After watching tonight's City Council meeting, there are indeed things that need to be done outside the public view, like these negotiations with MassPort. Getting basic updates as to the general progress letting us know when to expect the final deal is enough. Airing specific details of the negotiations in public will only hurt the underlying negotiations. The progress of these negotiations, however, should be part of the Airport Board Minutes under an Executive Session.
My only point was that we should have been doing an RFP for the entire airport the past three years . Maybe a National Express would have wanted ORH?
At this point, it is too late and we need to get the best possible deal with MassPort for the tax-payers. I look forward to hearing the final results of the current negotiations.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
5 months ago
2 comments:
Well Lookee here, the city is finally disclosing what the Billmeister has been preaching for years...
http://www.telegram.com/apps/pbcs.dll/article?AID=/20070314/NEWS/703140662/1116
Mar 14, 2007
Worcester airport for sale?
Talks under way with Port Authority
By Nick Kotsopoulos TELEGRAM & GAZETTE STAFF
nkotsopoulos@telegram.com
WORCESTER— The city’s days in the airport business may be numbered.
Faced with a projected $21 million budget shortfall for the fiscal year that begins July 1, City Manager Michael V. O’Brien has repeatedly said “everything is on the table” when it comes to finding ways to close that budget gap. One thing believed to be on the table is the future of Worcester Regional Airport.
Mr. O’Brien told the City Council last night that he is involved in active negotiations with the Massachusetts Port Authority about the future of the airport. While he would not elaborate on the nature of those discussions, it appears one of the options being discussed is selling or leasing the facility.
According to council sources, the manager has met privately with city councilors during the past week, briefing them about the discussions with Massport and about having it possibly lease or buy the airport.
Mr. O’Brien said he does not want to publicly discuss the nature of the talks with Massport because he believes that is better left to the negotiating table.
“I don’t want to create a mindset that we are simply looking to unload assets,” Mr. O’Brien said. “Worcester Regional Airport is a tremendous asset, though it is underutilized. We have had a great partner with Massport, which has put tens of millions of dollars into the airport, and I believe it agrees with me that the future of the airport is quite bright.
“I have great faith in Massport,” he added. “It is an industry giant and understands the (airport) business. Our negotiations are ongoing, but I feel the details of those talks are best left at the bargaining table.”
While the city owns the airport, Massport has run it for several years under an operating agreement with the local government. Currently, Massport picks up the tab for 67 percent of the airport’s operating deficit, while the city covers the remaining 33 percent.
But because the under-used airport has been a financial drain for local taxpayers — the city will have to kick in about $1.8 million this fiscal year to offset the airport’s operating deficit — some city councilors are looking for the city to get out of the airport business.
“The airport has been a costly enterprise for the city of Worcester, and I don’t know if we can continue to afford paying those airport bills, given the budget challenges we are facing,” said Councilor-at-Large Gary Rosen. “I hope we are looking at something different for the airport, whether it be leasing it to an authority or management company, or even selling it to them.
“We need to do something to stop the bleeding of $1.8 million that is going on at the airport,” he added. “We need that money for other purposes. I’m not saying that we should close down the airport, but we need to look into getting out of the airport business. Other authorities or companies can manage the airport without our involvement.”
When asked if the negotiations with Massport involve merely an extension of the current management agreement it has with the city, the manager hinted that change is in the wind.
“I believe it is time for us to look at our core mission and what the expectations are of the city government,” Mr. O’Brien said. “Everything is on the table and will be evaluated. I am involved in active, good-faith negotiations with Massport and we are working together regarding the airport’s future.
“I expect great results from these negotiations,” he added. “There won’t be more of the same (at the airport). People should not expect the same because of the creative, entrepreneurial thinking that is going into these talks. This is something that has got to be done thoughtfully.” Mr. O’Brien said.
Several of his colleagues chided Mr. Rosen for pressing the city manager on the airport issue, having known what the manager’s plans are. They contend that such public discussions, in light of the city’s financial situation, could put it in a weakened negotiating position with Massport.
District 5 Councilor Frederick C. Rushton said he was disappointed that Mr. Rosen would attempt to “hijack” the negotiations from the council floor.
“We need to stick together and keep the public’s interest at heart,” Mr. Rushton said. “We need to make sure we are in a position to get the best deal possible. It is important for us to trust the city manager on this, especially given the information he has already provided on the airport.”
District 3 Councilor Paul P. Clancy Jr. agreed that the matter was best left to the city manager.
“There is a significant amount of acreage that we own at the airport and negotiations are the best way to deal with these assets,” Mr. Clancy said. “These are tremendous assets and we certainly don’t want to give them away. We would be giving short-shrift to the taxpayers if we did that. I’m optimistic we can come out of this airport issue as a winner, but we’ve got to give latitude to the city manager to get the deal done.”
Harry Tembenis
Worcester,MA
Harry:
Thanks.. By the way did you catch the headline today "Airport For Sale". We should have had this nationwide the last three years trying to get the best results possible for the tax-payers.
Bill
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