With all but
one City Council member in attendance at Wednesday night's meeting of
the Peachtree City Airport Authority, both sides exchanged ideas about
possibly changing the way the city funds the airport's operations.
Under an agreement
signed last year by then-mayor Bob Lenox, the Airport Authority receives
$120,000 in hotel-motel tax funds as a "supplement" to operate
the airport. That agreement includes an attachment spelling out that the
supplement will stay at that rate ending after the year 2011.
But current
Mayor Steve Brown says he wants to cut short that date from 10 years to
no longer than three so the current council is not encumbering future
city councils. The current contract is technically in affect for 50 years,
he explained.
There is actually
no ending date listed in the contract, a copy of which has been reviewed
Authority member
Jerry Cobb said they would rather the figure remain at 10 years because
they need a reliable income so they can qualify for loans to fund projects
to improve the airport. But Brown countered that the current agreement
actually allows the authority, "an autonomous body," to spend
tax dollars when that responsibility should lie with the council since
they are elected by the people.
The authority
members are appointed by the City Council.
Cathy Nelmes,
the authority's chairwoman, said she hoped the authority and council could
mutually agree to a new contract, but she was unsure if that could be
done right away since council has hired an independent attorney to determine
the validity of the contract.
Several authority
members said they would agree to a new contract that stipulated the $120,000
in supplemental support from the city's hotel-motel tax ended after 10
years.
The authority
also pointed out that if the length of the contract were shortened to
three years, that would not guarantee financial support of the projects
the airport needs to complete so it can become self-sustaining.
City Councilman
Steve Rapson said it is common in such contracts to have a clause where
either party can give, for example, 30 days notice to terminate or change
the agreement.
Currently,
the contract is worded so that any changes have to be mutually agreed
upon by the authority and the city. That is one of the reasons Brown,
Rapson and councilman Dan Tennant claim they feel the contract is invalid
because the original wording of the contract allowed the city to change
the funding through the contract "at its sole discretion."
Although there
are limits to what projects hotel-motel taxes may be used for, they can
be used for things other than the tennis center and airport, Brown said.
Nelmes previously
pointed out that authority attorney Doug Warner, who also sits on the
city's Development Authority, has agreed to have the airport authority
use a special counsel to confer with about the contract to make sure there
is no appearance of a conflict of interest.
Airport Authority
member Doug Fisher said he was "uncomfortable to have the funding
hanging out there" to possibly be changed in three years.
Councilwoman
Annie McMenamin, who also attended the meeting, said that the airport
authority was originally designed to take the politics out of operating
the airport. She added that nothing in the current contract prevents council
from hammering out a different contract with the authority.
Rapson and
Brown indicated they would rather the airport authority approach the council
for funding its future projects instead of the authority itself going
into debt to expand.
To address
possible concerns about the current council's support of the airport authority,
Brown remarked:
"When
the amphitheater needed restrooms, we made sure they got them. When the
tennis center needed new courts, we made sure we got those."
Brown also
said that he had planned for the city to purchase the approximately 20
acres adjacent to the airport which authority officials want to insure
Falcon Field can expand in the future. But before council took action,
the authority received a federal grant for the land purchase.
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