Airport authority keeps 'out' clause in hotel-motel tax shortfall agreement

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Airport authority keeps 'out' clause in hotel-motel tax shortfall agreement

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An agreement

for the Peachtree City Airport Authority to set aside funds in case of

a shortfall in the city's hotel-motel tax collections went unchanged Wednesday

night.

The authority

debated a request from City Councilman Steve Rapson to eliminate a paragraph

from the agreement that would allow the authority to suspend paying the

$28,000 it is setting aside "if the authority is unable to meet its

financial obligations."

Authority members

agreed that the clause was necessary, noting it protects the authority

from unforeseen financial burdens such as the ripple effects from the

terrorist attacks of Sept. 11.

After the attacks,

the airport was closed for several weeks to all traffic, which effectively

cut off one of its main revenue supplies: jet and AvGas sales.

But the authority

doesn't think such a drastic situation would occur to hurt its finances,

authority members agreed.

"It would

have to be something pretty severe for us not to meet our financial obligations,"

said authority chairwoman Catherine Nelmes.

Authority member

H.E. Buffington stressed that the authority wants to work with the City

Council on the issue.

The authority

gets a supplement from the city to operate Falcon Field, with the funds

coming from the city's hotel-motel tax. But with the local hospitality

industry taking a downturn after the terrorist attacks, city officials

wanted to make sure any shortfall in hotel-motel tax collections would

be covered. Agreements have been drafted to make sure any shortfall is

shared by the city, the Airport Authority and the Development Authority,

which also gets hotel-motel tax revenues to subsidize operating the tennis

center and amphitheater.

In other business,

the authority agreed to provide $1,000 to the Fayette County Local Emergency

Planning Committee to purchase necessary equipment. The LEPC is a coalition

of local industries and businesses that network together to insure hazardous

materials or chemical releases are taken care of quickly.

Pete Nelms

of the LEPC said one example would be if there was a significant spill

of aviation fuel at Falcon Field. Then officials could go to a participating

LEPC member for absorbent materials to clean up the spill, with the caveat

that the materials must be replaced at a later date, Nelms said.

The LEPC is

in need of funds to buy more equipment to use in hazardous materials situations,

Nelms added, thanking the authority for its generosity.

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