questioned the ability of an airline to terminate their
leases if they go into bankruptcy.
Laddie Clark, Eagle Vail resident and candidate for County Commissioner,
stated he agrees with Mr. Kenny and his articulation. He suggests if
everything were thrown out and started from scratch they would be in a better
position. He thinks what is the need at this point is that things are as
they are now and not what was when. Perhaps the problems could be overcome.
The need is for only one terminal. In this room there is an incredible
resource of talent and it can be used. He thinks the way to proceed from
here is to sit down one more time even if the new terminal is not built this
year. There are some serious holes in the American Airlines agreement.
Sumner traffic will be dollar driven. He would like to see a very
efficiently run airport and a good use of tax dollars.
Ralph E. Davis, Jr., area resident, stated he is retired, a taxpayer and
voter but has no business interest in this County. Mr. Davis referred to the
last Vail election. He believes the voters should have something to say
about this issue and they should be allowed to decide.
Joe Widda, speaking on behalf of Lynn Trudeau, asked if the bubble is
needed is it included in the bud;~et fi~res.
Mr. Fritze responded there lS addltional income and it is covered in
contingency dollars. He stated there is also a provision for additional
rent. It would be a leased facility and not a construction facility. He
indicated it to be a break even deal.
Ron Degius, an employee of the Jet Center, stated there seems to be alot
of questions and a rapid decision is not needed at this time.
Cliff Smith, a resident of Gypsum and employee at the Jet Center, stated
we need an airport, a place for passengers. We have that already. He stated
he has had the fortunate opportunity to work for AMR and was amazed how in
February employees of American Airlines knew about these negotiations. He
stated he honestly believes the County will be operating this terminal. He
asked who they are and where they are coming from.
Commissioner Johnson suggested the person working next to him with AMR
was speculating as there was no agreement at that point in time.
Mr. smith stated he is concerned about a job and he knows the changes.
He believes American Airlines will bring in their own employees.
Commissioner Johnson asked who he services.
Mr. Fritze stated they did not have a deal with American Airlines in
February. They have been negotiating and planning since last sumner when
they received PFC approval. This agreement was struck over the weekend.
Mr. Smith asked who will operate the terminal.
Mr. Fritze stated the Board of Directors of the corporation is proposed
to be six members consisting of the BOCC, the Airport Manger (without a vote)
and two other appointees. Mr. Fritze stated the airport manager might manage
the terminal but that is a decision that will come before the Board. He
questions why if American Airlines can't afford to fly into Eagle County in
the summer they would invest $12 million into a new facility.
Mr. Ross asked if it would be appropriate if the county is going to
respond to a question should the Jet Center not have the ability as well.
Mr. Loeffler stated the public has asked questions and they have been
answered. This is not in the format of a debate.
Jody Daniels, adjacent property owner, stated this has gotten a lot of
publicity and the public has not had the opportunity to be a part of the
discussions. Even though there has been talk in the papers, it has now
gotten to the point where the County can use the leverage. He thinks with
the odds having changed, negotiation may still be possible and this matter
resolved. American Airlines doesn' t live here, American's people don' t live
here and we're the ones fightin9. It seems to him, with American's lease
coming up, the odds are swayed In their favor. We don't need two terminals
11
and we might have to wait another year to make the best decision. He stated
it feels like this is being rushed. The costs will only get greater as they
begin to build. Until you get the bottom line, it is not always as you see
it. Put a little more time into this to get the best for everyone. This is
a problem of the whole corrmunity.
Larry Benway, a Vail resident, stated Mr. Kenny and Steve Jones most
distinctly outlined the concerns. The citizens are asking the Board to move
slowly. He believes the underwriting of private enterprize by Eagle County
is not in the best interests. The citizens of Eagle County are willing to
invest in the future of Eagle County. The gentleman from Beaver Creek should
perhaps provide more investment into the gateway. He suggested binding
arbitration. Mr. Benway again suggested they proceed slowly and there will
be one main election issue and one can see where the candidates sit.
Tim Kelly, Jet Center Cafe, stated he likes to go into every day with
the possibility of learning something new. Number one he would like to think
that he has learned there is taxpayer interest. This airport issue is taking
up enough of taxpayer money. Let's see if there is enough compassion to sit
down one more time to negotiate with the Jet Center. He believes in the
honor of the County Corrmissioners they should all take their time. The
statement that Laddie made, the County has used their trump card well. He
suggests they sit down one more time.
Thomas Kohl, operations manager at the Jet Center, stated he takes care
of everything out there. Guest experience is what counts. Us against them
makes everyone nervous. He hopes the battle ends and they have a good
experience for the guests.
Rob Sperberg, a lawyer in Avon, addressed two issues. The hurry up
issue and the process. Firstly, the hurry up issue concerns him as
everything seems to have come to a head. The process with the Jet Center has
gone along for a long time and so he now asks himself what American Airlines
has been doing all this time. He suggests they have been manipulating the
whole issue. Despite the fact this has been a problem, it has not come to a
head until this weekend so they can hurry and get something done before their
lease must be renewed in November. They don I t need to be manipulated by
outsiders. Time must be taken to consider this. Under the current
agreement, the County is in a lose lose situation. As long as they are going
to be an airport manager and a leasing agent, they will lose. If the Jet
Center gave back the terminal, would they be building a second terminal. The
right thing to do is to take an existing facility and turn it into one that
serves the community. In response to Mr. Fritze's statement, this is fair
competition. It is not. The County does not pay taxes. Secondly, as
landlord they can restrict the competitor. All these things can be done to
them but as a competitor they can not. It is not fair competition. What
they need to do is solve the problem. The comment about bringing arbitration
is a sterling suggestion. It can be done within 90 to 120 days. The urgency
does not exist.
Chairman Gates asked if Mr. Sperber$" wanted his <;IUestions answered.
Douglas Tisdale, attorney, stated hls relationshlp with this group is
that he represents the Vail/Beaver Creek Jet Center. He reviewed his
credentials and connections with Eagle County. He referred to the question
asked by Corrmissioner Phillips if they will be holdin$" the bag for any
overruns. He resounded yes the County will have to plck up the ticket. In
terms of the projections, the hourly rate of those here today, they will be
overrun. The projections, they have not been given them. The income was
based upon twelve months and the costs upon five months. A question relative
to the environmental indemnities and an impact statement must be prepared as
well. A corrment to the legal requirement of the monies being retained by the
airport. ECAT must be formed. They suggest it is ultraviolet. This is not
a public housing authority. ECAT is not an airport authority, it is a non-
profit organization. The PFC's are and will continue to be challenged. He
referred to the forth amendment and doesn't see the County doing so. The
County wants to hide behind Amendment 1. The parties that signed the
agreement intended the County, if it wished to, leave this to a vote of the
County. This agreement did not waive the right of the FBG to object to
something that is not right. They have guarantees for thirty years but they
have only ten years of funding. As he reads the agreement, the rent is not
$750,000, the rent will not exceed the rent of the bubble. He reads the
agreement as being ambiguous. This is not a 9 million dollar debate but a 20
12
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEL'S 387869
mllllon dollar rate. The agreement provides the County indemnifying American
Airlines and paying their attorneys fees if they $"0 to court. In the event
other renters are leased, they will pay what Amerlcan pays or American will
pay what they pay. He suggests they have asked for the lnformation for
months and have been denied. Whenever they are asked for information they
have been required to provide it. Mr. Tisdale referred to an imagined
conversation with the County Attorney where he suggested ADR. The County, he
stated rejected the ADR. He does not believe it fair to say the County tried
to get this resolved. This is a very difficult situation of great magnitude.
They must take the time, consider it carefully, and what it will mean if they
say yes.
Susan Lucas, an employee of the Jet Center and administrative assistant
to Craig Colby, stated she has spent a good portion of one day making copies
of all the documents. Her frustration lies in that the County has all of
their numbers. She had the uncomfortable task of making all of the copies
and out of all of that there were over a dozen documents that were withheld.
Why are the numbers, which are public information, not provided. She feels
that is not right. She questions the County soliciting agreements with
airlines behind their back. In order for them to be successful they will
have to fold.
Jo Wita, an employee of the Jet Center, a homeowner and taxpayer, stated
he does not see why this cannot wait. There are people here saying this
should go to a vote. There are alot of people here and those who couldn't be
here who wish this be given more time.
Mr. Fritze stated there were certain documents regarding negotiation
with American Airlines not provided. The negotiations with the Jet Center
and American Airlines were not all provided. Mr. Fritze stated Monty Pasco
offered in a meeting with Mike Shannon to look at the numbers. Part of the
reason we are here and don't have time is the continued maneuvering by the
Jet Center to delay. Mr. Sperberg, though he identified himself as an
attorney failed to identify himself as an attorney for the Jet Center. If
they can prevent the County from doing a deal in a timely fashion, it makes
it a political issue rather than a rational one. If this is delayed and
American Airlines goes to the Jet Center, then they will be waiting another
five years until more negotiations. Nothing prevents the Jet Center from
further negotiations. Mr. Fritze stated there has been an environmental
assessment done and believes it to have been copied. The hope and the
strategy by contacting the Commissioners individually was not appropriate.
If there is a hope to bring it all together is to deal with it from a
position of strength.
Mr. Ross stated in the three years they have owned the terminal they
have provided a surplus of $352,000 for the County. The source is from the
Eagle County master plan. As taxpayers, they pay approximately $250,000 over
the same period of time. The County's problems were before they took over
the ownership. The future projection of losses are exaggerated. He does not
think there is any rush to proceed. They will offer a lease to American, not
for five years but for one year. The construction overrun is a concern.
There is a liability issue regarding the fuel that goes into those planes.
They carry hundreds of billions of dollars of insurance. This valley is
ready for summer service and they are eager to support it. Neither terminal
can afford it if there is more than one terminal. If they are the only
operator of the terminal they will support it. Ted Kenny's suggestion about
arbitration they support and they did offer to do so in the summer of 1995.
They will live by the decisions of that arbitration. He has offered to the
Commissioners and Monte Pesco the projections of the purchase. They were not
considered. He suggested there is an opportunity for the County to buy them
out and provide an attractive investment.
This is a pivotal moment. They will press on to make sure there is a
rational investment in the property. He asks the Board to consider this
decision with an open mind and thanked the Board.
Chairman Gates closed public comment and remarks from either side.
Commissioner Johnson stated he agrees with some of the statements made
today about an outside entity coming between the entities. He stated that
holds true with a Delaware corporation. This is not a quick decision but has
13
been considered over a period of time.
Commissioner Johnson indicated this is not in anticipation of gettin$"
around Amendment 1 as it was not in effect in 1990. If the Jet Center sald
here is the lease, the County, knowing the terminal is functionally obsolete,
would have to do something. He stated it is unfortunate they have gotten
where they are. By supporting HB1035 he questions their decision. He stated
he doesn't understand why they need to pay twice as much to refurbish an old
terminal than to build a new one.
Corrmissioner Phillips asked what would be the total bond issue amount
and if it would be for thirty years.
Mr. Fritze stated until they go to market they won't know. There is an
out if the bonds are not sold by the certain date. Mr. Horton stated the
bond issue would be approximately $10.2 mil. The term at ~resent is 25
years. The level principal would be for the full twenty flve years. He
further explained the debt service payment. He stated It is a competitive
situation and the market does not go away.
commissioner Phillips asked about bonding over the 10 million dollars.
Mr. Loeffler stated the reference to the Library Bond issue is a totally
different issue.
Mr. Sartin stated the bonds that would be issued for the airport would
be revenue bonds which are exempt from that tax limit under the tax code.
Chairman Gates stated he has been through a lot of meetings on the
airport and has been very frustrated with the results. He met with Mike
Shannon. He referred to the hand shake thing. He had hoped he and Mike
could come up with a solution to this. If Ea$"le County had the money in the
past they wouldn't be in this situation. It lS costing the taxpayers money
by the County not owning it. If they don't move forward with this they lose
the trump card. They are the FBO and they are not going to be out of
business. They will still be the FBO. He wishes they could sit down and
talk straight forward.
Corrmissioner Johnson moved to approve the agreement with American
Airlines for a ten year lease at the Eagle County Terminal.
Commissioner Philli~s seconded the motion.
In discussion, Corrmlssioner Phillips stated this has been a long drawn
out issue and she doesn't feel the ego need. She understands those employees
who fear for their jobs. She believes this will work. She is disappointed
that an agreement couldn't be reached with Eagle County and the Jet Center.
She has supported one terminal for a year. She feels very sincere that she
wants to represent all the people of Eagle County. She recognized the fact
there needs to be improvements. She believes the expansion and the repairs
must be made. She is convinced this is the right move with American Airlines
sup~orting this. This smacks of Studor Vent and what they need is an
arbltrator. She is not convinced the bond issue is not going to cost the tax
payers of Eagle County. After much thought she wants to see one terminal and
an arbitrator to get there.
Chairman Gates asked if they feel with the signin$" of the agreement with
American Airlines it does not exclude further negotiatlon.
Chairman Gates called for the question on the motion.
Commissioner Johnson and Gates voting aye and Corrmissioner Phillips
voting no.
RESOLUTION, EAGLE COUNTY AIR TERMINAL CORPORATION
John Gardner, Bond Council for Eagle County, explained the bonding
process. Mr. Tisdale'S statement the County does not have the authorization
to form such a corporation is in error. ThlS is not a housing authority.
This airport was operated by an airport authority until ten years ago. What
they are talking about is just the ownership of the terminal building. In
his view this is not an ultraviolet act. In reference to the Tabor
Amendment, the corporation is an enterprize and thus meets the requirements
of the Tabor Amendment. The Resolution is quite simple and is a step
required by the IRS and to confirm four members of the Airport Authority.
The Bi-Iaws provide for two additional Board members.
Corrmissioner Phillips asked about the further negotiations that will
take place.
Mr. Fritze stated there are a whole series of other events to be
contemplated. The lease with American will be assigned to the Corporation.
14
BOARD OF COUNTY COMMISSIONERS
EAGLE, COLORADO
RECORD OF PROCEEDINGS
FORM 50 HOECKEI.:S 387869
The Board will be directors of the corporation. The bi-Iaws are drafted with
the Board and the two appointees having a vote. The Airport Manager would
not have a vote.
Commissioner Phillips moved to approve the Resolution approving the
Articles of Incorporation and By-Laws of the Eagle County Air Terminal.
Commissioner Johnson seconded the motion. The vote was declared
unanimous.
There being no further business to be brought before the Board, the
meeting was adjourned until April 29, 1996.
Attest:
C
. -;;;~
~A-'/CY~
15