Loading...
HomeMy WebLinkAboutMinutes - City Council - 10/27/1986CITY COUNCIL (SPECIAL MEETING) MONDAY, OCTOBER 27, 1986 The South Burlington City Council held a Special Meeting on Monday, October 27, 1986 at 7:30 PM, in the City Hall Conference Room, 575 Dorset Street. Members Present Paul Farrar, Chairman; Michael Flaherty, George Mona, Molly Lambert. Others Present William Szymanski, City Manager; James Goddette, Fire Chief; Wendy Schroeder, Business Manager; Betty Merrill, Secretary; Ruth Poger, Other Paper; Vi Luginbuhl; Cathy Peacock, William Shearer, Howard Perkett, Water Commissioners. Review and Approve the Airport Tax Stabilization Agreement City Manager Szymanski passed out copies of the Airport Tax Stabilization Agreement to the Council Members. Ms. Lambert then moved to waive the reading of the document and Mr. Mona seconded and the motion passed unanimously. Mr. Flaherty then moved to sign the Agreement as presented, seconded by Molly Lambert and the motion passed unanimously. (Copy attached to these Minutes). Review South Burlington Water Department plans for their New Facility The Water Commissioners presented the latest Water Department new facility plans. Chairwoman Cathy Peacock said that Fire Chief Goddette was concerned with the traffic circulization, however, he feels that it can be worked out and Cathy said that they would work together. The Council favors a loop-road around the buildings, escrow for landscaping and a lease agreement for the City land will be prepared. Mr. Flaherty motioned to adjourn the meeting at 8:00 P.M., seconded by Molly Lambert, all were in favor. Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. TAX STABILIZATION ACAl?EHENT iC, AGREEMENT made this d - ,/ day of (q. (%.(; *-. , 1986 by and between the City of South Burlington, a Vermont municipal corporation situated in chittenden County and the City of Burlington, a Vermont municipal corporation situated in Chittenden County. WHEREAS, the City of Burlington owns certain property in the City of South hrlington which is principally used for the operation of a public airport and is commonly known as the Burlington International Airport, and WHEREAS, the City of South Burlington, through its Department of Assessment, has determined the value of such property in accordance with applicable statutes and law at a value of $8,773,725.00, and WHEREAS, the City of Burlington disagrees that $8,773,725.00 is a fair and reasonable valuation of its property at the Burlington Inter- national Airport and has appealed such valuation to the Chittenden Superior Court, and WHEREAS, the City of South Burlington recognizes the contribution of the Burlington International Airport to the economy of Chittenden County and the State of Vermont, and its convenience to the citizens thereof, and .. WHEREAS, the City of Burlington recognizes that the airport utilizes a significant land area within the City of South Burlington and for this reason haa a aignificant impact on tax revenues in South Burlington, . . and WIIEREAS, the City of linrlington and the City of South Uurli~l~ton are both agreeable to stabilizing the amount of taxes payable on the Burlington International Airport so that both parties may from year to year, during the term oE thifi Agreement avoid uncertnlnty as to the taxes to be paid on the Burlington InternatLonal Airport; NOW, THEREFORE, it is hereby agreed as follows: 1. Description of Taxable Property: This Tax Stabilization Agree- ment shall apply to all land and improvements owned by the City of Burlington located in the City of South Burlington and used by the City of Burlington, the State of Vermont, or the United States Government for purposes of ~roviding air transportation services at the Burlington International Airport as set forth in the inventory attached hereto as Exhibit A which consists of two pages (hereinafter referred to as 1, Tax Stabilized Property"). Property owned by the City of Burlington which is set forth on the inventory attached hereto as Exhibit B shall not be subject to this Tax Stabilization Agreement and shall be taxed at its Fair market value in accordance with Vermont law. 2. Taxation: During the term of this Agreement, the following schedule shall be the taxes due and payable on the land and buildings described in Exhibit A: TAX YEAR TAXES 3. Alteration in Property Ownership and Use: A. Any property listed in Exhibits A or B of this Agreement which, as o€ April 1 of any year during the term of this agreement, shall not be owned by the City of Burlington, shall be taxable to the owner (I thereof for such year in accordance with applicable provisions of Vermont law. 0. Any property listed in Exhibit A which, as of April 1 of any year during the term of this agreement, shall be used entirely or in substantial part by any person or entity other than the City of Burlington. State of Vermont, or United States Government, shall, for such year, be taxable in the same manner as the property listed in Exhibit B. 4. After Acquired Property: Property acquired by the City of Burlington for use in connection with the Burlington International Airport after the date of this Agreement shall not be subject to the terms and conditions of this Agreement. Said property shall be valued and taxed in accordance with applicable provisions of Vermont lav. Improvements constructed at the Burlington International Airport after the date of this Agreement shall be taxed at full fair market value except that, improvements which on April 1 of any year during the term of this Agreement are owned by the City of Burlington and used by the City of Burlington, State of Vermont or the United States Government for airport purposes shall not be taxed for such year. Any dispute regarding the taxahility of such improvements shall be subject to arbi- tration in accordance with thc provisions of Section 7 below. 5. Term of Agreement: This ~grecment sl~all rcmain in effect for a term of ten years commencing April 1. 1985 and ending March 31, 1995 unless terminated earlier pursuant to Section 6 below. 6. Termlnation: Subject to the arbitration provisions in paragraph 7 below, this Agreement may be terminated by the City of South Burlington upon thirty (30) days written notice to the City of Burlington upon the occurrence of any of the following: A. The City of Burlington receives a cash payment or contribution in any amount from the the Burlington International Airport from revenues derived from Tax Stabilized Property for any purpose other than reimbureement for the reasonable value of services actually provided the Burlington International Airport by the City of Burlington. However, if federal law should subsequently change to allow cash payment or contributions other than those above specified to be made, and Burlington determines to make such a payment or contribution from the revenues received from a certain portion of the Tax Stabilized Property, this Agreement shall not be subject to termination if the following steps are taken: 1. Burlington gives advance notice to South Burlington of its intent to make a payment or contribution from the revenues derived from a portion of the Tax Stabilized Property; and 2. Bur,lington insures that all expenses associated with the operation of such property are, properly allocated to such property; and 3. Burlington and South Burlington agree that such property shall be changed From Tax Stabilized Property to property assessed and taxed on the basis of.1~~ full fair market value on a pro rata basis for the balance of the then current tax year and continuing For the eneuing tax years. 4. If Burlington and South Burlington arc unable to agree as to the fair market value of such property such value shall be determined by arbitration pursuant to Paragraph 7 rather than through the utilization of any other procedure. Subsections 1 through 4 above notwithstanding, South Burlington may terminate this Agreement if Rurlington receives a contribution or payment beyond the reasonable value of services which is attribu- table to revenues derived from the Tax Stabilized Property in its entirety rather than a distinct portion of such property. B. Burlington International Airport or a substantial portion of the land and improvements located at the Burlington International Airport is sold to any individual or entity except the State of Vermont or a regional airport authority created by the General Assembly of Vermont. C. Burlington International Airport or a substantial portion of the land and improvements located at the Burlington International Airport is leased to any individual or entity For a term exceeding ten years except that this condition shall not apply to Fixed based operations and concessionaire agreements entered into to support routine airport operation. Provided, termination under this subsection shall not be authorized if Burlington shall advise South Burlingeon in advance oE a proposed lease which would otherwise entitle South Burlington to terminate this Agreement and if Burlington shall further agree to have such property thereafter taxed according to its full fair market valbe. If this Agrecmcnt is terminated for any reason provided above, the City of South Uurlington may recover from the City of Burlington the taxes which would have been due and ~ayable by the City of Burlington based on a property valuation of $8,773,725.00 together with accrued interest. 7. Arbitracion: Prior to termination of this Agreement as provided in paragraph 6 above, the City of South Burlington shall provide the City of Burlington written notice of intent to terminate with the reason for such termination. The City of Burlington shall have fifteen (15) days From the date such notice is Piled with the Burlington City Clerk to request that such termination be submitted to arbitration by Piling a written request for arbitration with the South Burlington City Clerk. If the City of Burlington requests that the matter be submitted to arbitration, the parties shall diligently pursue arbitration in accord- ance with the provisions of 12 V.S.A. Chapter 192. If the City of South Burlington shall be found to have just cause to terminate the Agreement, the City of Burlington shall be granted seven days in which to cure or remedy the circumstances justifying termination. If the City of Burlington shall fail to cure within seven days, the City of South Burlington may terminate the Agreement in accordance with the provisions of paragraph 6 above. 8. Representgtion on Burlington Airport Commission: During the term of this Agreement, the City of Builington shall take no action to amend Section 276 of its Charter which provides for the City of South Burlington to have one (I) voting member on the Board of Airport Commissioners of the City of Burlington. (. .J ,- Dated at South Burlington this &'day of k &+, 1986. CITY OF SOUTH BURLINCTON Francis X. Murray ',. z4 On this G? 7 day of October, 1986, personally appeared Paul A. Farrar, Michael D. Flaherty, George J. Mona, Francis X. Murray and Molly Lambert. signers and sealers of the foregoing instrument and acknowledged the same to be their Free act and deed and the free act and deed of the City of South Burlington. Dated at Br~rlington. Vcrmont this 5' -day of (- , 1986. - CITY OF BURLINGTON Bernard Sanders, Mayor Duly Authorized Official i On this ktay of October, 1986, personally pea Bernard Sanders. signer and sealer of the foregoing instrument and acknowledges the same to be his free act and deed and the free act and deed of the City of Burlington. EXHIBIT A 1. 405 acres of land (acquired prior CO 1972). 2. 130.2 acre. of land (acquired purauanc to 5 V.S.A. Chapter 7 prior to 1972). 3. 6.3 acree of land (Iota adjolnlng alrport acqulred prior to 1972--see Schedule 4 attached). 4. 1.8 acrea of land (lote adjolnlng airport acquired 1972-1973-- aee Schedule 0 attuchecd). 5. 4.1 acrea of land (lots adjolnlng airport acquired in 1982--#ee Schedule C attached). 6. 152.1 acree of land (acquired in 1953). 7. Bullding No. 1--Main Terminal. 8. Building NO. 6--Vermont Air National Guard building. 9. Bullding No. 11--Building 890. 10. Bullding No. 15--Malntensnce Center. 11. Building No. 7--Vermont Air National Guard. 12. Building No. 18--Radar Tower. 61 Dawn Court 1004 Airporc 1224 Airporr Airoort Circl Oriva Drlve t e 1198 Airporc Drive 1826 Williaton Road Thompeon Court 14 Thompmon Court 23 Thompson Court 21 Thompson Court 12 Thonpeon Court - 15 Thompson Court 16 Thompson Court 18 Thornpaon Court 15 Airport Circle 1164 Airport Drive 1170 Alrport Drive 1180 Alrport Drive 1190 Alrport Drive - TOTAL 273.611 - 6.3 acrc SCHEDULE TOTAL 10,791 eq. ft. 9,810 6.540 10.104 8,910 8.745 14,388 10.090 1232 Airport Drive 132 x 330 43,560 sq. ft. 1250 Airport Drive 152 x 449 x 430 x 152 66.880 1256 Airport Drive 41 x 303 x B 41 x 308 12,546 1268 Airport Drive 11;l r 328 x 310 x 110 35.409 43 Darn Court 78 x 150 11.700 49 Darn Court -- 55 5 LSQ - 8.250 TOTAL 178,345 - 4.1 act EXHIBIT B BulLdCng No. 3--KelLogg Hanger. Buildlng No. 4. Buildlng No. 9. Bullding No. 10--Hanger No. 1. Building No. 12--Bullding 880. Buildlng No. 13. Building No. 14--Bullding 865. Building No. 16--Alert Hanger.