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HomeMy WebLinkAbout~Master - Addendum to Agreement for public improvements at Ames Municipal Airport RESOLUTION NO. 17-601 RESOLUTION APPROVING ADDENDUM TO AGREEMENT WITH IOWA STATE UNIVERSITY FOR PUBLIC IMPROVEMENTS AT AMES MUNICIPAL AIRPORT FOR THE CITY OF AMES WHEREAS, on February 10, 2015, the City entered into an airport improvements funding contract with Iowa State University (ISU), whereby the University agreed to pay to the City any shortfall as required under Section VII of the agreement; and, WHEREAS, because of a premium payment made to the City by the purchaser of the bonds, the City was able to issue the ISU portion of the debt over a 20-year term in the amount of$915,000 in order to finance the site work for the itinerant hangar/terminal and the construction of the new terminal building; and, WHEREAS, it was expected that the contract with the new Fixed-Base Operator (FBO) would be completed shortly thereafter; however, it took significantly longer than expected to complete the FBO selection process, and the effective date for the new FBO to assume responsibilities at the Municipal Airport was not until April 2017; and, WHEREAS, because of this delay, the additional revenue expected from a new FBO agreement to minimize ISU's obligation under the first two years of this agreement was not to be realized as planned; and, WHEREAS, as a result, if the existing agreement is adhered to, the University would owe the City in excess of$105,000 for the first two years; and, WHEREAS, realizing this might be unfair, at its meeting on October 11, 2016, the City Council directed staff to prepare an addendum to the existing agreement that would delay ISU's obligation to backfill any shortfall by two years with the creation of an 18-year debt service schedule that will end in conjunction with the City's actual debt schedule for the Municipal Airport improvements; and, WHEREAS, the original 20-year debt service schedule is re-amortized over 18 years, and the ISU guarantee of debt service remains the same as in the original contract; the only adjustment is in the term to reflect the delay in the implementation of the FBO contract. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the Second Addendum to the Agreement with Iowa State University for public improvements at the Ames Municipal Airport is hereby approved. ADOPTED THIS 26t' day of September, 2017. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Corrieri Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 261h day of September, 2017.