JEKYLL
ISLAND-STATE PARK AUTHORITY
September
13, 2004
The Jekyll Island-State Park Authority met in public session on Monday, September 13, 2004 in Meeting Room 9 at the Jekyll Island Convention Center on Jekyll Island, Georgia. Meeting was called to order by Chairman Williams at 9:35 a.m.
Members Present: Dan Williams, Chairman
Richard Wood, Secretary
Jack Collins
Commissioner Holcomb
Becky Kelly
Tom Lewis
Linda Underwood
Members Absent: Daniel Halpern, Vice Chairman
J.Y. Jones
Steve Scheer
Legal Counsel Present: Alison Spencer, Assistant Attorney General
Staff Present: Bill Donohue, Executive Director
Laura Bonds, Deputy Director/CFO
Warren Murphey, Deputy Director/COO
Cindy McDonald, Executive Assistant
Various members of the public were present, which included Strickland Holloway, Dan Ellis, Lucien DeBacker, Chuck McManus, and C.J. Jeffries.
Chairman Williams welcomed Commissioner Holcomb, Department of Natural Resources.
Mr. Donohue presented a review of the agenda, which included an update and discussion on the following agenda items.
Proposed Amendment to Master Plan: Reviewed the proposed amendments to the Master Plan, process timeline and public notices. Clarification provided on acreage on south end of Jekyll Island with relation to the 35/65 legislative mandate.
Financial Report: Discussed current financial condition and financial management process, noting that staff is making adjustments as necessary. Anticipate being in line with net bottom line by January 2005. Reviewed indicators for fall and spring revenues, which were positive.
Hurricane: Discussed some of the impacts felt by Hurricane Frances stating that three inches of beach were lost on the north end of the island. Distributed pictures of examples of impact.
Projects: Reported on status of various projects in progress.
Holiday Change: Informed of exchange of ‘President’s Day’ for ‘Martin Luther King Jr. Day’ to better align with state recognized holidays, effective Fiscal-Year 2005.
Coastline Study: Reported on interest of Army Corps of Engineers (ACOE) to participate in a study of the coastline. Reviewed funding considerations and scope of work. A general consensus was received to proceed with the understanding that ACOE funds the first $100,000 of the study, with a 50/50 cost sharing for any amount above $100,000.
Follow Up: Pointed out article on page 76 of board report regarding the Atlantic Intracoastal Waterway. Reviewed response letters from Susan Shipman, Director/Department of Natural Resources, Coastal Resources Division and U.S. Congressman Jack Kingston regarding water quality testing. Referencing Ms. Shipman’s letter, stated that additional studies are being conducted. Discussion was held regarding daily testing and notification, funded by JIA as a supplement to existing testing.
Days Inn Rent Dispute: Ms. Bonds and Ms. Spencer reviewed the issue involving Days Inn and the dispute of their rent terms, which included a review of the history of their lease, rent terms, and chronological events surrounding the rent dispute. Discussed legal options. Consensus was voiced for staff and legal counsel to proceed with action necessary to resolve issue.
Huddle House Update: Advised that property was damaged by a large tree limb that fell on building and is currently closed. Litigation continues against former franchisee, Jeannine Kettles by franchisor.
Jekyll Oceanfront Resort: Reviewed issues regarding the absence of the required security deposit. Reported that renovations continue.
Opinion of Attorney General: Ms. Spencer reviewed contents of correspondence regarding conflicts of interest for board members.
FEMA Map: Update on progress with FEMA Map and flood insurance issue. Reviewed two proposals regarding the mapped designation of Jekyll Island.
Meeting Date: Announced final meeting date of 2004 as November 15, 2004 on Jekyll Island.
Public session recessed at 10:50 a.m. on Monday, September 13, 2004.
Public session reconvened at 11:00 a.m. on Monday, September 13, 2004 in Beachside Hall, Convention Center on Jekyll Island.
Chairman Williams called the meeting to order at 11:00 a.m.
A motion was made by Mr. Collins and seconded by Ms. Kelley to approve the September 13, 2004 agenda[1] as presented. Motion passed unanimously.
A motion was made by Mr. Lewis and seconded by Mr. Collins to approve the minutes as presented of the July 12, 2004 Hotel and Legislative Committee meetings, July 12, 2004 Jekyll Island-State Park Authority Board meeting, and the August 4, 2004 meeting of the Hotel Committee. Motion passed, with no objections.
Chairman Williams introduced and welcomed DNR Commissioner Holcomb. Commissioner Holcomb briefly addressed members and audience.
Ms. Bonds reviewed the history and terms of lease renewals with Juliana Germano, lessee of Island House Designs and The Commissary and recommended extension of the existing leases.
A motion was made by Ms. Kelley and seconded by Mr. Collins to approve the renewal of two three-year leases with Juliana Germano, d/b/a The Commissary and Island House Designs. The Commissary[2] lease was renewed under the current lease terms of $376.25 per month as base rental (calculated on 645 square foot building at seven dollars per square foot) plus additional percentage rent of three percent over cumulative gross income of $75,250 per lease year. Island House Designs[3] lease was renewed with lease terms of $7 per square foot based on a formula recalculation for the square footage of retail space for the 2nd floor as base rental, plus additional rent of 3% over cumulative gross income of $240,916 per lease year. Motion passed with all in favor.
Ms. Bonds reviewed that on July 12, 2004 Mr. Strickland Holloway presented a contract between Mr. Holloway and Servico, Inc. (an affiliate of Lodgian) for the purchase of the Holiday Inn with conditions. Ms. Bonds reviewed conditions, which would grant an extension of the terms of the lease for at least an additional 30 years, and a release of seller (Servico, Inc.) and each affiliate from any and all obligations, costs and liabilities under or related to the lease arising from and after the date of closing. Ms. Bonds stated that staff does not support the request as it was not considered to be in the best interest of the Authority.
A motion was made by Mr. Collins and seconded by Ms. Underwood to deny the request to assign lease with Servico, Inc. (an affiliate of Lodgian) to Strickland Holloway. Motion carried unanimously.
Ms. Bonds reviewed the security deposit issue involving Leslie Lurkin of Jekyll Oceanfront Resort, stating a condition of the lease is to provide a security deposit for the property in the amount of one and one-half times the base rent, which has not been provided. Official notice was provided on August 24, 2004 to the lessee to comply with the requirement.
Mr. Collins made a motion, which was seconded by Mr. Lewis to authorize the immediate release of default notice to Leslie Lurkin d/b/a Jekyll Oceanfront Resort for failure to meet the terms of lease by providing a security deposit for the property in the amount of one and one-half times the base rent.
Mr. Donohue reviewed the two parts of the Master Plan documents. The first being a Proposal for Amendments to the Master Plan document, the second document contained professional recommendations and examples of information which support the proposed amendments. Noted the purpose for the item being included on the agenda was to begin a specific process of public notice and hearings with results presented to board prior to a request for action at the November meeting. Mr. Donohue reviewed the amendments that are recommended and include the construction of a Development/Revitalization Plan, Conservation Plan, technical corrections to map and residential lease restructuring. Mr. Donohue referenced page 14 in the board report regarding a summary of procedure.
Following comment from Chairman Williams, Ms. Underwood made a motion to authorize the introduction of the Proposed Amendment to the Master Plan[4] and the procedure outline according to Georgia Code 12-3-294.1 (d), with the proposed amendment to be considered for approval or rejection at the November 15, 2004 meeting of the Jekyll Island-State Park Authority. Ms. Kelley seconded motion. Following comments from Mr. Collins a vote was held. Motion passed unanimously.
Chairman Williams reviewed the offices to be filled for the upcoming year, noting the position of Chairman is appointed by the Governor.
Mr. Lewis made a motion to nominate and elect Richard Wood as Vice-Chairman, J.Y. Jones as Secretary, Cindy McDonald as Assistant Secretary, and Laura J. Bonds as Treasurer for a term of one year or until the next Election of Officers is held. Mr. Collins seconded motion. Motion passed with all in favor.
There being no Old Business to discuss or take action upon, Mr. Donohue was recognized to present the Executive Director’s report.
Mr. Donohue’s update presented information on the overall financial picture, project updates, Huddle House restaurant closure and related litigation, the hiring of a development consultant and a brief review of the scope and goal of the plan, and the JIA’s participation in the recent United Way Day of Caring.
Ms. Hines, Executive Director of the Jekyll Island Foundation was recognized and presented an update on the planned fundraising activities on October 8-10, 2004 and reviewed sponsor list. Stated that goal is to raise $100,000 from this event. Campaign update revealed contributions currently stand at $ 1,750,000 with a target of $ 2,000,000 and a deadline of December 31, 2004. Reviewed various fundraising campaigns and pending grants.
Ms. Bonds was recognized and presented an update on the Coastal Barrier Resource Act advising she had received a copy of the bill to be introduced into Congress to rectify the misclassification of Jekyll Island on the FEMA map for flood insurance purposes.
Mr. Donohue publicly welcomed Commissioner Holcomb and expressed appreciation for the help and support the Jekyll Island Authority continues to receive from the Department of Natural Resources.
Mr. Donohue announced November 15th, 2004 as the meeting date selected for November.
There being no further business to discuss or take action upon, Chairman Williams opened the meeting to Public Comments and referred to the sign-in sheet[5].
Mr. Tise Eyler commented on the bike paths and thanked Mr. Donohue and staff for the fantastic job on this project. On a separate matter, Mr. Eyler expressed concern at the bridge modification plans on the causeway and appealed to the board to review and request a modification to the plans.
Mr. Dan Ellis of Servico, Inc. (affiliate of Lodgian Hotels) spoke regarding the board’s denial of request to assign lease of Holiday Inn to Strickland Holloway. Indicated their interest in pursuing this option. Expressed appreciation to Mr. Donohue for agreeing to meet with him following the board meeting on this matter.
There being no additional public comments, a motion was made by Mr. Lewis and seconded by Mr. Wood to adjourn the meeting of the September 13, 2004 meeting of the Jekyll Island-State Park Authority.
Motion carried, with no objections.
Meeting adjourned at 11:35 a.m.
ATTEST: APPROVED:
____________________ ____________________
William A. Donohue Daniel
L. Williams, Jr.
Executive Director Chairman
Attachments