Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
STAFF RECOMMENDATION (Motion Ready):
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Approve a two-year hangar lease with the Florida Fish and Wildlife Commission with a receivable amount of $90,298
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Florida Fish and Wildlife Commission (FWC) has been a tenant at the Ocala International Airport since approximately 2004. FWC operates helicopters and fixed wing aircraft in their law enforcement roll and often bases multiple aircraft from its Ocala hub. The current lease (Contract No.: AIR/210445) expires on March 31, 2023. FWC has requested a new two-year contract with a commencement date of April 1, 2023, and an expiration date of March 31, 2025 with an option for five, one year extensions.
The proposed gross lease includes a blended rate for hangar and office space over the next rental period of 2023-2030 based on a formula of dedicated office space, common office space, and dedicated hangar space (see attached jpg). The rates are consistent with what Sheltair Aviation (Airport Fixed Based Operator) is charging for their older office and hangar location at the Airport.
FINDINGS AND CONCLUSIONS:
The lease is for office and hangar space at 750 SW 60th Avenue, otherwise known as Hangar 19.
Prior to the construction of the new terminal building, Airport Administration, Forestry, and the Florida Department of Fish and Wildlife (FWC) shared office and hangar space within Hangar 19.
With the vacancy created by the relocation of Airport Administration to the new terminal, both Forestry and FWC were required to lease the newly vacant space. The lease rate also increased significantly to cover the increase in utility, insurance, and other costs (gross lease). FWC is a tenant in excellent standing. This two-year lease agreement represents a significant revenue increase from the lease term.
The Ocala Airport Forestry office employs two pilots, and two mechanics.
FISCAL IMPACT: Contract # AIR/230359
Lease year 1: $44,477.46
Lease year 2: $45,820.90
Option years 3 through 7 increase at 3% annually.
Revenue will be applied to account 451-362-000-000-02-31191.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This lease will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny