MBS INTERNATIONAL AIRPORT COMMISSION

June 1, 2007

MINUTES

The special meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623. Secretary Eugene Gwizdala called the meeting to order at 1:02 p.m. Roll was called by Debbie Meisel.

COMMISSIONERS

Present Absent & Excused Staff Other

Patrick H. Beson George J. Biltz Jeff Nagel Kurt Welsh, Dow Corning

Kenneth W. Distler (1:10) Hollis H. McKeag A. T. Lippert Jarrod Erpelding, Dow Corning

Darnell Earley Debbie Meisel Marty Willett, Dow Corning

Brian K. Elder (1:05) Rich Bostwick, NWA

Eugene F. Gwizdala

Wilmer Jones-Ham

Jon Lynch

PLEDGE OF ALLEGIANCE

PUBLIC COMMENT: None

DOW CORNING LEASE: Mr. Nagel stated that Dow Corning currently leases Hangar #4 from MBS and they have indicated their desire to build their own hangar. A ground lease has been negotiated for a location west of Avflight. This location works well as it is adjacent to the new general aviation taxiway planned for construction this summer.

The entire lease was included in the packet for the board’s review. Some of the highlights are:

· The term is 20 years with four five-year options.

· The lease rates are split into three areas:

- Hangar site $.61 per square foot

- Parking site $.20 per square foot

- Service ramp $.30 per square foot

- These rates are consistent with The Dow Chemical ground lease which is required to be in compliance with our FAA Grant Assurances.

· The lease should generate approximately $55,000 of additional revenue per year.

· Dow Corning will continue to occupy Hangar #4 throughout construction.

· MBS would pay to bring utilities to the lease line at a cost not to exceed $45,500. This is common for airport developments and will assist with any future hangar projects in the same area.

Mr. Nagel discussed this proposal with both the Operations Committee and the Finance Committee and both agreed that this development would be an asset to MBS. Both committees provided input on the lease terms and conditions. The Operations Committee asked Mr. Nagel to have the completed lease reviewed by an outside attorney. The letter of review was included in the packet for the board’s review. Bob Peckham also reviewed the site plan submitted by Dow Corning.

Mr. Nagel thanked the representatives from Dow Corning for their time and efforts with this process. After brief discussion, Mr. Beson made a motion to approve and authorize the Chairman to sign a ground lease for Dow Corning for the purpose of constructing a hangar, parking area, and service ramp. Ms. Jones-Ham seconded. Mr. Gwizdala asked for a roll call vote. Ms. Meisel called roll; Patrick Beson, yes; George Biltz, absent; Kenneth Distler, yes; Darnell Earley, yes; Brian Elder, yes; Eugene Gwizdala, yes; Wilmer Jones-Ham, yes; Jon Lynch, yes; Hollis McKeag, absent. Motion carried.

ADJOURNMENT: There being no further business, Mr. Beson made a motion to adjourn. Mr. Elder seconded and the Board unanimously passed the motion. The meeting adjourned at 1:22 p.m.

Eugene F. Gwizdala, Secretary