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HomeMy WebLinkAboutRESOLUTION 1986-91F' Sug#eared bys City Counoil CITY OF KENA! RESOLUTION NO. 86-91 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAZt ALASKAt ALLO#ZNG FEDERAL EXPRESS~ ZNC. LEASE SPACE ZN THE KENA! HUNICIPAL A!RPORT TERHZNAL BUILDING. #HEREAS~ Federal Expreee~ Inc. ie recognized by the FAA ae · #HEREAS, Federal Expreee~ !ne. hoper to initiate rtl#htr into the Kenei Hunieipei Airport with Lie own aircraft Ln the future~ end #HEREASt Federal Expreee~ Ina. will provide e valuable eerviee to the City of Kenel~ end #HEREAS~ Federal Expreee~ Ina. bee agreed to build their own taunter in the terminal building under 8pecirio architecture& guidelines that conform with the exieting airline eountera, and ##EREAS~ Federal Expreea~ Into hoe agreed that~ ~lth adequate notioe~ they will vacate the lease in the event the demand For peaaenger airline office end counter apace te eequitedt end #HEREAS~ Federal Expreea~ Ina. hoe agreed to conform to the Counell'e directive on weight and eize reetriotione of parka#aa toeing aerate the airline eountere in the terminel~ end #HEREAS~ Federe! Expreee~ !no, egreea to e two year !tree with · one year option to Trace epeee in the Kenei Hunieipal Airport teteine!. NO#t THEREFORE~ BE IT RESOLVED BY THE COUNCIL OF THE C!TY OF KENA!~ ALASKA~ that Federal Expreee~ Ina. be el!owed to !eeee ipeee in the Kenei Hunieipel Airport terminal eubJeot to the aforementioned eddendume to the Irate. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA thie ISth day of Oetober, 1966. 30hn '3. #t'i'~leme, flaY°r ..... ATTEST s oanet k~h(~lan' CitF Clerk- CITY OF KENAI September 26, 1986 #EHORANDUH TOo FROflI REt Kenoi City Council Randy Erflet, Airport Meneget~ fedora! Expreee FedereA ~xpteeo hoe ~equeeted that the reeolution rege~ding thel~ tequeot for leeee apace Afl.the Keno'! airport termine! be pootponed to the Oetob.~r-'l~,,,1986 regular Council meetAng. Their letter confirming' th~e Ao forthcoming, but w88 not available et packet time, It will be carried into the October 1, 1986 Counoil meeting, RE/do © CITY OF KENAI ¥ O~tober 10, 1986 HEHORANDUH TOt Hayor John William8 and Kenai C~.~y Council FROM~ Randy Ernst, Airport Manager REt Resolution 86-91, a requeot b ,deral Expreeo, Ins. rot lease apace in the Kenei Airport Terminal. The purpooe or this memo ia to reiterate the recommendation sa stated in my memo dated 3uly 11, 1986. That memo recommends that Federal Express be allowed to 1race apace in the terminal building. Resolution 86-91 outlineo very opecirio parameters foe the lease and gives the City the flexibility it needs to accommodate any additional requests rot leooe apace by new passenger oirl~neo. The type or freight Federal Express proposes to handle over the counter is the same type or frei§hr currently being handled et the terminal by both SouthCentral Air end ERA. Freight larger then the size end weight limitations set by Council would be handled in o separate racllity or by ~ourier van, Juot sa SouthCentrel Alt and ERA do currently. Federal Expreao 18 the only FAA certified air freight ca,tier o~ its type with aircraft breed in Alaska. Kena~ ~ould, eventually, be served by one or their newly purchased Cessna Caravans which In turn would be additional revenue to the airport through landing tees. The lease would generate $9,5&).40 per year on epees In the terminal whieh has not been In uae nor has been requested ~or uae. Thio lease would not only generate monies rot the airport, but also Jobs for the community. Federal Express experts to h~re six to ten lo~el people to start its Kensi office. in conclusion, it would seem to be economically prudent roe the City ta enter into this lease with Federal Express, Inc. This year's enple,~umente are down approximately ZO~ tram leer year'et one airltne has gone bankrupt, leaving ue with only two alt carriers leering apace tn the termine! end the lace1 eeonamy in general her !eveled orr Ir net sagged. It appears unlike!y the~e F' © wL&i be · image enough upturn in eotivity within the next three year· that thia ieee· would have to be teraineted. The option foe ieee· termination ia bulXt into the ieee· agleam·ntt but that wou~d require three or poeetbXy Four airline· to requeet end rent available apace prLo~ to neeeeeiteting · termination to provLde aifl'Lne epaoe. RE/de