Fort Walton Beach Council agenda — 11-14-06 ‎(regular)‎ — reading text

impression they had to put in the alarm or provide fire monitors, and they provide fire monitors at the events. He stated if a long- term agreement is negotiated, he assumed the Fair Association would put in the alarm. Mr. Patterson stated if the City does negotiate a new agreement with the Fair Association that the City did not need to micro- manage the Fairgrounds because they need to run it as a business and the City needs to negotiatethe lease, set up the terms, and get out of the way and let them run the fairgrounds so they can make the income to pay the lease. The Mayor opened the floor for public input. Special Council 10- 25- 06 95 ABANDONMENT PLAN cont. Kim ' Moran, 210 Baker Avenue, city resident and school teacher, described an Art Show that encompasses over 2, 000 pieces of student art work from grades K- 12 that has been held at the airgrounds since 2001. She said they plan a year in advance for the show and at this time the airgrounds is the only place it can be held. She expressed the hope that the City will negotiate a new agreement for the fairgrounds. James Thoreen, 33 Anastasia Drive, city resident, mentioned the Arts & Design Society has had a show during the fair for the past 20 years and expressed disappointment if the fair were not to continue. He encouraged Council to re- negotiate an agreement. Chris Gibson, 249 Brooks Street, city resident, questioned the status of the master plan for the property and commented until there is a master plan the City is getting ahead of itself. She Council wait suggested until it is decided what to do with the property before making a decision to re- negotiate a lease with the fairgrounds. The City Manager explained Council tabled review of the master plan until the process with the fairgrounds was complete. Mr. Minich mentioned the City is also in the process of negotiating with the County on a judicial center at the location. Jean Davis, 507 Circle Drive, non- resident, described their annual Antique Show that has been held on the same date at the Fairgrounds for the past 25 years and stated they cannot find a large enough facility to accommodate their needs. She asked that the City extend the lease with the fairgrounds. Mr. Minich received clarification that option 4 is a request to only extend the current license for a period of time to allow the fairgrounds to honor any existing contracts they have and not to extend the current open, license agreement tq the end of the original term. Mr. Hartwell requested clarification on the time required to allow the Fairgrounds to honor existing contracts. Mr. Charles Rigdon explained a three year agreement was negotiated with the Dog Show in 2005 and the request is to extend until April 2008. Buck Smith, 329 N Beal Parkway, city resident, pleaded with Council to understand the need for the fairgrounds, what it has done in the past, what it will do in the future, and what it has to offer the children of the community. He urged Council to work out an agreement that is reasonable for the City as the fairground serves a need for the community. John Townsend, 512 Lang Road, non- resident, mentioned various events he has been involved with that have been held at the fairgrounds over the years. He described his most recent involvement with the Men' s Barnyard Ministry, a non- denominational Christian outreach program they have held at the fairgrounds monthly for the past five years, and they would like to see it continue. He stated there are no other locations that are as accommodating or meets their needs. Gail Stillwell, 106 Wilder Street, Niceville, President of the Okaloosa Kennel Club, stated they have a certain date for their event every year that is designated by the American Kennel Club and there is no other venue in the area that can accommodate them. She expressed they would like to see the fairgrounds stay as it is, not only for their show but because it is an asset for the community. There was no further public input. Jackie Hart, City Fire Marshall, clarified that the fire alarm system will be required and the fire watch posted are temporary until the fire alarm system is installed. The City Manager commented if Council does make a motion to re- negotiate or enter into a new lease, staff will require specific direction on the terms they believe should be included. 6 Special Council 10- 25- 06 ABANDONMENT PLAN cont. Mr. Minich moved to re- negotiate the lease. Mr. Patterson seconded motion. Mr. Hartwell requested clarification on the date for the 180 days from the date of the final decision by Council to remove all facilities. Mr. Rigdon replied depending on how Council votes, the 180 days would be from tonight or from the July 14th notice date. He said if Council extends the agreement to allow them to fulfill their contracts, they ask for 180 days from that last date of the final event to vacate. Mr. Minich expressed his thoughts that the City should re- negotiate the lease, that the City made a mistake, and that the facility has a lot of use and is a benefit to the community. He would like the City to re- negotiate the lease with the City to still own the property, and work out a price and a lease that would work for both parties, and not make it so restrictive to restrict their business but to encourage their business. He commented if they can move forward to have both the judicial center and the fairgrounds at the location there will be an excellent facility that meets the needs of the County, the fairgrounds, and have a site for emergency purposes. Mr. Patterson agreed and added he has been approached by a number of people and not one person wants to see the fairgrounds go away. He commented if an agreement can be worked out it would benefit the community because it is a place that is affordable for events to be held. Mr. Tucker voiced his opposition to the city owning and leasing the property. He expressed his desire to sell the property and let it become an asset for the Fair Association. Mr. Minich questioned whether the City can sell the property and the process involved. The City Manager explained there are specific procedures in the City Code that must be followed in order to sell the property. Mr. Tucker further expressed his position that he would like to see the fairgrounds stay but not for the city to own it and lease it to the Fair Association because there are problems when the City leases out property . Mr. Minich disagreed and mentioned the City leases out other property with no problems. He further mentioned that the Air Force Base wants a buffer and have declared that property is a good buffer. He believed it should be a lease with the fairgrounds and not a license. The City Attorney referenced the motion made and seconded to re- negotiate the lease, and the first option from the Fair Association with the request to re- negotiate and renew their current lease. She noted it is not a lease, it has been a license agreement, and there is a distinct legal difference in a license and a lease. She said when the City initially entered the agreement it was handled as a license which meant that the City did have very significant oversight, more so than they would in a lease; it was also conditioned on the fact that it was a public entity and they were there for public purpose; and it was below the fair market value of the lease price. She said the motion is to bump it up to fair market value with a lease. She said in her opinion that will convolute the issue because the Fair Association has very specific requirements on what they are allowed to do as an Association, they are allowed to do other money making events and occasions; but Council is looking at a combined lease and trying to deal with a valuation of the total programs. She said a lease will change the nature of the document in place now. Mr. Minich commented the City has several leases and wished to know if they are all at fair market value. The City Attorney answered they are all below fair market value because the decision has been made they are a public purpose lease. Mr. Minich questioned if the operations of the Fair would be a public purpose. The City Attorney believed it is a combined purpose as they have very commercial purposes that are clearly not within the Statute regarding the Fair Association, and they have other activities that are clearly within the public purpose. Mr. Minich received clarification that the combined purpose and the oversight would be a consideration when a price is established. Special Council 10- 25- 06 97 ABANDONMENT PLAN cant. The Mayor wished to know if a lease could be worked out for the fairgrounds. The City Attorney answered it did not have to be a license. She said if they are going into a fair market value lease, it puts he City into a different realm. Mr. Minich remarked the fairgrounds has as much public use as other leases the City has, and because of the combined use of the property by the Fair Association that it should be taken into consideration in negotiating the cost for the lease; however, it should not be the fair market value because they provide a lot to the public. The Mayor clarified that the motion is to negotiate a lease with the Northwest Florida Fair Association. Mr. Minich further commented the oversight given before is not needed. Mr. Tucker wished to know why Mr. Minich objected to selling the property to the Fair Association. Mr. Minich commented he thinks the lease is the best way to go and thought they could arrive at a good price for the lease and when the lease is ended, it is still the City' s property. The Mayor called for the vote on the motion and it failed by a vote of 2 to 4 with Patterson and Minich in favor and Holmes, Campbell, Tucker, and Hartwell opposed ( Pullen absent). Discussion began on the second option proposed by the Fair Association: 2) Request that the City establish a price and offer to sell the property