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City Council Minutes 02-20-1990 I MIN TES SPECIAL MEETING - MO TICELLO CITY COUNCIL Tuesday, February 2 , 1990 - 7:30 a.m. Members Present: Ken Maus, Blonigen, Fran Fair, Warren smith, Dan hirley Anderson Members Absent: None I Assistant Administrator, Jeff 'Neill, reported that 80 acres of land near the site of the existing Pilot's Cove Airport is available for sale and that C uncil might wish to consider purchasing this land in anticip tion of potential development and expansion of the existing a rport. O'Neill noted that the existing airport land area is 00 small to qualify for State funding. In order for the airp rt to expand, a portion of the land north of the airport must be purchased. At this time, Council has the opportunity to buy 80 acres north of the land needed for purchase and then a tempt to work a trade with the owner of the property directly north of the airport. O'Neill went on to note that the Stat will fund 50% to 75% of the land cost purchase if the air ort development plans qualify for funding. The City must provide up-front money with reimbursement from the State 0 Minnesota when the project is funded by the State. In reviewing the proposal to purchase the land, O'Neill noted that there is considerable risk involved. For instance, there is no guarantee that the air ort would qualify for State funding; the State does not generally fund airports with north/south runway alignments; there is no guarantee that the City could work out a deal w"th the owner of the property directly north of the existi g airport; in order for the airport to expand, rezoning ust occur, and there is no guarantee that an application or rezoning acceptable to the State will be approved by the I cal jurisdiction. To mitigate the risk, the City could rent the land and resell it if the airport did not get funded; h wever, the total cost of the land might not be recovered. In addition, there would be considerable staff and consult nt time and expense necessary to see the project through wit out any guarantees. I Mayor Maus noted that developm investment in the City's fut seriously consider development not sure if it is the right ti now available given the n regarding airport development nt of an airport represents an re and that the City should f the airport; however, he was e to purchase the land that is merous unanswered questions t the site. 1 I Special C uncil Minutes - 2/20/90 Dan Blonigen mentioned his op osition to the idea of investing significant money into a fa, ility that is not used by the general public and that bene its a small group of fliers. He also noted that it is not clearly demonstrated that the presence of the airport woul encourage economic development. Fran Fair agreed that sig ificant research needs to be conducted prior to a major i vestment by the City. Shirley Anderson agreed that we should look at development of the airport carefully and ma e sure that we have support from the local jurisdictions befoe investing a significant amount of money toward the developm nt of the airport. It was the general consensus of Council that staff, working with the airport developme t advisory committee, should prepare additional informati n as follows: I Jeff Assis I 1. Determine the tru potential of development and expansion of the a rport at its existing site. 2. Obtain a clear idea of who is using other municipal airports in an at empt to determine the economic development benefi of an airport in Monticello. . I Administrator 2