Finance Committee Page 5
December 21, 2016
Alderman Siegel
Whether or not we extend the lease we don’t get authority over the airport just by denying the extension of the
lease or not. All that would happen is that we would put at risk capital improvements. Everybody that wants to
build on a piece of land, if they want to get a bank loan they want to know that the land isn’t going anywhere
and we have seen a specific instance of that. As far as how the existing sub-leases are handled, that’s the
purview of the Airport Authority.
Alderman McCarthy
The Airport Authority was created by the state legislature in a set of acts that are attached to the end of the
Charter which give the Airport Authority the ability to lease property for an airport and to sub-lease property on
the airport.
Alderman Schoneman
The amount of money that is invested into some of those hangars is quite substantial and the longer the term |
think the more conducive it is to someone coming in and investing a large amount of money. The term of a
lease and what happens at the end of it are factors that weigh very heavily on someone’s decision to invest
and | think that if we were to do this until 12/31/2115 we will be giving the airport as much freedom as we can
in order to attract business investments in Nashua.
Alderman Siegel
The one concern that | do have is noted in the analysis, it’s about the types of leases that we are signing.
Twenty years with a 20 year option. | would suggest that, while not germane to this legislation; that the Airport
Authority be cognizant of the fact that the world changes a lot in 20 years. | hope that it’s fiscally prudently
managed because I’ve heard tails that the amount we are actually getting is minimal and then the chargebacks
are fairly substantial. There is a large gap between what we are charging the lease holders and what they are
charging for their sublets. That may or may not be true but just be aware of that.
Alderman Schoneman
We are aware of that and | think that the Airport Authority changes membership periodically and it’s a five
person Board and | think there is a greater sense now of looking to the future and making sure that we are
doing the right thing. We have some business minded people on the authority and we are looking at a
strategic plan and a new master plan.
MOTION CARRIED
MOTION BY ALDERMAN SIEGEL TO RECOMMEND FINAL PASSAGE AS AMENDED
MOTION CARRED
NEW BUSINESS — ORDINANCE — None
DISCUSSION
RECORD OF EXPENDITURES
MOTION BY ALDERMAN SIEGEL THAT THE FINANCE COMMITTEE HAS COMPLIED WITH THE CITY
CHARTER AND ORDINANCES PERTAINING TO THE RECORD OF EXPENDITURESFOR THE PERIOD
DECEMBER 2, 2016, TO DECEMBER 15, 2016
MOTION CARRIED
