Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Airport Ski Club Lease topic
No spam. Unsubscribe anytime.
Palatka staff says ski club lease at Haylock airport valid but needs rent review under FAA rules
Summary
City staff told commissioners the Ski Club lease predates current FAA guidance and is valid through its term, but a consultant and staff advised adjusting rent to fair‑market value to avoid revenue‑diversion concerns; no lease termination or immediate eviction was ordered.
The Palatka City Commission heard July 24 that the Palatka Ski Club’s longstanding lease at the Haylock Airport parcel dates back decades and remains valid, but that the city must address fair‑market compensation under FAA guidance before issuing any new lease.
Ski Club board member Alex Sharp told the commission the club has occupied the parcel since 1961 and has invested in the property. “We have no problem. ... We would respectfully ask the city to allow our current lease to run out, and we would be happy to sit down and renegotiate another price,” Sharp said.
Why it matters: Federal Aviation Administration rules require fair market return on airport property leases. A city consultant identified the ski club’s rent as below market and flagged “revenue diversion” as the core compliance issue; staff recommended the city pursue a market rent approach rather than immediate eviction.
Staff and consultant findings
The city’s lease assessment consultant and city manager reported the ski club’s arrangement was historically permitted but that current FAA expectations call for fair‑market rent on new or renewed leases. Staff calculated an illustrative rent figure — about $1,333 per month — based on the city’s approach described at the meeting (2% of fair‑market land value), but the manager said the city would not seek to collect the full retroactive amount from the club.
Legal and operational context
The city manager said documents on file show prior FAA correspondence and a 1986 FAA letter approving the ski club’s past use; the lease was paid in full in February 2009 and the club said it has insurance on file. Staff recommended meeting with legal counsel and the club to negotiate a reasonable rental progression and to avoid immediate legal exposure. The manager emphasized that the primary FAA concern is fair market return, not safety, noting consultant findings did not identify operational safety problems with the ski club’s activities.
Next steps
Commissioners asked staff to verify older paperwork, confirm the lease signatories and notarization, and negotiate a path forward with the ski club that respects FAA guidance while recognizing the club’s long presence and public‑interest uses. The city manager said staff will consult the city attorney and bring a recommendation back; no formal change to the club’s current lease term was ordered at the meeting.
Ending
The commission left the ski club in place under its existing agreement for now while staff pursues verification and rent‑setting steps consistent with FAA expectations. The discussion signals the city’s intention to reconcile historical agreements with current federal airport‑leasing rules before any new or renewed lease is finalized.
