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9/2/16

Chennault wants to amend Mallard Cove agreement

A committee on Thursday moved to recommend that the Chennault International Airport Authority enter into an amended memorandum of understanding with the city on expansion plans at the site of Mallard Cove Golf Course.

Last October, Chennault entered into an MOA with the city in which the city agreed to incorporate the golf course land into Chennault’s 99-year lease if the airport built a replacement course at no cost to the city.

Chennault officials said in the original MOA they would build a $257 million facility and additional aircraft hangars on the site of Mallard Cove.

But Chennault has struggled to find an acceptable replacement location. Board Vice President Jonald Walker addressed this issue during Thursday’s meeting, saying a replacement golf course “doesn’t seem to be a viable option, at least at this time.”

Executive Director Randy Robb later said representatives are looking into two sites that look “really good” for a replacement course, but that the decision on whether to replace the course is still up in the air.

Robb said that in the meantime the amended MOA — if approved — would give Chennault the option to buy the course instead of having it incorporated into the lease.

It would allow Chennault to appraise the area, present a sales price to the city for approval and then be granted “the exclusive right to purchase” that area for a period of two years. Robb said this would also “help reduce the interference from outside sources” and enable developers to deal directly with Chennault.

Walker said that while talks continue regarding a replacement golf course, city and airport representatives have been looking for “alternative ways to make this deal happen” and that the amended MOA is a result of those talks.

But Walker said replacing the course is still not off the table and that the city “may still require some alternative golf course.”

“That is still an item that the city really wants to make sure is considered,” Walker said. “But they understand that we’ve had challenges in making that happen. ... This allows us to get the appraisal done at our cost, present it to the committee and then have some discussions about how we’re going to move forward.”

Robb said the amended MOA hasn’t yet been presented to the city. He said the city might change some wording but that he expects it to be “smoothed out by next meeting.”

City Administrator John Cardone said he was not aware of the amended proposal, but that the city planned to entertain any proposal on Mallard Cove made by Chennault and to continue talks with the airport regarding the future of the course.

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