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 Second Amendment to the Ground Lease between the City of Ocala, Marion County Sheriff’s Office, and the Marion County Board of County Commissioners with first lease year revenue of $18,103
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
NA
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BACKGROUND:
The Marion County Sheriff’s Office (MCSO) Air Unit, also known as Air One, is a specialized aviation division that provides aerial support for law enforcement operations throughout Marion County, Florida. The unit plays a crucial role in public safety, helping in search and rescue missions, suspect pursuits, surveillance, disaster response, and medical evacuations.
MCSO has maintained a hangar ground lease at the Ocala Airport since 2002, with the most recent lease executed on February 1, 2011. A lease amendment in 2019 modified the leased premises by removing an office building and expanding the hangar space, with a corresponding lease rate adjustment.
An additional hangar is proposed for construction to accommodate MCSO’s growing fleet and operational needs. Lease Amendment No. 2 facilitates this expansion by implementing the following modifications:
• Adds the Marion County Board of County Commissioners as a party to the agreement and co-tenant of the premises.
• Updates the leased premises with a detailed Exhibit A sketch and legal description.
• Resets the lease term to 40 years, with two optional five-year extensions, leading to a final termination date of March 31, 2075.
• Establishes a two-year timeframe from execution for MCSO to complete the hangar improvements and obtain a certificate of occupancy. Failure to meet this deadline will revert the lease term to the original expiration date of January 1, 2043.
• Provides that if the lease is terminated within the first five years of this amendment, the City will compensate the tenants based on the then-current fair market value of the improvements.
• Clarifies procedures for the sale of improvements, ensuring that if ownership transfers to a non-governmental, non-tax-exempt entity, a new lease amendment must be executed to address the change in status.
• Updates Exhibit B rent roll to reflect the revised premises and rate structure, incorporating a 2 percent annual increase through the lease term.
FINDINGS AND CONCLUSIONS:
• The Airport Advisory Board supports this amendment.
• The revised leased premises increase from an estimated 1.5 acres to a surveyed 1.616 acres.
• The proposed development aligns with the planned construction of a hangar by Ocala Aviation, the adjacent tenant.
• The new MCSO hangar will measure approximately 110’ x 70’, with an attached office space of 40’ x 70’ and a landing ramp/pad of 80’ x 110’.
FISCAL IMPACT:
$1,508.65 per month will be applied to revenue account 451-362-000-000-02-31211. This is a total revenue of $18,103.80 for Fiscal Year 2024-25 with a 2 percent annual increase.
PROCUREMENT REVIEW:
This Amendment has been reviewed by the Contracting Officer in compliance with City policy.
LEGAL REVIEW:
This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny