Staff recommends approval of the Lease Agreement with Hurley Aviation Enterprises, LLC.
The Airport contains a parcel of land located north of the ARFF Station that is suitable for construction of four 100’ x 100’ corporate hangars. The site is approximately 145,728 +/- square feet. Hurley Aviation Enterprises, LLC is proposing to lease this land from the City. Hurley intends to build four corporate hangars and a taxi lane from Taxiway Kilo (K) to the site. The proposed use of the hangars is to hangar corporate aircraft with the possibility of establishing a maintenance shop for turbine or turbo prop aircraft. Hurley Aviation Enterprises, LLC currently owns a corporate hangar located at 32838 Echo Drive.
Relevant points of the lease are as follows:
1. The lease term is twenty years with no option for an extension.
2. Development strategy will be:
· Year one – No development.
· Year two – No development.
· Year three – Build one corporate hangar.
· Year four – By the end of year three and four, all four corporate hangars to be built.
3. Rent structure will be:
· Year one – $364.32 per month plus applicable taxes.
· Year two – $ 364.32 per month plus applicable taxes.
· Year three – $1,092.96 per month plus applicable taxes.
· Remaining years – $1,092.96 per month plus applicable taxes.
At the end of the twenty-year lease, the hangars will become property of the City of Leesburg. If the Lessee wishes to remain in control of the hangars, they will have first option to lease the hangars and land. However, a new lease rate will be calculated based on the appraised value at the current period rate as determined by the Airport Manager and/or licensed appraiser.
This agreement was reviewed by the Airport Advisory Board at the January 14, 2009 meeting and recommended approval.
1. Approve the Lease Agreement with Hurley Aviation Enterprises, LLC; or
2. Such alternative action as the Commission may deem appropriate
Approval of this lease will generate $4,371.84 annually to the airport for the first two years of the lease term. Beginning with the third year of the lease term, the annual revenue amount will increase to $13,115.52.
Prepared by: ___Charlie Weller_____
Attachments: Yes __X_ No ___
Advertised: ____Not Required __X___
Attorney Review : Yes _X__ No ____
Reviewed by: Dept. Head ________
Finance Dept. ___________JB_____
Deputy C.M. ____EFS____________
City Manager ___________________
Account No. _001-0000-362-0200__
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH HURLEY AVIATION ENTERPRISES, LLC FOR PROPERTY AT LEESBURG INTERNATIONAL AIRPORT; 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 Hurley Aviation Enterprises, LLC whose address is 4129 United Avenue, Mount Dora, Florida 32757 for property 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 ___26th____ day of ____January ____ 2009