HomeMy WebLinkAbout10-13-1960Record. of Official Proceedings of the Common Council •
of the City of Rochester, Minn., October 13, 1960
Minutes of a special meeting of the Common Council of the City of Rochester, Minnesota,
held in the Council Chambers, in the City Hall in said City, on October 13, 1960.
President Tingley called the meeting to order at 7:30 o'clock P. M., the following
members being present: Pres.dent Tingley, Aldermen Brooks, Morris, Wilkus, Wilson. Alderman
Gifford arrived at 8:05 P. M. Absent: Alderman Stadler.
The call of the special meeting was read and President Tingley ordered the same placed
on file, the said meeting having been called for the purpose of reviewing various contracts and
Agreements for the Airport and any other business the said Common Council may deem proper.
President Tingley stated that the reason for the meeting is the fact that back in 1956
after it was decided that the new airport was to be built, an agreement was made between the
City of Rochester and Mayo_Association concerning operation of the new airport as well as -the
construction. One of the things that needs to be settled is the agreement to be made between.the
Rochester Airport Company, as the operating company, and the City of Rochester for -the operation
of the airport until 1975 when the agreement will terminate that was made in 1945. One of the
other.items of business is the means by which the property, known as the old airport property,
may be re -conveyed to the Mayo Association; we have Atrline leases that should be approved and
what might be expected budget wise. The ggreement between the City and Rochester Airport Company
has been the subject of study between R. V. Ehric$, City Attorney and Mr. Leland Scott of the
Mayo Association and there are certain things that require legal explanation.
R. V. Ehtick, City Attorney, then reported as follows: You are aware of the fact that
what we now call the old Municipal Airport was first established and developed by Mayo Association
and in 1945 the land and airport facilities were conveyed to the City and it .was established
as a municipal airport operation. Among motivating factors was the fact that as a public airport
federal grants would become available for improvements and when it was conveyed to the City a
lease agreement was entered into and the City leased the airport back to the Mayo Association and
the Airport Company would be operated without cost to the City but as'a public airport. The old
airport was operated under this lease agreement until now and as I understand it the old agreement
will terminate this Sunday. When the project was first advanced, discussion was had by members
of the Common Council, Mayo Association and Rochester Airport Company on how best to proceed with
this and certain factors were pointed out that were considered for change. When it was decided
to proceed an agreement was entered into again between the Mayo Association and the City. on
March 1, 1945 which provided that when the new airport was established the Airport Company
operations would be transferred to the new airport and they would continue to operate the new
airport until the termination of the lease in 1975, and in the 1946 agreement the airport was
to be leased back again to the Airport Company.to be operated as a public airport for the balance
of the term, with one or two exceptions. The City would provide the local Sponsor's share and
the City would continue to provide electric service and water as it had at the old Airport and a
major part of the agreement was that the Mayo Association agreed to contribute up to, but not to
exceed, $500,000.00 and also the City agreed that the land comprising the old airport would be
conveyed back to Mayo Association.
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He said it was.anticipated.that a lease agreement would be entered into, but certain
legislation and certain decisions of Supreme Court in 1959.raised a doubt whether this property
would remain tax exempt it it were leased to the Mayo Association for operation. Inasmuch as
estimations of real estate on'this property were as high as $40,000 to $50,000 per year the Mayo
Association approached the Commission and me and expressed concern and also expressed the opinion
that this wasshown what had been contemplated in the lease agreement that indicated their
willingness to proceed and operate with the basical cost to the City but it was suggested that
instead of a lease agreement that it be changed to an operating agreement or management contract.
It was contemplated that this agreement would be submitted to the 1961 Legislature to be ratified
and established once and for all, the tax exempt status of the airport if its operated by the City,
there is'no question about its tax exempt status. (Alderman Gifford arrived at 8:05 P.M.). A
different type of agreement was prepared by Mr. Scott and myself and with the able advise of Mr.
Hugh Barber.. He compared the lease to the previous one and said (1) it will operate as a public
airport and the agreement is replete with restrictions that can not be deviated from (2) the Agency
will operate the Airport without expense to the City (3) the Agent will continue to insure the
premises and city from liability. He called attention to Sections 4.11, 4.15, 6 and 7.6. - Mr.
Ehrick said he believed this is a good agreement and that the City.has a.good deal of control under
this agreement, no capital improvements can be made without the approval of the Council. He said
the City will have to anticipate local sponsor shares on maintaining the airport, such as
seal coating, etc.
After further discussion, Alderman Gifford introduced a resolution authorizing and
directing the Mayor and City Clerk to execute on behalf of the City of Rochester the agreement with
the Rochester Airport Company relative to.the operation of the new Rochester Municipal Airport for
a period commencing on the date the Airport went into operation and ending October 31, 1975, which
was read. A. motion was made by Gifford, second by Wilkus, that the said resolution be adopted as
read and -upon roll call and all present voting in favor thereof, President Tingley declared the
said resolution duly passed and adopted and the Mayor and City Clerk were instructed to execute the
said agreement.
Alderman Wilson then introduced a resolution authorizing and directing the Mayor and
City Clerk to execute on behalf of the City of Rochester the lease agreement between Northwest
Airlines,,Ine.,, Braniff Airways Incorporated and Ozark Air Lines, Inc. relative to landing fees
and space rentals in the terminal building, all at the new Rochester Airport, which was read. A
motion was made by Morris, second by Wilson, that the said resolution be adopted as read, and all
presex}t voting in favor thereof, President Tingley declared the said resolution duly passed and
adopted and the Mayor and City Clerk were instructed to execute the said agreements.
Alderman Wilson then introduced a resolution authorizing and directing the Mayor and
City Clerk to execute the warranty deed conveying to the Mayo Association those certain lands in
Section 12, Township 106 North, Range 14 West, Olmsted County, Minnesota, which constitute the old
Rochester Municipal Airport (lobb Field)which was read. A motion was made by Gifford, second by
Morris, that the said resolution be adopted as read and all voting in favor thereof, President
Tingley declared the said resolution duly passed and adopted and the Mayor and City Clerk were
instructed to execute the deed.
Upon motion by Brooks, second by Wilson, the meeting was adjourned.
CAty Clerk