Submitted By: Matthew Grow
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Presentation By: Matthew Grow
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Department: Aviation
FORMAL TITLE:
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Award of a 40-year Ground Lease Agreement to GLJ Aviation LLC
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Fiscally Sustainable
PROOF OF PUBLICATION:
Released to the Public: 3/28/26
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BACKGROUND:
On March 28, 2024, the City advertised an opportunity to engage with parties qualified, capable, and willing to fund, design, develop, and operate a facility or enterprise that will serve or support operations at the Ocala International Airport in compliance with Federal Aviation Administration policies and Airport standards. The invitation to negotiate (ITN), ITN No. AIR/240448, stated that the City intended to enter negotiations with a developer, culminating in a 40-year lease of the subject property and addressing the parties’ rights and obligations regarding the development of the subject City-owned property.
The solicitation closed on May 7, 2025. One response was received from GLJ Aviation LLC (the Developer). After reviewing the Developer’s ITN response, the internal selection committee voted to recommend an award to GLJ Aviation LLC.
Using the lease agreement included in the ITN as the basis for negotiations, staff met with the Developer and agreed on the terms of the proposed long-term lease.
The “Hexaport,” a hangar that was constructed in the early 1980s and leased to numerous entities over the years, recently had its 40-year ground lease expire. The property is currently on a month-to-month arrangement with the City and is wholly within the Option parcel identified in the proposed GLJ lease agreement. The City has long desired to redevelop the property, as the existing building configuration and operational use are not compatible with the larger aircraft activity surrounding the site. Staff has worked closely with the Hexaport occupants to facilitate an orderly and equitable transition. The GLJ lease allows for a 120-day due diligence time frame, along with 120 days to secure permitting. Collectively, these periods provide approximately eight months prior to potential redevelopment activity on the site.
FINDINGS AND CONCLUSIONS:
• Maximum lease term of 40 years.
• Ground lease rate of $0.36 per square foot, increasing 3 percent annually beginning January 1, 2027, as established by the 2025 appraisal.
• Five-year right of first refusal on an adjacent parcel at a rate of $1,000 per acre, per year (approximately $3,000 annually).
• The Airport Advisory Board reviewed the proposal but had questions regarding the Option term.
• Staff recommends approval.
FISCAL IMPACT:
The primary lease parcel consists of approximately 67,860 square feet and is projected to generate approximately $24,429.60 during the first full lease year. The ROFR parcel is a little over three acres and generates approximately $3,000 in annual revenue while the Option is active. Estimated annual revenue for Fiscal Year 2026-27 is approximately $27,429.60 in account 451-362-000-000-02-31211.
PROCUREMENT REVIEW:
The underlying solicitation was conducted in compliance with the City’s Procurement 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