HomeMy WebLinkAbout1977-09-28 Council Minutes - Special MeetingSPECIAL MEETING - KENAI CITY COUNCIL
SEPTEMBER 28, 1977 - 7:00 P.M.
KENAI PUBLIC SAFETY BUILDING
MAYOR JAMES A. ELSON PRESIDING
RECONVENE
Mayor Elson brought the meeting of the Kenai City Council back to order
for the purpose of lease of Airport Cafe and Lounge.
Polar Airlines - James E. Fisher, representing Polar airlines, advised
Council that his client wished to lease space in the Airport Terminal Building
(Rooms 1 and 2) to be used for passenger waiting area, ticket sales and
baggage claim area. Polar Airlines was expecting to hear the final decision
on their application for an air route into Kenai from the Alaska Transportation
Commission by October loth. Mr. Fisher further advised that this was the
only space available in the Terminal with access to the Airport taxi area.
Mr. Fisher advised that his client would pay $.65/sq. ft. with the lease
beginning on October loth and if ATC granted the license would ask for
a term of years, however, at his time Polar would want to lease the space
on a quarterly basis only.
Councilman Sweet requested a five minute recess for the purpose of reviewing
formal proposal submitted from Mr. Bernard.
RECONVENE - Council asked if Mr. Eltel wished to resubmit his application
and was advised in the affirmative. Councilman Ambarian inquired as to
Mr. Eltel's food business background. Gary Eltel, AIC, stated he had been
the assistant chef of the Alumni Club in Salt Lake City, associated with the
Kentucky Fried Chicken chain, received an executive chef rating in the array
and worked in Officer's Clubs. Mr: •Eitel fuMher advised that he and his
parents owned small cafes and fastfood restaurants.
Councilman Whelan stated that in reviewing the formal proposal, it was noted
that Mr. Eltel stated he would pay the City $1, 000/month plus a percentage
of the profits, however, in the first proposal it was $1,000/month plus a
percentage of the gross, please explain. Mr. Ettel stated he meant a
percentage of the gross sales not profit.
MOTION:
Councilman Sweet moved, seconded by Councilman Whelan, that the proposal
submitted by Polar Airways for lease of space in the Airport Terminal be denied
as the City is interested in long term leases only and this in essence is a
speculative lease.
Motion passed by roll call vote. Voting yes; Ackerly, Whelan, Sweet,
Ambarian and Elson. Voting no; Glick
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MOTION:
Councilman Sweet moved, seconded by Councilman Whelan, that Aviation
Consultants, Inc. be given the restaurant/lounge lease which includes
rooms 1, 2, 3, 4, 5, and 6 in the Airport Terminal Building per their
proposal at a rate of $1,000/month or 10% of the total gross sales, whichever
is higher.
Councilman Sweet spoke in favor of his motion for the following reasons:
(1) The City would be dealing with local people who are living in Kenai;
(2) the other applicant would have much better purchasing power in Anchorage
and a local lessee may purchase locally; (3) the ACI proposal will develop
a much larger lounge concept which will bring additional revenue into the
City; and last, the City had made somewhat of a prior commitment to ACI.
— - Councilwoman Glick stated that had Mr. Eitel talked with the City Manager of
his proposed plans, he would have been made aware of the commitment
to Polar Airways. Also, at last evening's meeting when the Council refused
to make a decision, Mr. Eitel had threatened the City with legal action.
Councilman Whelan stated that the ad hoc committee had addresses themselves
to the commitment of space in the Terminal building and were not advised
until Monday morning that there was a written commitment on rooms 1 and 2.
QUESTION:
Passed by roll call vote. Voting yes; Ackerly, Whelan, Sweet, Ambarian,
and Elson. Voting no; Glick.
There being no further business to be brought before the Council, Mayor Elson
adjourned the meeting at 7:45 p.m.
Respectfully submitted,
ue C. Peter, City Clerk
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