The Smithville Mayor and Aldermen met briefly Monday night at city hall.
Mayor Taft Hendrixson gave a report on sales tax and property tax collections. "Over the last three months they (sales tax collections) have declined by about $20,000 for three months, which is not as bad as it is some places. But the way the trend is going, it will probably be more than that."
"As of today (Monday), we've collected about 90% of property taxes (for the year). There's about a 10% delinquency today which is fairly good for property tax collections. I think there's probably one or two of the larger ones that will come in within a day or two and that will cut it (delinquency) way on down."
Secretary-Treasurer Hunter Hendrixson updated the aldermen on a new lease agreement with a tenant at the airport, who is renting a hangar and office space. "We've had a guy come in. He's out of New Mexico but he lives here in Smithville now and he's contracted with Averit Express, but he has some private planes. He is going to rent the airport hangar, the 8,000 square foot facility along with some office space for $500 per month, which is what we gave (agreement) to our last tenant. If they get enough people interested, they are thinking about offering a flight school. I believe they will be a good asset to the city and to the airport. They just started during the month of March, leasing out the airport for one year, and then we will go from there."
The city's agreement is with Phil D'Alfessio, President of D'Alessio Enterprizes, Inc.
D'Alessio will be leasing an 8,000 square foot hangar and a 20 x 39 foot office area at the airport at $500 per month beginning March 1st, 2009 for twelve months. D'Alessio will use the property for the storage of his aircraft and may, with written approval of the city by the Secretary–Treasurer, sublease a portion of the hangar for aircrafts other than those owned by D'Alessio.
According to the lease agreement, "D'Alessio shall be responsible for his own natural gas and any fees related to hookup of services. It is further understood and agreed that D'Alessio shall pay the city 20% of the monthly electric bill for the hangar and adjoining office space during the terms of this lease. D'Alessio may use an oil burning heater located inside the hangar, but all maintenance and service including fuel or repairs shall be the sole responsibility of D'Alessio. The city shall be responsible for providing water to the facility."
"The city shall be responsible for any major structural repairs to the exterior or interior. D'Alessio shall be responsible for the general maintenance of the lease property and to keep it clean during the terms of this lease."
"D'Alessio shall obtain and maintain a liability insurance policy in the minimum amount of one million dollars. Such policy shall name the city and the Smithville Municipal Airport, their officers, agents, employees, and assigns as additional insureds to the full extent of D'Alessio's insurance coverage. Such insurance shall include contractural liability insurance to insure D'Alessio's obligation to indemnify and hold the city, its agent and its employees harmless. Further, insurance shall include coverage for any aircraft present upon the premises by virtue of any sublease entered into by D'Alessio and any other party."
Either party may terminate the lease by giving sixty days written notice with or without cause.
(Click here to listen to the March 2nd Smithville City Council Meeting http://www.wjle.com/node/6973)