"S. Dakota airport deal needs revote"

Saturday, March 20, 2004

Airport deal needs revote
By Scott Aust
The Rapid City (SD) Journal


RAPID CITY - The Rapid City Council will need to reconsider a $1.3
million lease-purchase agreement for construction of a building for
federal Transportation Security Administration activities at Rapid City
Regional Airport.

Last Monday, the council approved 6-4 a resolution to proceed with a
lease-purchase agreement for construction of a building that would be
used for TSA offices and a pilot break room.

But city attorney Jason Green sent an e-mail to aldermen Friday morning,
saying that after discussions with bond counsel, he believes the
resolution required seven votes for approval.

"There's a requirement in the statute on lease-purchases that says
something kind of goofy, and essentially what it means is we'll have to
have seven votes," Green said in a phone interview Friday. "So it will
be back on the next legal and finance (committee) agenda."

The state statute authorizing the lease-purchase requires the approval
of more then 60 percent of members of a governing body.

"The reason it has to be more than 60 percent is because it is a
lease-purchase that extends for more than a year," Green said. "Those
are the two requirements that trigger the extra vote."

Alderman Sam Kooiker welcomed the chance for more discussion about the
proposal. Last Monday, Kooiker's request to delay a decision for two
weeks was voted down.

On Friday morning, before it was learned that a new vote would be
necessary, Kooiker and Alderman Rick Kriebel met with Mayor Jim Shaw and
acting airport director Jerry Mitchell in what Kooiker described as a
very productive discussion.

"After meeting with those guys this morning, this sounds like a pretty
good thing. We need for some of the questions to be answered on how this
bond firm and this Minneapolis law firm and the Sioux Falls bank were
selected," Kooiker said.

First National Bank of Sioux Falls is identified as the trustee and
issuer of certificates of participation, Dougherty & Company is the
underwriter and Dorsey & Whitney is bond and disclosure counsel.

Kooiker said that because of those entities' involvement in the
lease-leaseback deal last fall, their inclusion in the airport agreement
raised some red flags with him and others.

However, Kooiker said if questions can be answered, such as the
necessity of the agreement, specific use of the facility and why TSA is
requiring it, he could probably support the deal.

"All I want is transparency in government," Kooiker said. "I never came
out categorically against the deal. I came out against the process. I
hadn't had the questions answered in my mind, and those questions still
need to be answered."


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