Item No: 4.C.5.

Meeting Date: July 9, 2012

From: Doug Drymon, Deputy City Manager

Subject: Resolution authorizing execution of a Lease Agreement with Paul S. Soulé Enterprises, Inc. for the use of Corporate Block Hangar #3 at Leesburg International Airport.

Staff Recommendation:

Staff recommends approval of a Lease Agreement with Paul S. Soulé Enterprises, Inc., for the use of Corporate Block Hangar #3 at Leesburg International Airport.

Analysis:

In 2006, the City of Leesburg built three corporate block hangars at Leesburg International Airport. The floor area of each hangar is 60’ x 60’ or 3,600 square feet. Normally, each hangar is occupied by one tenant. A previous tenant of Corporate Block Hangar #3 vacated the hangar and left an interior office in an unfinished condition. The condition of this space has tended to diminish the utility of the hangar from the perspective of potential renters.

Mr. Paul Soulé wishes to rent Corporate Block Hangar #3 for his airplane brokerage business. Mr. Soulé plans include renovating the interior office for use as a small classroom for advanced flight instruction, and to serve as the headquarters for a small flying club. Mr. Soulé is willing to undertake renovations to the office space at his cost, in consideration for a 5-year lease with two 12-month extensions. It is in the City’s best interest to lease the hangar for this extended term.

Options:

1. Approve the attached Corporate Block Hangar Lease Agreement with Paul S. Soulé Enterprises, Inc.

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

This Lease Agreement will generate $10,800.00 in revenue annually for the Airport during the first two years of the lease. Thereafter the annual rent will increase to $12,000.00 before adjustments for CPI.

Submission Date and Time: 7/3/2012 6:48 PM____

Department: _____Airport_____________ Prepared by: ______DD______________ Attachments: Yes__X_ No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes___ No ____ _________________________________ Revised 6/10/04

Reviewed by: Dept. Head ________ Finance Dept. __________________ Deputy C.M. _______DD_________ Submitted by: City Manager ___________________

Account No. _001-0000-362-0200__ Project No. ___________________ WF No. ______________________ Budget ______________________ Available _____________________

RESOLUTION NO._______________

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CORPORATE BLOCK HANGAR LEASE WITH PAUL S. SOULÉ ENTERPRISES, INC.; AND PROVIDING AN EFFECTIVE DATE.

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

THAT the Mayor and City Clerk are hereby authorized to execute a Lease Agreement with Paul S. Soulé Enterprises, Inc., whose address is 981 Hawk Landing, Fruitland Park, FL 34731, for the use of Corporate Block Hangar #3 at Leesburg International Airport.

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 _9th____ day of July, 2012.

__________________________

Mayor

ATTEST:

_________________________________

City Clerk