Staff recommends authorization for staff to submit a Proposal to the Chief Executive Officer of Aerostat, Inc., setting forth certain changes which the City would like to make to the terms of the company’s existing hanger leases for 8703 Airport Blvd. and 8830 Airport Blvd. at the Leesburg International Airport.
City staff would like to make it possible for a FAA-certified Airframe and Powerplant Program to be established at the Leesburg International Airport. Such a program is considered an essential component of the City’s aviation and aerospace workforce development initiative, which was identified by Embry-Riddle Aeronautical University as being one of eight Critical Success Factors impacting the future success of LEAP. In cooperation with the Lake Tech, City staff has been researching the various resources (staffing, equipment & facilities) which would be needed in order to establish an A&P Program at Leesburg International Airport. Finding a suitable location with vacant hanger space to house the A&P Program appears to be the greatest challenge the City faces at this time.
Mr. Lewis Puckett, CEO of Aerostat, Inc., the company which currently holds the lease on the hanger located at 8703 Airport Blvd until September 30, 2025 has indicated to Airport Management that he is willing to assist the City in its endeavor to find a home for an A&P Program by renegotiating his current lease on 8703 Airport Blvd. down to five years, with a 6-month “Notice to Vacate” stipulation included for the City’s benefit. The hanger that is located at 8703 Airport Blvd. is equipped for use as an aircraft maintenance facility, and has in fact been used for this purpose in the past. Staff believes that regardless of whether this hanger is used for an A&P lab or some other educational purpose connected with LEAP, obtaining management of the building and its associated property provides the City with additional flexibility in terms of the future development of the Airport. The property could be combined with other nearby hangers and adjoining property to create space for a major aviation company, such as an airplane manufacturer or a Maintenance, Repair and Overhaul (MRO) operation, or utilized in some other manner for an economic development project.
As outlined in the attached Proposal, the lease of the hanger located at 8830 Airport Blvd., which presently serves as the primary manufacturing facility for Mr. Puckett’s company, Aerostat, Inc., would be amended to stipulate an annual rent of ten-dollars ($10.00) for the remaining portion of the current lease, which expires March 10, 2026. This revised rental fee would also be applied to an existing five year extension, as well as a second five year extension that is to be included in the amended lease agreement. In return for these and certain other financial considerations noted in the Proposal, Mr. Puckett is willing to accept the lease modifications noted previously for the hanger and associated property located at 8703 Airport Blvd.
1. Approve the Proposal prepared by City staff and authorize that it be submitted to the Lessee of 8703 and 8830 Airport Blvd. Following acceptance by the Lessee, the appropriate Lease Amendments will be prepared by the City Attorney and submitted for Commission approval.
2. Direct staff to modify the Proposal in whatever manner the Commission may decide is in the best interests of the City.
3. Such alternative action as the Commission may deem appropriate
The fiscal impact to the City would be limited to a reduction in rent revenue for the hangers located at 8703 Airport Blvd. and 8830 Airport Blvd., plus the cost of “buying out” the remaining portion of the lease on 8703 Airport Blvd. (at the current, unrevised monthly rent amount) if undertaken sometime during the five-year term of the revised lease.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. ____JB___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-0000-362-0200__
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A PROPOSAL TO THE CURRENT LESSEE OF THE HANGERS LOCATED AT 8703 AIRPORT BLVD. AND 8830 AIRPORT BLVD., LEESBURG INTERNATIONAL AIRPORT, SETTING FORTH CERTAIN CHANGES TO THE TERMS OF THE EXISTING LEASES FOR THESE HANGERS AND THEIR ASSOCIATED PROPERTIES; PROVIDING AN EFFECTIVE DATE
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the City Manager or his designee is hereby authorized to submit the attached Proposal to Aerostat, Inc., whose mailing address is 8830 Airport Blvd., Leesburg, Florida, 34788 setting forth certain changes to the terms of the existing leases which said company holds for the hangers and associated properties that are located at 8703 Airport Blvd. and 8830 Airport Blvd.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __8th___ day of August 2011.