Fort Walton Beach Council minutes — 11-21-06 special minutes — reading text

explained the reasons he might not support the motion. He would have the negotiate a fair market value; he would not endorse City Manager n would need to maintain a lease, he would endorse a license because the fiduciary oversight; and he believed the 180 City day termination clause is needed. u Mr. Holmes received clarification that the Fair Association would not be required to submit an plan but would still have to go operations through the permitting process. He then expressed reluctance in hands of future Council, tying the thought a fair income needed to be determined, and what was done last the City needed to look at year.  Special Council 121 11- 21- 06 ABANDONMENT PLAN cont. Mr. Campbell explained he could not support the motion with a five year lease, he would like the City Manager to return with a fair market value for a lease, and he would like the 180 day termination clause to remain. He said he did not want to jeopardize future possibilities of the property, and he could not to sell it either. He expressed preference for a license support agreement rather than a lease. Mr. Minich explained with a lease, rather than a license, the oversight is still there as they go through the process to get a permit for each and I""" every event, and the City makes more money when business. they do more Dr. Pullen moved to amend the motion that the lease could be changed if the interfere with the building of the operation of the fair were to judicial center. Motion died for lack of a second. Mr. Hartwell expressed his preference that the City Manager negotiate a fair market value 180 day termination clause. and to keep the The Mayor called for the vote on the motion and it failed by a vote of 3 to 4 with Minich in favor, and Holmes, Patterson, Pullen, and Campbell, Tucker, and Hartwell opposed. Mr. Tucker moved to direct the City Manager and the City Attorney to take the action to allow the fairground property to be sold to the Northwest Florida Fair Association. necessary second. Motion died for lack of a Mr. Hartwell moved to direct the City Manager to negotiate a license using the date of June 30, 2008 as the termination, and using the fair market value for the base rent, 20% of except for Fair income, and 5% of Fair gross receipts gross income, and to include a 180 termination clause. Mr. Holmes seconded day no reason motion. Mr. Hartwell explained he wished to maintain oversight with a license, and termination clause is needed as thought the 180 day something may come up that they have no control over. Mr. Holmes agreed with a three year period and the 180 day termination clause. Mr. Minich moved to amend the motion by deleting June 30, 2008 termination date and substituting " three years ~ro~ t~e, dat~ signed." Mr. Patterson seconded amendment. Mr. Tucker expressed his hope that future Council will not carry the debt burden on the backs citizens. of the The Mayor called for the vote on the amendment to the motion and it carrie~, ~ Holmes, Patterson, Campbell, Tucker, Pullen, Hartwell, and Minich in favor. '. ,. , usly with Qanim() Dr. Pullen requested the City Attorney to explain the difference between a license and a lease. The City Attorney explained the difference is the ability to terminate their t- would give them a guaranteed right to use the property, and a lease right. Mr. Holmes agreed the permitting process should go through the City Manager but did not every event that goes on out there needs to be agree that I,... approved by Council, and he would like it Council would not have to approve every event. He noted the motion is to direct the changed so come up with a fair market value and they will give the City Manager to City 200/ 0 of the profit and commented the Fair Association has to make money. He thought the City Manager should be given direction that the enter into a license and see what City will they can negotiate because it will have to come back to Council for approval. final 122 Special Council 11- 21- 06 ABANDONMENT PLAN cont. Mr. Campbell agreed that 200/0 is too high if they use fair market value. He commented if they are to keep the 180 days termination clause that the Fair Association should be going think 180 days is given latitude as he did not enough time. Mr. Minich did not object to asking the Fair Association to pay fair market value but disagreed with the 200/ 0 of the profits. adding The City Attorney explained that the fair market value can be determined by the income lease value, or compensation, and another approach, land way to handle the operation plan is to require a report that is income related rather than activity related. quarterly Mr. Minich moved to amend the motion to delete the 20% of the gross income and 50/ 0 of Fair income. Mr. Tucker seconded motion, and it gross carried unanimously with Holmes, Patterson, Campbell, Tucker, Pullen, Hartwell, and Minich in favor. The Mayor called for the vote on the motion, as amended, to direct the license with the Fair Association to terminate three City Manager to negotiate a years from the date signed, using the fair market value, and to include a 180 day no reason termination clause and it carried with Holmes, Patterson, unanimously Campbell, Tucker, Pullen, Hartwell, and Minich in favor. FAIR ASSOCIATION 2007 OPERATIONS PLAN Consideration of a request to approve the 2007 Operations Plan for the Northwest Florida Fair Association. Mr. Minich moved to table the 2007 Operations Plan. Mr. Tucker seconded motion and it carried unanimously with Holmes, Patterson, Campbell, Tucker, Pullen, Hartwell, and Minich in favor. It was noted that the events for December can be addressed at the next regular Council meeting. ADJOURNMENT The meeting adjourned at 6: 55 p. m. 9-:~;; J. ~ MAYOR: ~ ~