Minutes

             
C Consideration and Approval of Lease Amendments:  Amendment of Flagstaff Airport Leases to abate rent for at least six (6) months, due to the COVID-19 pandemic.         
 
  Councilmember Aslan asked about tenant concerns about repairs and safety of the hangars. Ms. Hansen explained that there have been ongoing hangar tenant meetings for over two years where we hangar tenants and staff have developed a spreadsheet of all the tenant concerns and repairs. There was also a survey that went out to tenants asking for those concerns. Staff are working on those things as funding is available. With the grant funding the hope is to address the items and that is part of what will be coming back to Council for discussion.
 
Councilmember Shimoni expressed concern with supporting larger entities that have already been able to obtain funding from the federal government. Councilmember Whelan expressed agreement and suggested that local businesses are more appropriate to help. Ms. Hansen offered that the goal is to sustain the two carriers in Flagstaff. So much work and effort has gone into securing the airlines for Flagstaff and it is important to try and keep the service they provide in place for the community. Airport Director Barney Helmick added that it is not as much to protect a large business corporation but to protect a local asset. The loss of the asset could have a long-term impact on Flagstaff.
 
The following individuals submitted public comments:
  • Dr. Kirk Robertson
  • Adam Deibel
  • James Wallace
  • John Dillon
The following comments were received:
  • All airport tenants should be allowed to have their rental fees forgiven for a period of time.
  • Do not forget the small business owners at the airport during these difficult times.
  • The money should be used to improve infrastructure of the hangars.
  • Some of the money should be spent to catch up on long overdue maintenance and needed improvements.
  • All tenants should be included in the rent abatement package.
  • It is not just the big airlines that have been impacted by shutdowns.
  • There is a certain unfairness that the big business are being considered for rent abatement and small ones will face rent increases.

Councilmember McCarthy stated that he does not have enough information to make a decision. He requested information on possible double-dipping by the airlines as well as the concerns from the hangar tenants.
 
  Moved by Councilmember Jim McCarthy, seconded by Councilmember Regina Salas to table the item until the first meeting of June 2020.

Councilmember Salas stated that she would like to hear from the other lessees at the airport. She would also like an updated list of the lessees who will be granted rent abatement. This is not a question of choosing a big company or small, this is about extending a privilege because the city has been granted federal dollars and that should be extended to all lessees.
 
Councilmember Whelan requested a graph showing what the enplanements were pre-COVID and where the enplanements are at currently.
 
Mr. Clifton noted that everything is in a climate of rapidly changing circumstances. The funds coming in from the CARES Act grant will be used for a lot of operational costs, some of which are repairs and upgrades to the hangars. The item is being presented at this time with the information that is available because the airport has been stagnant for weeks and businesses are hurting. It could be a situation at the next meeting that a decision is needed without all the information.
 
Councilmember Odegaard stated that he is not in support of postponing the item, it is important to protect the investment of having two airlines in Flagstaff.
 
Mayor Evans noted that they are talking specifically about United and American Airlines and the reason there is concern from Council is because significant funding has gone to larger corporations and the smaller and mom and pop shops are fighting to get some kind of relief.
 
Mayor Evans called for the vote.
  Vote: 6 - 1
 
NAY: Councilmember Charlie Odegaard

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